A conceptual model for consumer-driven corporate social responsibility & effective firm strategy with applications in the Norwegian fish farming industry

Abstract

This is a conceptual thesis that explores the notion of “consumer-driven” corporate social responsibility and how firms can drive the demand for CSR from consumers through effective firm strategy.1 Consumer-driven CSR for the purpose of this research has been defined as corporate social responsibility activities enabled by the consumers of the products & services offered by a firm, such that the consumers demand credible CSR products and services from the firm, and the firm has no choice but to supply such credible CSR products and services in order to survive in the broader industry. The conceptual framework built in this thesis focuses on the creation of this demand among consumers and eventual supply of CSR from firms that are initially assumed to play a passive role. The demand aspect in this bottom-up model initiates with individual demand based on individual consumers’ values, perceptions, beliefs and moral norms, moving towards a question of individual perception of credibility of a firm’s CSR claim, to a group level demand based on existing theories for social movements and amplification of public opinions, as well as the impact of the demand for public action for credible CSR resulting in a mass demand for CSR. The supply of CSR by firms, as a response to this demand, has been explained using an enviropreneurial strategy. This model also explores externalities such as culture and institutional framework in a society and how they impact the demand and supply of credible CSR. Using this base model, a complex two-way model has been explored together with effective firm strategies for how a firm can impact individual and group level demand, as well as the externalities, to ensure substantial consumer-driven CSR for guaranteeing competitive advantage or for bringing about industry-wide changes. Finally, since the topic was inspired by Marine Harvest, the case of Norwegian Fish Farming Industry has been used to demonstrate the base model and complex model in practice.