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The Role of Fair Trade in Developing Corporate Social Responsibility: An Empirical Examination Based on Multiple Cases

Author

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  • Khuram Shahzad

    (University of Vaasa, Finland)

  • Ilkka Sillanpaa

    (University of Vaasa, Finland)

Abstract

Purpose: Corporate social responsibility is becoming more and more important for the firms from developed countries. The main purpose of this research paper is to examine empirically the role of fair trade in developing corporate social responsibility (CSR) and to find out the dynamics of CSR being used in organizations. Design/methodology/approach: This qualitative case study research reviews the fair trade incorporating the historical developments, its conceptualization, and main motives along with CSR and its historical developments and conceptualization including major theories of CSR. The role of fair trade is developed by identifying the importance of CSR factors. To empirically examine the role of fair trade in developing CSR, this research employs the comparative multiple cases in Finland and Pakistan. Findings: The main conclusions are as following: fair trade firms give equal importance to economic, social, and environmental responsibilities. Further, this study identifies the important factors included in each level of corporate social responsibility. Findings also reveal that suppliers are important stakeholders of the firms. Moreover, it depicts the importance of fair trade in developing CSR for diversified products. Originality/Value: This research highlights the importance of fair trade in developing the economic, social, and environmental responsibilities of fair trade firms by focusing an important stakeholder group (i.e., suppliers). These trends represent the increasing demand of fair trade in businesses and also help them to know the important factors in corporate responsibility by considering the significance of suppliers as important stakeholders.

Suggested Citation

  • Khuram Shahzad & Ilkka Sillanpaa, 2013. "The Role of Fair Trade in Developing Corporate Social Responsibility: An Empirical Examination Based on Multiple Cases," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    • Handle: RePEc:tkp:tiim13:s1_236-255
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    References listed on IDEAS

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    1. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    2. Darryl Reed, 2009. "What do Corporations have to do with Fair Trade? Positive and Normative Analysis from a Value Chain Perspective," Journal of Business Ethics, Springer, vol. 86(1), pages 3-26, April.
    3. Gavin Fridell, 2009. "The Co-Operative and the Corporation: Competing Visions of the Future of Fair Trade," Journal of Business Ethics, Springer, vol. 86(1), pages 81-95, April.
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    5. Carolyn Strong, 1997. "The Role Of Fair Trade Principles Within Sustainable Development," Sustainable Development, John Wiley & Sons, Ltd., vol. 5(1), pages 1-10.
    6. Valéry Bezençon & Sam Blili, 2009. "Fair Trade Managerial Practices: Strategy, Organisation and Engagement," Journal of Business Ethics, Springer, vol. 90(1), pages 95-113, November.
    7. Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(3), pages 331-349, July.
    Full references (including those not matched with items on IDEAS)

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