Corporate Social Responsibility in Estonia: Moving Towards a More Strategic Approach

Abstract

Since my previous publication in the book on CSR Across Europe about corporate social responsibility (CSR) in Estonia several positive changes have taken place and we have seen a more active approach to ethics and responsibility in business. The analysis of our more recent studies shows that although companies may not publicly claim to be aware of the concept and may not realise how their activities are related to CSR, much more is actually being done in practice. Besides that, the number of organisations which have realised that being ethical and responsible in business contributes to long-term and sustainable success is growing every year. These organisations are not asking the question why they should be ethical and responsible in business, but the focus has been directed to how they should do it better. This particular paper discusses the developments of ethical and responsible business in Estonia since 1995, the time when the country’s political and economic situation became more stabilised after regaining its independence in 1991 and making radical changes towards the free-market economy. The purpose is to find out whether the approach to ethics and responsibility has become more strategic among Estonian organisational leaders during last two decades. The paper is based on the results of several studies conducted by this author and her colleagues during the last 10 years and for analysis the author has integrated two development models, describing the stages of corporate moral development and strategical corporate responsibility. A more detailed analysis focuses on the awareness and CSR activities of the organisations that have taken part in the Responsible Business Index study in Estonia in 2009–2012. It is concluded that more recent changes and developments in the business world, including the financial and economic crisis that hit Estonia rather hard, made several of the country’s most influential organisational leaders to understand the importance of different stakeholders and expectations of the society. However their activities can still be characterised as more reactive than proactive, mainly responding to the demands from customers and changes in the market and for gaining positive reputation. At the same time it can be positively noted that the number of business leaders who regard good relations, cooperation, trustworthiness and capability to act as a trusted partner on the international business arena as most important values that shape their business activities is growing every year. Those leaders have also started to approach ethics and responsibility in their organisations more strategically and regard these principles as a part of everyday and normal business activities within Estonian business society today.