Customer‐owned Firms and the Concept of Regional Responsibility: Qualitative Evidence from Finnish Co‐operatives

Abstract

Purpose

The purpose of this paper is to introduce the concept of regional responsibility and to provide a deeper understanding of customer‐owned co‐operatives and their social embeddedness.

Design/methodology/approach

First, extant conceptions of corporate social responsibility are discussed, concentrating on two approaches; the one employing stakeholder theory and the one employing resource‐based view of the firm. Second, co‐operatives as a form of economic organization that have a natural interest in engaging in regionally‐oriented corporate social responsibility practices are studied, including active participation in regional strategy processes and local and regional development. Finally, the concept of regional responsibility is illustrated by analysing qualitative data.

Findings

Regional responsibility is in the core of customer‐owned co‐operatives' CSR. Co‐operatives are tentative to their customer‐owners, employees and other regional stakeholders. Regional responsibility also means the utilization of the region's resources and advocacy of local interests. In fact, co‐operatives may be considered as ‘flagship enterprises’ in their regions, promoting the businesses of the whole network of economic actors linked to them. Co‐operatives engage also in non‐business related activities to support the surrounding community.

Research limitations/implications

While this study helps to understand regional responsibility of customer‐owned firms, as such the findings are limited to the context of this study.

Originality/value

The paper analyzes co‐operatives' social responsibility from a regional perspective and introduces the concept of “regional responsibility”.

Citation

Jussila, I., Kotonen, U. and Tuominen, P. (2007), "Customer‐owned Firms and the Concept of Regional Responsibility: Qualitative Evidence from Finnish Co‐operatives", Social Responsibility Journal, Vol. 3 No. 3, pp. 35-43. https://doi.org/10.1108/17471110710835563