Strategic Positioning with an Environmentally Responsible Image

Abstract

Companies are increasingly becoming interested in responsible business due to external pressures and possibilities of enhancing competitiveness. The purpose of this study is to explore and analyze the strategic implications of corporate responsibility (CR) with a model building approach – how can a firm position itself with corporate responsibility (CR) and in particular with environmental responsibility?

The findings of this single case study in the Nordic hospitality industry provide evidence that corporate responsibility (CR) can be a strategic issue and a source of competitive position. A firm can position itself with an environmentally responsible image. The image is reflected from a responsible identity that is built upon the values of the firm – and communicated to the key stakeholders. The perception in the key stakeholders leads to differentiation from competitors, however with an approximated time delay of 3 to 4 years. Thus the firm becomes a more preferred employer, partner and supplier; results as enchanced employees’ motivation, cost savings, better reputation, and greater guest loylty.

Since stakeholder oriented firms modify their values according to their stakeholders’ values, the success of strategic positioning with CR depends on managerial capabilities to adjust the amount of CR to correspond with their key stakeholders’ values. In addition to this micro-level analysis, it is important that firms take into consideration the drivers, or lack of them, also on the meso-, macro-, and global-levels.