Anne Toppinen

Global Reporting Initiative and social impact in managing corporate responsibility: a case study of three multinationals in the forest industry

We examine recent evolution in corporate responsibility in the forest industry, an important natural‐resource‐based industry which is under rapid internationalisation and structural change under challenging financial pressures. We address two recent trends in corporate communication: corporate disclosure, that is the adoption of consistent external reporting standards [namely the Global Reporting Initiative (GRI)], and the growing awareness of engagement with and impact on local communities through philanthropy, generation of prosperity, communication and the social impact of core activities. This study uses a comparative qualitative case approach to forest industry multinational enterprises (MNEs) based on a combination of secondary (reporting, company newsletters and other documentation) and interview data. Three large‐scale multinational forest industry firms, all pursuing different strategies in terms of internationalisation and geographical and product diversification, were chosen for the study: Stora Enso, SCA and Sappi Ltd. Our results show that the overall quality of sustainability reporting has improved in these companies from 2005 to 2009 with the adoption of GRI. However, based on our fourfold categorisation of social impact, the core social impact indicator in GRI (SO1) has been interpreted very differently in these MNEs, and the adoption of GRI has not actually much improved the comparability of the reports or transparency of practices.

Shades of green: a social scientific view on bioeconomy in the forest sector

Politics increasingly introduces initiatives supporting a shift toward a bioeconomy aiming at a society relying strongly on renewable biological sources while achieving economic growth efficiently and sustainably. However, the agenda of bioeconomy comprises different “shades of green,” in the sense that different actors stress different aspects of the concept, when embracing it in communication. This conceptual paper aims to present policy and socioeconomic theoretical frameworks and research areas relevant for a more holistic understanding of the bioeconomy concept applied to the forest sector, and identify a core set of potential contributions from social sciences for enhancing the bioeconomy in the forest sector. The paper focuses on studies within policy analysis, economics, and business administration disciplines. Thus it presents diverse disciplinary perspectives on the forest sector in a bioeconomy. Furthermore, innovation and sustainability have been identified as issues relevant to be approached across these disciplines.

Sources of competitive advantage in woodworking firms of Northwest Russia

Purpose – The existing literature emphasizes the strategic choices of core competencies/capabilities based on intangible and tangible resources, and the combination of these as the base for developing firm‐level strategies. However, little is known about the organizational structure, strategic orientation, and future goals of woodworking firms in the East‐European countries in transition. This paper aims to produce information contributing to these information needs regarding Northwest Russia (NWR).Design/methodology/approach – The largest potential increase in both production of and demand for wood products is in Russia, and this paper examines the issue in a case study of 18 small‐ and medium‐sized wood industry companies in NWR using thematic semi‐structured personal interviews.Findings – The results indicate that closeness to the main markets, good logistics connections and access to large markets, i.e. other than raw‐material related factors, are the main perceived sources of competitive advantage am...

Structural changes in sawlog and pulpwood markets in Finland

This paper presents a short‐term econometric model for the sawlog and pulpwood markets in Finland. More specifically, the effects of structural changes in the market on the success of short‐term market modelling are investigated. Wood prices and quantities traded are stationary. Therefore, valid statistical inference using the levels of these variables is possible. Pulpwood prices were found to be directly proportional to sawlog prices during the study period, and the cross‐price effects were not statistically significant. The results indicated that the price sensitivity of wood supply in Finland increased during the 1980s and early 1990s. Nationwide collective price agreements were found to have increased the level of pulpwood supply and demand from private forests, but to have had no effect on either supply of or demand for sawlogs. Due to a structural change in the 1970s, the models estimated for the whole period cannot be used for short‐term forecasting in the 1990s. Higher‐than‐annual frequency data ...

Transmission of price changes in sawnwood and sawlog markets of the new and old EU member countries

In the European sawnwood markets, competition is tight between producer countries, with the new EU countries gradually gaining larger market shares. This paper focuses on the pass-through of sawnwood prices to supplier countries’ national roundwood prices. Price-change effects on market shares are known to be large, but not so much is known about the timing and duration of price transmission between competitor countries. Our empirical analysis concerns the exports of four large sawnwood supplier countries in Europe (Finland, Austria, Estonia and the Czech Republic) to German markets, using quarterly panel data for 1995–2003. The transmission process was found to differ between countries, and the relationship was most clearly detectable between Finnish sawlog and sawnwood prices. Results based on seemingly unrelated regression analysis indicated that price transmission exhibits similarities between old (i.e. Austria, Finland) and new EU member countries (Estonia, Czech Republic). Overall developments in both sawnwood and sawlog prices displayed convergence in the study period, which indicates that deepening integration in European markets is also detectable in the forest sector.

Non-industrial Private Forestry Service Markets in a Flux: Results from a Qualitative Analysis on Finland

Previous research on European forestry service markets is scarce and mainly focused on analysing external market environment and modelling of timber selling behaviour of non-industrial forest owners (NIPFs). In this study, we aim to create a broader understanding about business perspectives of forestry service markets covering the whole array of market and institutional based services offered to the NIPFs in case of Finland. The more specific empirical objective of the paper is to describe market drivers and underlying challenges in existing and potential service business models based on the concepts of service-dominant logic and dynamic capabilities. Using a qualitative approach and 22 thematic expert interviews in service organisations, we strive to analyse the drivers and opportunities for creating new services within the NIPF market and also build insight in possible barriers for new service value creation. According to our results, the ongoing structural changes offer new opportunities to change traditional mindsets and search for new types of offerings that support the renewal of this traditional forestry sector. As one of the major barriers for new innovations we identified the dominant role of established organisations securing their current positions, mainly driven by the forest industry timber procurement needs. From a managerial perspective, the changing institutional base of the current service organisations may facilitate new innovative business start-ups in addition to enhancing the strategic capabilities and competitiveness of the established firms in Finnish forestry sector.

Consumer perceptions of environmental and social sustainability of wood products in the Finnish market

Abstract Consumers in todays world can perceive an additional benefit associated with responsible business practices and the sustainability of purchased products. However, in Scandinavian context, there is a lack of knowledge of consumer perceptions toward environmental and social sustainability of wood products. Our data on adult Finnish consumers (private end-users) (N=227) were collected during 2004–2007 as interview exit data from home retail centers selling building materials. The perceived environmental and social sustainability of wood products was investigated using exploratory factor analysis, and the phenomenon was observed to be a two-dimensional construct consisting of “General environmental and social sustainability” and “Specific social sustainability” reflecting strong consumer need for product safety. Logistic regression analysis revealed that the “General” dimension also explains the consumers self-declared willingness to pay for sustainable wood products. The results also indicate that the respondents may be segmented based on their perceptions on product level environmental and social sustainability: the most environmentally and socially conscious group can be profiled by gender (female), older age, and summer cottage ownership.

Integration of roundwood markets in Austria, Finland and Sweden

Abstract The study presents empirical testing of the law of one price (LOP) on the spatial roundwood markets formed by Austria, Finland and Sweden. Using annual delivery prices of pine and spruce sawlogs and pulpwood from 1980 to 1997, high positive correlation was found between prices in the three countries, in particular for pulpwood prices. The LOP seems to hold between Finnish and Swedish roundwood markets. However, clear price co-movement between Austria and the two Nordic countries could not be detected. Overall, the results suggest that roundwood markets in northern Europe form, roughly speaking, single commodity markets, which is one of the European Unions main policy aims. Further integration of the markets can be expected due to the continuous globalization of the forest industry and the deepening economic integration of the EU.

Price dynamics in the Russian–Finnish roundwood trade

Abstract This study examines price dynamics in roundwood exports from Russia to Finland, the largest international roundwood trade flow within Europe. The analysis covers six main timber assortments; sawlog and pulpwood dimensions of pine, spruce and birch. The study period, starting from the devaluation of the rouble in August 1998, was characterized by a drastic increase in the volumes of Russian roundwood imported into Finland, and a coinciding structural change in the timber assortment distribution of the Finnish roundwood imports. A basic hypothesis of economic theory, the law of one price, was tested by using quarterly time series and methods of cointegration analysis. According to the cointegration tests, the prices of Finnish and Russian spruce sawlogs have moved closely together. Furthermore, the changes in the prices of spruce sawlogs in the Finnish roundwood market are reflected in the Russian prices and not vice versa. Regarding other timber assortments, price co-movement and consequent market integration was not detected.

Consumer value dimensions for sustainable wood products: results from the Finnish retail sector

Our study focuses on exploring on the dimensionality of sustainability in perceived consumer value regarding wooden products in the Finnish context. Factors affecting consumer value on sustainability were derived from the literature on sustainable consumption and tested on a specific case of wooden terrace products through a developed survey instrument. The dimensions of sustainability-based consumer value were identified using a factor analysis on data consisting of 208 responses collected in the home and building material retail sector in May–June 2013. Four-dimensional structure for consumer value concerning sustainable and responsible wooden products is identified to consist of “Information and product origin,” “Consumer activity,” “Product image,” and “Quality.” The first two, sustainability-related factors were more strongly valued by elderly as well as by female respondents, while “Quality” and “Image” were more preferred by young and middle-aged respondent groups. As for the conclusion, our results suggest that improving the sustainability information content, launching awareness campaigns and environmental education as well as applying greenness as a complementary product attribute would be some of the solutions to attract larger consumer groups.