The process of business responsibility

The sustainability section of Stora Enso’s website contained also references to the process element of business responsibility. First and foremost the company recognises stakeholder relationships as central in creating ethical corporate behaviour. Stora Enso specifically describes stakeholder engagement as their approach to business responsibility.

“Stora Enso’s operations have an impact on a wide range of stakeholders. These include employees, investors, customers, suppliers, and the communities where we operate. We listen and engage with all stakeholder groups with the aim of finding solutions and succeeding together.” (Stora Enso website, 1.4.2010c.)

In the statement Stora Enso recognises business responsibility to be the responsibility over the impact of corporate behaviour on stakeholders. The stakeholder list mentions only primary stakeholders that the company requires in order to continue operation. However the phrase “all stakeholder groups” infers that the list of stakeholders is only partial and that the company recognises to having a wider set of potential stakeholders. Stora Enso also signals to recognise the reciprocal benefits that engaging with stakeholders can create for both the company and to the stakeholders.

54 The company signals to recognise the role of balancing stakeholder interests in business responsibility. The phrase “finding solutions and succeeding together” refers that Stora Enso recognises the presence of various interests of stakeholders. The last two words in the quote, “succeeding together”, in turn indicates that Stora Enso sees stakeholder engagement to lead to positive end result for both the company and the stakeholders. Stora Enso states to engage stakeholders in two-way communication in order to find solutions together that create mutually beneficial results. Furthermore Stora Enso mentions dialogue as the method stakeholders are engaged in simultaneous sense-making and sense-giving.

“We are transparent in our communication and engage our stakeholders in active and constructive dialogue” (Stora Enso 2006a).

The company recognises the necessity of communicating with stakeholders in order to balance stakeholder interests but also the role of transparency in stakeholder driven business responsibility. Stora Enso states to act in a manner of total disclosure and to provide the relevant and accurate information for stakeholders on its behaviour.

Whereas the principle of business responsibility is elaborated extensively in the sustainability section Stora Enso’s website, the description of the process element is rather limited in comparison. Stora Enso could have elaborated for example how stakeholder engagement is executed with regard to the four promises on the company´s ethical corporate behaviour. Instead the company mainly describes rather briefly how stakeholders are involved with regard to the promise of using only sustainable wood. The company says to take the interests of stakeholders into account when establishing tree plantations.

“A new tree plantation has an effect on the local landscape and can

55 raise questions in local communities. For this reason, we engage local stakeholders in dialogue.” (Stora Enso website 1.4.2010m.)

The company also engages the stakeholder network more widely to advance sustainable wood sourcing in the industry by supporting forest certification, which is used to show that the products made from wood are made from well-managed forests.

“Independent nonprofit organisations develop and manage such forest certification schemes in partnership with a wide range of stakeholders, of which Stora Enso is one. [---] Stora Enso helps increase forest certification by working with both certification systems and stakeholders.” (Stora Enso website 1.4.2010l.)

In addition to advancing forest certification, Stora Enso says to support stakeholder processes relating to protection and restoration of old-growth forests. There are numerous definitions for growth forests since old-growth is an ecosystem-specific condition and Stora Enso states to follow the definitions created for each specific condition:

“In each region, we apply definitions that have been agreed upon in national stakeholder processes where representatives from a wide range of interest groups have participated” (Stora Enso website, 1.4.2010n).

The company signals to support and accept the interpretations of the stakeholder network in the process of determining the well-being of the environment. Stora Enso participates in the determination process of the stakeholder network and utilises the results of the collaboration done by other members of the network. The company recognises the relational nature of business responsibility – that the evaluation of ethical corporate behaviour is interpreted between the members of stakeholder network. Stora Enso recognises the network structure present in the process of determining sustainable forestry and also itself as a member of the stakeholder network that is not always in the focal point. The involvement with the stakeholder

56 network more widely than dyadic basis Stora Enso is pursuing to create impacts that meet the interests of critical stakeholders as in the case of sustainable forestry and environmental NGOs.

Stora Enso participates in the stakeholder network through various organisations. The memberships of Stora Enso provide examples of collaboration the company engages in order to fulfil the promises given in regard the behaviour of the company. For example, Stora Enso is a member of UN Global Compact Nordic Network that promotes human and labour rights alongside ethical business practices which connotes with the promise of playing by the game rules. The Forest Dialogue (TFD) in turn concerns the conservation and sustainable use of forests, touching the promise of using sustainable wood. Water Footprint Network (WFN) promoting sustainable, fair and efficient use of fresh water resources is connected to the promise of reducing negative environmental impact. The promise of curbing climate change in turn is present in the effort of the World Business Council for Sustainable Development (WBCSD) which is “a coalition of international companies united by a shared commitment to sustainable development”

(Stora Enso 2009a, p.11). The memberships in various organizations portray the characteristics of corporate citizenship where Stora Enso collaborates in order to create a positive impact by working to change the current practices for the better.