Forest companies, corporate social responsibility, and company stakeholders in the Russian forest sector

Abstract

Responsible business practices have been a steadily growing issue in the Russian forest sector and they have become an integral part of the business strategy of the forest companies. The objective of this paper is to examine corporate social responsibility (CSR) of the forest companies in Russia and how CSR evolves. In this paper, CSR is analyzed by studying the stakeholder relations of the forest companies, to whom forest companies bear responsibility and why certain stakeholder relations are emphasized by the forest companies. CSR in the Russian forest sector is evolving along with the whole economic system and institutional framework. The business practices of forest companies are influenced by Russia's past, informal constrains, as well as global private regulation. CSR in the Russian forest sector has traditionally materialized in the relationship between the forest company, its employees, and local communities. The role of private regulation, in the form of forest certification, and markets is nowadays very significant. The forest sector in Russia is dominated by large forest companies which have adopted the policy of certifying their operations. Forest certification is a significant CSR initiative in the Russian forest sector. It emphasizes the environmental dimension of corporate social responsibility and the company relations with its customers. Forest companies that are committed to forest certification as well as foreign forest companies that operate in Russia are evolving corporate social responsibility in the Russian forest sector.