University of Twente Student Theses
Corporate Sustainability : CSDDD Implementation Challenges and Strategies in the Nordic Manufacturing Sector
Sarkkinen, M.H. (2024) Corporate Sustainability : CSDDD Implementation Challenges and Strategies in the Nordic Manufacturing Sector.
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| Abstract: | Globalisation has led to numerous environmental and ethical concerns, particularly within complex supply chains. Due to the gap in global governance, there has not been a single effective way to address these issues. The European Parliament adopted the Corporate Social Due Diligence Directive (CSDDD) as a structured solution to address this gap. However, several challenges and uncertainties surround its implementation. This thesis explores the challenges and strategies of implementing the CSDDD within the Nordic manufacturing sector. The focus on manufacturing companies in Finland, Sweden, and Denmark is motivated by their recognition as sustainability and corporate responsibility leaders in Europe. The directive mandates comprehensive due diligence regarding environmental and human rights impacts across companies' operations, with significant implications for corporate governance and supply chain management. Engaging in qualitative research involving semi-structured interviews with experts from 12 major manufacturing firms, a holistic view of implementation challenges and measures was developed. The findings identified several challenges, including a lack of internal preparedness, a narrow perception of sustainability as mainly environmental while neglecting social aspects, low rights-holder engagement, and difficulties in enforcing compliance among three types of suppliers: competitors, traders, and large suppliers. The measures proposed included integrating due diligence into procurement practices and high-leverage settings such as tendering, developing supplier sustainability, adopting solutions like workers' voice technology, and participating in collective measures facilitated by industry associations. Particular emphasis was placed on the need for open dialogue on social matters. The findings aim to contribute to laying the groundwork for understanding CSDDD implementation, offering insights that could facilitate the transition towards more sustainable and ethical business practices in the Nordic manufacturing sector. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 43 environmental science, 85 business administration, organizational science, 86 law |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/100054 |
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