Case Study of the Development of CSR in Danfoss

This work‐in‐progress focuses on the CSR practice within the Danfoss Group, a leading global manufacturing
company based in Denmark. Its mechanism in CSR policy making and its learning capacity in reaction to
changes that may be caused by major events (climate change and the current financial crisis) and its global
expansion to other countries (globalization), are central in our discussion. Based on the premises of
Institutional and Stakeholder theories, a case study investigation was carried out. Information was gathered
from the available reports and the accessible online materials, through questionnaire surveys with those at
management level and also to the general employees. The outcome of the research shows that Danfoss is at
an advanced stage of CSR development. It is engaging more in the second and third CSR waves (Products &
Processes and Employee Relations), using “Foundation”, “Volunteering” as CSR Modes. Its positive learning
capacity is a contributing factor to its conducive environment for CSR to flourish. The development of CSR in
Danfoss was a gradual progression influenced by its concern for its employees, environmental and labour
market issues, and its commitment to the UN Global Compact. The current financial crisis did not impede the
implementation of existing CSR initiatives. Although there is a definite focus in employee relations, Danfoss did
not consider formulating a CSR policy simply to attract talented personnel and in retaining staff. The CSR policy
was in place because Danfoss felt it was the right thing to do.