1. Anni Kammonen, Akseli Malinen & Majok Kariom

2. Agenda Introduction Research Problem Theory Practice Conclusion
Finnwatch: What Does It Do?
Research Problem
Theory
Analysis Framework
NGOs’ Traditional Position & Changing Role
Practice
Common Challenges in Host Countries
Finnwatch’s Role as NGO
Shared Value Creation through Collaboration
Making an Impact
Conclusion

3. What Does It Do?

4. Finnwatch

5. Finnwatch: It detects issues in Finnish MNCs’ supply chain
Investigates the global impacts of Finnish companies
Reports on the problems
Follows up in the field
An NGO focused on corporate responsibility, monitors Finnish MNCs globally
4 employees, 10 reports in 2015
Revenue almost e in 2015

6. Research Problem:
How does Finnwatch create shared value in their interactions with Finnish companies with supply chains in South-East Asia?

7. Analysis Framework
Creating shared value: “creating economic value in a way that also creates value for society by addressing its needs and challenges” (Porter & Kramer, 2011)
-> Finnwatch seeks to help businesses recognize opportunities to create shared value
Framing: presenting issues in different ways to manage the nonmarket – social, political and cultural – perception of them (Bach & Blake, 2016)
-> Finnwatch frames its research and reports to match its aims: emphasizes certain issues

8. NGOs’ Traditional Position (Teegen & Doh, 2014)
Private, not-for-profit organizations
Serve particular societal interests
Fulfill the needs of society that the market and the state cannot fulfill
Present MNCs with opportunities to be socially responsible
“NGOs are private, not-for-profit organizations that aim to serve particular societal interests by focusing advocacy and/ or operational efforts on social, political and economic goals, including equity, education, health, environmental protection and human rights.” (Teegen & Doh, 2004)
“NGOs present multinationals with opportunities to shape socially responsive non-market strategies without any explicit intermediary role of government.” (Teegen & Doh, 2004)

9. NGOs’ Changing Role Hybrid business models:
“Roles are also changing: civil society actors are demonstrating their value as facilitators, conveners and innovators as well as service providers and advocates, while the private sector is playing an increasingly visible and effective role in tackling societal challenges.”
(World Economic Forum: The Future Role of Civil Society, 2013)

10. Finnwatch’s surplus in 2015:
NGOs’ Changing Role
NGOs as MNEs (Teegen & Doh, 2004):
NGOs create both social and economic value
Often have a price for services -> occasionally yields a surplus
Manage significant resources internationally -> same pressures and influences (globalization etc.)
Finnwatch’s surplus in 2015:
39 479,97 e

11. Common Challenges in Host Countries
What are they
doing here?
Wait and see
Do you
believe them?
(Kostova & Zaheer, 1999)

12. Finnwatch’s Role as NGO
Spreads influence of Finnish institutions
Global governance/context
Able to look beyond borders, act on a global stage
Progress on social issues
Keeps the worst outcomes of capitalism at check
Sustainability, legitimacy, equality
(Teegen et al., 2004)

13. Shared Value Creation through Collaboration
Finnwatch does not directly create economic value through its own operations
Needs to collaborate with economic actors to create shared value
Finnwatch helps companies benchmark their progress on social issues
Identifies improvement opportunities
Takes on economic burden of information gathering (externality)
(Porter & Kramer, 2011)

14. Making an Impact
Finnwatch uses framing to maximize the influence of their monitoring activities
(Bach & Blake, 2016)

15. Conclusion “Bad companies are destroyed by crisis,
Good companies survive them,
Great companies are improved by them.”
-Andy Grove
Former CEO of Intel, 1994

16. References
Bach, D. & Blake, D.J. (2016). Frame or get framed: The critical role of issue framing in nonmarket management. California Management Review, 58(3):
Kostova, T. & Zaheer, S. (1999). Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise. The Academy of Management Review, 24(1):
Porter, M.E. & Kramer, M.R. (2011). The Big Idea: Creating Shared Value. Harvard Business Review, January- February,
Teegen, H., Doh, J.P. & Vachani, S. (2004). The importance of nongovernmental organizations (NGOs) in global governance and value creation: an international business research agenda. Journal of International Business Studies, 35(6):