Corporate social responsibility in Icelandic non-life insurance companies

Abstract

The demand for increased corporate social responsibility (CSR) has become more intense worldwide in recent years. After the collapse of the Icelandic banking system in the autumn of 2008, there were protests against the Parliament, the business sector and the government, demanding that those liable for the situation assumed responsibility for their actions or be taken to court. The public requested new values for business practices and increased responsibility. Additionally, the demand was to measure and disclose corporate responsibility performance. The aim of this study is to look at how four Icelandic non-life insurance companies have responded to the call for increased emphasis on corporate social responsibility, their strategies and how they are implemented. To reach our goal the insurance company websites were examined for CSR themes. In particular we looked for examples on whether and in what way the companies operate in accordance with CSR, whether they have formally committed to CSR, and how they disclose information to stakeholders. Additionally, interviews were carried out with executives and specialists within the insurance companies. They were asked about their companies’ CSR emphasis, drivers behind actions and the main implementation challenges. The study reveals that all four insurance companies place some emphasis on CSR, but have made limited progress when compared to what definitions of CSR comprise. Two of the companies have adopted CSR strategies, while the other two companies are planning to do so. Actions brought up as examples by interviewees included loss prevention and recycling initiatives, grants and support to various community projects. The main barriers to implementation identified were company size and time constraints. The theoretical value of the study is a better understanding of the first steps of CSR implementation in insurance companies and the discourse related to CSR within the companies, but limited research on non-life insurance companies is available in this field. The practical value of the study lies in the status assessment which non-life insurance companies can look to in the continued implementation of social responsibility in their operations.