Corporate Social Responsibility Strategy for FBS Company
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Introduction 4
CHAPTER 1: THEORETICAL BACKGROUND OF CSR 7
1.1. Typology of CSR practices 8
1.2. Value chain analysis for CSR strategy development 10
Summary of Chapter 1 12
CHAPTER 2: CURRENT STATE OF CSR IN FBS 13
2.1. Overview of FBS CSR Initiatives 13
2.1.1. Description of the existing CSR practices and initiatives undertaken by FBS 14
2.1.2. The systematic analysis of current CSR approach and initiatives at FBS 20
2.2. Industry Analysis 22
2.2.1. CSR practices of main competitors 22
2.2.2. Key Success Factors 31
Summary of Chapter 2 36
CHAPTER 3: CSR STRATEGYDEVELOPMENT AND RECOMMENDATIONS 38
3.1. PESTEL-analysis 38
3.2. Sustainability SWOT-analysis 49
3.3. Strategies and recommendations identification 53
3.3.1. The secondary sustainability SWOT 53
3.3.2. Key recommendations for CSR strategy implementation at FBS 56
3.4. Recommendations Implementation 59
3.4.1. Materiality Matrix for FBS 59
3.4.2. Porter's Value Chain model for FBS 64
3.4.3. Timeframes for recommendations’ implementation 70
3.3.4. Action Plan for initiatives’ implementation 72
3.4.5. Risk Analysis 74
Summary of Chapter 3 77
Conclusion 78
References 81
Appendix 87
CHAPTER 1: THEORETICAL BACKGROUND OF CSR 7
1.1. Typology of CSR practices 8
1.2. Value chain analysis for CSR strategy development 10
Summary of Chapter 1 12
CHAPTER 2: CURRENT STATE OF CSR IN FBS 13
2.1. Overview of FBS CSR Initiatives 13
2.1.1. Description of the existing CSR practices and initiatives undertaken by FBS 14
2.1.2. The systematic analysis of current CSR approach and initiatives at FBS 20
2.2. Industry Analysis 22
2.2.1. CSR practices of main competitors 22
2.2.2. Key Success Factors 31
Summary of Chapter 2 36
CHAPTER 3: CSR STRATEGYDEVELOPMENT AND RECOMMENDATIONS 38
3.1. PESTEL-analysis 38
3.2. Sustainability SWOT-analysis 49
3.3. Strategies and recommendations identification 53
3.3.1. The secondary sustainability SWOT 53
3.3.2. Key recommendations for CSR strategy implementation at FBS 56
3.4. Recommendations Implementation 59
3.4.1. Materiality Matrix for FBS 59
3.4.2. Porter's Value Chain model for FBS 64
3.4.3. Timeframes for recommendations’ implementation 70
3.3.4. Action Plan for initiatives’ implementation 72
3.4.5. Risk Analysis 74
Summary of Chapter 3 77
Conclusion 78
References 81
Appendix 87
Nowadays more and more companies implement CSR practices as one of their usual activities. The fact is that in today's business world, the idea of Corporate Social Responsibility (CSR) is not just a trend, it is a crucial part of how modern companies operate. This bachelor thesis explores the development of CSR strategy at FBS, a leading global broker, highlighting the importance of these practices in the current corporate scene. In the context of this bachelor thesis on "Corporate Social Responsibility Strategy for FBS Company'', the term "strategy" refers to a comprehensive plan or set of actions designed to achieve specific long-term goals. It involves the deliberate selection of practices and initiatives that align with the company's overall objectives, especially in enhancing its social, environmental, and economic impact. When discussing the development of CSR strategy within FBS, it includesboth the formulation and implementation of approaches that integrate CSR deeply into FBS’s core business operations.
The relevance of this research arises from a growing expectation that companies do more than just make money - they should also play a positive role in society and the environment. Specifically, CSR allows companies like FBS to show they care by dedicating resources to good causes, effectively boosting their reputation and trust among customers and partners. According to a study, 76% of companies report on CSR as a way to reduce brand reputation risk, and 83% of employees would consider leaving their job if the company displayed irresponsible CSR practices(Eser, 2024) . Furthermore, 64% of CEOs believe that CSR is core to their business strategy, emphasizing the strategic importance of CSR in today's corporate world (Eser, 2024).
FBS, a well-known broker that operates globally in over 150 countries, is actively enhancing its CSR mission. With its wide range of financial services and an impressive annual trading volume that goes well beyond $8.9 trillion, FBS's influence in the financial market is significant. Moreover, FBS is the Official Partner of Leicester City Football Club.
Under the framework of Corporate Social Responsibility (CSR) by Porter & Kramer (2006) , which is an approach for generating economic value while at the same time addressing the expectations of shareholders and stakeholders, FBS actively contributes through initiatives that support Quality Education and Sustainable Cities and Communities, designed to address the specific needs of the communities it operates in. In regions with diverse challenges like Malaysia and South Africa, there is a high need for CSR initiatives that address specific local needs. FBS iskeen on integrating its CSR efforts with the broader aims of economic and educational development in these communities, thereby strengthening its position in the market and building lasting loyalty among both new and existing customers.
Considering the crucial role CSR plays in modern business strategies, the existing approaches often remain isolated from core business operations, leading to missed opportunities for companies to benefit society and themselves. Also, Porter and Kramer (2006) observed in the Harvard Business Review that "The prevailing approaches to CSR are so disconnected from business as to obscure many of the greatest opportunities for companies to benefit society."
The managerial problem is that currently FBS faces challenges in optimizing its CSR initiatives to enhance social impact and improve business performance. Recognizing this gap, this research aims to delve deeper into CSR at FBS, examining how it can be more effectively integrated into the company's fundamental strategy and operations, thus ensuring that FBS not only fulfills its social responsibilities but also capitalizes on the inherent value that these efforts bring to the business and its stakeholders.
Research Goal: The main goal of this bachelor diploma paper isto create recommendations for CSR strategy development and its implementation for FBS company.
Research Object and Subject: This research takes a closer look at CSR strategy development and its implementationas a research subject, and FBS as the corporate entity as an object.
Research Objectives: The main objectives are the following:
1) Review internal and external sources to provide a detailed assessment of FBS’s current CSR positioning.
2) Analyze the competitive position of the company in terms of CSR.
3) Identify gaps within FBS's current CSR initiatives through thorough analysis.
4) Define strategic directions for CSR development at FBS based on the company's resources, capabilities, and both internal and external environments.
5) Create recommendations for implementation aimed at achieving CSR goals at FBS.
Research Data Characteristics:
1) Primary Data: This includes the interview with FBS's PR Head and CSR Manager, discussions with partners from charitable organizations, and a review of documents related to the company's CSR activities.
2) Secondary Data: This part of the research is based on available information aboutFBS's CSR activities and CSR practices across the global brokerage industry; journal articles and case studies highlighting best practices in corporate social responsibility initiatives.
The research consists of three chapters, starting with the theoretical background and concluding with the proposed CSR strategy and recommendations for implementation at FBS. Each chapter includes several sections that follow a logicalorder. The first chapter lays the foundation with key theoretical concepts of CSR, the second chapter analyzes the current CSR state at FBS and its industry, and the final chapter presents strategic recommendations and detailed plans for enhancing CSR practices at FBS.
The relevance of this research arises from a growing expectation that companies do more than just make money - they should also play a positive role in society and the environment. Specifically, CSR allows companies like FBS to show they care by dedicating resources to good causes, effectively boosting their reputation and trust among customers and partners. According to a study, 76% of companies report on CSR as a way to reduce brand reputation risk, and 83% of employees would consider leaving their job if the company displayed irresponsible CSR practices(Eser, 2024) . Furthermore, 64% of CEOs believe that CSR is core to their business strategy, emphasizing the strategic importance of CSR in today's corporate world (Eser, 2024).
FBS, a well-known broker that operates globally in over 150 countries, is actively enhancing its CSR mission. With its wide range of financial services and an impressive annual trading volume that goes well beyond $8.9 trillion, FBS's influence in the financial market is significant. Moreover, FBS is the Official Partner of Leicester City Football Club.
Under the framework of Corporate Social Responsibility (CSR) by Porter & Kramer (2006) , which is an approach for generating economic value while at the same time addressing the expectations of shareholders and stakeholders, FBS actively contributes through initiatives that support Quality Education and Sustainable Cities and Communities, designed to address the specific needs of the communities it operates in. In regions with diverse challenges like Malaysia and South Africa, there is a high need for CSR initiatives that address specific local needs. FBS iskeen on integrating its CSR efforts with the broader aims of economic and educational development in these communities, thereby strengthening its position in the market and building lasting loyalty among both new and existing customers.
Considering the crucial role CSR plays in modern business strategies, the existing approaches often remain isolated from core business operations, leading to missed opportunities for companies to benefit society and themselves. Also, Porter and Kramer (2006) observed in the Harvard Business Review that "The prevailing approaches to CSR are so disconnected from business as to obscure many of the greatest opportunities for companies to benefit society."
The managerial problem is that currently FBS faces challenges in optimizing its CSR initiatives to enhance social impact and improve business performance. Recognizing this gap, this research aims to delve deeper into CSR at FBS, examining how it can be more effectively integrated into the company's fundamental strategy and operations, thus ensuring that FBS not only fulfills its social responsibilities but also capitalizes on the inherent value that these efforts bring to the business and its stakeholders.
Research Goal: The main goal of this bachelor diploma paper isto create recommendations for CSR strategy development and its implementation for FBS company.
Research Object and Subject: This research takes a closer look at CSR strategy development and its implementationas a research subject, and FBS as the corporate entity as an object.
Research Objectives: The main objectives are the following:
1) Review internal and external sources to provide a detailed assessment of FBS’s current CSR positioning.
2) Analyze the competitive position of the company in terms of CSR.
3) Identify gaps within FBS's current CSR initiatives through thorough analysis.
4) Define strategic directions for CSR development at FBS based on the company's resources, capabilities, and both internal and external environments.
5) Create recommendations for implementation aimed at achieving CSR goals at FBS.
Research Data Characteristics:
1) Primary Data: This includes the interview with FBS's PR Head and CSR Manager, discussions with partners from charitable organizations, and a review of documents related to the company's CSR activities.
2) Secondary Data: This part of the research is based on available information aboutFBS's CSR activities and CSR practices across the global brokerage industry; journal articles and case studies highlighting best practices in corporate social responsibility initiatives.
The research consists of three chapters, starting with the theoretical background and concluding with the proposed CSR strategy and recommendations for implementation at FBS. Each chapter includes several sections that follow a logicalorder. The first chapter lays the foundation with key theoretical concepts of CSR, the second chapter analyzes the current CSR state at FBS and its industry, and the final chapter presents strategic recommendations and detailed plans for enhancing CSR practices at FBS.
In conclusion, this diploma paper on 'Corporate Social Responsibility Strategy for FBS Company' has provided an in-depth understanding of the current CSR landscape within FBS and proposed strategic recommendations to enhance its effectiveness. This research was structured to address several key aspects, including the theoretical foundation of CSR, the current state of FBS’s CSR initiatives, industry analysis, and the development of a strategic CSR framework, taking into account FBS’s operational context.
Recognizing the managerial problem that FBS currently faces challenges in optimizing its CSR initiatives to enhance social impact and improve business performance, the present study sought to explore CSR at FBS with a focus on understanding how to integrate it further and better into the firm's strategies and operations. The main goal of this bachelor diploma paper was to create recommendations for CSR strategy development and its implementation for FBS.
At the beginning of the thesis, the main theoretical concepts to CSR which would be used further were introduced. Prominent researchers by Porter and Kramer (2007; 2011), and Halme and Laurila (2009) were highlighted as well. After the theoretical background, a detailed overview of the current CSR state at FBS was provided, considering all the internal materials and interview takeaways. It revealed that FBS focuses on its alignment with the United Nations Sustainable Development Goals, particularly focusing on Goal 4: Quality Education, and Goal 11: Sustainable Cities and Communities. The main goal of the current CSR efforts now is to enhance brand awareness, increase its outreach on top media outlets and strengthen the company's market position. Moreover, FBS has several partners in Tier-1 regions with the help of which it realizes its CSR activities: Education Africa (South Africa), Dignity for Children (Malaysia), SUKA Society (Malaysia), and HSDF (Africa). The activities under each partnership were described in more detail in the paper.
To get a systematic analysis and a clear picture of FBS's current state of CSR, the framework developed by Minna Halme and JuhaLaurila (2009) was chosen as the guiding methodology. Taking into consideration the proposed dimensions for classifying CR types, it was found out that currently, FBS's Corporate Social Responsibility (CSR) initiatives predominantly align with the Philanthropy type of CR action. However, according to Halme and Laurila (2009), this traditional form of CR does not fully leverage the potential to drive corporate innovation, enhance competitiveness, and secure long-term sustainability. Therefore, the shift towards CR Integration and Innovation promises more significant financial returns and deeper societal impacts.
After understanding and analyzing current CSR activities at FBS, the CSR practices of the main competitors were discovered. Following the advice of company staff during the interview, four main competitors were selected for the analysis: Exness, XM, Octa, and Olymp Trade. Later, the KSF analysis was performed to assess how the companies compete in the market, considering both general business success factors and those specifically linked to CSR. During the analysis, it revealed that FBS is at a medium level for each factor except technological innovation, in which there is an absence of development. Although a lot has been done by FBS in support of social causes through its CSR initiatives, there is a need to reevaluate and realign such initiativesin a manner that they are closely related to operational and strategic objectives.
In Chapter 3, key recommendations for the Corporate Social Responsibility (CSR) strategy at FBS were proposed. The analysis of the external environment was conducted with the help of PESTEL. It provided the foundation for a SWOT analysis that was developed after conducting a thorough analysis of the trading industry's macroclimate, its competitive dynamics, and the key players. The sustainability type of analysis was chosen as it corresponds to the goal of the research, where strengths and weaknesses were found out as well as the opportunities and threats. The secondary sustainability SWOT is crucial to identify and come up with relevant strategies. Six strategies for CSR at FBS were formulated: Integrate Fintech Innovations into CSR, Align Disconnected CSR Initiatives to be integral to FBS's core business strategy, Improve Visibility of CSR Commitments, Use Strategic Partnerships to Counter Competitive CSR Approaches, Differentiate with Innovative CSR Initiatives, and Enhance CSR Impact in Face of Rising Consumer Expectations. Then, under each strategy, the recommendations were proposed and their relevance was justified: develop blockchain-based CSR tracking, implement artificial intelligence (AI) to optimize CSR activities, integrate CSR into product offerings, develop a CSR section on the FBS website, introduce an annual CSR report, develop strategic partnerships for enhanced CSR impact, and integrate CSR into corporate culture.
To identify the crucial aspects for both the organization’s strategy and its various stakeholders, a materiality matrix was created. It was used to detect what is important for the organization’s strategy and for its different stakeholders, and also to identify and prioritize the most significant aspects for FBS. Then, the value chain analysis using Porter's Value Chain approach was conducted to identify at which stage of the value creation process each suggested recommendation can be integrated. This framework includes primary activities from inbound logistics to service and support activities from procurement to firm infrastructure. After that, the timeframes for recommendations implementation are also elaborated on in the thesis. Taking into account the results of the materiality matrix and value chain analysis, each recommendation was distributed to one of the following intervals: short-term initiatives, which are to be implemented within 0-6 months; medium-term initiatives, with a timeframe of 6-18 months; and long-term initiatives, spanning 18-36 months. Under short-term initiatives, there is the recommendation to develop a CSR section on the FBS website and integrate CSR into product offerings, which is crucial and can be realized considering the usual processes at the company. Then, under medium-term initiatives, they are introducing an annual CSR report, integrating CSR into corporate culture, and developing strategic partnerships for enhanced CSR impact. Finally, blockchain-based CSR tracking and artificial intelligence in CSR activities are long-term activities as they are considered a low priority and require substantial time to develop and implement effectively.
Lastly, it is critical to understand the risks to effectively implement recommendations. For this task, the risk scenario matrix was used as it provides the background with the probability of the risk occurring and the severity of its impact. Elaborating on results, it is seen that the lowest risk has the recommendation to develop a CSR Section on the FBS Website and the highest the Integration of CSR into Product Offerings as failure in successfully integrating CSR into products could result in substantial financial loss and damage to brand image. Coming to the end, the goal of the research is achieved with the thorough analysis and proposed recommendations for the CSR strategy. The frameworks used in the paper are justified and align with the research objectives. The results were presented to company representatives, including the Head of PR under which the CSR currently exists, and received positive feedback. Some of the strategies, including the short-term ones, are already under development.
Recognizing the managerial problem that FBS currently faces challenges in optimizing its CSR initiatives to enhance social impact and improve business performance, the present study sought to explore CSR at FBS with a focus on understanding how to integrate it further and better into the firm's strategies and operations. The main goal of this bachelor diploma paper was to create recommendations for CSR strategy development and its implementation for FBS.
At the beginning of the thesis, the main theoretical concepts to CSR which would be used further were introduced. Prominent researchers by Porter and Kramer (2007; 2011), and Halme and Laurila (2009) were highlighted as well. After the theoretical background, a detailed overview of the current CSR state at FBS was provided, considering all the internal materials and interview takeaways. It revealed that FBS focuses on its alignment with the United Nations Sustainable Development Goals, particularly focusing on Goal 4: Quality Education, and Goal 11: Sustainable Cities and Communities. The main goal of the current CSR efforts now is to enhance brand awareness, increase its outreach on top media outlets and strengthen the company's market position. Moreover, FBS has several partners in Tier-1 regions with the help of which it realizes its CSR activities: Education Africa (South Africa), Dignity for Children (Malaysia), SUKA Society (Malaysia), and HSDF (Africa). The activities under each partnership were described in more detail in the paper.
To get a systematic analysis and a clear picture of FBS's current state of CSR, the framework developed by Minna Halme and JuhaLaurila (2009) was chosen as the guiding methodology. Taking into consideration the proposed dimensions for classifying CR types, it was found out that currently, FBS's Corporate Social Responsibility (CSR) initiatives predominantly align with the Philanthropy type of CR action. However, according to Halme and Laurila (2009), this traditional form of CR does not fully leverage the potential to drive corporate innovation, enhance competitiveness, and secure long-term sustainability. Therefore, the shift towards CR Integration and Innovation promises more significant financial returns and deeper societal impacts.
After understanding and analyzing current CSR activities at FBS, the CSR practices of the main competitors were discovered. Following the advice of company staff during the interview, four main competitors were selected for the analysis: Exness, XM, Octa, and Olymp Trade. Later, the KSF analysis was performed to assess how the companies compete in the market, considering both general business success factors and those specifically linked to CSR. During the analysis, it revealed that FBS is at a medium level for each factor except technological innovation, in which there is an absence of development. Although a lot has been done by FBS in support of social causes through its CSR initiatives, there is a need to reevaluate and realign such initiativesin a manner that they are closely related to operational and strategic objectives.
In Chapter 3, key recommendations for the Corporate Social Responsibility (CSR) strategy at FBS were proposed. The analysis of the external environment was conducted with the help of PESTEL. It provided the foundation for a SWOT analysis that was developed after conducting a thorough analysis of the trading industry's macroclimate, its competitive dynamics, and the key players. The sustainability type of analysis was chosen as it corresponds to the goal of the research, where strengths and weaknesses were found out as well as the opportunities and threats. The secondary sustainability SWOT is crucial to identify and come up with relevant strategies. Six strategies for CSR at FBS were formulated: Integrate Fintech Innovations into CSR, Align Disconnected CSR Initiatives to be integral to FBS's core business strategy, Improve Visibility of CSR Commitments, Use Strategic Partnerships to Counter Competitive CSR Approaches, Differentiate with Innovative CSR Initiatives, and Enhance CSR Impact in Face of Rising Consumer Expectations. Then, under each strategy, the recommendations were proposed and their relevance was justified: develop blockchain-based CSR tracking, implement artificial intelligence (AI) to optimize CSR activities, integrate CSR into product offerings, develop a CSR section on the FBS website, introduce an annual CSR report, develop strategic partnerships for enhanced CSR impact, and integrate CSR into corporate culture.
To identify the crucial aspects for both the organization’s strategy and its various stakeholders, a materiality matrix was created. It was used to detect what is important for the organization’s strategy and for its different stakeholders, and also to identify and prioritize the most significant aspects for FBS. Then, the value chain analysis using Porter's Value Chain approach was conducted to identify at which stage of the value creation process each suggested recommendation can be integrated. This framework includes primary activities from inbound logistics to service and support activities from procurement to firm infrastructure. After that, the timeframes for recommendations implementation are also elaborated on in the thesis. Taking into account the results of the materiality matrix and value chain analysis, each recommendation was distributed to one of the following intervals: short-term initiatives, which are to be implemented within 0-6 months; medium-term initiatives, with a timeframe of 6-18 months; and long-term initiatives, spanning 18-36 months. Under short-term initiatives, there is the recommendation to develop a CSR section on the FBS website and integrate CSR into product offerings, which is crucial and can be realized considering the usual processes at the company. Then, under medium-term initiatives, they are introducing an annual CSR report, integrating CSR into corporate culture, and developing strategic partnerships for enhanced CSR impact. Finally, blockchain-based CSR tracking and artificial intelligence in CSR activities are long-term activities as they are considered a low priority and require substantial time to develop and implement effectively.
Lastly, it is critical to understand the risks to effectively implement recommendations. For this task, the risk scenario matrix was used as it provides the background with the probability of the risk occurring and the severity of its impact. Elaborating on results, it is seen that the lowest risk has the recommendation to develop a CSR Section on the FBS Website and the highest the Integration of CSR into Product Offerings as failure in successfully integrating CSR into products could result in substantial financial loss and damage to brand image. Coming to the end, the goal of the research is achieved with the thorough analysis and proposed recommendations for the CSR strategy. The frameworks used in the paper are justified and align with the research objectives. The results were presented to company representatives, including the Head of PR under which the CSR currently exists, and received positive feedback. Some of the strategies, including the short-term ones, are already under development.
