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Our paper is based on some recent studies done in the Department of Business Administration at Lappeenranta University of Technology, the goal of which was to find out whether regional strategy processes help to produce and strengthen the trust between regional actors. The paper is divided into a theoretical and an empirical part. In the theoretical part the focus is to analyze trust, co-operation, partnership, networking and strategy processes (especially a continuous strategy process model) in the context of regional co-operation. Trust and its importance in co-operation, networking and partnership have been studied extensively in the context of the business world, but not so much in the context of regional co-operation. However, trust is one of the most important premises for successful co-operation in the public sector as well. In the empirical part of the paper the focus is to analyze the regional strategy processes - the regional strategies that have been implemented - in late 1990s and after that in the province of South Karelia, Finland. The planning and implementing of these strategies has demanded, and still demands, participation of the central actors in the region. A successful strategy process requires, but also creates cooperation between the different actors. In this cooperation, open communication and interaction, commitment to common goals, and genuine willingness to develop the region are highlighted. Wide strategy projects offer the actors a chance to get to know each other and each others' ways of action thoroughly. This also opens up possibilities for the creation and strengthening of trust between the actors. The paper assesses strategy processes and strategies especially from the point of view of creating and strengthening the trust between regional actors. The main objective in the empirical part is to analyze whether the regional strategy processes have helped to produce and strengthen the trust between the regional actors of South Karelia, and what the level of trust is at the moment. The empirical data was collected with a survey in 2002.

PurposeThe purpose of this paper is to introduce the concept of regional responsibility and to provide a deeper understanding of customer‐owned co‐operatives and their social embeddedness.Design/methodology/approachFirst, extant conceptions of corporate social responsibility are discussed, concentrating on two approaches; the one employing stakeholder theory and the one employing resource‐based view of the firm. Second, co‐operatives as a form of economic organization that have a natural interest in engaging in regionally‐oriented corporate social responsibility practices are studied, including active participation in regional strategy processes and local and regional development. Finally, the concept of regional responsibility is illustrated by analysing qualitative data.FindingsRegional responsibility is in the core of customer‐owned co‐operatives' CSR. Co‐operatives are tentative to their customer‐owners, employees and other regional stakeholders. Regional responsibility also means the utilization of the region's resources and advocacy of local interests. In fact, co‐operatives may be considered as 'flagship enterprises' in their regions, promoting the businesses of the whole network of economic actors linked to them. Co‐operatives engage also in non‐business related activities to support the surrounding community.Research limitations/implicationsWhile this study helps to understand regional responsibility of customer‐owned firms, as such the findings are limited to the context of this study.Originality/valueThe paper analyzes co‐operatives' social responsibility from a regional perspective and introduces the concept of "regional responsibility".

PurposeThe purpose of this paper is to contribute to literature on corporate social responsibility by comparing CSR reporting between co‐operative organizations and listed companies. The authors aim to illustrate whether the different values and principles of co‐operatives and public limited companies result in differences in CSR reporting between these organization types.Design/methodology/approachFirst, the authors introduce the concept of CSR reporting. Second, they extend their framework with some previous literature on co‐operation. Using qualitative methodology, they compare values and objectives as well as communication and reporting of the co‐operative to those of the listed companies. The analyses and the synthesis of CSR reporting and co‐operation literatures provides academics and practitioners with ideas on how to move towards a model of co‐operative CSR reporting.FindingsValues and principles of co‐operation do not significantly guide the CSR reporting of our case co‐operative. Instead, the issues emphasized in CSR reporting of our case co‐operative and the two investor‐owned companies are mostly related to common concern and the latest course of events throughout the world and the current issues in general. The study also indicates that the case co‐operative (Metsäliitto) falls behind in its CSR reporting to those of the listed companies (Stora Enso and UPM‐Kymmene).Research limitations/implicationsWhile the study helps to understand the role of organization type in CSR reporting, as such the findings are limited to the context of the study.Practical implicationsThe paper provides a good point of departure for students and practitioners interested in CSR reporting and co‐operatives.Originality/valueTo the authors' knowledge, so far the role of organization type (and the related differences in business objectives, values etc.) in CSR reporting has not received much of scholarly attention.

After the depression in the beginning of 1990's the regional development has been unequal in Finland, favouring some rapidly growing growth centres. The motors of the development in these centres have essentially been universities and IT-firms. At the same time when IT-based regions have been very successful many of the more traditionally oriented production areas have had problems in ensuring economic growth and balanced development of the whole region. In South-Karelia (province which lies at the South-East border of Finland) the development of the whole region is heavily related to one economic branch, forest industry. This is due to the fact that South-Karelia and it's surroundings forms production area in which the production is (even in the world scale) most intensively focused on chemical forest industry. There are four major forest industry production plants in the area: Stora-Enso / Imatra Mills, UPM-Kymmene / Kaukas Mills, Metsä-Serla / Simpele Mills and Metsä-Botnina / Joutseno Mills. In South Karelia case it is very clear that large scale enterprises have a significant role in the balanced and comprehensive development of the whole province. This applies especially to the development of economical circumstances and smaller companies in the area, but also to other aspects of human life: social, cultural and political. When we look at the structure of the companies in the area, we can determine that the situation is very biased. There are large scale companies and small companies but almost none of the medium size companies. In these economical conditions it's very clear that there might be several barriers to develop successful and multilateral co-operation between the two company-clusters, which are formulated according to company size. One of the most important barriers between the two parties is the capacity of production: The differences in production capacities hinders companies ability to develop interfirm co-operation. This study focuses on two central concepts, interfirm co-operation and competitiveness. The aim of the study was to find operation modes through which the companies in the South-Karelian region would be able to improve their competitiveness. The main objective of the study was to determine how the large scale enterprises of the woodprocessing industry in the South-Karelian region could increase their subcontracting activities among local small and medium size companies. The sub-objective of the study was to clarify the weight that those companies have on the economic structure of the South-Karelian region, and to determine the different interfirm co-operation forms that were used in the area. The methodology of the study included several characteristics of both concept analytical and constructive paradigms. The study was divided into two parts: theoretical and empirical. The theoretical part of the study forms a frame of reference in order to determine the concept of interfirm co-operation and also to classify different forms of interfirm co-operation. The theoretical part of the study was used as a basis for questionnaire and interviews. The results of the study show that interfirm co-operation is significant if the woodprocessing industry increases their subcontracting activities among the local small and medium size companies. The results show quite clearly, that interfirm co-operation can increase the competitiveness of companies. Especially useful are those modes of action which are based on long term relationships and create so called win-win situations.