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Abstract
Companies involved in natural resource extraction, such as forestry, significantly influence the
environment they operate in. Therefore, active engagement in corporate social responsibility
(CSR) and managing close relationships with key stakeholder groups, i.e., governments (e.g.,
legal compliance), communities (e.g., work force, raw materials) and environmental NGOs
(e.g., risk reduction) has become a necessity to maintain the social license to operate. In this
paper we argue that firm proactiveness has positive influence on firm’s corporate social
performance. First, it can act as a stance towards CSR, and second, it may be a precondition to
gain competitive advantage by investing in CSR. In our analysis we concentrate on forest
industry and use international survey data from managers of 60 companies. A positive impact of
firm proactiveness on CSR could be found using regression analysis. However, unlike many
previous studies confirming a positive effect of company size on corporate responsibility – due
to higher media visibility or access to more resources – we found no evidence on the impact of
company size. The results also show that employees and managers in a proactive firm more
often take initiatives to improve the environmental performance compared to the employees and
managers in a less proactive firms.