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The 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.

First, 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.

Regional responsibility is in the core of customer‐owned co‐operatives' CSR. Co‐operatives are tentative to their …