Launch of the Regional CSR
Network for Small Business and
Survey Results
C R OATIA
C R = Corporate
Responsibility
OECD definition
ENTREPRENEURS –
the RISK-TAKING agents of CHANGE and
GROWTH in a market economy
that can act to ACCELERATE the generation,
dissemination and application of INNOVATIVE
and profitable ideas
SME overview in the Region
• Impact of key obstacles on development
(inefficiency of governance, taxation issues, inadequate
access to finance).
• SME growth - effective means of promoting economic
restructuring and raising competitiveness for national
wealth and benefits, enhanced macroeconomic efficiency;
achievement of broad development objectives.
• Unevenness of SME development across countries
Drivers of SME development
• General settings for a market economy;
• Regulatory, institutional and cultural conditions;
• Levels of R&D, technological potential of countries;
• Development of financial markets, level of financial
services;
• Adequate education and training;
• Degree of exposure to external competition of the
economy;
• Cultural and psychological factors;
MAJOR OBSTACLES TO
ENTREPRENEURSHIP WEF(2004)
CORRUPTION
OECD countries – 6,2
South East Europe – 5,7
NIS – 4,5
New EU Country – 4,2
POOR WORK ETHIC
New EU countries – 9,0
NIS – 8,5
OECD, South East Europe – 8,3
INADEQUATELY EDUCATED WORK FORCE
New EU countries – 8,1
NIS – 7,5
South East Europe – 7,0
OECD countries – 6,7
OTHER ISSUES?
Survey
• Coverage: specific CSR issues to strengthen the
position of the Region in the international debate, further
promote the uptake of CSR and give scientific support to
CSR programs of governments, enterprises or other
institutions.
• Main objective: create a regional knowledge base to
facilitate the development of specific tools tailored to the
needs of the participating countries.
Methodology
2000 companies contacted and delivered the questionnaire by
e-mail and regular post.
Target output was:
- Croatia – 38 companies;
- BiH – 40
- Ukraine – 104 companies.
- Majority are stable financially SMEs in different regions in
participating countries. Industries: manufacture, trade,
service providers, construction.
- In business surveys the 10% feedback is considered
relevant.
Difficulties
• CSR is still associated with large companies;
• Lack of time;
• Low level of using the information technologies.
Survey Questionnaire
• Objectives of questionnaire: to obtain information from
SMEs in CEE/SEE region on their understanding and
specific needs in CSR.
• Combined structure with 21 questions as basis for the
survey and knowledge base creation of the regional
network.
• Approximately 20-30 minutes needed to managers to reply
to the questionnaire.
Survey Questionnaire
Main issues covered:
GENERAL INFORMATION ON COMPANY
UNDERSTANDING OF CSR
BARRIERS IN CSR IMPLEMENTATION
CSR ACTIVITIES IMPLEMENTED
READINES TO ENGAGE IN CSR
INCENTIVES FOR ENGAGEMENT
Development of CSR in Ukraine
Legislative level - established Consultative Council in Parliament
Committee on Regulatory Policy and Entrepreneurship on the
development of CSR Strategy Concept. UNITER-supported Project
“Developing National CSR agenda”.
ISO 26000 National Mirror Committee established in 2007, 1st Nov
CSR in education – a text-book, developed CSR University curriculum
within GC+MoE working group, now – business schools discussions
CSR Award - National CSR Case Award since 2009
CSR practical guides: HR&CSR, ethical procurement,
M&E, corporate volunteering, eco-management
Results from Ukraine
CSR is the way the company:
•
manages its economic, social and environmental
relations and interaction with its stakeholders,
•
promotes corporate fairness, transparency and
accountability;
•
achieves commercial success, not contradicting
employees’ welfare and the welfare of the local
community.
CSR is an effective tool for corporate SME policy to
update the modern management style.
The general understanding of the terms "CSR" and
"responsible business practices" among respondents
differ considerably. Such indicators as SME sectors,
size, geographic location and financial stability have an
impact on understanding.
IMPORTANT CSR ISSUES
• Most important are working environment, product quality, employee
satisfaction, certification and evaluation of employees.
• Least important - freedom of associations, collective bargaining,
trade unions, non-financial reporting, child labor, gender-balanced
work environment and charitable contributions.
4.6
The most/least important activities/issues /Industry
4.4
Level of importance
4.2
4.0
3.8
3.6
3.4
3.2
3.0
2.8
2.6
2.4
Staff
Water
Working
performance consumption atmosphere
evaluation
Ergonomics
of workers
Energy
efficiency
Genderbalanced
work
environment
Signing
collective
bargaining
National
labour law
Child labour
Trade-union
establishing
BIGGEST OBSTACLES
What would in your opinion be the biggest obstacles to integrate CSR in your business operations
45.0
40.0
Center and North
35.0
West
30.0
25.0
South and East
20.0
15.0
10.0
5.0
%
0.0
lack of human
resources
lack of money
lack of know-how
unavailability of
technology
no support from
top-management
lack of employee
no benefits
motivation
expected from CSR
Other
BENEFITS & LIMITATIONS
BENEFITS
•Reputation (93,6%),
•Brand awareness (86,2%),
•GR (85,5%),
•Quality (85,3%),
•Competitiveness (85,3%),
•Innovations (83 %),
•Indicators of economic
development (41 % - 80%)
LIMITATIONS:
•operating expenses (20%),
•employee turnover (17%);
•absenteeism rate (16,1%);
•pricing (13,8%) .
CSR DRIVERS
What incentives would encourage your company to implement CSR practices / Sector
70.0
60.0
50.0
40.0
30.0
20.0
10.0
%
0.0
government financial
incentives
free/subsidized
counseling
concessional
credit/matching
grant schemes
award schemes
industry
sponsored
linkages with larger
participation in fairs
firms
trade
construction
facilitated
participation in
business networks
service
others
other
CSR IMPLEMENTATION PERIOD
2 - 3 weeks
Other
23%
1%
1 month
4%
2 - 6 months
18%
21%
33%
1 year
6 -12 months
Survey Results – Bosnia and
Herzegovina
Facts about CSR development in BiH:
• CSR was introduced in BiH by international organisations and
NGOs;
• Main CSR initiatives in BiH:
•
- UN Global Compact LN,
•
- DOBRO National Award,
•
- UNIDO regional project for SMEs;
• Companies in BiH understand CSR as filantrophy, employeees
well-being strategies and environmental activities;
• Government support is expressed through UNIDO regional project;
• EU integration process is main driver for CSR development in the
country.
Survey Results – Bosnia and
Herzegovina
Perception on CSR among SMEs:
How did you first learn about CSR?
Survey Results – Bosnia and
Herzegovina
Perception on CSR among SMEs:
Deffinitions that best describe CSR
2: CSR is the commitment of a company to strictly abide to national labour
and environmental laws;
5. CSR is a comprehensive set of policies, practices and programs that are
strategically integrated throughout business operations and decisionmaking processes to minimize the negative impact on the company's
social and natural environment.
Survey Results – Bosnia and
Herzegovina
Perception on CSR among SMEs:
Acording to your oppinion what impact has CSR on operational
costs?
1:huge positive impact
2:medium positive impact
3: huge negative impact
4:medium negative impact
5: No impact
Survey Results – Bosnia and
Herzegovina
Perception on CSR among SMEs:
CSR issues with greatest positive impact on companies (viewed by
surveyed SMEs):
• Media presence (75%);
• Image and reputation of company (72.5%);
• Market access (70%).
Survey Results – Bosnia and
Herzegovina
CSR activities implemented by companies in BiH
Activities reported by surveyed companies:
•
timely payment of salaries;
•
timely payment of taxes;
•
educational programmes for employees;
•
financial support to groups or events within local
communities;
•
charities to vulnerable groups;
•
recycling of paper and other material;
•
rational consumption of energy
Survey Results – Bosnia and
Herzegovina
CSR activities implemented by companies in BiH:
Is there a trade union in your enterprise?
Survey Results – Bosnia and
Herzegovina
Main barriers in implementing CSR:
1: Lack of human resources
2: Lack of money
3: Lack of know-how
4: Lack of technology
5: Support from top management
6: No benefits
7: Other
Survey Results – Bosnia and
Herzegovina
Incentives for implementing CSR:
What incentives would encourage your company to implement CSR:
•
•
•
•
•
•
•
credits/grand schemes (67.5%)
government financial incentives (65%)
free counseling (50%)
award schemes (45%)
participation in business networks (40%)
sponsored participation in fairs (37.5%)
linkages with larger firms (35%)
Survey Results – Bosnia and
Herzegovina
Readines to engage in CSR activities:
• 90% of companies would hire professional consultant if the service
was offered free of charge;
• 25% of companies would hire professional consultant if services
was offered for a market based fee;
• 60% of managers would dedicate specific working hours to staff for
CSR related activities;
• Mean value of time that managers would dedicate monthly to their
staff for CSR activities is 14.3h.
Summary
• Lack of understanding on CSR concept and
practices among SMEs in the region;
• Dominant CSR activity of SMEs is philatrophy;
• Companies do expect certain benefits from CSR,
but are not ready to invest in it;
• Large companies in the region are drivers of CSR;
• Companies expect from government to lead CSR
development;
• Implementation of CSR is linked with costs and not
with savings.