CSR Trends in CEE Region and Poland

1. CSR trends in CEE region and Poland Mirella Panek-Owsiańska Responsible Business Forum June 5, 2008, Kiev, Ukraine

2. The level of CSRimplentation: 100 10 20 90 17,5 32,5 80 40 22,5 50 70 27,5 32 60 32,5 50 40 67,5 30 52 30 55 48 20 35 10 20 8 0 Strategy Stakeholder Governance Performance Public Assurance Disclosure Engagement Management No/little evidence On the way Good practise and beyond CSR in researched areas

3. Lack of CSR strategy and necessary knowledge but in practice CSR rules are used. Limited dialogue with stakeholdersdefined as business partners and clients. A company improves relations with nearest stakeholders by sponsoring local initiatives, A company understands a network of connections in which it resides, but doesn’t perceive itself as an important actor in the process of changing social conditions. Nobody is directly responsible for CSR, CEO’s concern. Usually companies with Polish local capital. Introducery level – beginners 40%

4. Uncoordinated parts of theCSR strategy, considers implementing CSR tools. Not all key stakeholders are identified, understood as clients, employees, local community and business partners. A company participate in anad hoc dialogue with stakeholders. The motivation and aim of CSR is improving a company’s image, the activities are concentrated on the social involvement programmes. Mostly multinationals and big national Polish companies. A CSR unit is usually a part of the PR/Communications department. Intermediate level – observers 45%

5. CSR strategy is a part of the overall global business strategy. Well-identified and defined stakeholders, the communication with some of the groups is constant. A dialogue has a positive influence on raising standards of cooperation with the company. A company tries to solve social problems effectively changing the role of business in the society. Motivation and understanding from the top managers who are aware of the potential which CSR brings. Some international corporations which have the essential know-how. Specialized CSR unit is situated usually in External Relations Department. Advanced level – pionieers 15%

6. TP dialogue with consumer organisations – a reaction for situation on the telecommunication market (law requirements, not attractive offer for consumer). How can a company make its services competetive, deal with lack of trust, meet expectations of key stakeholders? TP is a national company, a major on the market. Result: new competetive solutions for services, growing client satifaction and loyality, trust, constant relationships with consumer organisations. Case study – Reactive Strategy

7. Danone:value creation through innovation, discovering new product to reduce the level of malnutrition among children“threatened with poverty” in families with low purchasing power. How can business contribute through collaborative governance to solving main problems such as hunger? Issues of nutrition and health are central to Danone’s business strategy based on providing health through food to the greatest number of people. Result: development of a special product, the affordable price (price per sachet €0.15) was tailored to fit with the purchasing power of low-income Polish households. Case study – Proactive strategy

8. Barriers: lack of trust and civil society - only 12% of Poles trust each other, 17% trust a government, 45% trust business, lack of understanding between NGO and business – only 11% NGO constantly contacts with business, unstable legal background and bureaucracy, unaware consumers and unresponsible media. Opportunities: plenty of corporate community involvement activities, growing quantity of projects financed by UE, support of World Bank, UNDP, European Comission, the awareness is growing, some media are getting involved interest within current government CSR in Poland: barriers vs opportunities

9. the quantity of active NGOs is growing, self-regulations, media are getting involved, 89% SMEs think CSR will be more important, CSR helps in building trust and cooperation: „Creating the atmosphere of trust is esssential in Poland; CSR will become a filter for the cooperation with stakeholders”Ewa Kaminska, manager of Dept. Of Research and Analysis, The Polish Post Big steps forward

10. Roles of the Forum Promoting responsible business Helping companies in implementing CSR Working with business to benefit society Monitoring and evaluating CSR

11. a. Annual conference, CSR Market Place and other events b. Publications on CSR c. Portal and newsletter Roles of the Forum Promoting responsible business

12. We do this through: Roles of the Forum Helping companies implement CSR

13. The Responsible Business League (programme for students) Roles of the Forum Working with businesses to benefit society a net of students’ organizations and leaders, which prepare and carry out projects promoting CSR in the local academic, business and government environment Warszawa Partners:

14. Roles of the Forum Monitoring and evaluating CSR • Annual report on CSR in Poland • Research • Publications, e.g.: • 1. Managers 500 and Responsible • Business • 2. SMEs and Responsible Business

15. Contact: Mirella Panek-Owsiańska President, General Director Responsible Business Forum ph (+48 22) 627 18 71 e-mail: mirella@fob.org.pl http://www.responsiblebusiness.pl/