Corporate Social Responsibility For All

CorporateSocialResponsibilityForAll ROMANIA 9th of October 2013 CSR For All

OUTLINE (1) • General Information • Objectives • Sampling Methodology • Analysis Strategy • The Distribution of Companies by Sectors, Regions, Ownership Structure, Size, andOrigin • Perception of Enterprises Regarding CSR • Degree of Interest of Enterprises CSR For All

OUTLINE (2) • Project Management, Implementation of CSR Projects at Company Level • Commitment to Employees • Respecting Human Rights • Community Engagement • Environmental Activities • Engaging with the Supply Chain • Fair Business Behavior • Providing Remedy • Challenges in Implementing CSR • Conclusions and Recommendations CSR For All

General Information This Research Report is part of the EU funded project in which the National Council of Small and Medium Sized Private Enterprises in Romania (CNIPMMR) is one of the partners. The Turkish Confederation of Employer Associations (TİSK) is the Lead Civil Society Organisation (CSO). The project’s consortium is composed by other partners from the Balkan region and Switzerland: • The International Organization of Employers (IOE) • Croatian Employers Association (CEA) • Business Confederation Macedonia (BCM) • Montenegrin Employers Federation (MEF) CSR For All

Sampling Methodology • Conducting 500 companies • Receiving 100 responses • Sub-samples in addition to the whole sample: • based on size (SMEs versus larger companies) • based on sector (findings for the five biggest sectors) • based on ownership structure (private sector versus stated-owned companies; companies with domestic headquarters versus companies with foreign headquarters) • based on markets (companies with mainly domestic market versus companies with mainly a foreign market) CSR For All

Sampling The questionnaire was sent out to 500 companies (members of CNIPMMR and large companies)by the research team. There are two basic reasons why the expected response rate was reached with effort: (a) the questionnaire was too long; (b) summer season responsible people were on vacation; The final number of eligible responses was 109. CSR For All

AnalysisStrategy Perceptions of enterprises regarding CSR, Degree of interest of enterprises in CSR, Knowledge level at enterprises regarding internationally recognized and/or actual CSR initiatives, Implementation of CSR projects at company level. CSR For All

The Distribution of Companies by Sectors CSR For All

The Distribution of Companies by County/ Region CSR For All

The Distribution of Companies by Ownership Structure and Origin CSR For All

The Distribution of Companies by Size • The answers received within this survey were mostly received from SMEs. 85.71 % of the responses were received from SMEs, while the rest of responses were received from large companies. CSR For All

The Distribution of Companies by field of activity CSR For All

Perception of Enterprises regarding CSR • General awareness of CSR is presented for the whole sample. • Then the survey result is examined in terms of • Origin • Company size • Sector • Company structure • Sales market CSR For All

Degree of Interest of Enterprises • CSR Governance in the company: • Most Romanian companies (51.38%) do not have a department to take over activities related to Corporate Social Responsibility. On the other hand, another finding of the study shows that 33 of the 76 companies that were familiar with the concept of CSR do not have a department to take over activities related to Corporate Social Responsibility, while 9.17% of those who do not know the concept however implement CSR principles through the company's departments • CSR principles are implemented mainly by the Human Resources department (71.70%) and the Communication and / or Public Relations (15.09%). The study shows that only 3.77% of 48.62% of companies have a separate department responsible for implementing the basic principles of CSR in the company. • In terms of size, it is noted that only large companies have a separated CSR department, but this records only a 20% difference (80%) representing the departments of communication and human resources. In SMEs the CSR concept is implemented mainly (over 80%) in the human resources department CSR For All

CSR Priorities of Companies CSR For All

II.Degree of Interest of Enterprises • According to the survey, the majority of the companies (38.53%) are involved in implementing CSR’s principles in the current activity in order to commit to the culture’s company. Other reasons, in order of importance are: attracting clients (23.85%) and interest from customers (21.10%). Also, the study shows that the implementation of non-governmental campaign is one of the reasons of companies’ involvement in CSR. CSR For All

III.Degree of Interest of Enterprises • Use of CSR Instruments, Tools and Initiatives: • ISO 26000 (18.35 %) is the most recognized instrument • Only 11.93% of the companiesdeclared that they used one of the instruments addressing companies’ social responsibilities • 11% of the companies (12 companies from 109) have a public commitment to CSR • 33,94% of the companies (37 out of 109 have a code of conduct CSR For All

IV. Degree of Interest of Enterprises • The study reveals that only 24.77% of the surveyed companies have published a report concerning the CSR activities. • 70.64% of the companies do not consult stakeholders in order to understand the responsibilities. • 34.38% of the companies consult NGOs stakeholders. • Main challenges faced by companies are: lack of time and resources (39.45%), followed by lack of clarity regarding responsibilities of companies to limit the state (29.36% ) and poor information about the CSR concept and its principles (23,85%). CSR For All

Assessing Governmental Policies towards CSR • The governmental measure most known by the companies are: • 32% 2011 – 2016 National Strategy; • 8% taxes; • 3,8% SA 8000, Taxation, tax relief, the fight against corruption, CSR development, changes on sponsorship laws. CSR For All

Assessing Governmental Policies towards CSR Government measures are considered to be useful because: • 11,43% considered they support people; • 11,43% considered they facilitate CSR implementation; CSR For All

Future Development of CSR CSR For All

Demand for Training • Following areas are expressed to draw the most attention: • General information about CSR, • Risk management • Human resources, • Other (environmental protection, ISO 26000) CSR For All

Project Management, Implementation of CSR Projects at Company Level • In this part, the results are summarized for the seven activities: • commitment to employees • respecting human rights • community involvement • environmental activities • engaging with the supply chain • Business ethics • providing remedy The data provided consists of the most relevant issues revealed by the survey CSR For All

Commitment to Employees CSR For All

Commitment to Employees General statement of corporate involvement in promoting a safe and healthy work environment CSR For All

Commitment to Employees • SMEs engagement attaches great importance to its employees. Supporting work-life balance for employees with a flexible work schedule and / or childcare and other measures to support further training of employees, measures of employing disabled people, promoting a healthy and safe working environment are matters covered by most SMEs. • Large companies grant great importance to employees commitment(100%). • Generally companies addressing different markets bear higher responsibility • Construction companies gives the utmost importance regarding the commitment to employees CSR For All

Respecting Human Rights CSR For All

Respecting Human Rights General statement of corporate involvement in human rights CSR For All

Respecting Human Rights • 77% of companies said that this policy is implemented within the company, 6% claim that human rights is not a concern of the company, while that 17% of companies occupy a neutral position. • Recorded data confirm that SMEs focus on human rights in activities undertaken, but are unbiased when it comes to guiding principles of the UN for Human Rights and Business or the impact assessment of labor and human rights. • Construction companies are observed to have more responsibility and sensibility • Multinational companies have the highest value regarding the issue of respecting human rights CSR For All

Community Engagement CSR For All

Community Engagement General statement of corporate involvement in Support of small initiatives particularly related to infrastructure CSR For All

Community Engagement • 60% of the companies involve in activities supporting the institutions and initiatives for education and training, 16% had a neutral attitude towards the commencement of such approaches, and 24% do not give importance to these issues. • With regard towards community involvement, about 50% of SME support social initiatives, are involved in cultural projects, provides support to education and training institutions, sports associations and supports initiatives related to infrastructure. • Multinational companies are intensely involved in social initiatives; they are supporting cultural projects, education and training institutions, and sports associations. A lower percent undertake infrastructure supporting activities. • Information and communication companies get involved partially in social initiatives CSR For All

Environmental Activities CSR For All

Environmental Activities • In Romania, most of the CSR activities implemented by SMEs are related to environmental protection • Large companies grant great importance to environmental activities and to issues such as reducing energy consumption, use of natural resources, emissions, recycling and implementing ISO Standards. • Companies that are addressing multiple markets are most involved in activities aimed at protecting the environment and they are intensely concerned in reducing energy consumption, reducing pollution emissions, and in waste recycling. Reducing the use of natural resources and implementing environmental ISO Standards recorded a lower percentage in relation to other matters affecting the environment. • Wholesale and retail trade, repair of motor vehicles and motorcycles attaches the greatest importance to activities aimed at protecting the environment and have intense concerns in reducing energy consumption, natural resource use, waste recycling CSR For All

Engaging with the Supply Chain CSR For All

Engaging with the Supply Chain General situation involving ethical criteria companies to integrate social and environmental purchasing policies, distribution and contracting CSR For All

Engaging with the Supply Chain • The majority of companies (over 50%) actually considers ethical, social and environmental criteria in engaging with supply chain. • Regarding involvement in the supply chain of SMEs in most part them get involved in activities aimed at integrating the criteria of ethical, social and environmental of purchasing policies, distribution and contracting and auditing of social and environmental providers performance. In return, SMEs do not focus on activities involving the provision of training in social, environmental, human rights and OSH by suppliers and participation to the supply chain initiatives such as the Business Social Compliance Initiative (BSCI) • Wholesale and retail trade, repair of motor vehicles and motorcycles are observed to provide more training on social, ecological, human rights and OSH issues • Wholesale and retail trade; repair of motor vehicles and motorcycles sectors show significant divergences and have higher mean values compared to the others CSR For All

Business Ethics CSR For All

Business Ethics CSR For All General situation involving companies for the existence of clear rules regarding involvement and contribution charge policy and approach to conflicts of interest

Fair Business Behavior • 69% of companies surveyed consider very important the existence of clear rules regarding involvement and contribution charge policy and approach to conflicts of interest. • SMEs attaches great importance to ethical behavior in business and are involved in activities such as identifying corruption risks, implementing and maintaining policies and practices that counteract corruption and extortion, the existence of clear rules in terms of a policy involvement and contribution charge, and how to address conflicts of interest, and measures to prevent anti-competitive behavior. • Information and communication companies attaches the utmost importance to to ethical behavior in business and are involved in activities such as identifying corruption risks, implementing and maintaining policies and practices that counteract corruption and extortion CSR For All

Providing Remedy CSR For All

Providing Remedy General statement of corporate involvement in the establishment of remedial action if the challenge or contribute to an abuse of human rights CSR For All

Providing Remedy • The recorded data show a rate of 61% for companies that implement remedial measures. • SMEs are heavily involved in establishing remedial action in case of challenge or contribute to an abuse of human rights. Also, a fairly large percentage, 32% of SMEs consider stakeholder involvement processes towards the employees of business partners. • Companies operating in the wholesale and retail trade, repair of motor attaches the greatest importance to remedial measures in case of challenge or contribute to an abuse of human rights and the existence of processes involving stakeholders towards the employees of business partners (such as those in the supply chain) for high involvement. • National companies are more preoccupied regarding remediation measures if they cause or contribute to a human rights abuse. CSR For All

Challenges in Implementing CSR CSR For All

I. Conclusions • The study shows that 55.05% of the companies surveyed are aware about CSR’s international initiatives, while 44.95% of companies aren’t aware so far about these initiatives. • In terms of companies’ size, the most popular CSR initiatives for SMEs are: ISO 26000 18.18%, UN Guiding Principles on business and human rights 15.15%. • In terms of companies’ size, the most popular CSR initiatives for large companies are: UN Guiding Principles on business and human rights 40.00%. • This study reveals that only 7% of surveyed companies have participated in volunteering activities related to CSR. • 30% of the large companies and 29.29% of the SMEs consult stakeholders in order to understand the responsabilities. CSR For All

II. Conclusions • The dates have shown that 34.38% of the companies consult NGOs stakeholders. İn terms of companies size, 90% of the SMEs consult investors, while 100% of large companies, other institutions. • 66% of SMEs wish to develop in the future the CSR concept within the company , meanwhile 34% said that the situation will remain unchanged regarding the future period and the CSR implementation in their current activity. On the other hand, the situation is completely different regarding the development of CSR implementation within the large companies, 90% of them having as their future objective the development of CSR concept and increasing the importance of CSR integration measures within the business vision, while only 10% considers that in the future the companies will not support CSR development, its implementation maintaining the same position as in the present. • 72.48% said they were interested in participating in trainings in the project, while 27.52% had no interest in the CSR training. CSR For All

Corporate Social Responsibility For All