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Launch of the Regional CSR Network for Small Business and Survey Results

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,

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Launch of the Regional CSR Network for Small Business and Survey Results

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  1. Launch of the Regional CSR Network for Small Business and Survey Results

  2. C R OATIA C R = Corporate Responsibility

  3. OECD definition ENTREPRENEURS – the RISK-TAKING agentsof CHANGE and GROWTHin a market economy that can act to ACCELERATE the generation, dissemination and application of INNOVATIVE and profitable ideas

  4. 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

  5. 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; • C S R ?

  6. MAJOR OBSTACLES TOENTREPRENEURSHIPWEF(2004) POOR WORK ETHIC New EU countries – 9,0 NIS – 8,5 OECD, South East Europe – 8,3 CORRUPTION OECD countries – 6,2 South East Europe – 5,7 NIS – 4,5 New EU Country – 4,2 INADEQUATELY EDUCATED WORK FORCE New EU countries – 8,1 NIS – 7,5 South East Europe – 7,0 OECD countries – 6,7 OTHER ISSUES?

  7. 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.

  8. 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.

  9. Difficulties CSR is still associated with large companies; Lack of time; Low level of using the information technologies.

  10. 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

  11. Survey Questionnaire GENERAL INFORMATION ON COMPANY UNDERSTANDING OF CSR BARRIERS IN CSR IMPLEMENTATION CSR ACTIVITIES IMPLEMENTED READINES TO ENGAGE IN CSR INCENTIVES FOR ENGAGEMENT Main issues covered:

  12. 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 in SMEs – UNIDO CSR practical guides: HR&CSR, ethical procurement, M&E, corporate volunteering, eco-management

  13. 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.

  14. 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. IMPORTANT CSR ISSUES

  15. BIGGEST OBSTACLES

  16. 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%) . BENEFITS & LIMITATIONS

  17. CSR DRIVERS

  18. CSR IMPLEMENTATION PERIOD 2 - 3 weeks 1 month Other 2 - 6 months 6 -12 months

  19. 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.

  20. Survey Results – Bosnia and Herzegovina Perception on CSR among SMEs: How did you first learn about CSR?

  21. 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 decision-making processes to minimize the negative impact on the company's social and natural environment.

  22. 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

  23. 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%).

  24. 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

  25. Survey Results – Bosnia and Herzegovina CSR activities implemented by companies in BiH: Is there a trade union in your enterprise?

  26. 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

  27. 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%)

  28. 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.

  29. 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.

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