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Corporate Social Responsibility For All

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Corporate Social Responsibility For All NATIONAL REVIEW REPORT Croatia CSR For All * Conclusions and Recommendations 3 It is necessary also to strengthen the ... – PowerPoint PPT presentation

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Title: Corporate Social Responsibility For All


1
Corporate Social ResponsibilityFor All
  • NATIONAL REVIEW REPORT
  • Croatia

2
OUTLINE
  1. General Information
  2. Objectives
  3. Sampling Methodology
  4. Analysis Strategy
  5. The Distribution of Companies by Sectors,
    Regions, Ownership Structure, Size, and Origin
  6. Perception of Enterprises Regarding CSR
  7. Degree of Interest of Enterprises

CSR For All
3
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

4
General Information
  • This Research Report is part of the EU funded
    project in which the Turkish Confederation of
    Employer Associations (TISK) is the Lead Civil
    Society Organisation (CSO). The Partners of TISK
    in this project are
  • The International Organization of Employers (IOE)
  • Croatian Employers Association (CEA)
  • Business Confederation Macedonia (BCM)
  • Montenegrin Employers Federation (MEF) and
  • National Council of Small and Medium Sized
    Private Enterprises in Romania (CNIPMMR).

5
Objectives
  • There are two specific objectives of the project
  • To build awareness and capacity in
    partnership/network of employer organizations
    (EOs) in South East Europe regarding CSR in order
    to improve their participation in
    multi-stakeholder dialogue at national and
    international levels.
  • To create awareness and build capacity in the
    network of employer organizations (EOs) in the
    region to guide enterprises for their positive
    impacts on society and to integrate social,
    environmental, ethical, human rights and consumer
    concerns into their business operations and core
    strategy.

6
Sampling Methodology
  • Conducting 500 companies in the first phase,
    followed by 300 in the second phase, and in the
    final phase to the total of 1,691 contacts
  • 100 responses received
  • 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)
  • Companies were selected with taking into account
    the following criteria size of the companies,
    regional distribution of companies and sectors
    distribution in which companies operate

7
The sample was broadly distributed by regions as
follows
Sampling Methodology
7
8
Sampling
  • The questionnaire was sent out to the
    questionnaire was sent to the email addresses of
    2,491 companies from across Croatia
  • 57 companies being members of the UN Global
    Compact Croatia
  • The questionnaire was disseminated through
  • Croatian Employers' Association membership
    network (branch associations)
  • Croatian Business Council for Sustainable
    Development members base
  • Kompass Croatia Croatian Economy database of
    Croatian companies

9
Sampling 2
  • Companies with incomplete responses were
    contacted
  • There are three basic reasons why the expected
    response rate was not reached within the targeted
    sample - extremely low return of 4 due to
  • summer months and the holidays
  • lack of interest in this topic
  • lack of resources for any development issues and
    the issue of CSR

10
Analysis Strategy
  • 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

11
Distribution by size of companies
Company size Respondent Share
Micro   28 28.0
Small   24 24.0
Medium-sized 19 19.0
Large   29 29.0
Total 100 100.0
12
Distribution by sectors
Five largest sectors  Respondent Share
Manufacturing 16 16.0
Wholesale and retail trade 20 20.0
Mining and quarrying 4 4.0
Real estate activities 4 4.0
Construction  10 10.0
Other  46 46.0
Total 100 100.0
  • Due to the relatively small number of
    participating companies, the results for specific
    sectors will not necessary show exact results for
    the sector so they need not be taken for granted

13
Distribution by ownership type criteria
Ownership type  Respondent Share
State 9 9.0
Private  85 85.0
Co-operative  0 0.0
Mixed 6 6.0
   Total 100 100.0
  • Due to the relatively small number of state
    companies and the small number of companies that
    operate on foreign markets, the results need to
    be taken only as guidelines and not as exact data

14
Due to the relatively small number of state
companies and the small number of companies that
operate on foreign markets, the results need to
be taken only as guidelines and not as exact
data
Companies with predominately domestic markets vs.
predominately foreign markets
Market  Respondent Share
Domestic  78 78.0
Foreign 12 12.0
Equally domestic and foreign 10 10.0
 Total 100 100.0
15
Perception of Enterprises Regarding CSR
  • General awareness of CSR is presented for the
    whole sample - 84 of companies are familiar
    with CSR
  • Then the survey result is examined in terms of
  • Origin
  • Company size
  • Sector
  • Company structure
  • Years

16
CSR Governance in the company
  • There is recorded existence of CSR departments in
    55 of companies
  • In 90 of large companies
  • In 11 of small companies
  • Department for Corporate Communications and PR
    (28.3)
  • Office of the Executive Manager (19.6)
  • Teams of the people coming from various key
    departments (13)
  • Departments specifically organized for CSR (6.5)
  • Environmental Protection Departments (4.3) and
    others

17
Areas of priority regarding CSR
  • Largest number of answer given to
  • Responsibility towards employees (62)
  • Responsibility towards the local community (27)
  • Fair business practices (26)
  • On a total ranking list
  • Responsibility towards employees with 27.7
  • Securing jobs with 10
  • Human rights with 10

18
Degree of Interest of Enterprises 2
  • Reasons for Engaging in CSR

19
Degree of Interest of Enterprises 3
  • Familiarity with CSR instruments, tools and
    initiatives
  • 68 are familiar with some of the CSR instruments
  • 2 are not familiar with a single tool or
    instrument
  • 30 did not answer this question
  • Use of CSR Instruments, Tools and Initiatives
  • CSR Index is used by 25.6
  • UN Global Compact is used by 23.1
  • GRI 19.2
  • 32 of companies publicly commit to their
    obligation to CSR
  • Code of conduct exists in 55 of the companies
    (86 large companies)

20
Degree of Interest of Enterprises 4
  • 46.4 of companies publicly report on CSR
  • Approaches to reporting
  • Online reporting by 29.1
  • CSR reports by 19
  • Integrated reporting and meeting with
    stakeholders by 16.5
  • 51 of the companies consult with external
    stakeholders regarding company responsibilities

21
Assessing Governmental Policies towards CSR
  • 92 of the companies think that government
    support for CSR is useful as it increases
    awareness of CSR and represents a good foundation
    for companies CSR policies
  • Governmental policies are useful and should
  • Inform
  • Raise awareness
  • Introduce awards
  • Introduce tax reductions.

22
The significance of CSR in a company in the
future
  • Most stated that the significance of CSR in the
    future will grow (73), as to the areas of
    importance

Area   f Share
Responsibility with regard to the environment 54 16.3
Responsibility towards employees  50 15.1
Responsibility towards the local community/region 45 13.6
Fair business behaviour    40 12.1
Securing jobs    35 10.6
Respecting human rights   35 10.6
Anti-corruption behaviour   31 9.4
Engaging with the supply chain   27 8.2
Support for culture, science and sports 14 4.2
   Total 331 100.0
23
Demand for Training
  • Following areas are expressed to draw the most
    attention
  • Responsibility towards the local community
  • Responsibility with regard to the environment
  • Anti-corruption behaviour
  • Responsibility towards employees
  • Fair business behaviour
  • Respecting human rights
  • Securing jobs

24
Project Management, Implementation of CSR
Projects at Company Level
  • The results are summarized in the following
    activities
  • commitment to employees
  • respecting human rights
  • community engagement
  • environmental activities
  • engaging with the supply chain
  • fair business behavior
  • providing remedy

25
Commitment to Employees
  • Very good results of Croatian companies as to the
    issue of
  • work-life balance of employees - 83
  • training of employees - 95
  • promotion of healthy and safe work environments -
    96
  • rights to establish and join organizations of
    their own choosing and engagement in social
    dialogue processes - 79
  • measures to abolish child labor - 81
  • 66 reported having feedback mechanisms for
    workers to submit issues of concern to
    management, but 16 were unsure if they exist
  • Worst results were recorded as to the measures
    for disabled people only 29 of the companies
    agreed with the claim (mostly large), while 65
    of the companies disagreed or completely
    disagreed, or were unsure of the answer (mostly
    by micro and small companies)

26
Respecting Human Rights
  • Here we have 96 that strongly agree or agree,
    others were unsure (micro and small), and there
    were no negative answers
  • As to the issue of public commitment to respect
    human rights, 84 were positive answers, 10
    stated being unsure, and 5 of answers were
    negative statements
  • Much worse results are seen in the question of
    engagement in due diligence and human rights
    impact assessments in their company- only 32 of
    the survey participants agrees or agrees
    completely (22 and 10) , 40 were unsure, and
    22 completely disagrees or disagrees with this
    statement
  • More responsibility and sensibility on these
    issues was shown by large and foreign trade
    companies

27
Community Engagement
  • Rather good proportion of companies are included
    in community engagement by ranking
  • support of education and training institutions
    and initiatives -70, support for social
    initiatives - 66, support of cultural projects -
    54, support for amateur sports associations by
    51, support for particularly small
    infrastructure initiatives- by 42
  • Lowest result was recorded in the support for
    professional sports associations by 26
  • Large companies are more involved in all means of
    support, but there are some differences between
    sectors
  • Foreign markets companies invest more in the
    local infrastructure initiatives

28
Environmental Activities
  • Very large number of positive answers on the
    issue, by ranking
  • Energy consumption reduction - 92 (Better
    results were recorded in the state owned
    companies, private companies there were 2.4 of
    negative results - although not significant,
    still surprising)
  • Waste recycling policies - 89
  • Systematic efforts to reduce the use of natural
    resources - 81 (17 did not know how to answer
    this question)
  • Pollution emission reduction measures - 78
    (interestingly 18 of the surveys participants
    were unsure, among which in large companies 3.4
    were unsure).
  •  Worse results were recorded in environmental
    management systems (ISO 14001 and EMAS) - 39
    (16 did not know how to answer this question,
    whilst the rest gave a negative answer) all
    companies in the mining and quarrying have
    certificates 
  • As in most of the questions, the results are
    better in large and state owned companies and
    foreign markets operating companies

29
Engaging with the Supply Chain
  • The results were recorded as to the following
    issues, by ranking
  • Integration of ethical, social and environmental
    criteria in purchasing, distribution and
    contracting policies - 75 (19 of the
    participants were unsure)
  • The existence of audits of social and ecological
    performance of its suppliers - 55 (20 were
    unsure, 23 with a negative answer)
  • The existence of training on social, ecological,
    human rights and OSH issues to suppliers - 31
    (37 do not have it, 29 were unsure)
  • The best results were recorded in mixed owned
    companies and large companies, and if divided by
    sectors, companies in the mining and quarrying
    sector again have the best results
  • Worst results are recorded in the companies that
    do business in the domestic market

30
Fair Business Behavior
  • Fair business behavior was recorded are as
    follows
  • the identification of risks from corruption and
    the implementation and maintenance of policies
    and practices that counter corruption and
    extortion - in 75 companies (18 did not know
    the answer)
  • the existence of rules regarding responsible
    political involvement and contributions, and how
    to deal with conflicts of interest - in 69
    companies (26 unsure answers)
  • the existence of procedures to prevent
    anti-competitive behavior - in 52 companies (36
    were unsure)
  • Despite the anti-corruption measures taken by the
    government, state owned companies are worse - 11
    do not have this policy
  • As to company size, the results are different
    only in 1st issue it is not relevant, and worst
    results were recorded by small companies
  • Best results are in the mining and quarrying and
    manufacturing sector
  • All negative answers were recorded in the
    companies that dominantly operate in the domestic
    market

31
Providing Remedy
  • 52 of companies have reported insurance of legal
    redress in cases of human rights abuse
  • These procedures are not noted in all sizes of
    companies although less in large companies
    (3.4), while somewhat more in small companies
    (12)
  • These procedures are also more common in private
    companies - 7 of them declared not having them,
    state owned companies dont have them in 11 of
    the cases
  • If divided by sectors, the best results are
    recorded in the manufacturing sector with 74
    in the mining and quarrying sector there were no
    negative answers, but 25 of the surveyed
    companies did not answer the question
  • Again, these procedures dont exist only in the
    companies that operate in the domestic market

32
Conclusions and Recommendations
  • CSR is more common in large companies, those in
    manufacturing and resource intensive sectors and
    export companies, therefore education should be
    oriented to small and medium companies.
  • The survey results show CSR implementation levels
    higher than expected - It is our presumption that
    part of the positive answers are based on single
    good examples rather than on systematically
    defined practices which also calls for more
    education about the topic.
  • Even though there is no significant violation of
    human rights, national statistical data (equality
    of gender, rights of whistle-blowers, employment
    of disabled persons) tell us that surveys
    participants dont have enough knowledge on best
    practices - therefore, education and raising of
    awareness is needed to help a better
    understanding of this issue and in the future
    maybe more realistic results in the survey.
  • As in the future, the importance of CSR will
    grow, as well as its influence, mostly in the
    areas of environment, employees, and the
    community and fair business practices, and as
    companies expressed their interest, additional
    training on these topics should be provided.

33
Conclusions and Recommendations 2
  • Also, stronger CSR implementation in
    environmentally intensive companies tells us that
    higher regulatory standards are supportive for
    CSR implementation as well as the other outside
    pressures such as value chain measures, therefore
    higher CSR implementation levels are found in
    export companies. In the long term, the chain of
    value pressure should be increased so that
    companies operating predominantly in domestic
    markets should gain more knowledge and find their
    business case to invest in CSR.
  • Additional education is needed for
    representatives of public sector and creators of
    public policies from not just the area of CSR,
    but also about tax policy, public procurement and
    other important areas for socially and
    environmentally positive practices. This would
    strengthen the capacities of the public sector to
    create positive mechanisms to support CSR.
  • It is important to strengthen the importance of
    CSR in government institutions and public
    companies and to introduce CSR criteria to the
    distribution of funds from the Croatian
    Development Bank or the Ministries of
    Entrepreneurship and Economy.

34
Conclusions and Recommendations 3
  • It is necessary also to strengthen the
    governments supportive measures because the
    survey shows that CSR develops mostly as a result
    of outside pressure such as buyers, investor,
    suppliers or clients. Government influence can be
    very important through the creation of supportive
    measures green public procurement, tax refunds
    or through support awarding, better information
    or general awareness raising about the business
    case for CSR.
  • It is necessary to strengthen promotional
    activities such as the existing conferences, the
    CSR Index, the publication of handbooks and
    guidelines, newsletters, special thematic
    editions in weekly business newspapers and
    support the role of the public sector in these
    activities to raise awareness on the importance
    of CSR implementation.

35
  • Thank you!
  • Biserka Sladovic, PSC Member
  • Sandra Radakovic, Contact Person
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