CSRmedia.ro & Ernst&Young CSR Survey 2013_EN

7/28/2019 CSRmedia.ro & Ernst&Young CSR Survey 2013_EN

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CSR trends andrealities in Romania2013 Edition


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CSR trends and realities in Romania Edition 2013 2

About the survey

CSR trends and real i t ies in Romaniaexplores and analyzes the perception of executives and specialists in

CSR (corporate social responsibility); the survey is related to both initiated and ongoing projects during2012, but also to the CSR perspectives in the next period.

The study was undertaken during 10 April 10 May 2013. The report analysis the answers of77 top executives from

the local business segment and CSR specialists to 28 questions. The respondents are mainly companies already

involved in CSR activities; for this reason we believe the study is useful in offering answers to companies

thinking about the opportunity of starting CSR activities and want to understand their impact at a strategic level as

well as their benefits.

Objectives

What is the current situation of the Romanian

CSR sector?

What are the CSR trends in Romania?

What is the role of the CEO, CFO and other C-

suites in developing CSR programs and why is it

important for the company to undertake CSR

initiatives? What is the role of the CSR team in the strategic

positioning of the company through CSR efforts?

Approach

Quantitative and qualitative analysis of the

answers received from the respondents.

Global and European indicators of CSR trends for

a comparative data analysis.


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Romanian CSR/SR SWOT analysis

The companies interest in CSR/SR and the relative novelty of this

concept for the Romanian public

Involvement of multinationals and other national companies in CSR

initiatives

The ongoing growth of the number of CSR/SR initiatives and best

practices in this field nationwide

The growing number of consumers interested in the products and

services produced by social responsible companies

Strengths

Lack of coherent public policies promoting CSR/SR

Lack of a coherent and consistent legal framework

Difficulties in applying the legislation

Risk of exclusion/restricted access of Romanian companies on

certain markets

Insufficient support and involvement of public authorities in

promoting and applying CSR/SR

Lack of state budget funds dedicated for promoting CSR/SR

programs

Threats

The concept of CSR is little known in the Romanian society

The absence of studies on the popularity and applicability of

CSR/SR initiatives in Romania

Some SMEs are not yet convinced of the relevance of CSR

initiatives

Target audiences do not have an appropriate understanding

regarding the capacity of CSR programs to represent and work in

their best interest

Weaknesses

Dynamics of CSR/SR at an European and global level

Opportunity to learn, take on or adapt best practices from the

experience of more developed states

Increase in reputation for the companies involved in CSR efforts

EU financing opportunities for CSR initiatives

Positive attitude of consumers towards companies involved in the

society/community

Opportunities

Source: National Strategy for promoting social responsibility 2011-2016, Ernst & Young


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Positive effect on Return

It is already accepted in western economies that

social, corporate governance and environmental programs

create value for shareholders.

Multiple CSR studies highlight the importance of CSR for

companies reputation. Pulse Survey Reputation Institute shows

that the CSR efforts are responsible for no less than 40% of a

companys reputation, having a significant effect on the

company's financial returns.

60% of the top executives and Administration Council members

that responded to the Global RepTrak 2013 survey had stated

this, while 79% consider that we are now in a reputation basedeconomy.

Why do C-suits (CEOs, COOs, CFOs) need to involve inCSR? What is the impact of CSR on revenues?

In just 10 years, CSR has entered the agenda of the C-suite, since investors and consumers, along side

activists, also started to take interest in CSR. Company executives and board members are directly involvedin structuring the companys CSR strategy, as the economic argument for CSR becomes stronger.

Therefore, the CSR activity has turned from a marketing function into one that is now put into practice by

the Administration Council and the C-suites.

1 CSR reporting, from optional to vital

Companies understand the fact that CSR is no longer just a

footnote in the companys annual reports and thus, an increasing

number of companies report CSR related activities. If in 1999 only639 companies reported CSR initiatives, in 2010 their number

exceeded 5.600, according to CorporateRegister.com.

At the same time, the European Commission had published in

April 2013 a legislative proposal that will compel companies with

more than 500 employees to annuallypublish information

regarding their social and environmental impact and employees

rights.

Global Reporting Initiatives Readers Choice study shows that55% of CSR reports readers had used such reports in taking their

purchasing decisions, 45% in their investing decisions, 34% in

establishing partnerships and 32% in recruiting processes.

2


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Why do C-suits (CEOs, COOs, CFOs) need to involve inCSR? What is the impact of CSR on revenues?

Inclusion of CSR strategies in the companies business model is on a rise.After the full development of the companys CSR

strategy, the next natural step is to include it in the business model. In some countries, companies financial reports already requireCSR efforts.

Competitive advantage and differentiation: CSR increases the companys competitiveness, in an economy where consumers and

corporate clients take buying decisions based on how social responsible are the companies from which they purchase products or

services. 16% of American consumers are strongly inclined towards sustainability, while 66% have ecologist intentions (according to

OgilvyEarth). Surely, in the next years CSR will also increase its significance in the buying decisions of Romanian consumers.

Supply chain pressures: For many years, companies have been putting pressure on suppliers to deliver better and cheaper

products, but now it is also important how well they respect sustainability principles.

Retention and motivation of employees: With the increase of social involvement of companies, employees are more motivated.

According to Society for Human Resources Management, employees from companies with strong CSR campaigns are 55% more

motivated than the ones from companies with little CSR involvement, business processes are more efficient with 43%, public image

43% stronger, and employees commitment 38% higher.

High employment attractiveness: Last but not least, employees become increasingly more alert to social responsible efforts of their

employer. 88% of graduates and young professionals take into account the CSR position of the company, and 85% of these would

consider leaving the company drops its CSR position.

Responsibility towards the community : If a company abuses the resources and trust of a community, it is very likely that the

development rhythm of the community will decrease, having a negative impact over the financial results of the company.

3

4

5

6

7

8


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Top 5 conclusions of the study

Top 5

conclusions

CSR increasingly shapes-up in Romania, already 78% of the respondents have stated that the company

they represent have a CSR strategy, while 67% of them believe that the CSR interest will increase in the

next 12 months.

On the other side, the average value of a project is yet small, 66% of the projects realized by

Romanian companies do not exceed EUR 10.000, these being equally divided between projects

lower than EUR 5.000 and over EUR 5.000, but under EUR 10.000.

At the same time, more than 3/4 of the Romanian companies have an annual budget dedicated to

CSR activities. Out of these, half consider that the budget has maintained its level in 2013compared to 2012, while only 16% had noticed an increase between 5-10%.

An overwhelming proportion (92%) of the interviewed companies involve their employees in

CSR projects, which means that we have excellently acquired this CSR principle.

Most of the surveyed companies have defined CSR through actions with social/health/education

character (47%), less tangible actions that are a new focus in the western CSR, like business ethics and

corporate civic responsibility are placed on the next two positions (24% and 18%).


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Even if CSR involvement was a practice initiated by

subsidiaries of multinational companies, as part of

their values, this is no longer an abstract concept forRomanian companies. The next step now is that it

becomes a strategic area for as many Romanian

private companies and public institutions as possible.

The fact that 82% of the surveyed companies have

their leaders actively involved in CSR efforts, clearly

shows the importance they assign to corporate social

responsibility.

Bogd an Ion, Country Managing PartnerErnst & Young Rom ania & Moldova


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How did the interest for CSR evolved in the last 12 months?(single answer)

Question 1

A significant part of respondents (67%), consider that the interest for CSR has increased in the last 12 months, while 30% consider

that it has remained the same. Just 3% see the interest for CSR as decreasing in this period.

67%

30%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Grew Stayed the same Decreased

Total respondents: 60

(skipped this question: 17)


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As reasons for CSR involvement, the majority has answered: recognition and visibility (33 companies) and because CSR initiatives

are part of the strategy on public relations (31). A lot of CSR tops, such as Pulse Survey of Reputation Institute, show that CSRefforts are responsible for no less than 40% of the companys reputation, which represents a very powerful motivation for involving in

these type of projects and communicating them. In Global RepTrak 100 2013, 60% of top executives and board members who

responded to the survey think that reputation has a big impact on the companys financial results, while 79% say that we run in a

reputation based economy.

Why get involved in CSR?(multiple answer)

Question 2



7

8

9

11

31

33

0 5 10 15 20 25 30 35

Promoting products and services

It increases the financial value of the company

We are obliged by company policy

Our shareholders request the involvement

It's part of our strategy on public relations

Recognition and visibility


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Which option do you consider is best suited to define socialresponsibility?(single answer)

Question 3

Most companies (47%) define CSR as actions with social/environment/educational character, followed by business ethics with 24%

and corporate civic responsibility with 18%, the least of them defining it as a way of promoting the company's image.



1%

10%

18%

24%

47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Way to promote the company's image

Way to create stable and profitable business relationships forall involved parties

Form of corporate civic

Business ethics

Support for social/environment/health/education initiatives


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CSR budget


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Do you have a dedicated budget for CSR?(single answer)

Question 4

76% of respondents affirmed that they have a dedicated budget for CSR, while 24% responded negatively at this question.

Yes76%

No24%

Yes

No




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What is the evolution of CSR budgets in 2013 compared to2012?(single answer)

Question 5

For half of the companies there is a stagnation in CSR budgets in 2013 compared to 2012, while 36% of them dispose of increased

budgets, and 13% have reduced their budgets this year.



51%

16%

11%9%

7%

3% 3%

0%

10%

20%

30%

40%

50%

60%

0% Increasesbetween 5-10%

Increasesbetween 20-30%

Increasesbetween 10-20%

Decreasesbetween 20-30%




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Question 5(a) Depending on revenues from the surveyed companies:

Results show that the highest increases in CSR budgets in 2013 compared to 2012 were for companies with revenues higher than

EUR 100mn, while the largest cuts in CSR budgets in 2013 were for companies with revenues of EUR 1-10mn.



25%

50%

33%

25%

25%

67%

25%

50%

17%

25%

25%

17%

50%

46%

38%

50%

17%

50%

4%

13%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Decreases between 20-30%



0%

Increases between 5-10%



More than 100M EUR 50-100M EUR 10-50M EUR 1-10M EUR Less than 1M EUR


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Question 5(b) Depending on revenues from the surveyed companies:

As it can be observed, the largest increases of CSR budgets in 2013 compared to 2012 are for the Telecom/IT/Media companies,

while the largest cuts in CSR budgets in 2013 are made by energy and mining companies.



50%

11%

13%

60%

20%

11%

13%

11%

20%

11% 21%

25%

20%

5%

13%

25%

50%

50%

21%

25%

60%

50%

5%

25%

20%

5%

13%

50%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1



Decreases between 5-

10%

0%




Services Retail trade and en gros Construction and real estateEnergy and mining The food industry Chemical IndustryThe pharmaceutical industry and health Producing industry Banking and financial servicesTelecom/IT/Media


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The role of topmanagement

and CSR strategy


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Leaders of your organization are actively involved inpromoting CSR within and outside the company?(single answer)

Question 6

To an impressively large extent (82% of respondents), leaders of organizations are actively involved in promoting CSR both within

and outside the company.

Yes82%

No18%

Yes

No



I th CSR itt t t t l l?


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Is there a CSR committee at top management level?(single answer)

Question 7

Regarding the involvement of top management in defining a CSR strategy and carrying-out the projects, 45% of the companies

already have a CSR committee involvement at top management level, while 55% responded negatively to this question.

No55%

Yes45% No

Yes



D h li / t t d di t d t t i l


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Do you have a policy/strategy dedicated to corporate socialresponsibility?(single answer)

Question 8

The majority of companies (78%) already have a policy/strategy dedicated to CSR, while 22% do not have such a strategy. The

natural step after defining a strategy is aligning it with the company's business plan. 1/3 of U.S.A, companies with 100-5000

employees already have a fully-grown and integrated CSR strategy in the business model, according to Business4Better Survey

2013.

Yes78%

No22%

Yes

No



Th CSR i l t f i di t


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The CSR involvement of your company is a directconsequence of the company's values and principles?(single answer)

Question 9

For 90% of the respondents, involvement in CSR activities represents a direct consequence of the companys values and principles,

compared to 10% who responded negatively to this. In contrast, for 67% of the companies who responded at the Mercer Global

Survey on CSR 2013 CSR/sustainability is part of their base values.

Yes90%

No10%

Yes

No



Does your company measure the impact its involvement in community


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Does your company measure the impact its involvement in communityhas on the company and community?(single answer)

Question 10

More than half of the respondents had stated the existence of indicators / KPIs that measure the effect their CSR projects have on

community.

Yes65%

No35%

Yes

No



Did your company communicated or published reports on


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Did your company communicated or published reports onthe activity and involvement in CSR?(single answer)

Question 11

63% of the companies have published reports or press releases regarding activities and involvement in CSR, while 37% haveresponded negatively to this. The most recent barometer published by Grayling PULSE shows that less than one third (28%) of

companies that have a CSR strategy have integrated it in the corporate communication strategy. This is in spite of the fact that the

same companies consider CSR projects to have the greatest impact on the reputation of the company (30% of the respondents),

followed at a great distance by the impact on relationships with employees (17,7%).

Yes63%

No37%

Yes

No




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CSR Projects

2012

Is your company involved in corporate social responsibility


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Is your company involved in corporate social responsibilityprojects?(single answer)

Question 12

86% of the respondent companies are involved in corporate social responsibility projects. This decision is also supported by the

Penn Schoen Berland report, consumers beginning to see CSR as a quality that adds to the value of their commercial products. This

survey indicates that 70% of the consumers are willing to pay more for products with social responsibility.

Yes86%

No14%

Yes

No



How many projects have you run in 2012?


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How many projects have you run in 2012?(single answer)

Question 13

In 2012, companies have developed in average 6,6 CSR projects, with a median of 5 projects. But there are companies who go

beyond the number of 10 projects, while most of the companies have developed 2 CSR projects in 2012.

6,6 projectsTotal respondents: 59


What is the average value of a CSR project developed by


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What is the average value of a CSR project developed byyour company?(single answer)

Question 14

86% of the companies have CSR projects who do not exceed a budget of EUR 50.000. 34% of the respondents state that the

average value of a project is no greater than EUR 5.000, 32% have projects between EUR 5.000-10.000, while only 2% said that

their average value exceeds EUR 500.000.

2%

3%

9%

20%

32%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

more than 500.000 EUR

between 50.000-100.000 EUR

between100.000- 200.000 EUR

between 10.000-50.000 EUR

between 5.000-10.000 EUR

until 5.000 EUR



What sectors of the community do you target for intervention


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What sectors of the community do you target for interventionand support?(multiple answer)

Question15

Most companies focus their CSR projects (25%) on education. This is followed by a similar level of interest for health (18%), social

problems (17%) and the environment (16%). Compared to studies from Romania, the Business4Better 2013 survey shows an

interest of 60% of American companies with employers between 100-5.000 for the education sector.

25%

18%17%

16%

10%8%

5%

1%

0%

5%

10%

15%

20%

25%

30%

Education

Health

Social

Environment

Sports

Culture

Entrepreneurship

Other



At what level are or were your projects developed by your


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At what level are or were your projects developed by yourcompany?(multiple answer)

Question 16

Companies have very ambitious CSR strategies, the largest number of CSR projects being focused at a national level (34%) and

less at a community or local level. This is contrary to the Business4Bettersurvey, which shows that companies mostly invest in local

initiatives and are focused on communities.



11%

13%

21%

21%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

In all the community in which we operate

Regional

Local

At the community level

National

Your company is contributing to community by:


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Your company is contributing to community by:(multiple answer)

Question 17

The majority of companies offer support: in cash donations 28%, volunteering 27% and donations in kind 26%, less being focused insocially responsible business practices 18%. In regard to volunteering, almost 40% of the companies surveyed by Business4Better

support this practice by offering free time to employers in change of volunteering. Also, more then 30% of these companies are

contributing to community by offering pro bono services.

1%

18%

26%

27%

28%

0% 5% 10% 15% 20% 25% 30%

In another way

Socially responsible business practices

Donations in k ind (books, use of space, active loans)

Volunteering

Donations in cash



What kind of institutions do you collaborate with to


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yimplement CSR projects?(multiple answer)

Question 18

In terms of collaboration with different institutions 54% of the companies prefer NGOs, while 36% work with local/central authorities.

There are also companies (5%) that prefer to undertake projects independently.



54

35

5 4

NGO Authorities local/central No collaborations Other

0

10

20

30

40

50

60


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CSR teamand the role of

employees

Do you have a person/team dedicated to CSR projects?


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y p p j(single answer)

Question 19

71% of respondents have a person or a team dedicated to CSR projects, unlike 29% of the respondents who answered negatively to

this question. The same percent is reached by companies from the Business4Bettersurvey, in which a third of the respondents have

a person responsible for CSR efforts in the marketing and HR department.

Yes71%

No29%

Yes

No



How many persons are part of your CSR team?


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y p p y(single answer)

Question 20

In regards to the number of persons involved in the CSR team, they are on average 2,6 per company (full time employees).

2,6personsTotal respondents: 50


Do you organize internal trainings with topics covering


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corporate social responsibility?(single answer)

Question 21

70% of the respondents do not organize internal trainings with topics covering corporate social responsibility.

Yes30%

No70%

Yes

No



Do you have an internal process for identifying relevant CSR


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themes for the company?(single answer)

Question 22

In regards to the process of establishing a CSR strategy, most of the companies (60%) already have an internal process for

identifying relevant CSR themes, while 40% do not have such a process.

Yes60%

No40%

Yes

No



Do you involve employees in CSR activities undertaken byth ?


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the company?(single answer)

Question 23

An overwhelming majority, 92% of the companies, involve their employees in CSR activities. This means that Romanians companies have

understood that their employees are more motivated if the company is actively involved in CSR projects. It is generally accepted that CSR projectshave a significant impact in motivation, development and the retention of the employees. In addition, the Society for Human Resources

Management has compared companies with strong sustainability programs to those with less relevant campaigns and found that employees of the

first type of companies have a 55% higher moral, the companys image is 43% better, and employees loyality is higher by 38% compared to

companies from the second category.

Yes92%

No8%

Yes

No




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DemographicsThe results of this study reflect the responses of77 top executives and CSR professionals from

companies operating in Romania, received

between 10 April and 10 May 2013.

Demographics


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Demographics

The shareholding structure of companies : Locations:

64%

25%

11%

0%

10%

20%

30%

40%

50%

60%

70%

Worldwide Romanian Mixed

75%

25%

Bucharest/Ilfov

Other location

Demographics


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Demographics

The industries in which the companies that

responded to the survey operate in:Income distribution of the surveyed companies :

18%

36%

9%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

50-100M EUR 10-50M EUR 1-10M EUR Less than 1MEUR

2%

5%

5%

5%

7%

10%

13%

15%

17%

22%

0% 5% 10% 15% 20% 25%

Chemical Industry

Energy and mining

Construction and real estate

Telecom/media

The pharmaceutical industry andhealth

Retail trade and en gros

Other services

The food industry

Banking and financial services

Manufacturing industry

Demographics


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Demographics

Positions held in the company by people who responded to the survey:

2%

13%

27%

28%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Human Resources Specialist

CEO/President / Director General

CSR Specialist

Member of the Board's

Marketing Specialist


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Project team

Project team


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Project team

Elena BadeaHead of Market Enablement

Ernst & Young Romania

[email protected]

Lacrmioara BotezatuProject Manager

CSRMedia.ro

[email protected]

George CarpovConsultant

CSRMedia.ro

[email protected]

Mihaela MateiSpecial Projects

Communication Officer


[email protected]

Ernst & Young Romania CSRMedia.ro


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Testimonials

Testimonials


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Testimonials

George CarpovConsultant

CSRMedia.ro

This study comes in the benefit of all the

decision factors in companies, since Corporate

Social Responsibility is gradually becoming an

important component of the business strategy.

This is no longer strictly a matter for one person

(or department) but extends to leaders at all

levels, while increasing the importance ofdialogue with both internal and external

stakeholders of the company. We're basically

talking about companies adopting a socially

responsible business model both to its own

employees as well as to

partners, customers, authorities and

communities. We are witnessing a period in

which a company is not only measured by profits

but also by the ways in which a portion of thisreturns to society, other than in the form of

taxes.

Elena BadeaHead of Market Enablement


Corporate responsibility is turning from a marginal

phenomenon into one that is mainstream. The

way companies respond to societys expectations

becomes more sophisticated, while on the market

thought agenda is entering a new generation of

CSR concepts (CSR 2.0). We expect corporate

responsibility to become a profession taught andstudied in schools and universities. Beyond these

trends, however, CSR remains primarily an

endeavor based on passion, that should be

included in the communication strategy and

current corporate communication, as well as in

the business strategy. Because the executives

and Board members are those who best

understand the context of the company, they are

the ones that greatly influence the launching andimplementation of CSR efforts.

Testimonials


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Ruxandra VodCorporate AffairsSenior Manager

COSMOTE Romania

Adina IonescuPR & Brand BuilderMOL Romania

Social responsibility is an integral part of the business plan of many

companies operating in the Romanian market, some of these projectsbecoming more and more frequent and involving more audiences.

Social responsibility initiatives have gained momentum over the years

and also the credibility of working for well defined causes, aspects that

influence the level of general involvement of society -

customers, partners, employees, etc.

Far from being a simple exercise to improve the image of a

company, corporate social responsibility programs are an

indispensable and efficient instrument. For a long term profitablebusiness, community involvement is required. Large corporations

operating in Romania are already running viable social responsibility

programs and understand the role of fiscal levers provided by

authorities in this regard. Still, there is one more step to take: profitable

small and midsize companies to follow the same model, strengthening

their business for the medium and long term. In addition, since the

philanthropic and emotional causes of NGOs are real and

important, they can be supported by the private sector not only by

financial resources but also by a quality transfer of knowledge.

Testimonials


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Ctlin CreuDirector GeneralVisa Europe, Romania

Visa Europe runs CSR activities in most markets in Europe, together withstrategic partners, both international and local. For us, a relevant CSRprogram is through strong partnerships with other players in the market, but

also with the authorities. A powerful CSR project is one that serves the

interests of all those involved in the project from the community to the

companies, from the environment to the authorities. They all must have the

same common vision to transform for the better and on the long term the

environment in which they coexist.

Costinela DraganPR & CSR CoordinatorRompetrol Group

The study was necessary given that the market has a lot of

potential, and companies have understood the importance of investing

in the sustainability of the business and have begun integrating CSR

into their development strategy. Of course, I refer to CSR in all its forms

- substantial investments in environmental protection, human resource

development, human rights, anti-corruption policies, helping the localcommunities. The analysis performed by EY offers, on the one

hand, an overview of projects and programs in Romania, but also an

useful tool for self-assessment and positioning for companies in

relation to other stakeholders.


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We intend to conduct

this survey every year.

We hope for your

support!

Documents

CSRmedia.ro & Ernst&Young CSR Survey 2013_EN