CSR Trends and Realities in Romania - 2014 edition

CSR Trends and Realities in Romania

2014 Edition

CSR Trends and Realities in Romania - 2014 Edition

About the survey

CSR trends and realities in Romania survey explores and analyzes the perception of executives and

specialists in CSR (corporate social responsibility) regarding both initiated and ongoing projects during 2013,

but also to the CSR perspectives in the next period.

The present survey is based on a survey conducted during 10 April – 19 May 2014. The survey report analyzes the

answers received from 113 top business executives and CSR specialists. The respondents are mainly from

companies already involved in CSR activities. For this reason we believe the study is useful in offering answers

to companies considering the opportunity of starting CSR activities, companies that would like to understand the

impact of CSR activities at a strategic level as well as the benefits generated .

Obiectives

► 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.

► Indicators of the CSR phenomenon in Romania

as it was highlighted by the 2013 edition of the

study


SWOT analysis of CSR/SR in Romania

► The society’s 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


Top conclusions of the study

Top 9

conclusions

96% of surveyed companies say they have been involved in corporate social responsibility projects in 2013, compared to

86% in the previous year. This result marks a greater interest from companies to integrate CSR activities into their

business strategy, amid a growing general interest from the business community, media and civil society towards CSR.

The CSR budgets stagnate in 2014 compared to 2013 for almost half of the responding companies, while 42% of them

(compared to 36% in the previous edition) say they have a bigger budget; only 10% (compared to 13% in 2013) say they

have a reduced CSR budget this year.

48% of the companies' CSR budget comes from non-deductible budget allocations, 37% from deductible allocations and

only 5% from the marketing budget. Interestingly, 6% of respondents mentioned a budget of sustainable development.

To an impressive extent (89% vs. 82% in the previous survey), organization leaders are actively involved in promoting

CSR efforts both within the company and outside it.

For 95% of respondents, engaging in CSR activities is a direct consequence of the company’s values and principles,

compared to 5% that responded negatively. The percentage of positive responses is up 5% from the previous study.

53% of surveyed companies say they use their own evaluation systems, while 24% use international reporting standards,

and 18% turn to the evaluations provided by partners (e.g. NGOs).

47% of companies say that the most important benefit associated with producing a CSR/sustainable development report

is to demonstrate that the company has such current practices and a strategy for sustainable development.

The main instruments used to communicate the company's involvement in CSR are press releases (31%), followed by

annual reports (26%) and company’s website (22%). Social media is a secondary option (13%).

Most companies have a focus on education in CSR projects (79%, but down from the previous year). This is followed by

interest in social issues (68%, up 8%) and the environment (58%). The second highest level of growth (7%) is observed in

culture (29% in 2012 vs. 36% in 2013).

1.

2.

3.

4.

5.

6.

7.

8.

9.


In the first edition of our report on corporate social

responsibility we expected the CSR phenomenon to turn, over

the next years, into one that was strategic for companies in

Romania, following the global development trend. The

responses from this year’s edition show that our expectation

begins to confirm. The most relevant answer to this is the shift

in tendency to whether there is a CSR committee at the top

level management. If last year most respondents stated that

there is no such committee, in 2013 most companies have

created a committee dedicated CSR at management level.

Bogdan ION, Country Managing Partner

EY Romania & Moldova


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

Question 1

Most companies (57% in 2013) define CSR as community involvement, but not less than 33% give a definition related to sustainable

business strategy.

Note: Following consultation with CSR representatives, the set of answers were changed for more relevance.

47%

24%

18%

10%

1%

0% 10% 20% 30% 40% 50%

Support forsocial/environment/health/education

innitiatives

Business ethics

Form of corporate civic

Way to create a stable andprofitable business relationships for

all involved parties

Way to promote the company'simage

2012

57%

33%

6%

1%

1%

1%

1%

0% 20% 40% 60%

Community involvement

Sustainable business strategy

Business ethics

Significant interactions withstakeholders

Philanthropy

Risk management

Responsible supply chainmanagement

2013


How do you consider the interest for CSR evolved in the last 12 months? (single answer)

Question 2

Even if it remains a significant majority of respondents, 57% believe that the interest in CSR decreased in the last 12 months, while

40% consider that it remained the same. Only 3% believe that interest in CSR had a downward trend during this period.

Total respondents: 97

(Skipped this question: 16)

3%

30%

67%

3%

40%

57%

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

Decreased

Remained the same

Increased

2013

2012


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

Question 3

96% of surveyed companies say they have been involved in corporate social responsibility projects in 2013, compared to 86% in the

previous year. This result marks a greater interest from companies to integrate CSR activities into their business strategy, amid a

growing general interest from the business community, media and civil society towards CSR.



Number of answers Number of answers

59

10

2012

Yes

No

93

4

2013

Yes

No

86%

14%

96%

4%

0%

20%

40%

60%

80%

100%

120%

Yes No

2012

2013


Regarding the motivation to get involved in CSR there is a significant increase to the majority of the criteria, but the most important

are to the public relations strategy (16%) and to recognition and visibility (+8%).

Why is your company involved in CSR? (multiple answer)

Question 4


(Skipped this question : 22)

15%

17%

21%

58%

62%

13%

14%

22%

23%

74%

70%

20%

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

It increases the financial value of the company

We are obliged by our company policy

Our shareholders request the involvement

It is part of our public relations strategy

Recognition and visibility

Promoting products and services

2013

2012


CSR Budget


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

Question 5

85% of respondents said they had a budget for CSR projects, up 9% from the previous study.



76%

24%

2013

Yes

No

85%

15%

2014

Yes

No


What is the evolution of your CSR budget in 2014 compared to 2013? (single answer)

Question 6

It is noticed a continuing stagnation in CSR budgets in 2014 compared to 2013 for almost half of the companies, while 42% of them

(compared to 36% in the previous survey) say they have a bigger budget, and only 10% (compared to 13% in 2013) say they

dispose of a reduced budget this year.



7%

3%

3%

0%

51%

0%

16%

9%

11%

0%

6%

2%

2%

48%

14%

17%

4%

7%

0% 10% 20% 30% 40% 50% 60%

Decreases between 20-30%




0%

Increases between 0-5%



Increases between între 20-30%

2014

2013



Question 6(a) – Depending on revenues from the surveyed companies

The largest budget increase in 2014 compared to 2013 CSR was apparently for companies with revenues greater than

10-50M EUR, while the largest decrease in the CSR budget for 2014 was for companies with revenues of over 100M EUR.



6% 14%

20%

25%

31%

27%

100%

25%

50%

50%

11%

20%

18%

100%

50%

50%

39%

60%

55%

50%

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




Stagnation





Less than 1M EUR

1-10M EUR

10-50M EUR

50-100M EUR

More than 100M EUR



Question 6(b) – Depending on the industries of the surveyed companies

The largest budget increase in 2014 compared to 2013 CSR was for companies in telecom/Media/IT and manufacturing industry,

and the largest decrease occurred for companies in trading and also banking and financial services.



25%

18%

27%

50%

25%

6%

9%

17%

25%

50%

14%

18%

18%

25%

25%

50%

50%

19%

27%

17%

50%

11%

9%

18%

25%

17%

9%

3%

9%

25%

18%

9%

50%

22%

9%

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




Stagnation





Manufacturing

The pharmaceutical and healthcareindustryEnergy and mining

Banking and financial services

Retail trade and en gros

Construction and real estate

The food industry

Telecom/Media/IT

Other services


What was the main source for the CSR budget 2013? (single answer)

Question 7

48% of the companies' CSR budget comes from non-deductible allocations from the budget, 37% from deductible allocations and

only 5% from the marketing budget. Interestingly, 6% of respondents mentioned a budget of sustainable development.



37%

48%

2% 6%

5%

2%

13%

2013

20% from deductible allocations

Non-deductible allocations from thebudget

No budget

Sustainable development budget

Marketing budget

Various others


Which department holds the budget line for CSR? (single answer)

Question 8

69% of respondents placed their CSR budget within the PR and Marketing budget, 17% to the HR budget, 5% said they have a

budget for sustainable development, and 2% have no budget for CSR. Other budget lines listed include the general budget and the

company’s foundation budget.

Total responses: 90


69%

17%

2%

5%

5%

2%

12%

2013

PR and Marketing

HR

None

Sustainable development budget

General budget

Company's foundation budget


The role of top

management

and CSR strategy


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

Question 9

To an impressive extent - 89% vs. 82% in the previous survey - organization leaders are actively involved in promoting CSR efforts

both within the company and outside it.


(Skipped this question: 22

82%

18%

2012

Yes

No

89%

11%

2013

Yes

No


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

Question 10

Regarding the involvement of top management in defining CSR strategies and carrying out projects, 57% of companies said they

already have a CSR committee at the top management level, while only 43% responded negatively.

Total responses: 90


55%

45% 43%

57%

0%

10%

20%

30%

40%

50%

60%

No Yes

2012

2013


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

Question 11

The vast majority of companies (84%) said that they already have a CSR strategy/policy, while 16% say they do not yet have such a

strategy. The percentage of positive responses increased by 6% compared to previous study results.



78%

22%

84%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

2012

2013


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

Question 12

For 95% of respondents, engaging in CSR activities is a direct consequence of the company’s values and principles, compared to

5% that responded negatively. The percentage of positive responses is up by 5% from the previous study.



90%

10%

2012

Yes

No

95%

5%

2013

Yes

No


Measuring and

reporting CSR

activities


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

Question 13

More than half of respondents (68%) measure the impact their CSR projects has over the community. The percentage of positive

responses is up by 3% compared to the previous study.



65%

35%

68%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

2012

2013


What are the Key Performance Indicators (KPIs) used in 2013 to track the impact? (single answer)

Question 14

53% of surveyed companies say they use their own evaluation systems, while 24% use international reporting standards, and 18%

turn to the evaluations provided by partners (e.g. NGOs).



24%

53%

18%

5%

International standardsreporting

Own evaluation systems

Evaluations provided bypartners (e.g. NGOs)

Other indicators


Does our company plan to develop a CSR/sustainability report in the near future? (single answer)

Question 15

66% (vs. 63% previously) of companies have published reports or press releases on CSR activities and involvement in 2013, while

34% (vs. 37% previously) responded negatively to this question.



63%

37%

2012

Yes

No

66%

34%

2013

Yes

No



Question 15(a) – Depending on revenues from the surveyed companies

According to the chart it seems that companies with revenues between 1-10M EUR recorded the biggest difference “YES-NO"

regarding their intention to prepare a CSR/sustainable development report in the near future.



2%

4%

16%

4%

21%

29%

12%

17%

49%

46%

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

Yes

No

Less than 1M EUR

1-10M EUR

10-50M EUR

50-100M EUR

More than 100M EUR



Question 15(b) – Depending on the industries of the surveyed companies (selection)

According to the chart it seems that companies in the telecom /Media/IT industry and in the pharmaceutical and health industry

recorded the biggest difference “YES-NO“ regarding their intention to prepare a CSR/sustainable development report in the near

future.



16%

16%

21%

16%

4%

16%

26%

26%

21%

21%

12%

5%

0% 20% 40% 60% 80% 100%

Yes

No


Energy and mining

The pharmaceutical and healthindustry

Manufacturing industry

Banking and financial services

Telecom/Media/IT


What would be, in your company's perspective, the most important benefits after a CSR/sustainability report? (single answer)

Question16

47% of companies said that the most important benefit associated with producing CSR/ sustainable development report is to

demonstrate that the company has such current practices and a strategy for sustainable development. This is at a significant

difference of 32 percentage points compared to the next benefit - improving internal sustainability management processes.

.



47%

15%

14%

13%

8%

3%

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

To demonstrate that the company has such current practicesand a sustainable development strategy

Improve internal sustainability management processes

To demonstrate that the company's management iscommitted to ethical and transparent practices and

processes

Increased credibility of the company in relation tocompetition

The company would respond to the need of informingstakeholders

The company would respect national/European legislation

2013


What was the most important area in terms to which you evaluated the impact of CSR in 2013? (single answer)

Question 17

Distribution of answers to this question is relatively balanced, but also indicates a focus on customers, followed equality by the

impact of CSR on the environment and employees.



31%

26%

26%

17%

Costumers

Environment

Employees

Economic


Do you publicly communicate your CSR activity? (single answer)

Question 18

92% of respondents publicly communicate their CSR activities.



92%

8%

2013

Yes

No


What instrument do you use to communicate your company’s involvement in CSR? (single answer)

Question 19

The main instruments used to communicate the company's involvement in CSR are press releases (31%), followed by annual

reports (26%) and company’s website (22%). Social media is a secondary option (13%).



31%

26%

22%

13%

8%

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

Press releases

Annual reports

Company website

Social media

Dedicated platforms

2013


CSR projects

in 2013


How many projects have you developed in 2013? (single answer)

Question 20

In 2013, companies held on average 13.7 CSR projects, up by 108% compared with the previous year.



6.6 Projects 2012

13.7

Proiects in 2013

Variation

2012-2013

108%


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

Question 21

Most companies have a focus on education in CSR projects (79%, but down from the previous year). This is followed by interest in

social issues (68%, up 8%) and the environment (58%). The second highest level of growth (7%) is observed in culture (29% in 2012

vs. 36% in 2013).



87%

62% 60% 56%

37%

29%

19%

2%

79%

56%

68%

58%

39% 36%

19%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012

2013


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

Question 22

Companies have very ambitious strategy, the highest number of CSR projects are still concentrated at the national level (57%) and

less in the community or local level. Note that the highest growth are projects registered at local level, from 40% to 52%.


(Skipped this question: 29) Note: Following consultation with CSR representatives, the set of answers were changed for more relevance

66%

40%

40%

26%

21%

0% 20% 40% 60% 80%

National

Local

Community level

Regional

All communities we operate in

2012

57%

52%

33%

35%

27%

31%

National

Local

Community level

Regional

All communities we operate in

Company level

0% 10% 20% 30% 40% 50% 60%

2013


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

Question 23

In 2013 also, most companies offer help through: financial donations (79% vs 75% in the previous study) and volunteering (74% vs.

73%). A small decrease is observed for donations in kind (67% vs. 72%). Far fewer are still focused on socially responsible business

practices (50%).



75%

73%

72%

50%

2%

0% 20% 40% 60% 80%

Donations in cash

Volunteering

Donations in kind (books, use ofspace, active loans)

Socially responsabile businesspractices

Other

2012

79%

74%

67%

50%

13%

0% 20% 40% 60% 80% 100%

Donations in cash

Volunteering

Donations in kind (books, use ofspace, active loans)

Socially responsabile businesspractices

Other

2013


What kind of institutions do you collaborate with to implement CSR projects? (multiple answer)

Question 24

Regarding cooperation with various institutions 54% of companies especially prefer NGOs, while 37% work mainly with local/

central authorities. There are however a few companies (6%) which operate completely independent projects.



55%

36%

5% 4%

54%

37%

6% 3%

0%

10%

20%

30%

40%

50%

60%

NGOs Authorities local/central No collaborations Other

2012

2013


CSR team

and the role of

employees


Do you have a person/team dedicated to CSR projects? (single answer)

Question 25

61% of respondents (10% less than the previous year) said they have a person or team dedicated to CSR projects, as opposed to

39% who responded negatively to this question.



71%

29%

2012

Yes

No61%

39%

2013

Yes

No


How many persons are part of your CSR team? (single answer)

Question 26

Regarding the number of people involved in the CSR team, they are on average 2.8 per company (full time employees), very close to

the average of the previous year of 2.6.



2.6 Persons in 2012

2.8 Persons in 2013

Variation

2012-2013

7.6%


Do you organize internal trainings with topics covering corporate social responsibility? (single answer)

Question 27

66% of respondents (down from 70% in the previous year) do not organize internal trainings with topics covering corporate social

responsibility.



30%

70%

34%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

2012

2013


Do you have an internal process for identifying relevant CSR themes for the company? (single answer)

Question 28

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.



60%

40%

2012

Yes

No60%

40%

2013

Yes

No


Do you involve employees in CSR activities undertaken by the company? (single answer)

Question 29

An overwhelming majority, of 94% of the companies, involve their employees in CSR activities. This means that Romanian companies have

understood that their employees are more motivated if the company is actively involved in CSR projects. It is generally accepted that CSR projects

have a significant impact in motivation, development and the retention of the employees


(Skipped this question 34)

92%

8%

2012

Yes

No

94%

6%

2013

Yes

No

92%

8%

94%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

2012

2013


Demographics The results of this study reflect the responses of

113 top executives and CSR professionals from

companies operating in Romania, received

between 10 April and 19 May 2014.


Demographics

The shareholding structure of companies: Locations:

64%

25%

11%

55%

32%

13%

0% 20% 40% 60% 80%

Worldwide

Romanian

Mixed

2013

2012

75%

25%

76%

24%

0% 20% 40% 60% 80%

Bucharest/Ilfov

Other location

2013

2012


Demographics

The industries in which the companies that

responded to the survey operate in:

Income distribution of the surveyed companies:

2%

9%

36%

18%

35%

3%

12%

23%

14%

48%

0% 20% 40% 60%

Less than 1M EUR

1-10M EUR

10-50M EUR

50-100M EUR

More than 100M EUR

2013

2012

22%

17%

15%

11%

10%

7%

5%

5%

5%

2%

1%

22%

18%

3%

12%

13%

7%

16%

1%

8%

0%

0%

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

Manufacturing

Banking and financialservices

The food industry

Other services


Pharmaceutical andhealthcare industry

Energy and mining

Construction and realestate

IT&C & media

Chemical industry

Research anddevelopment

2013

2012


Demographics

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

30%

28%

27%

13%

2%

48%

16%

23%

4%

8%

0% 10% 20% 30% 40% 50% 60%

Marketing Specialist

Member of the Board

CSR Specialist

CEO/President/General Director

Human Resources Specialist

2013

2012


Project team


Project team

Elena Badea Head of Market Enablement

EY Romania

[email protected]

Mihaela Matei Special Projects

Communication Officer

EY Romania

[email protected]

EY Romania

Lacrămioara Botezatu Project Manager

CSRMedia.ro

[email protected]

George Carpov Consultant

CSRMedia.ro

[email protected]

CSRMedia.ro

Constantin Măgdălina Knowledge Management Officer

EY Romania

[email protected]


Testimonials


Testimonials

George Carpov Consultant

CSRMedia.ro

Development of CSR in Romania are

increasingly aligning to the practices of

countries with tradition in this field. Following

their own initiatives or pressured by

stakeholder, social responsibility targeted

actions begin to be integrated into the

development strategies of more and more

companies. Also, the impact of projects gain

increasingly more value, sustainability and

creating added value being two important

objectives. Finally, CSR actions become more

visible as companies choose to incorporate

these practices in their annual reporting.

Elena Badea Head of Market Enablement

EY Romania

This year, our study brings good news for those

involved in CSR activities: the share of

companies that say they have a CSR dedicated

budget increased to 85%, only 10% having a

decrease in the CSR budget for 2014, while the

average number of projects increased. On the

other hand, measuring and reporting the impact of

projects increased, while CSR involvement is

made increasingly more as a strategy at whole-

company level, and not a short term commitment.

All these signs emphasize an accelerated turn in

the perception of the importance of CSR in

Romania and also the fact that the CSR function

rapidly gains weight and recognition in local

businesses.


We intend to conduct

this survey every year.

We hope for your

continued support!

CSR Trends and Realities in Romania - 2014 edition

Business

Transcript of CSR Trends and Realities in Romania - 2014 edition