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CSRmedia Ro Ernst Young CSR Survey 2013 en
CSRmedia Ro Ernst Young CSR Survey 2013 en
realities in Romania
2013 Edition
Objectives
Approach
Strengths
Weaknesses
Opportunities
Threats
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 require
CSR 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.
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.
Top 5
conclusions
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 2013
compared 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%).
How did the interest for CSR evolved in the last 12 months?
(single answer)
Question 1
80%
70%
67%
60%
50%
40%
30%
30%
20%
3%
10%
0%
Grew
Decreased
Total respondents: 60
(skipped this question: 17)
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.
Question 2
33
31
11
7
0
10
15
20
25
30
35
Total respondents: 53
(skipped this question: 24)
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 CSR
efforts 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.
Question 3
47%
Business ethics
24%
18%
10%
1%
0%
Total respondents: 71
(skipped this question: 6)
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.
10
CSR budget
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Question 4
No
24%
Yes
No
Yes
76%
Total respondents: 63
(skipped this question: 14)
76% of respondents affirmed that they have a dedicated budget for CSR, while 24% responded negatively at this question.
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Question 5
60%
51%
50%
40%
30%
20%
16%
11%
10%
9%
7%
3%
3%
Decreases
between 5-10%
Decreases
between 10-20%
0%
0%
Increases
between 5-10%
Increases
Increases
Decreases
between 20-30% between 10-20% between 20-30%
Total respondents: 57
(skipped this question: 20)
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.
13
67%
17%
25%
25%
25%
25%
0%
33%
50%
38%
17%
13%
46%
50%
50%
50%
50%
25%
0%
Total respondents: 57
(skipped this question: 20)
10%
25%
20%
30%
40%
50-100M EUR
17%
4%
50%
50%
10-50M EUR
60%
70%
1-10M EUR
80%
90%
100%
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.
14
25%
50%
60%
13%
0%
13%
11%
11%
20%
13%
11%
25%
11%
0.1
20%
25%
21%
5%
13%
21%
50%
50%
50%
50%
20%
0
Total respondents: 57
(skipped this question: 20)
25%
60%
0.2
0.3
Services
Energy and mining
The pharmaceutical industry and health
Telecom/IT/Media
0.4
0.5
5%
5%
20%
0.6
0.7
0.8
0.9
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.
15
16
Question 6
No
18%
Yes
No
Yes
82%
Total respondents: 62
(skipped this question: 15)
To an impressively large extent (82% of respondents), leaders of organizations are actively involved in promoting CSR both within
and outside the company.
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Question 7
Yes
45%
No
No
55%
Yes
Total respondents: 62
(skipped this question: 15)
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.
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Question 8
No
22%
Yes
No
Yes
78%
Total respondents: 65
(skipped this question: 12)
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.
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Question 9
No
10%
Yes
No
Yes
90%
Total respondents: 59
(skipped this question: 18)
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.
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Question 10
No
35%
Yes
No
Yes
65%
Total respondents: 60
(skipped this question: 17)
More than half of the respondents had stated the existence of indicators / KPIs that measure the effect their CSR projects have on
community.
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Question 11
No
37%
Yes
No
Yes
63%
Total respondents: 62
(skipped this question: 15)
63% of the companies have published reports or press releases regarding activities and involvement in CSR, while 37% have
responded 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%).
22
CSR Projects
2012
23
Question 12
No
14%
Yes
No
Yes
86%
Total respondents: 69
(skipped this question: 8)
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.
24
Question 13
6,6
projects
Total respondents: 59
(skipped this question: 18)
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.
25
Question 14
34%
32%
20%
9%
3%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Total respondents: 56
(skipped this question: 21)
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.
26
Question15
30%
25%
25%
20%
18%
17%
Education
16%
Health
15%
Social
10%
10%
8%
Environment
5%
Sports
5%
1%
0%
Culture
Entrepreneurship
Other
Total respondents: 63
(skipped this question: 14)
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.
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Question 16
National
34%
21%
Local
21%
Regional
13%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Total respondents: 58
(skipped this question: 19)
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 Business4Better survey, which shows that companies mostly invest in local
initiatives and are focused on communities.
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Question 17
Donations in cash
28%
Volunteering
27%
26%
18%
In another way
1%
0%
5%
10%
15%
20%
25%
30%
Total respondents: 60
(skipped this question: 17)
The majority of companies offer support: in cash donations 28%, volunteering 27% and donations in kind 26%, less being focused in
socially 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.
29
Question 18
60
54
50
40
35
30
20
10
No collaborations
Other
0
NGO
Authorities local/central
Total respondents: 61
(skipped this question: 16)
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.
30
CSR team
and the role of
employees
31
Question 19
No
29%
Yes
No
Yes
71%
Total respondents: 62
(skipped this question: 15)
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 Business4Better survey, in which a third of the respondents have
a person responsible for CSR efforts in the marketing and HR department.
32
Question 20
2,6
persons
Total respondents: 50
(skipped this question: 27)
In regards to the number of persons involved in the CSR team, they are on average 2,6 per company (full time employees).
33
Question 21
Yes
30%
Yes
No
No
70%
Total respondents: 60
(skipped this question: 17)
70% of the respondents do not organize internal trainings with topics covering corporate social responsibility.
34
Question 22
No
40%
Yes
No
Yes
60%
Total respondents: 62
(skipped this question: 15)
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.
35
Question 23
No
8%
Yes
No
Yes
92%
Total respondents: 61
(skipped this question: 16)
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 projects
have 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.
36
Demographics
The results of this study reflect the responses of
77 top executives and CSR professionals from
companies operating in Romania, received
between 10 April and 10 May 2013.
37
Demographics
The shareholding structure of companies :
Locations:
70%
64%
60%
25%
50%
40%
Bucharest/Ilfov
Other location
30%
25%
75%
20%
11%
10%
0%
Worldwide
Romanian
Mixed
38
Demographics
The industries in which the companies that
responded to the survey operate in:
Manufacturing industry
22%
35%
17%
30%
15%
Other services
13%
36%
25%
10%
18%
20%
The pharmaceutical industry and
health
7%
15%
Telecom/media
5%
5%
5%
Chemical Industry
9%
10%
5%
2%
2%
0%
50-100M EUR
0%
5%
10%
15%
20%
25%
10-50M EUR
1-10M EUR
Less than 1M
EUR
39
Demographics
Positions held in the company by people who responded to the survey:
Marketing Specialist
30%
28%
CSR Specialist
27%
13%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40
Project team
41
Project team
Ernst & Young Romania
CSRMedia.ro
Elena Badea
Lacrmioara Botezatu
Project Manager
CSRMedia.ro
elena.badea@ro.ey.com
lacramioara@csrmedia.ro
Mihaela Matei
George Carpov
Special Projects
Communication Officer
Ernst & Young Romania
Consultant
CSRMedia.ro
mihaela.matei@ro.ey.com
george@csrmedia.ro
42
Testimonials
43
Testimonials
Elena Badea
George Carpov
Consultant
CSRMedia.ro
44
Testimonials
Ruxandra Vod
Corporate Affairs
Senior Manager
COSMOTE Romania
Adina Ionescu
PR & Brand Builder
MOL Romania
45
Testimonials
Ctlin Creu
Director General
Visa Europe, Romania
Costinela Dragan
PR & CSR Coordinator
Rompetrol Group
Visa Europe runs CSR activities in most markets in Europe, together with
strategic partners, both international and local. For us, a relevant CSR
program 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.
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 local
communities. 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.
46
We intend to conduct
this survey every year.
We hope for your
support!
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