Escuela Superior De Marketing Y Administración Barcelona

CZECH MANAGEMENT INSTITUTE PRAHA Faculty of Management ESCUELA SUPERIOR DE MARKETING Y ADMINISTRACIÓN BARCELONA Doctoral Thesis Corporate Social Responsibility in Small and MediumSized Companies in the Czech Republic Doctoral Thesis in the Doctor of Business Administration Programme Doctoral Candidate: David Polášek, M.B.A Doctoral Advisor: Dr Cesar Duch, Ph.D 2010 Table of Contents LIST OF TABLES v LIST OF FIGURES viii ABSTRACT x DECLARATION xi ACKNOWLEDGEMENTS xii INTRODUCTION CHAPTER CORPORATE SOCIAL RESPONSIBILITY CONCEPT 1.1 DEFINITION OF CORPORATE SOCIAL RESPONSIBILITY 1.1.1 Defining Corporate Social Responsibility 1.1.2 Corporate Social Responsibility from Broader Perspective 1.2 HISTORICAL DEVELOPMENT OF THE CORPORATE SOCIAL RESPONSIBILITY CONCEPT 1.2.1 Era Preceding Current Concept of Corporate Social Responsibility 1.2.2 Modern History of Corporate Social Responsibility 10 1.3 WHAT CORPORATE SOCIAL RESPONSIBILITY IS NOT 14 1.3.1 Corporate Social Irresponsibility 14 1.3.2 Misuse and Sole Usage of Some Corporate Social Responsibility Tools 16 1.4 DEFINITION OF THE STAKEHOLDER CONCEPT AND ITS RELATION TO CORPORATE SOCIAL RESPONSIBILITY 17 1.5 CURRENT DEVELOPMENT IN CORPORATE SOCIAL RESPONSIBILITY 20 CHAPTER PERSPECTIVES OF CORPORATE SOCIAL RESPONSIBILITY 23 2.1 ROLE OF THE GOVERNMENT IN CORPORATE SOCIAL RESPONSIBILITY CONCEPT 23 2.2 CORPORATE SOCIAL RESPONSIBILITY IN GLOBAL DIMENSIONS 26 2.2.1 Role of Small and Medium-Sized Companies in Global Corporate Social Responsibility 29 2.3 CORPORATE SOCIAL RESPONSIBILITY IN EUROPE 30 2.3.1 General Aspects of Sustainable Development and Corporate Social Responsibility in Europe 30 2.3.2 Corporate Social Responsibility in Europe 31 2.4 CORPORATE SOCIAL RESPONSIBILITY IN THE CZECH REPUBLIC 37 2.4.1 Situation in the Czech Republic Regarding Corporate Social Responsibility and Ethics in 1990s .37 2.4.2 Development of Corporate Social Responsibility in the Czech Republic 39 2.4.3 Latest Development of Corporate Social Responsibility in the Czech Republic 42 2.5 CORPORATE SOCIAL RESPONSIBILITY FROM SMALL AND MEDIUM-SIZED COMPANIES´ PERSPECTIVE AND MAJOR DIFFERENCES BETWEEN SMES AND LARGE COMPANIES IN THE CONTEXT OF CSR 44 2.5.1 Definition of Micro, Small and Medium-Sized Enterprises .44 2.5.2 General Features and Statistics of Micro, Small and Medium-Sized Enterprises .45 2.5.3 Corporate Social Responsibility in Small and Medium-Sized Enterprises 49 CHAPTER ESSENTIAL ASPECTS OF CORPORATE SOCIAL RESPONSIBILITY 53 3.1 LEVELS OF CORPORATE SOCIAL RESPONSIBILITY 53 3.2 DIMENSIONS OF CORPORATE SOCIAL RESPONSIBILITY 54 3.2.1 Internal Dimension of Corporate Social Responsibility 54 3.2.2 External Dimension of Corporate Social Responsibility 59 3.3 SIX FORMS OF CORPORATE SOCIAL RESPONSIBILITY INITIATIVES 63 3.3.1 Corporate Philanthropy .63 3.3.2 Cause Promotions 65 3.3.3 Cause Related Marketing 66 3.3.4 Corporate Social Marketing 68 3.3.5 Community Volunteering 69 3.3.6 Socially Responsible Business Practices 71 3.4 MEASURING, EVALUATING AND REPORTING ON CORPORATE SOCIAL RESPONSIBILITY 73 3.4.1 Measuring and Evaluating Corporate Social Responsibility .73 3.4.2 Corporate Social Responsibility Reporting .74 ii CHAPTER SURVEYS ON CORPORATE SOCIAL RESPONSIBILITY CONDUCTED IN THE CZECH REPUBLIC, EUROPE AND WORLDWIDE .78 4.1 GLOBAL SURVEYS 78 4.1.1 Survey of Small and Medium Enterprises in the Global Compact (2004) 78 4.2 EUROPEAN SURVEYS 79 4.2.1 Survey on European SMEs and Social and Environmental Responsibility (2002) 79 4.2.2 Study of Sustainable Competitiveness in Global Value Chains (2006) .81 4.2.3 Survey on Corporate Social Responsibility, Management Standards and Corporate Governance (2006) 81 4.2.4 Survey on Corporate Social Responsibility in SMEs in Berlin (2007) 82 4.3 SURVEYS IN THE CZECH REPUBLIC 83 4.3.1 Corporate Social Responsibility – Complete Guide of the Topic and Conclusion of the Survey in the Czech Republic (2004) 83 4.3.2 Study of Social Responsibility as One of the Conditions for Entrepreneurial Success of the Company (2006) 83 4.3.3 Survey on Utilization of Corporate Social Responsibility by Small and Medium-Sized Companies in the Czech Republic (2006) 84 4.3.4 Study of Utilization of Corporate Social Responsibility by Small and Medium-Sized Companies in the Czech Republic (2007) 85 4.3.5 Survey on Corporate Social Responsibility – A New Factor of Corporate Competitiveness (2008) 85 CHAPTER METHODOLOGY AND GENERAL RESULTS OF OWN RESEARCH 87 5.1 BASIC FACTS ABOUT RESEARCH AND METHODOLOGY 87 5.1.1 Objective of the Research 87 5.1.2 Timing of the Research .87 5.1.3 Methodology of the Research .88 5.1.4 Questionnaire Form 89 5.1.5 Software Tools Used for Processing and Analysis 89 5.2 BASIC FACTS ABOUT SURVEYED SMES – NUMBER, SIZE, REGION, AGE, OWNERSHIP STRUCTURE, LINE OF BUSINESS, AND HIERARCHICAL LEVEL OF RESPONDENTS 90 5.2.1 Number of Surveyed SMEs and Their Division According to Size 90 5.2.2 Region of the Seat of Surveyed SMEs 91 5.2.3 Classification of Surveyed SMEs According to Years of Operation 91 5.2.4 Ownership Structure of Surveyed SMEs 92 5.2.5 Classification of Surveyed SMEs According to Their Line of Business .92 5.2.6 Hierarchical Level of Respondents 93 5.3 GENERAL RESULTS OF THE RESEARCH 94 5.3.1 General Awareness of Corporate Social Responsibility 95 5.3.2 Acceptance of Corporate Social Responsibility Principles .97 5.3.3 Measurement of Corporate Social Responsibility 101 5.3.4 Degree of Involvement of SMEs in Socially Responsible Activities towards Internal Community .103 5.3.5 Degree of Involvement of SMEs in Socially and Environmentally Responsible Activities towards External Community 104 CHAPTER SPECIFIC RESULTS OF OWN RESEARCH: INTERNAL DIMENSION OF CORPORATE SOCIAL RESPONSIBILITY 110 6.1 DESCRIPTION OF INTERNAL DIMENSION OF SOCIALLY RESPONSIBLE ACTIVITIES USED BY SMES 111 6.2 CHARACTERISTICS OF SMES´ INTERNAL DIMENSION OF SOCIALLY RESPONSIBLE ACTIVITIES 116 6.3 REASONS FOR INVOLVEMENT IN INTERNAL DIMENSION OF SOCIALLY RESPONSIBLE ACTIVITIES 120 6.4 BENEFITS IDENTIFIED BY SMES FROM THEIR PARTICIPATION ON INTERNALLY TARGETED SOCIALLY RESPONSIBLE ACTIVITIES 123 6.5 BARRIERS TO THE PARTICIPATION ON INTERNALLY TARGETED SOCIALLY RESPONSIBLE ACTIVITIES 124 CHAPTER SPECIFIC RESULTS OF OWN RESEARCH: EXTERNAL DIMENSION OF CORPORATE SOCIAL RESPONSIBILITY 127 7.1 DESCRIPTION OF EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES USED BY SMES iii 128 7.1.1 Involvement in Wide-Ranging Activities of External Dimension of Corporate Social Responsibility 128 7.1.2 Forms of Support of Socially and Environmentally Responsible Activities .129 7.1.3 Forms of Public Support of External Dimension of CSR Realized by SMEs 131 7.2 CHARACTERISTICS OF SMES´ EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES 133 7.3 REASONS FOR INVOLVEMENT IN EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES 141 7.4 BENEFITS IDENTIFIED BY SMES FROM THEIR PARTICIPATION ON EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES 145 7.5 BARRIERS TO THE PARTICIPATION ON EXTERNALLY TARGETED SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES 149 7.6 FUTURE EXPECTATIONS ON INVOLVEMENT OF SMES IN EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES 151 CHAPTER RECOMMENDATIONS FOR SMALL AND MEDIUM-SIZED COMPANIES HOW TO IMPLEMENT CORPORATE SOCIAL RESPONSIBILITY CONCEPT 154 8.1 SCOPE OF CORPORATE SOCIAL RESPONSIBILITY INVOLVEMENT 154 8.1.1 Marketplace 156 8.1.2 Workplace 157 8.1.3 Community .158 8.1.4 Environment .159 8.2 TEN STEPS HOW TO ADOPT AND IMPLEMENT CORPORATE SOCIAL RESPONSIBILITY CONCEPT IN SMALL AND MEDIUM-SIZED COMPANIES 160 8.2.1 Planning Phase 162 8.2.2 Execution Phase .173 8.2.3 Evaluation Phase .174 8.2.4 Improvement Phase 180 CHAPTER CONCLUSIONS 181 9.1 CONCLUSIONS - THEORETICAL PART 181 9.1.1 Defining Corporate Social Responsibility .181 9.1.2 Dimensions of Corporate Social Responsibility and Corporate Social Responsibility Initiatives .181 9.1.3 Aspects of Corporate Social Responsibility .182 9.1.4 Corporate Social Responsibility in the Czech Republic 182 9.2 CONCLUSIONS - SUMMARY OF THE AUTHOR’S OWN RESEARCH 183 9.2.1 General Aspects of Corporate Social Responsibility in Czech SMEs 183 9.2.2 Internal Dimension of Corporate Social Responsibility in Czech SMEs 185 9.2.3 External Dimension of Corporate Social Responsibility in Czech SMEs 187 9.3 CONCLUSIONS - GENERAL STEPS HOW TO IMPLEMENT CORPORATE SOCIAL RESPONSIBILITY IN CZECH SMES 190 9.3.1 Considering Strategic Approach to Corporate Social Responsibility in Czech SMEs 190 9.3.2 Proposal of Ten Steps How to Implement Corporate Social Responsibility in Czech SMEs 191 BIBLIOGRAPHY 192 APPENDIX 203 APPENDIX I: GLOSSARY OF TERMS 203 APPENDIX II: EXAMPLE OF THE QUESTIONNAIRE ON CORPORATE SOCIAL RESPONSIBILITY DESIGNED FOR SMALL AND MEDIUM-SIZED COMPANIES 208 APPENDIX III: EXAMPLES OF COMPANY VALUES AND PRINCIPLES 216 iv List of Tables TABLE 2.1: PRINCIPAL PUBLIC SECTOR ROLES IN RELATION TO CORPORATE SOCIAL RESPONSIBILITY 24 TABLE 2.2: POLITICAL DEVELOPMENT AND MILESTONES IN CSR AREA AT THE EUROPEAN LEVEL .32 TABLE 2.3: MAIN INDICATORS OF EUROPEAN NON-FINANCIAL BUSINESS ECONOMY BROKEN DOWN BY SIZE OF A COMPANY (2004; % SHARE OF TOTAL) 47 TABLE 2.4: KEY INDICATORS FOR ENTERPRISES IN THE NON-FINANCIAL BUSINESS ECONOMY IN THE EU-27 48 TABLE 2.5: DETAIL INFORMATION ON NUMBER AND VALUE ADDED OF SMES IN THE CZECH REPUBLIC 49 TABLE 5.6: ABSOLUTE AND RELATIVE NUMBER OF SURVEYED COMPANIES IN THE ANALYSED SAMPLE, SORTED BY SIZE OF THE COMPANY 91 TABLE 5.7: ABSOLUTE AND RELATIVE NUMBER OF SURVEYED SMES IN THE ANALYSED SAMPLE, SORTED BY REGION OF THE SEAT AND SIZE OF THE COMPANY 91 TABLE 5.8: ABSOLUTE AND RELATIVE NUMBER OF SURVEYED SMES IN THE ANALYSED SAMPLE, SORTED BY AGE (YEARS OF OPERATION) AND SIZE OF THE COMPANY 92 TABLE 5.9: ABSOLUTE AND RELATIVE NUMBER OF SURVEYED SMES IN THE ANALYSED SAMPLE, SORTED BY OWNERSHIP STRUCTURE AND SIZE OF THE COMPANY 92 TABLE 5.10: ABSOLUTE AND RELATIVE NUMBER OF SURVEYED SMES IN THE ANALYSED SAMPLE, SORTED BY LINE OF BUSINESS AND SIZE OF THE COMPANY 93 TABLE 5.11: ABSOLUTE AND RELATIVE NUMBER OF PERSONS WHO FILLED OUT THE QUESTIONNAIRE, SORTED BY HIERARCHICAL LEVEL AND SIZE OF THE COMPANY 94 TABLE 5.12: KNOWLEDGE OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY SIZE OF THE COMPANY .95 TABLE 5.13: KNOWLEDGE OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY HIERARCHICAL LEVEL OF THE PERSON WHO FILLED OUT THE QUESTIONNAIRE AND SIZE OF THE COMPANY 96 TABLE 5.14: KNOWLEDGE OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY REGION OF THE SEAT OF THE COMPANY 97 TABLE 5.15: ACCEPTANCE OF BASIC IDEA OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY SIZE OF THE COMPANY 97 TABLE 5.16: ACCEPTANCE OF BASIC IDEA OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY REGION OF THE SEAT OF THE COMPANY 98 TABLE 5.17: ACCEPTANCE OF BASIC IDEA OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY HIERARCHICAL LEVEL OF THE PERSON WHO FILLED OUT THE QUESTIONNAIRE 98 v TABLE 5.18: ACCEPTANCE OF BASIC IDEA OF CORPORATE SOCIAL RESPONSIBILITY CONCEPT BY THE COMPANY (RESPONDENT), SORTED BY OWNERSHIP STRUCTURE OF THE COMPANY .99 TABLE 5.19: KNOWLEDGE OF DOCUMENTS OR ORGANIZATIONS (PARTICULARLY NONPROFIT) DEALING WITH CSR BY THE COMPANY (RESPONDENT), SORTED BY SIZE OF THE COMPANY .99 TABLE 5.20: NEED FOR GENERALLY ACCEPTED AND TRANSPARENT METHODOLOGY HOW TO IMPLEMENT CSR IN THE COMPANY, SORTED BY SIZE OF THE COMPANY 100 TABLE 5.21: OVERVIEW OF COMPANY’S PERSONNEL AUTHORIZED/RESPONSIBLE FOR THE COORDINATION OF CSR ACTIVITIES, SORTED BY SIZE OF THE COMPANY 101 TABLE 5.22: MEASUREMENT AND EVALUATION OF CSR BY THE COMPANY, SORTED BY SIZE OF THE COMPANY 102 TABLE 6.23: PERCENTAGE OF SMES INVOLVED IN WIDE-RANGING ACTIVITIES OF INTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 112 TABLE 6.24: PERCENTAGE OF SMES INVOLVED IN SUPPORTING OF EMPLOYEES AND/OR FAMILY MEMBERS IN VARIOUS ACTIVITIES OF INTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES .114 TABLE 6.25: FORMS OF FURTHER EDUCATION OF EMPLOYEES SUPPORTED BY SMES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 115 TABLE 6.26: COMPARISON OF SMES WITH/WITHOUT STRATEGY FOR INTERNAL DIMENSION OF CSR AND WITH/WITHOUT CORPORATE STRATEGY IN 2008 INCLUDING AN AVERAGE FOR ALL SMES 117 TABLE 6.27: DEGREE OF IMPORTANCE OF SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS EMPLOYEES FOR SMES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 118 TABLE 6.28: ANALYSIS OF SMES FOR WHICH SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS EMPLOYEES WAS VERY IMPORTANT, SORTED BY OWNERSHIP STRUCTURE AND LINE OF BUSINESS 119 TABLE 6.29: MAJOR DRIVERS FOR IMPLEMENTING OF SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS EMPLOYEES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 121 TABLE 6.30: MAJOR BENEFITS FOR SMES ARISING FROM IMPLEMENTING SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS EMPLOYEES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 123 TABLE 6.31: MAJOR BARRIERS FOR SMES FOR IMPLEMENTING SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS EMPLOYEES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 125 TABLE 7.32: PERCENTAGE OF SMES INVOLVED IN WIDE-RANGING ACTIVITIES OF EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 128 TABLE 7.33: FORMS OF SUPPORT OF SOCIALLY RESPONSIBLE ACTIVITIES USED BY SMES IN TERMS OF EXTERNAL DIMENSION OF CSR, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 130 vi TABLE 7.34: FORMS OF SUPPORT OF ENVIRONMENTALLY RESPONSIBLE ACTIVITIES USED BY SMES IN TERMS OF EXTERNAL DIMENSION OF CSR, SORTED BY SIZE OF THE COMPANY .131 TABLE 7.35: FORMS OF PUBLIC SUPPORT THE SMES* HAVE RECEIVED DURING LAST YEARS (2005 – 2008) FOR THEIR EXTERNAL DIMENSION OF CSR, SORTED BY SIZE OF THE COMPANY .133 TABLE 7.36: DEGREE OF IMPORTANCE OF SOCIALLY RESPONSIBLE AND ETHICAL BEHAVIOUR TOWARDS ENVIRONMENT AND COMMUNITY FOR SMES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 134 TABLE 7.37: SMES´ STRATEGIC APPROACH TO SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES (EXTERNAL DIMENSION OF CSR), SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 134 TABLE 7.38: EUROPEAN SMES´ STRATEGIC APPROACH TO SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES (EXTERNAL DIMENSION OF CSR), SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 135 TABLE 7.39: PERCENTAGE OF SMES WITH AND WITHOUT STRATEGY FOR EXTERNAL DIMENSION OF CSR* IN 2008, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 136 TABLE 7.40: MANNER, HOW SMES CARRY OUT SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES (EXTERNAL DIMENSION OF CSR), SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 136 TABLE 7.41: ACCEPTANCE OF IDEA THAT SMES CAN MORE EFFECTIVELY APPLY CSR ON A LOCAL LEVEL THAN LARGE AND MULTINATIONAL CORPORATIONS, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 138 TABLE 7.42: AWARENESS OF LOCAL ISSUES AND WILLINGNESS OF SMES TO OFFER HELP IN SOLVING THESE ISSUES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 138 TABLE 7.43: THE MOST INFLUENCED GROUPS BY SMES´ CSR ACTIVITIES*, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 139 TABLE 7.44: DEGREE HOW SMES PROVIDE INFORMATION ABOUT COMPANY’S CSR ACTIVITIES*, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES .140 TABLE 7.45: MAJOR DRIVERS FOR IMPLEMENTING SOCIALLY RESPONSIBLE ACTIVITIES* TOWARDS EXTERNAL COMMUNITY, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 142 TABLE 7.46: MAJOR DRIVERS FOR IMPLEMENTING ENVIRONMENTALLY RESPONSIBLE ACTIVITIES* TOWARDS EXTERNAL COMMUNITY, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 144 TABLE 7.47: MAJOR BENEFITS FOR SMES ARISING FROM THE SUPPORT OF SOCIALLY RESPONSIBLE ACTIVITIES* AIMED AT EXTERNAL COMMUNITY, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 146 TABLE 7.48: MAJOR BENEFITS FOR SMES ARISING FROM THE SUPPORT OF ENVIRONMENTALLY RESPONSIBLE ACTIVITIES* AIMED AT EXTERNAL COMMUNITY, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES .148 vii TABLE 7.49: MAJOR BARRIERS FOR SMES FOR IMPLEMENTING CSR ACTIVITIES (BOTH SOCIAL AND ENVIRONMENTAL) TOWARDS EXTERNAL COMMUNITIES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 150 TABLE 7.50: FUTURE INVOLVEMENT OF SMES IN EXTERNAL DIMENSION OF SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIVITIES, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 152 viii List of Figures FIGURE 1.1: PYRAMIDAL STRUCTURE OF CORPORATE SOCIAL RESPONSIBILITY 12 FIGURE 1.2: THE CONTINUUM OF BUSINESS BEHAVIOUR, FROM CORPORATE SOCIAL IRRESPONSIBILITY TO CORPORATE SOCIAL RESPONSIBILITY 15 FIGURE 1.3: STAKEHOLDER MODEL 19 FIGURE 2.4: TWO CONTRASTING MODELS OF CORPORATE SOCIAL RESPONSIBILITY .25 FIGURE 2.5: DIVISION OF ENTERPRISES IN THE EU ACCORDING TO THEIR SIZE (IN % FROM TOTAL) 46 FIGURE 2.6: DIVISION OF ENTERPRISES IN THE EU ACCORDING TO NUMBER OF EMPLOYED PERSONS, SORTED ACCORDING TO THEIR SIZE (IN % FROM TOTAL) 48 FIGURE 3.7: THREE FUNDAMENTAL LEVELS OF CORPORATE SOCIAL RESPONSIBILITY 53 FIGURE 3.8: RELATIONS AMONG CAUSE RELATED MARKETING, MARKETING, CORPORATE COMMUNITY INVESTMENT, PHILANTHROPY, AND CORPORATE SOCIAL RESPONSIBILITY 67 FIGURE 5.9: HIERARCHICAL LEVEL OF THE PERSON WHO FILLED OUT THE QUESTIONNAIRE (IN RELATIVE VALUE) 94 FIGURE 5.10: PERCENTAGE OF SMES INVOLVED IN INTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 103 FIGURE 5.11: PERCENTAGE OF SMES INVOLVED IN INTERNAL DIMENSION OF CSR IN 2008, SORTED BY REGION OF THE SEAT OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 104 FIGURE 5.12: PERCENTAGE OF EUROPEAN SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2001, SORTED BY SIZE OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES .104 FIGURE 5.13: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 105 FIGURE 5.14: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY REGION OF THE SEAT OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 106 FIGURE 5.15: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY SECTOR OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES .106 FIGURE 5.16: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY AGE/YEARS OF OPERATION OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 107 FIGURE 5.17: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008, SORTED BY OWNERSHIP STRUCTURE OF THE COMPANY INCLUDING AN AVERAGE FOR ALL SMES 108 FIGURE 5.18: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008 BASED ON ISO CERTIFICATION, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES 109 ix FIGURE 5.19: PERCENTAGE OF SMES INVOLVED IN EXTERNAL DIMENSION OF CSR IN 2008 BASED ON DEFINED CORPORATE STRATEGY AND INCLUDING AN AVERAGE FOR ALL SMES .109 FIGURE 6.20: PERCENTAGE OF SMES WITH AND WITHOUT STRATEGY FOR INTERNAL DIMENSION OF CSR IN 2008, SORTED BY SIZE OF THE COMPANY AND INCLUDING AN AVERAGE FOR ALL SMES .116 FIGURE 7.21: PERCENTAGE OF SMES THAT HAVE RECEIVED PUBLIC SUPPORT (INCENTIVE/SUBSIDY) FOR THEIR EXTERNAL DIMENSION OF CSR DURING LAST YEARS, SORTED BY SIZE OF THE COMPANY 132 FIGURE 7.22: SMES´ PLANS REGARDING PARTICIPATION IN EXTERNAL DIMENSION OF CSR FOR THE NEXT THREE YEARS, PERCENTAGE OF ALL SMES 152 FIGURE 8.23: THREE LEVELS AND FOUR AREAS OF CORPORATE SOCIAL RESPONSIBILITY 155 FIGURE 8.24: DIAGRAM HOW TO IMPLEMENT CORPORATE SOCIAL RESPONSIBILITY CONCEPT IN SMES IN TEN STEPS 161 FIGURE 8.25: EXAMPLE OF A LIST OF STAKEHOLDERS ASSOCIATED WITH FOUR DIFFERENT AREAS OF CORPORATE SOCIAL RESPONSIBILITY 163 FIGURE 8.26: AN EXPLANATION AND OVERVIEW OF THE ROLES PLAYED BY THE STAKEHOLDERS THROUGHOUT THE FOUR STAGES OF THE CSR IMPLEMENTATION PROCESS 165 FIGURE 8.27: STAKEHOLDER INFLUENCE AND DEPENDENCY MATRIX (THE SO-CALLED STAKEHOLDER MATRIX) 166 FIGURE 8.28: EXAMPLES OF INTERESTS OF DIFFERENT TYPES OF KEY STAKEHOLDERS IN CORPORATE SOCIAL RESPONSIBILITY KEY ISSUES .168 FIGURE 8.29: EXAMPLES OF TOOLS AND TECHNIQUES A COMPANY CAN USE FOR STAKEHOLDERS´ ENGAGEMENT 169 FIGURE 8.30: EXAMPLES OF KEY COMPANY (CORPORATE) VALUES .171 FIGURE 8.31: EXAMPLES OF COMPANY’S CORPORATE SOCIAL RESPONSIBILITY OBJECTIVES CATEGORIZED INTO FOUR CSR AREAS 171 FIGURE 8.32: EXAMPLES OF SPECIFIC CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES THAT ARE RELATED TO THE ACCOMPLISHMENT OF PLANNED CORPORATE SOCIAL RESPONSIBILITY OBJECTIVES 173 FIGURE 8.33: EXAMPLES OF INDICATORS USED FOR THE EVALUATION OF RESULTS OF A COMPANY’S CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES 174 FIGURE 8.34: EXAMPLES OF REPORTED RESULTS OF THE COMPANY’S CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES 176 FIGURE 8.35: EXAMPLES OF IMPROVEMENT MEASURES FOR THE COMPANY’S CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES 180 x APPENDIX Appendix I: Glossary of Terms Brundtland Commission The Brundtland Commission, formally the World Commission on Environment and Development, named by its Chair Gro Harlem Brundtland, was convened by the United Nations in 1983 The Commission was created to address growing concern about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development In establishing the Commission, the UN General Assembly recognized that environmental problems were global in nature and determined that it was in the common interest of all nations to establish policies for sustainable development Business, Company, Enterprise In accordance with Articles 48, 81 and 82 of the Treaty establishing the European Community, as interpreted by the Court of Justice of the European Communities, an enterprise should be considered for the purposes of this dissertation paper to be any entity, regardless of its legal form, regularly engaged in economic activities on an individual or family basis, partnerships or associations Terms enterprise, company and business are used in this paper as synonyms and not differ in their meaning Business Leaders´ Forum The Business Leaders´ Forum, which has been operating in the Czech Republic since 1992, started from scrap and over the time has become influential It is the Czech affiliate of the Prince of Wales Business Leaders´ Forum, which among others, acts as a National Partner of CSR Europe Corporate Citizenship In the business community, corporate social responsibility (CSR) is alternatively referred to as corporate citizenship, which essentially means that a company should be a “good neighbour” within its host community Or in other words corporate citizenship is a company's sense of responsibility towards the community and environment (both ecological and social) in which it operates, and draws resources and sustenance from Terms corporate citizenship and corporate social responsibility are used in this paper as synonyms and not differ in their meaning 203 Corporate Social Responsibility (CSR) The Green Paper of the European Commission published in 2001 defines corporate social responsibility (CSR) as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis CSR Europe CSR Europe is the leading European business network for corporate social responsibility with around 75 multinational corporations and 25 national partner organisations as members The organisation was founded in 1995 and it has since grown to become an inspiring network of business people working at the very forefront of CSR across Europe and globally CSR Europe's Toolbox CSR Europe's Toolbox includes information, ideas and advice designed to help companies and their stakeholders address socio-economic and environmental challenges and integrate corporate social responsibility (CSR) into mainstream business practice The Toolbox is based on the first results of the CSR Laboratories, crosssectoral business-stakeholder cooperation projects under the umbrella of the European Alliance for CSR EMAS - EU Eco-Management and Audit Scheme EMAS - the EU Eco-Management and Audit Scheme is a management tool for companies and other organisations to evaluate, report, and improve their environmental performance Fair Trade Fair trade has been defined by its practitioners as “a trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers—especially in the South.” Global Compact The Global Compact (GC) was initiated by the Secretary-General of the United Nations at the Davos World Economic Forum in January 1999, encouraging the private sector to exercise Corporate Social and Environmental Responsibility (CSER) by adhering to nine principles drawn from international conventions or declarations on conditions of work, 204 respect for human rights and the protection of the environment In broad terms, CSER is seen as constituting demonstrable ethical, socially responsive and environmentally sensitive business practice Membership of the Compact is voluntary United Nations Industrial Development Organization (UNIDO) was inducted as the fifth partner UN Agency of the Compact in May 2003 The association of UNIDO with the Global Compact was sought in order to cater to the need for a growing membership of Small and Medium Enterprises (SMEs) in the Global Compact Global Reporting Initiative (GRI) The Global Reporting Initiative (GRI) is a large multi-stakeholder network of thousands of experts, in dozens of countries worldwide, who participate in GRI’s working groups and governance bodies, use the GRI Guidelines to report, access information in GRI-based reports, or contribute to develop the Reporting Framework in other ways – both formally and informally Green Paper Promoting a European framework for Corporate Social Responsibility The Green Paper published in 2001 aimed to launch a wide debate on how the European Union could promote corporate social responsibility at both the European and international level, in particular on how to make the most of existing experiences, to encourage the development of innovative practices, to bring greater transparency and to increase the reliability of evaluation and validation It suggested an approach based on the deepening of partnerships in which all actors (stakeholders) have an active role to play International Organization for Standardization (ISO) The International Organization for Standardization (ISO) is the world's largest developer and publisher of International Standards ISO is a network of the national standards institutes of 159 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system ISO is a non-governmental organization that forms a bridge between the public and private sectors Non-Governmental Organization (NGO) Non-governmental organization (NGO) is a term that has become widely accepted for referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government 205 Non-Profit Organization A non-profit organization (abbreviated NPO, also not-for-profit) is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals Examples of NPOs include charities (i.e charitable organizations), trade unions, and public arts organizations Terms non-profit organization and nongovernmental organization (NGO) are used in this paper as synonyms and not differ in their meaning Small and Medium-Sized Enterprise (SME) According to the definition of the European Commission the category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million A small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million And finally a micro enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR million Social Accountability International (SAI) The Social Accountability International (SAI) was established in 1997 and convened an expert, international, multi-stakeholder Advisory Board to partner in developing standards and systems to address workers’ rights Representatives of trade unions, human rights organizations, academia, retailers, manufacturers, contractors, as well as consulting, accounting, and certification firms, by consensus, cooperated to develop the Social Accountability 8000 (SA8000) Standard Published in late 1997 and revised in 2001, the SA8000 Standard and verification system is a credible, comprehensive and efficient tool for assuring humane workplaces Stakeholder Stakeholder is a person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies Key stakeholders in a business organization include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources Although stakeholding is usually self-legitimizing (those who judge themselves to be stakeholders are de facto so), all stakeholders are not equal and different stakeholders are entitled to 206 different considerations For example, a firm's customers are entitled to fair trading practices but they are not entitled to the same consideration as the firm's employees Sustainable Development In 1987 the Brundtland Commission offered its initial definition of sustainable development, which is development that meets the needs of the present, without compromising the ability of future generations to meet their needs Triple Bottom Line According to John Elkington, author of the book Cannibals With Forks and the inventor of the term, triple bottom line (or in other words "People, Planet, Profit") captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, environmental and social In practical terms, triple bottom line accounting means expanding the traditional reporting framework to take into account environmental and social performance in addition to financial performance 207 Appendix II: Example of the Questionnaire on Corporate Social Responsibility Designed for Small and Medium-Sized Companies Academic Research Dear Sirs, I kindly would like to ask you for filling in an attached questionnaire (it should take you to complete only approximately 10 to 15 minutes), which surveys Corporate Social Responsibility of small and medium-sized enterprises in the Czech Republic Nowadays Corporate Social Responsibility (hereinafter also CSR) is constantly growing in its importance, particularly due to the fact that it represents a factor of further growth and sustainable development of enterprises Main objectives of this research are following: • How small and medium-sized enterprises perceive and carry out CSR; • To what degree are enterprises involved (active) in CSR; • What main barriers/obstacles enterprises encounter when carrying out CSR Results of the survey and further research will be incorporated in doctoral dissertation named „Corporate Social Responsibility in Small and Medium-Sized Companies in the Czech Republic“ Simultaneously I would like to assure you that results of this survey will not be misused in any way and that obtained information will be considered as strictly confidential If you decide to fill in my questionnaire, I will be glad to send to you results of the survey and doctoral dissertation I believe both materials (results of the survey and doctoral dissertation) may provide you with useful information on CSR and in this way may contribute to creation or strengthening of competitive advantages of your enterprise I am kindly asking you for sending a completed questionnaire either via e-mail or by post to the below stated address In case of any question, please, not hesitate to contact me I thank you for your cooperation and your valuable time in advance very much David Polášek, M.B.A Czech Management Institute Praha - ESMA Barcelona Contact information (addresses where you can send completed questionnaires): E-mail: dapol@tiscali.cz or d_polasek@cbox.cz Mobile phone: +420-732-477-946 David Polášek Terezínská 701/4 190 00 Praha 9, Letňany 208 Instructions for completion of the questionnaire: next to the answer, which you identify with the most, make a cross or write a text where an underline is In the questionnaire use only tabulators or mouse when moving from one question to another (do not use Enter key) After completion, please, save the questionnaire and send it to my return address Thank you very much I GENERAL INFORMATION ABOUT THE COMPANY Seat/residence of the company (only city):       Your working position in the company:       How long has your company been running/operating? Less than one year to years to years 10 and more years How many employees have your company? (Without parent company or other companies in the group) (Only one answer allowed; in case your company has no employees, please, mark the answer „1 to 9“) to 10 to 49 50 to 249 More than 249 What is the ownership structure of your company? (Only one answer allowed) Solely Czech owner Czech owner with a foreign investor Part of an international corporation Solely foreign owner What kind of business is your company in? (Only one answer allowed) Production Retail sale Wholesale Transport IS/IT Consultancy R&D Construction Other:       Financial services Tourism Is your company certified according to some standards (e.g ISO 9000, ISO 14000, EMAS, Standard “Responsible Company“)? (Only one answer allowed; please, write a name of the respective certificate) Yes, company is certified according to:       Currently not, but my company is considering the following certification:       No Has your company defined strategy in writing (or at least mission and vision for the future)? Yes No Do not know II SOCIALLY RESPONSIBLE ACTIVITIES OF THE COMPANY Do you agree with the following statement: “In order to assure a long-term prosperity, a company has to behave responsibly and ethically to its employees, environment, and community, in which it undertakes its business.” Yes, fully/completely Rather yes No Rather no Have any of the following measures/arrangements been implemented in your company? (More answers allowed) Employee motivation and education system Process to ensure steps are taken against all forms of discrimination, both in the 209 workplace and at the time of recruitment Sufficient health and safety arrangements are implemented at the workplace Top management discusses/consults important matters with employees Rules for recruitment of disabled or handicapped people are set up in the company Possibility/option of flexible working hours Possibility to work part-time for mothers taking care of small children Code of Ethics is worked out and implemented in the company Company contributes to pension insurance and/or life insurance of its employees or more extra weeks of holiday above the standard legal length (4 weeks) None of these measures/arrangements are implemented in the company Has your company prepared strategy for above mentioned measures/arrangements, which are implemented in your company (Please, see question no above)? Yes No Indicate in which of the following activities your company has been supporting its employees and/or its family members (More answers allowed) Sport activities Education Cultural activities Other:       Health care None Environmental protection – ecological activities (other than directly related to consequences of the company’s own operations) Which forms of further education of employees has your company been supporting? (More answers allowed) Professional education (short-term courses, trainings) Language courses Training in managerial techniques Other:       Further long-term education (secondary/high school, university, post-graduate education) How important is for your company socially responsible and ethical behaviour towards its employees? (Only one answer allowed) Very important Important Less important Unimportant Indicate which have been the major drivers/motivators for your company for implementing socially responsible and ethical behaviour towards its employees (More answers allowed) Ethical/moral reasons Tradition Recruitment and retention of qualified employees (Improvement of employees´ loyalty) Improvement of employees´ job motivation Improvement of employees´ job satisfaction Improvement of economic performance of the company (costs´ reduction, sales´ increase) Application/implementation of business code of conduct Pressure from third parties (i.e clients, competitors, governments) Use of existing public incentives (tax incentives, subsidies, others) Other:       None 210 Indicate which have been in practice the major benefits for your company regarding socially responsible and ethical behaviour towards its employees (More answers allowed) Recruitment of new qualified employees Increase of current employees´ loyalty (reduction of staff turnover/fluctuation) Improvement of employees´ job satisfaction Improvement of relations with business partners and investors Improvement of customer satisfaction Improvement of economic performance of the company (costs´ reduction, sales´ increase) Use of existing public incentives (tax incentives, subsidies, others) Improvement of company’s reputation (better image) Other:       None Indicate which have been the major barriers/obstacles for your company for behaving socially responsibly and ethically towards its employees (Maximum answers allowed) I haven’t thought about a possibility that my company could behave in such a way (responsibly) Such (responsible) behaviour doesn’t benefit to the company in any way Lack of time (not enough time) Lack of financial resources Absence of state/government support Absence of public support/pressure Lack of know-how for establishment of such a system/program in the company Other:       None 10 How important is for your company socially responsible and ethical behaviour towards environment and its community? (Only one answer allowed) Very important Important Less important Unimportant 11 Is your company aware of problems/thorny issues that trouble its close community? No If no, is your company willing to take more interest in community’s problems/issues? Yes If yes, is your company willing to offer help? Yes No Yes No 12 Has your company been supporting any of the following activities (not its own employees and/or its family members)? (More answers allowed) Sport activities (not own employees) Cultural activities (not own employees) Health care (not own employees) Education and training activities (not own employees) Financial or other help/support to non-profit organization Environmental protection – ecological activities (other than directly related to consequences of the company’s own operations) Creation of good conditions for socially or in other way deprived groups for their involvement in community and work process Participation in public affairs or political process on behalf of the company 211 Other:       None 13 Indicate in which way your company has supported social activities (do not include activities for or support to your own employees) (More answers allowed) Sponsorship Financial or in kind gifts (ad-hoc or once only) Cause related marketing236 Cooperation with other parties on socially beneficial projects (i.e non-profit sector, public sector, other private companies) Employee involvement in social/community activities (on behalf of the company) Other:       The company does not support any social activity 14 Indicate in which way your company has supported environmental activities (other than directly related to consequences of the company’s own operations) (More answers allowed) Sponsorship Financial or in kind gifts (ad-hoc or once only) Cause related marketing Cooperation with other parties on environmentally beneficial projects (i.e non-profit sector, public sector, other private companies) Employee involvement in environmental activities (on behalf of the company) Other:       The company does not support any environmental activity 15 Did your company receive any public support (i.e incentive, subsidy) for its socially and environmentally responsible activities (CSR) not aimed at its own employees during the last years? Yes, in a form of Tax incentive Subsidy/grant Free of charge consultancy service Other:       No 16 Your company carries out socially and environmentally responsible activities (CSR) not aimed at its own employees: (Only one answer allowed) Independently (only your company) In cooperation with other companies In cooperation with non-profit organization CSR is not supported by our company 17 Is involvement of your company in socially and environmentally responsible activities (CSR) occasional or regular? And is it related to business strategy or not? (Only one answer allowed) Occasional activities, unrelated to business strategy Occasional activities, related to business strategy Regular activities, unrelated to business strategy Regular activities, related to business strategy CSR is not supported by our company 18 Has your company prepared strategy for socially and environmentally responsible activities (CSR)? 236 Cause related marketing: the utilization of marketing means for the purposes of supporting and promoting a “good cause” and simultaneously supporting the commercial goals of the company 212 Yes No 19 Indicate, which have been the major drivers/motivators for your company for support of: A) Social activities B) Environmental activities A) B) (More answers allowed) Ethical/moral reasons Tradition Improvement of relations with public administration (public/state authorities) Improvement of customers´ loyalty Improvement of relations with business partners and investors Improvement of employees´ job satisfaction Improvement of positive image of the company Improvement of economic performance of the company (costs´ reduction, sales´ increase) Establishment and/or retention of competitive advantage Application/implementation of business code of conduct Pressure from third parties (i.e clients, competitors, governments) Use of existing public incentives (tax incentives, subsidies, others) Marketing and Public Relations Other:       None 20 Is your company planning to decrease or to increase its participation in external social and environmental activities over the next years? (Only one answer allowed) Decrease participation Continue as it is Increase participation 21 Indicate, which have been in practice the major benefits for your company from the support of: A) Social activities B) Environmental activities A) B) (More answers allowed) Improvement of relations with public administration (public/state authorities) Improvement of customers´ loyalty Improvement of relations with business partners and investors Improvement of employees´ job satisfaction Improvement of positive image of the company Improvement of economic performance of the company (costs´ reduction, sales´ increase) Establishment and/or retention of competitive advantage Use of existing public incentives (tax incentives, subsidies, others) Improvement company’s reputation Other:       None 22 According to your opinion, which of the following groups has been influenced/affected by your company’s Corporate Social Responsibility the most? (Maximum answers allowed) Employees Customers/Buyers Suppliers Shareholders/owners Community of the company Competitors Public administration Other:       None 23 Has regularly been your company providing information about company’s Corporate Social Responsibility to above-mentioned groups (see question no 22)? Yes, fully Partly No 213 If yes or partly, in which way (e.g Report on CSR)       24 Do you agree with the following statement: “Small and medium-sized companies can more effectively and in a more suitable way apply Corporate Social Responsibility on a local level than large and multinational corporations due to a better familiarity with local community.” Yes, fully/completely Rather yes No Rather no 25 Indicate which have been the major barriers/obstacles for your company for behaving socially responsibly towards its community and environment (i.e supporting of social and environmental activities)? (Maximum answers allowed) I haven’t thought about a possibility that my company could behave in such a way (responsibly) I not see relation to the activities of my company Such (responsible) behaviour doesn’t benefit to the company in any way Lack of time (not enough time) Lack of human resources/capacity Lack of financial resources Absence of state/government support Absence of public support/pressure Lack of information on Corporate Social Responsibility Lack of know-how for implementation of Corporate Social Responsibility in the company Bureaucracy None Other:       III CORPORATE SOCIAL RESPONSIBILITY – CONCLUDING QUESTIONS Have you ever heard about “Corporate Social Responsibility” (CSR) before getting this questionnaire? Yes No Does your company measure and evaluate Corporate Social Responsibility’s related activities (i.e social and environmental activities)? Yes No No, but the company is planning to so Would your company appreciate generally accepted and methodology how to effectively implement CSR in your company? Yes No transparent No, CSR has already been implemented in our company Do you know any documents or organizations (particularly non-profit) dealing with CSR? Yes, e.g.:       No Is any of your company’s employees (or yourself) authorized/responsible for the coordination of CSR (i.e social and environmental activities)? Yes If yes, please indicate his/her job position:       No In case of having interest in the results of this survey, please, fill in the following information Name:       214 E-mail:       Thank you very much for your time and your attention you paid to this questionnaire 215 Appendix III: Examples of Company Values and Principles Company Kovohutě Příbram237 Mission of the company Kovohutě Příbram “We provide environmentally friendly services with wastes of lead, precious metals and electronic equipment with the best available technologies in recycling We are traditional and faithful supplier of products and alloys based on lead, tin and precious metals Our aim is to be in a leader position as regional employer.” CSR mission statement of the company Kovohutě Příbram “Having a friendly approach to people and to the environment.” Company Plastia s.r.o.238 CSR mission statement of the company Plastia “We profess a belief in corporate social responsibility This principle of work rests in a responsible approach to our neighbourhood, the society, our employees and the environment.” CSR commitment of the company Plastia Plastia, out of choice, has accepted an obligation to apply the principles of corporate social responsibility as part of its activities This decision has practical implications: some part of financial assets that we have gained from our economical activities is donated to selected projects in a long-term support campaign The sphere we are engaged in is parenthood, motherhood and children It is children who will once follow in our footsteps, and it is just them who will be creating the future world Children welfare thus represents the most effective investment in the future we can make In a joint project, therefore, we are trying to support maternity centres which help mothers with babies come out of isolation that they tend to get in due to day-long care of their children At the same time the project helps those mothers keep in touch with their professions and boost selfconfidence We also give support to a nursery school in Nové Veselí, as it makes one part of our village community, and they give back something in services they provide to our employees too 237 Kovohutě Příbram (2009), Mission of the Company (Poslání společnosti), available at: http://www.kovopb.cz/cz /poslani_i.html 238 Plastia (2009), Corporate Social Responsibility (Společenská odpovědnost), available at: http://www.plastia.cz /index.php?option=com_content&task=view&id=34&Itemid=68 216 Company TPCA239 CSR commitment of the company TPCA “We want to be a good neighbour and a partner playing an important role in economical and cultural development of the region of Kolín It also concerns good relations and open communication with employees, institutions, local government and individuals We feel our role in gradual participation in various fields of the public life of the region of Kolín.” CSR principles of the company TPCA We care about the local region We respect the local culture and traditions We make life better by providing safe products We develop technologies that allow us to fully satisfy our customers’ needs We support a corporate culture built around creativity and teamwork We strive for growth that doesn’t negatively impact society With our business partners, we strive for sustainable development 239 TPCA (2009), A green factory (Zelená továrna), available at: http://www.tpca.cz/cz/zelena-tovarna and TPCA (2009), TPCA and the region (TPCA a region), available at: http://www.tpca.cz/cz/tpca-a-region 217 [...]... philanthropy, although philanthropy remains important Also philanthropy became more strategic, i.e aligned with the company’s strategy and operation • Beyond public relations to a greater accountability and stakeholder engagement For more than a decade there exists a growth in demands by stakeholders, including shareholders, for companies to demonstrate greater accountability, transparency and integrity and... Externality, A Glossary of Political Economy Terms, available at: http://www.auburn.edu/~johnspm/gloss/externality 15 only means behaving legally Corporate social responsibility is more as it goes beyond the common framework of the law Another example of social irresponsibility is insistently sticking to stockholder model without considering any other interest groups and environment The stockholder role... within this stakeholder group; and • External influences – community members, media, and issue advocates also influence company’s decision-making process The stakeholder concept is highly relevant for CSR, as without it would be difficult to identify various groups (stakeholders) that can be, and actually in practice are, highly influential for company’s success Further, also many modern definitions of... the norm in the auto industry at the time But his decision ultimately benefited Ford Motor Company by making it an attractive employer and by stimulating demand for its products 19 Nevertheless, what is more important, at the same time, Ford’s move benefited wider society by raising the bar for pay and labour practices across the auto industry Thus, perhaps unwittingly, Henry Ford used simple CSR tools... sustainable business model” Regarding benefits, he adds: “It saves money, it engenders employee loyalty, it attracts better employees and in every way it makes us a better business.” 13 According to Corsano, business managers have to include into their decision-making process CSR aspects as well in order to make their business sustainable, i.e survive in constantly changing, developing and sometimes... http://www.edie.net/news/news_story.asp?id=14526 40 Walsh, J.P (2004), Taking Stock of Stakeholder http://www.si.umich.edu/ICOS/Jim%20WalshICOS.pdf 17 Management, University of Michigan, available at: In the traditional view of the company, the shareholder view (usually the only one recognized in business law in most countries), the shareholders or stockholders are the owners of the company The company has a binding fiduciary duty... must be different than in the past.”12 Anthony Corsano, holder of the Ernst & Young Metro New York Entrepreneur of the Year 2008 Award, sees corporate responsibility in part of every business decision the company makes Corsano argues, “Whether it’s analyzing energy consumption to reduce carbon footprint, or simply improving the communities in which employees work, behaving like a good corporate citizen... direction of the doctoral paper and to move forward with investigation in depth Sincerely I would like to thank to Prof Ing Jiří Dvořáček, CSc., a former dean of the Czech Management Institute Praha - Faculty of Management of Escuela Superior de Marketing y Administración Barcelona, who helped me to start my doctoral dissertation and provided me with insight into managerial finance and business management... opportunity It requires that business owners, business managers, and employees not only comply with the law, or undertake actions that they can directly link to financial gain, but also aim to do the right thing Since the last decade of 20th century a great number of manufactures, retailers and service companies all around the World, but particularly in developed countries, has adopted voluntary standards... knowing anything about CSR concept 15 May S., Cheney G., Roper J., (2007), The debate over corporate social responsibility, Oxford University Press, Oxford, page 4 16 Kreis, S (2004), Lectures on Modern European Intellectual History (Robert Owen), available at: http://www.historyguide.org/intellect/owen.html 17 The Religious Society of Friends is a movement that began in England in the 17th century Members