Transcript PowerPoint Sunusu

CSR for ALL
NATIONAL REVIEW STUDY
- Montenegro -
SUMMARY
-Research was conducted in July-August 2013 and included 121 companies
-It showed continual awareness raising on concept and its importance, but its
implementation is still not at the satisfacory level
-Most important reasons: structure of Montenegrin economy and lack of
institutional and legislative support
-Companies mostly express their interest for supporting CSR initiatives, BUT there
is a little evidence on implementation
-In most cases, companies do not or rarely use CSR tools nor they participate in
UN Global Compact initiative
-BUT respondents expressed their interest in participating in the trainings later
during the project
-Main external organization that companies turn to for help and assistance is
EMPLOYERS’ ORGANIZATION
I. INTRODUCTION
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National Review Study conducted by DeFacto consultancy agency
Consists of two parts:
1) Desk review – methodology by IOE; general information on national social
structure, political and economic situation, general classification of
enterprises, national framework and current state of CSR, legislation and its
compliance
2) Survey aiming to assess the inclusiveness and accountability of the private
sector participation in CSR, covering 10 different topics
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Survey covered 113 (94,4%) SMEs and 8 (6,6%) large companies
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The most represented sectors of activity are: wholesale and retail trade
(28,1%), construction (19%) and other service activities (15,7%)
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More than half of companies (55%) operate only at the Montenegrin market,
10% have operations in two countries, 13% of all interviewed companies have
economic activities in three countries, and after percentage decreases
significantly
II. COUNTRY PROFILE
POPULATION
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Montenegro regained its independence in May 2006 and became 192nd
member of UN, with its current Constitution passed in October 2007
“Civic, democratic, ecological and social justice state” (Constitution of
Montenegro)
Montenegro is a parliamentary republic with independently elected President
According to the latest census (2011), Montenegro has 620,029 inhabitants, of
which adult population represents 76,5% of all; 49,4% men and 50,6% women
Most people live in urban areas (63,2%)
National absolute poverty line is 175,25 EUR and 9,5% of population live
below poverty line
II. COUNTRY PROFILE
ECONOMY
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Macroeconomic environment in 2012: reduction of economic activities,
negative trends in industry, construction and forestry; motor of growth is still
tourism
Inflation rate in 2012 – 5,1% (in comparison with 2,8% in 2011)
Financial sector maintained stability, although there is a growth in late credit
payments and number and amount of non-performing loans
Deficit of state budget in 2012 was 4,9% of GDP; public debt was 51,1% of GDP
Net inflow of foreign direct investment growth of 18,6% (mostly investment in
companies and banks, real-estate and inter-company debt)
Relatively high rank in WB Doing Business 2013 report – at 51st place among
185 countries, but some aspects still poorly regulated (issuing business
permits, contract enforcement, property registration)
II. COUNTRY PROFILE
ECONOMY (cont.)
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Global Competitiveness Index (2012-2013) – 72nd among 144 countries
GDP per capita – 5.356 EUR; based on purchasing power parity, ranked 68th
among 180 countries (World Bank)
II. COUNTRY PROFILE
LABOUR MARKET
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Unemployment rate – 21,5%
Employment to population ratio (percentage of working-age population
employed) – 45,9% in Q1 2013, very low in comparison to other European
countries (average of 65,3% in OECD countries)
High youth unemployment rate – 45,3%
Employment by sector: 17,4% in central/local government, NGOs and
humanitarian organizations; 28,3% in government/municipality owned
companies; 51,3% in privately owned companies
Estimated informal sector – 20% of GDP
III. NATIONAL CSR CONTEXT
MOST IMPORTANT ACTIVITIES
2005
• MEF – Ethical Code of employers in line with UN Global Compact and UN MDG
2006
• Center for development of NGOs – Survey on CSR among 57 companies (2006)
2007
• Center for development of NGOs and OSCE – Round table “Development of
CSR in MNE”
• Ministry of finance, Association of municipalities, MEF, Center for
development of NGOs – Analysis of legislation for CSR development (intersector working group)
• Association for democratic prosperity ADP ZID – Yearly reward for
volunteerism (ongoing)
III. NATIONAL CSR CONTEXT
2008
• Center for development of NGOs, MEF, Telecom, Telenor – Training of trainers
and consultants of CSR
• Center for development of NGOs, MEF, Telecom, Telenor – Trainings on CSR
and inter-sector cooperation (2008-2012)
• Chamber of Commerce of MNE – Seminars on CSR (ongoing)
• UNDP, CEED – Baseline study on CSR in MNE
• Chamber of Commerce of MNE – CSR Reward (ongoing)
III. NATIONAL CSR CONTEXT
2009
• Center for development of NGOs – First Regional Conference on CSR
“Development of CSR in MNE and in the region: examples from practice”
• Fund for active citizenship (FAKT) – Reward for Philanthropy (ongoing)
• Center for development of NGOs – Regional Network of NGOs active in CSR
2010
• Center for development of NGOs – CSR Newsletter
• Center for development of NGOs, MEF, National Agency for SMEs, UNDP – CSR
Forum
• Center for development of NGOs, MEF, National Agency for SMEs, UNDP –
Conference “Launching UN Global Compact in MNE”; establishment of UN
Global Compact Network
• FAKT – “Corporative Philanthropy as an Investment” publication; Regional
Conference “Role of the Media in development of Philanthropy”
• FAKT, Open Society Institute – “Corporate Philanthropy in Montenegro”
publication
III. NATIONAL CSR CONTEXT
2011
• Center for development of NGOs – Training on reporting on CSR in line with
GRI and UN Global Compact
• Center for development of NGOs – Lectures on CSR in academic community
• UNDP, MEF, National Agency for SMEs, Center for development of NGOs and
DeFacto consultancy agency – CSR Survey
• MEF – Business guidelines on Principles of Labour Rights of UN Global
Compact
• Department for support to the National Council for Sustainable Development
– Membership in regional network for SMEs’ CSR
• Department for support to the National Council for Sustainable Development,
Government of Netherlands – Encouraging Dialogue and partnership for
sustainable development between Government and business sector in MNE
(conference)
III. NATIONAL CSR CONTEXT
2012
• FAKT, NGO Need – Round table “Social Responsibility”
• MEF – “Women in business – potential of Montenegrin economy” survey and
round table
PUBLIC POLICIES
• “Encouraging culture of giving and CSR” within Strategy of Cooperation
between the Gov’t and NGOs (2007-2011)
• Estimation of level of CSR awareness within Strategy of development of SMEs
2011-2015
• “Defining strategic framework for sustainable expenditure, production and
promoting of CSR” within National sustainable development Strategy (20112012)
IV. COMPANY SURVEY RESULTS
Information on the survey sample:
• Regional distribution – central 58,6%, south 31,4%, north 9,9%
• Distribution according to the main industry – wholesale and retail trade 28,1%,
construction 19%, other service activities 15,7%, financial and insurance
10,7%, accommodation and food services 9,9%
• Type of ownership structure – 73,3% limited liability company, listed company
16,6%, cooperative 6,6%
• Origin of the capital – 85% mainly domestic, 15% mainly foreign capital
• Number of employees: micro and small enterprises - 70,2%, medium 23,1%,
large 6,6%
• Origin of companies’ operations – 55% no foreign operations, 10% operate in 2
countries, 13,7% in 3 countries, 3,7% in 4 and 8,7% in 5
• Regional presence of business partners: 90,9% domestic, 55,4% EU, 46,3%
Western Balkans, 9,1% Asia
IV. COMPANY SURVEY RESULTS
Information on the survey sample:
• Regional presence of direct suppliers: 81,8% domestic; 55,4% EU; 46,3%
Western Balkans; 8,3% Asia
• Regional presence of costumers: 97,5% domestic; 40,5% EU; 39,7% WB; 8%
Asia
IV. COMPANY SURVEY RESULTS
Information on the survey sample:
29.8%
export oriented
domestic market oriented
70.2%
IV. COMPANY SURVEY RESULTS
General awareness of CSR
No, 30.00%
Yes, 70.00%
General awareness of CSR
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The most aware are respondents from financial and insurance companies
(92%), while the least aware are those working in other services (47.4%)
More companies that have foreign capital are aware of the term then those
with the domestic which could be explained by the fact that in these cases
from abroad with the capital comes also a more developed business culture
all representatives of the large companies within our sample are aware of the
CSR
Less then 1 year
19.0%
1-3
36.9%
4-6
16.6%
7-9
5.9%
10+
Missing
19.0%
2.3%
CSR Governance in Your company
Does a company have a specific department responsible for CSR?
Yes, 28.50%
No, 71.40%
CSR Governance in companies
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As the company is larger, its capacities are higher – 70% of large companies
and only 26% of SMEs have a special CSR unit
By sector, 53,8% of financial and insurance businesses and 45,5% of companies
providing accommodation and food services have special CSR units
36% of companies with foreign capital and only 26% of those with domestic
capital have CSR units
CSR unit is a part of which department?
Department for corporative activities
25.0%
Department for human resources
Department for environment
14.2%
3.5%
CEO office
Fondations and associations
53.5%
3.5%
CSR Priorities
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Highest responsibility - towards employees (53.3%), fair business behavior
(38.3%) and respecting human rights (31.6%)
Lowest responsibility – anticorruption behavior (43.8%), toward environment
(40%) and engaging in supply chain (34.8%)
Indifferent – towards philanthropy (76.9%), securing jobs (60%) and anticorruptive behavior (50%)
CSR Activities
1) Commitment towards employees
- “My company promotes healthy and safe work environments” – 95,9%
(strongly) agree
- “My company has in place policies to ensure non-discriminatory behavior with
regard to gender, age, ethnic background, religion, sexual orientation” – 95,9%
agree
BUT
- “My company undertakes measures to the recruitment and employment of
disabled people” – 27,7% disagree/strongly disagree
CSR Activities
2) Respecting human rights
- Percentage of companies agreeing with the general statements is higher than
those agreeing with specific ones: “Respecting human rights is a priority of my
company” (95% agree) vs. “My company has started to implement the UN
Guiding principles for Business and Human Rights” (only 35,9% agree)
3) Community engagement
- Highest support to social initiatives (69.5%) and cultural projects (68.6%),
smallest interest in small infrastructure initiatives (51.3%)
4) Environmental activities
- Most companies try to reduce energy consumption (87.4%) and pollution
emissions (78.3%)
- Interesting: 51.7% stated that they are unsure if they have environmental
management system or standard in place
CSR Activities
5) Engaging with the supply chain
- Most companies integrate ethical, social and environmental criteria in its
purchasing, distribution and contracting policies – 69.5%
- Only 31.4% audits the social and ecological performance of suppliers, 18.8%
provides training on different topics to suppliers and only 11.2% participate in
supply chain initiatives like BSCI. For these 3 statements, over 50%
respondents were not sure
6) Fair business behavior
- 93.4% identify risks of corruption and implement policies and practices against it
and 82.4% have clear rules on responsible political involvement and conflict of
interest
CSR Activities
7) Providing remedy
- Majority of companies provide for remediation in cases when they cause or
contribute to a human rights abuse (77.6%) and have stakeholder engagement
processes in place for employees of business partners to raise concerns
(68.6%)
Reasons for engaging in CSR
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Main reasons: culture of the company (43.7%), attracting and motivating
employees (22.7%) and attracting clients (20.2%)
Least important reasons: NGOs’ campaigns (2.5%), interest from government
(3.4%) and reputational risk concerns (5%)
Interesting – 18.5% don’t have any particular reason!
Use of CSR instruments, tools and initiatives
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40% of companies are aware of UN Guiding principles for Business and Human
Rights, 24.8% with ISO 26000 and least aware of GRI (5.7%)
BUT, usage of these instruments and tools is low – 83% don’t use them, and
those who stated that are using couldn’t provide specific answer on what
particular instruments and tools are they using
Participation in voluntary initiatives like UN Global Compact – very low!
Yes, 4.30%
No, 95.70%
Use of CSR instruments, tools and initiatives
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50.9% of interviewed companies said they had a public commitment to CSR, but only 6
of them could provide an internet link where this commitment could be accessed
By sector, public commitment is highest in financial and insurance activities (83.3%) and
lowest in trade (33.3%)
69.6% of foreign ownership companies, 51.5% of export oriented and 75% of large
companies have stated commitment to CSR
Majority of companies have code of conduct (74.2%), but in 47% of cases it hasn’t made
known to suppliers; in 66.6% of cases, companies follow code of conduct of another
company
In 76.7% cases, companies do not publicly report on CSR activities, but when they do, it’s
usually done through meetings with stakeholders (54.2%) and information on the
Internet (41.7%)
Majority of companies (60%) don’t consult external stakeholders to understand their
responsibilities, but of those who do in most cases they consult employers’ association
(47.6%), media (21%) and NGOs (19%)
Challenges implementing CSR
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Most important challenges: general economic, social and environmental
situation (29.2%), lack of time and resources (26.5%), difficulties implementing
self-commitments (25.7%) and lack of leverage over business partners (25.7%)
Problems with smallest level of influence: availability of CSR tools in mother
tongue (7.1%), lack of senior management support (8%) and difficulty to
translate policies into specific measures (8%)
Assessing governmental policies towards CSR
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Most respondents haven’t heard of any governmental policies toward CSR –
82.9%, but majority of those who have heard find them useful (78.1%)
Overwhelming majority of 98.2% believes that the state should support CSR
through measures such as information, awareness raising, awards or tax
benefits
Recommendations by respondents:
Disseminate more info through media
Awarding prizes and recognitions
Tax and other benefits
Education
Investment or co-investment into CSR projects
Public recognition of CSR companies
Future development of CSR
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83.9% of respondents believe that significance of CSR in Montenegro will
grow, while none of them said it will decrease
The most important fields of CSR growth are: responsibility towards
employees (41.7%), towards environment (37.4%) and securing jobs (33%).
Smallest growth is expected in engaging with the supply chain (13.9%)
Need of training
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Almost half of respondents (45.3%) expressed their interest in participating in
the trainings later on in the project
Most interested are those in accommodation and food service companies
(72.7%) and those employed in financial and insurance business (53.8%)
More interested are those with foreign ownership (57.7%) and domestic
market oriented (46.9%). Large companies are more interested than SMEs
(62.5% vs. 44%)
Recommendations for the focus of the trainings:
Security of jobs
Human rights
Responsibility towards employees
Support to culture
Environmental protection
Fair business
Media and CSR
Some excerpts:
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“It would be good if the state could provide specific stimuli for companies that
enforce CSR (such as tax benefits)”
“We have many more important things than CSR. CSR comes at the very end”
“Culture of doing business will take decades to improve until we reach EU
level. We lag even behind Slovenia, Croatia…”
V. CONCLUSIONS
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Number of companies aware of CSR importance increases in time, but most
companies don’t have a specific organizational unit responsible for CSR, which
indicates that it’s not planned and strategically positioned, but in most cases
an ad hoc activity
Large and organizationally strong companies are more dedicated to CSR, which
means that SME oriented Montenegrin economy can be institutional challenge
to the CSR
Highest priority within CSR has been given to employees, fair business
behavior and respect of human rights; lowest priority shown to anticorruption
behavior, environment and engagement in supply chains
Main reasons of being socially responsible – company’s culture, attraction of
clients and motivation of employees
Prevailing number of companies don’t participate in UN Global Compact
V. CONCLUSIONS (cont.)
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Public expression of commitment to CSR usually doesn’t have evidence in
official public reporting
Clarifications on CSR are mostly asked for from employers’ organization
Typically, companies are not informed about governmental policies toward
CSR, but would consider them useful
Suggested measures for government by companies – information and
education, awarding prizes, tax benefits, investment into CSR projects, better
legislation in this field
Almost half of respondents are interested in participating in training during the
project!
RECOMMENDATIONS
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Shift focus to providing trainings and practical examples of CSR to introduce it
in the management routine
Make CSR tools and instruments more familiar to the companies with an
emphasis on their use and utility
Make government’s activities more public and able to reach wide range of
potential stakeholders
Clear need of government’s incentives for CSR, such as tax benefits,
recognition etc.
Intensify role of EO in mediation and information process
Further promotion of initiatives such as UN GC
Continuation of efforts in transforming legal framework to include CSR
principles
Stronger cooperation between government, NGOs and EO should be
promoted and established