Local CSR market makes strides towards maturity

The Romanian corporate social responsibility (CSR) market has changed steadily over recent years, with companies aiming to develop long-term projects with a greater impact on the communities in which they operate. Although firms in Romania are getting more involved in CSR actions and supporting their local communities, not many of them make these initiatives public in an organized way, as reporting non-financial information is not a regulatory requirement in Romania.

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Anda Sebesi

At present, leading companies, especially international ones, present in Romania are investing in building stakeholder trust and simultaneously improving their business performance. “These organizations understand that to retain the confidence of the general public they need to ‘win hearts and minds’ as well as delivering on the bottom line. They are responding to a new set of societal values based around the evolving role of companies in society,” says Geta Diaconu, director, sustainability advisory and CSR, at KPMG Romania.

Elsewhere, as part of the eighth KPMG Survey of CSR Reporting in 2013, the top 100 companies by revenue (N100) operating in Romania were analyzed from a CSR perspective, based on public information. The figures show an increase in the total number of N100 Romanian companies involved in CSR issues as well as reporting on such matters, either through a local report or providing data for the group report, compared with the survey conducted in 2011. The previous set of results indicated a total of 53 reporting companies (CSR local reports or input for the group report). The latest data reveal that 69 of the N100 published this information. The results of the survey also point to a difference between multinational companies operating in Romania, which are more actively involved in CSR, and local players.

Diaconu says the trends in the local CSR market continue to be set by multinationals active in Romania, which have a strategic approach and clear plans for action at group level. Related policies, procedures and projects are implemented locally, in line with the group’s strategies. “On the other hand, Romanian-owned companies tend to focus their efforts and activities mostly on social involvement, without an organizational framework,” she adds.
“A significant difference can be observed between the level of involvement in CSR activities by governments and companies in developed countries, where there is a history of several decades of such activities, and the position in Romania. However, during the last few years, progress has been made in our country and hopefully in the near future CSR will rank high on the agenda of both public institutions and private companies,” says the KPMG representative.

Companies focus on community projects
Many multinational companies focus on the community they operate in, developing long-term CSR programs with a greater impact on as many beneficiaries as possible. Heineken pentru Comunitati is one such example, developed by Heineken Romania in partnership with CSR Nest Association. The program started four years ago and is implemented in the four cities where Heineken has breweries: Craiova, Constanta, Miercurea Ciuc and Targu Mures. The company has invested over RON 1 million in 20 community projects through Heineken pentru Comunitati so far and has reached more than 280,000 beneficiaries. The program is part of the company’s Agenda of Sustainability, entitled “Brewing a Better Future”, and aims to support local communities where Heineken has breweries by investing in relevant projects for them. The company’s approach to sustainability is characterized by an integrated vision that covers all of its areas of activity and helps it to develop its activity in Romania on the long term in an efficient and responsible manner.

A similar initiative is “Fondul Mega Image pentru Comunitate”. The project is financed by Delhaize Group and managed by Fundatia Comunitara Bucuresti, and supports initiatives that increase social cohesion in local communities in Bucharest. The fund was launched in Romania in September last year and has a maximum value of RON 100,000. The sum is split between ten winning projects that receive a grant of about RON 10,000 each. The project targets a wide range of themes from civic spirit, ecology and healthy food, and the social integration of vulnerable groups to education and hobbies. “The reason we decided to get involved in this project is simple: we are part of the community. We develop by our customers and we attend to their needs in all we do. The way we interact and relate to the communities we operate in represents our engagement to contribute to improving the lives of different communities and making positive changes,” say representatives of Mega Image. They add that the company’s goal is to participate actively in the making of a sustainable future, both for its customers and employees and the whole community it is part of. “Mega Image’s involvement in CSR actions has increased steadily over the years with each project or program we have developed. We will continue to be an active participant in the community,” they say.

Last but not least, Asociatia pentru Relatii Comunitare (ARC), with the support of Raiffeisen Bank, announced recently that it is offering RON 42,500 to each of the three community foundations that will be set up nationwide. Arad, Brasov, Constanta, Craiova, Deva, Galati, Hunedoara, Pitesti, Suceava and Timisoara are the main cities targeted by this project but initiatives in other areas where there is a lack of such foundations are also expected. “Through our contribution to the setting up of three new community foundations we want to promote a model of active citizenship and contribute to the development of a capable, involved and responsible society,” says Corina Vasile, communication and PR director at Raiffeisen Bank. The lender also launched the third edition of its “Raiffeisen Comunitati” grant program last year, to finance local small and medium projects.

Social economy is the future
Social entrepreneurship is increasingly seen as a real alternative to traditional business as the current economic environment becomes more and more challenging. Several companies on the Romanian market have decided to support social economy projects as they have a significant impact on local communities. “Fabricat in Tara lui Andrei”, a project developed by Petrom, is the largest competition for social businesses in Romania at present. The company announced the ten winners of the 2013 contest in November last year. In addition to a grant of up to EUR 32,000 for setting up a business, each winner got specialized consultancy for its first years of activity in fields such as financial management, legal, marketing and distribution. The ideas of the ten social entrepreneurs that won grants from Petrom came from different fields: agriculture (farms), the textile industry, wood processing, manufacturing of construction materials and furniture, food and herbs. “Through the project ‘Fabricat in Tara lui Andrei’ we wanted to encourage the entrepreneurial spirit of Romanians and to create independent and sustainable communities. The results of this project prove that Romanians have a real entrepreneurial spirit and want to contribute to Romania’s development,” said Mariana Gheorghe, CEO of Petrom.

Elsewhere, UniCredit Business Integrated Solutions and UniCredit Foundation in partnership with NESsT selected the three winning projects of the 2013 “Your Choice, Your Project” social enterprise competition last July. The winning social enterprises got financial support of EUR 7,000.

The local market needs educational projects…
Both the private and public sectors in Romania have seen the need for educational projects for different target groups. Banking, IT&C, pharmaceuticals, energy, and oil & gas are among the industries currently involved in such projects.

Enel describes social responsibility as one of the company’s core values. With the projects it supports or develops, the company aims to contribute to the creation of a sustainable world for future generations. “Enel has launched various programs that encourage and educate the public about rational energy consumption in Romanian communities, with direct benefits on household budgets: campaigns in villages or areas that include replacing incandescent bulbs with energy-saving bulbs, and the City of Energy project, which includes elements of modern, urban art,” says Radu Cosarca, director of external relations at Enel. He adds that in the area of programs focusing on education and awareness of energy and energy efficiency, the company has set up the Play Energy program, which also presents useful information on the complex field of energy. Play Energy is a competition organized by Enel Group internationally, for secondary and high schools.

Many companies are now focusing more on long-term CSR projects aiming to achieve a high impact on specific target groups. “Actavis Sustine Performanta”, which was started in 1992, is one such example. Through this program, the company supports the Romanian Chemistry Olympics team and covers the expenses of participating in the International Chemistry Olympiad. “Those who get medals are rewarded with scholarships and internships at our company. In 22 years since the launch of this project we and Romania are proud of the country’s 10 gold, 42 silver and 30 bronze medals at the International Chemistry Olympiad,” says Ana Maria Draganica, communication manager at Actavis Romania.

Educational programs can have a significant impact on local communities faced with specific problems. For example, through the project “Protejeaza-ti caminul, pregateste-ti comunitatea!” developed by Habitat for Humanity Romania and Petrom in partnership with the General Inspectorate for Emergency Situations (IGSU), over 2,500 citizens from 13 vulnerable communities in Bacau, Braila, Dambovita, Gorj, Ialomita, Valcea and Prahova benefited from a program for participatory management of risks relating to disasters. The program was implemented during August 2013 and February 2014 and aimed to involve directly families, authorities, employees of Petrom and local IGSU services.

Orange Romania describes education and the professional training of young people starting their career as a big step in building a better future. The company has developed many such activities, including internships at Orange and mentoring sessions in high schools. “We invest in training future specialists, facilitating through Orange Educational Program their access to educational resources adapted to the current technological needs and encouraging scientific research activities and experiences of alternative learning,” say representatives of Orange Romania. The Orange Educational Program (with Engineering, Business Administration and First Step sections), Orange Job Shadowing Day, Orange 4G Tour and Atelierul de Responsabilitate Sociala are among the company’s educational projects.

Public institutions are also involved in educational projects. For example, the National Bank of Romania (BNR) develops such projects as part of its strategy for external communication. The Open Gates Days for Economics Students, Let’s Talk about Money and Banks, and “Academica” are among BNR’s educational ventures. In addition, last year the Central Bank signed a partnership with the Ministry of National Education to initiate or implement activities supporting financial education.

… and support for humanitarian causes
Fighting for a good cause is often a highly effective way to help the community in which you live, and many companies on the Romanian market are now involved in supporting humanitarian causes. Regardless of whether they support an NGO that works for a good cause or develop their own CSR projects to support humanitarian aims, companies invest a lot in this kind of community involvement. For example, in March Plaza Romania hosted the biggest fashion show of the year, donating EUR 10,000 to Hospice Casa Sperantei, thereby supporting efforts to raise money and promote the services provided by the hospice. Ilinca Vandici, Diana Dumitrescu, Crina Abrudan and Roxana Ciuhulescu lent their support to the cause while fashion designers Catalin Botezatu, Doina Levintza and Rhea Costa contributed pieces for the fashion show. “We decided to support this noble cause in order to improve the quality of life of those in need, and also encourage others to follow this example. We want to be near our fellows and we think we can improve things directly or indirectly. This attitude very much reflects the internal values of our company,” says Razvan Gaita, general manager at Anchor Group.

Elsewhere, Avon is known internationally for its fight against breast cancer and domestic abuse, running social campaigns in over 58 countries where it is present. On the local market, the company launched its campaign against breast cancer in 2002, while in 2008 it launched Campania Respectului. “We chose these two causes because they are the most frequent problems women face around the world. Breast cancer is the most common form of cancer for women and also claims the most victims,” says Denisa Mihai, CSR specialist at Avon Cosmetics Romania. She adds that the impact of the company’s programs is measured through donations made (over USD 2 million invested in medical equipment in eight oncology centers in Romania), free screenings (the company has conducted 4,500 free breast echograms/mammograms since 2012) and educational campaigns. Mihai also points out that there is a huge need for education in Romania when it comes to breast cancer. “From our perspective and the experience of years of social campaigns in Romania, we need to educate young people and family doctors. These two segments are very important for the success of the ’Campania pentru Sanatatea Sanilor’,” she adds. As for the most recent program from Campania Respectului, “Licee Albastre” is being rolled out in ten cities in Romania in partnership with Fundatia Sensiblu. “Together with Cornel Ilie, our ambassador, we tell students from high schools about healthy relationships in teenage couples,” adds Mihai.

Another company that is very active in community involvement is Vodafone Romania. It was the first firm to launch a program of salary donations, back in 1998. This allows its employees to donate voluntarily a percentage of their salary every month to fund the activities of the Vodafone Romania Foundation. In addition, the company is a long term-partner of SMURD and the Foundation for SMURD, with projects including fitting ambulances with equipment for data and video transmissions, the acquisition of intervention vehicles and the renovation of the National Center for Training in Medical Emergency Assistance in Targu Mures.

Last but not least, Vodafone implemented the “Voluntar de profesie” program for the first time in Romania in 2010. Under the name of World of Difference, it was set up by the Vodafone Foundation worldwide in 2002. Over 2,100 volunteers from 22 countries have been involved in projects developed by NGOs around the world. The program is dedicated to employees who always have wanted to work for an NGO and support a specific cause directly.

Corporate volunteering gains ground

Many companies active on the Romanian CSR market are starting to involve their employees more in volunteering. The need to be closer to their customers, create a better work environment and incentivize and retain employees has made firms more open to volunteering programs where employees get in touch with communities.

“Corporate volunteering is growing and I think that the involvement of many companies in communities is leading gradually to an increase in corporate volunteering initiatives,” says Carmen Marcu, communication director at Pro Vobis, the National Centre for Volunteering Resources. She adds that there are also more occasional initiatives coming from SMEs that propose one action a year or a series of actions in which all the employees of the firm are involved. “The role of this type of volunteering is to involve individuals with specialist skills that are very useful to both the beneficiaries they serve and the NGOs,” adds Marcu.

Raiffeisen Bank, Orange, Vodafone and BRD-Groupe Societe Generale are among the companies that use corporate volunteering as a CSR tool.

For Orange Romania, the involvement of its employees in corporate volunteering activities is a way to increase the positive impact of the social responsibility or charitable activities that Orange undertakes. “Through the shared know-how, time and efforts of volunteers, communities get consistent support while volunteers offer positive examples for their families, friends and communities,” say representatives of Orange. They add that encouraging volunteering can lead to an improved quality of life for local communities and play a significant role in educating the public.

Vodafone also launched a corporate volunteering program in 2006. As a result, the company now has over 3,800 volunteers and more than 25,000 volunteering hours, while every year about 1,000 workers volunteer.

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