PwC Romania: 4 out of 5 Romanian CEOs focus on long term profitability

PwC’s Global CEO Survey reveals that 79 percent of Romanian CEOs say that they focus more on long-term profitability rather than short-term gains.

Also, the majority of local CEOs believe that highly skilled employees prefer to work for organisations that share their values (54 percent), while 44 percent of the respondents think the key talents would rather look for employers that offer competitive payment packages.

A large share of the managers see technology as very important for their company, with 91 percent of them stating they are improving the way in which they use technology, while 77 percent anticipate that requirements will shift along with technological breakthroughs.

„Under pressure from technological changes which enhance the speed of information sharing and expose businesses in a direct way to public pressure, companies are at a crossroads that involves changing their business model. Romanian CEOs, similar to their global counterparts, are beginning to focus on creating long-term value. Also, 88 percent of CEOs believe that having a successful business in the 21 century will mean more than just financial profits. Thus, the present economic system tends to reinstate business ethics at the heart of the organisation,” underscores Ionut Simion, country managing partner, PwC Romania.

For most managers (83 percent) an educated, qualified and flexible workforce should represent a priority for society overall, while three quarters (73 percent) say  that this is one of the main areas in which the business sector should collaborate with local and national authorities.

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When it comes to investors, the main focus falls on the ethical aspects, according to 52 percent of Romanian CEOs, a higher percentage than their global counterparts which believe that both shareholders and investors are more interested in revenues and capital increase (58 percent).

Creating value for stakeholders and profitability are interconnected elements for local respondents. Thus, 57 percent of local CEOs believe that creating value for all stakeholders will help organisations be more profitable, while 43 percent consider that profitability helps create value for all stakeholders.

Stakeholders, as defined in the survey, include: clients, shareholders, competitors, the local community, the media, NGOs, Government organisations and authorities.

In terms of social responsibility, our country falls behind as compared to the regional results, with 38 percent of Romanian CEOs investing in CSR programs and only 43 percent stating that such programs are fundamental. At global level, 64 percent of respondents said that CSR forms the foundation of all company activities.

The 19th edition of the PwC Global CEO Survey was conducted during the last quarter of 2015, and is based on the answers of 1409 CEOs from 83 countries. In Romania 82 interviews with CEOs were conducted.

Natalia Martian