Comparing state of CSR in Baltic states and Finland Audronė Alijošiutė LAVA, Chair of the Board Nordic CSR Summit 2015, Vilnius.

Comparing state of CSR in Baltic states and Finland

Audronė AlijošiutėLAVA, Chair of the Board

Nordic CSR Summit 2015, Vilnius

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"WHEN THE WIND BLOWS THERE ARE THOSE THAT BUILD WALLS AND THEN THERE ARE THOSE THAT BUILD WINDMILLS”Responsible Business Summit 2013

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About LAVA – Lithuanian responsible business association

Nordic CSR Summit 2015, Vilnius. A. Alijosiute

Partner:

It`s a great mix of 20 large and small, local and foreign, public and private businesses and non

profit organizations in both production and service industry.

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LAVA • Legal status gained in August, 2013 • Member of State Progress Council• Focal point of UN Global compact • Cooperation with Swedish and Finnish CSR

networks

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LAVA - member of CSR Europe CSR Europe's network of 42 national partner organizations, reaches out to more than 10,000 companies in Europe.

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CSR TRENDS IN BALTICS


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PREHISTORY


“Comparing state of CSR in Baltic states and Finland“

Financed by the Nordic Council of Ministers’ Grant Programme for Nordic-Baltic Non-Governmental Organization's (NGO) Cooperation 2014 Estonia with financial

contribution of LAVA, CSR Estonia and CSR Latvia 9


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Background

The aim of the survey is to find out understanding and views towards social responsibility and sustainability of business leaders

Based on Finland CSR network experience: 2013, 2014

The research framework was built on the global social responsibility standard, ISO 26000

Data was collected by electronic TNS-Gallup questioners between July-September 2015

In Baltics nearly 200 companies participated Nordic CSR Summit 2015, Vilnius. A. Alijosiute

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Respondents

• 1/3 - large companies • Majority limited liability companies• Mostly (50%) operating in Lithuania and Latvia and

more international in Estonia• More than half of the respondents were middle

sector managers.• Manufacturing industry: 30 – 40%


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ENGAGEMENT: CSR is an important issue, but….

For more than half – it is important CSR – as a brand building activity and an instrument to improve work satisfaction. 1/3 of respondents see CSR as a starting point for their business in Lithuania, while in Latvia and Estonia more than half of respondents indicated importance of it. Risk management is becoming more important


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ENGAGEMENT: Who is driving CSR ? In Finland the least important driver… Trade Unions. It

is No1 in Baltics

I do not know

Owners and investors

Other

Clients

Co-operation entities of the respective business community

Non-profit organisations

13.33.6

4.14.34.5

56.36.36.46.8

7.6

Who are driving your CR work?Top management isn’t important

( No1 in Finland)Also in Baltics are important: • Business organizations • Legislation • NGO


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Responsible business practices

Dominating themes • Labor practice • Environmental issues • Human Right • Legitimate procedures


I do not know

Corporate responsibility issues are not relevant to our company

Consumer issues

Human rights

Working life practices

0%

2%

4%

53%

60%

60%

62%

72%

96%

Which CR themes are most important for your company ?

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Responsible business practices: management practices are used

Finland

1. Setting qualitative and/or quantitative targets for CR

2. Applying a code of conduct

3. A member of the executive group is in charge of CR

Baltics

1. Applying a code of conduct

2. LT and EST : Setting qualitative and/or quantitative targets for CR (less than half);

3. Publishing a CR report or integrated


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Responsible business practices: which guidelines are used • Domination of ISO 14000 and OHSAS 18001 • In Lithuania aprox. ½ of the companies are applying

UN Global Compact principles. • One fifth of companies follow none of the CSR

international operational principles.


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Impacts monitored • Achievements of CSR targets are monitored mainly

through employee and customer satisfaction and company image

• Less than 1/5 of the companies follows the costs and as many see increase in sales due to CSR activities

• Nearly ½ of the companies believe that their CSR practices make a social impacts

• Less than half are valuing indexes, competition and ranking lists


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Impacts: benefits from CSR

• Majority of the companies indicated better image of the sustainability of the company as the biggest benefit of CSR practices

• 20-30% consider CSR as a facilitating factor for innovations and development of new products in the company


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Challenges: managerial aspects

Measuring the impacts is seen as biggest challenge Costs also dominate among Baltic respondents 1/3 acknowledges the importance of integration of

CSR strategy


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Challenges: themes

LT : CSR communication and brand building 37% Stakeholder relations, environmental impacts –

28% LV: Fair competition – 31%;Supply chain - 29% EST: Work satisfaction – 60 %,stakeholder

relations - 45%


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Future trends

Importance of CR during the next 5 years will increase , accordingly investments in CSR will be bigger

EU directive 2013/34/EU on non financial disclosers is not known for more than 40 % of respondents


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Conclusions

• CSR is important but is seen as a brand building activity and assists in improvement of work satisfaction.

• Labor issues seen as the most important responsibility theme

• Need for better management of CSR, reporting

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Conclusions • There is an evidence that more than 1/3 of companies

has some strategy on CSR. • Less than 1/3 third says that the responsibility aspects

are embedded in the incentive and compensation systems of the management.

• not enough information about new frameworks that has been developed

• Nearly half actually practice multi-way dialogue with NGO

• CSR, believed will remain or be even more important!

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Conclusions




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Conclusions • There is an evidence that more than 1/3 of companies

has some strategy on CSR. • Less than 1/3 third says that the responsibility aspects

are embedded in the incentive and compensation systems of the management.

• not enough information about new frameworks that has been developed



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Conclusions





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Conclusions • There is an evidence that companies has some

strategy on CSR • The responsibility aspects are embedded in the

incentive and compensation systems of the management

• Not enough information about new methods on CSR measurement




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Conclusions

CSR is important but is seen as a brand building activity and assists in improvement of work satisfaction.

Labor issues seen as the most important responsibility theme

Need for better management of CSR CSR, believed will remain or be even more important!


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Thank you! Questions?

Audrone Alijosiute LAVA, Chair of the Board

Tel. +370 687 21 450 www.asociacijalava.lt

[email protected]


http://www.asociacijalava.lt/

mailto:[email protected]

Comparing state of CSR in Baltic states and Finland Audronė Alijošiutė LAVA, Chair of the Board Nordic CSR Summit 2015, Vilnius.

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