Corporate social responsibity: facts versus opinions – the joint survey by KMPG Polska and Responsible Business Forum

According to the recent report conducted by KPMG in Poland and Responsible Business Forum „Corporate social responsibility: facts versus opinions” there is a growing awareness of a corporate social responsibility (CSR) in large and medium-sized companies. However, we are only halfway there. Such good actions are performed by every other company in Poland, whereas they are mainly taken by large companies and those with foreign capital.

The issue of corporate social responsibility grows in importance among enterprises which execute CSR activities – in every other company member of the board is responsible for CSR issues and 63 per cent of enterprises officially incorporate them into the general strategy. On the other hand, despite the presented opinions that the companies are supposed to respond to social and ecological challenges (96%), for 18 per cent of CSR enterprises it means long-term and professional commitment.

What is the most crucial for companies which are socially responsible is to face environmental challenge and support local community.

When asked about the specific tasks which were the most important (50%) the companies predominantly indicated preservation of natural environment. Interestingly, not only is it the most vital issue for industrial companies (56%) which through manufacturing have a direct destructive influence upon environment but also for service sector enterprises (38%). The development of local communities is the second key challenge from the surveyed companies’ point of view . It was far more indicated by industrial companies (40%) rather than by service ones (29%). On the other hand, the significance of education in responsible consumption (10%) and preventive healthcare were the least chosen (4%). The reason of that particular perception may contribute to a belief that such actions should primarily engage companies which provide the market with products both injurious to health and highly addictive.

The activity in accordance with CSR conception positively influences on the results obtained by the companies.

More than three fourths (77%) of the representatives of the contemporary large and medium-sized companies in Poland believe that running business activity in accordance with CSR conception has positive influence on ultimate financial results of the enterprise. Such a belief is slightly less represented by senior staff (73% shown in survey) than by the rest of the workers (81%). The most indicated profit refers to the improvement of company image on market – more than half (52%) of the examined regard that it can be the effect of CSR activities. The other crucial benefit which can be gained by a company is population growth in the environment as indicated by more than one-third of all representatives of large and medium-sized enterprises.

– The experiences of various companies show that CSR values are worthwhile. Despite of the fact that some enterprises view them in terms of profits, it is important to remember about the most crucial principle for corporate social responsibility, which is value creation for all stakeholders. Providing CSR is understood in such a way, we can consider a viable and balanced rise – says Mirella Panek-Owsianska, the chairperson of Responsible Business Forum.

CSR conception is mainly implemented by the large companies.

Less than half (46%) of large and medium-sized companies in Poland is currently running CSR activities. Another 15% of them (15%) are deliberating whether to begin their running or not, which would mean the significant development of that conception in polish companies. In fact, the polish enterprises which do not have any connection with foreign capital are very occasionally (37%) engaged in CSR activities. The participation of companies which represent CSR conception is far higher among those with foreign capital, assuming that the highest value (61%) for the companies which solely possess foreign capital. According to survey CSR activities are more often undertaken by large and very large enterprises. In turn, in the group of small companies in terms of employment ( up to 249 employees) only every fourth company embarks on CSR activities. In the group of the biggest enterprises, namely with the staff numbering above thousand, two in three ones run their activity in accordance with CSR conception.

– The companies which own foreign capital are more eager to engage themselves in CSR activities than those which exclusively possess polish one. It shows that CSR constitutes a dominant global trend. In case of the international companies, running them in accordance with CSR conception is often a part of a global strategy of a group to which they belong. – says Jerzy Kalinowski, KPMG partner in Poland.

33% of companies surveyed consist of the experienced and fully-fledged ones in terms of social responsibility.

In order to conceptualize social maturity degree of large and medium-sized companies there was a thorough analysis of some their activities performed. The subject matter which was taken into account in that survey not only consisted of activities in the field of CSR but also of formal compliance of CSR strategy as well as preparation of reports about the activities which had been run in CSR area. Consequently the most numerous group (54%) accounts for non-active companies, namely those which do not execute CSR activities in Poland. It turns out that they are among both the smallest ones in terms of employment and those which do not possess foreign capital. Another group constitutes the active companies, namely those which are involved in running CSR activities in Poland. It is possible to enumerate three fundamental subgroups out of them. The first one – the least numerous (13%) – consists of young companies. They run activities in the field of corporate social responsibility, but they do not do anything more, neither incorporate CSR values into company strategy nor prepare social reports or well-balanced development. Another group, slightly more numerous than previous one (15%), comprises the experienced enterprises. There are the companies which have made a step further and either they do include CSR in their strategy or do prepare CSR reports. Corporate social responsibility plays essential role but it is not yet the complex approach to CSR subject. The last group (18%) is represented by the mature companies which fulfil CSR activities and additionally include them in their strategy as well as prepare the various reports. Three in four enterprises which have been included into that category possess foreign capital.

– Almost 30% of large and medium-sized surveyed companies are engaged in activities in accordance with corporate social responsibility conception but they do not do them in a complex way. The most common reason why companies do not prepare the reports about CSR programms and projects run in their activities is simply the lack of such need. The majority of the companies has the problem with management during preparation a particular report –says Jerzy Kalinowski , KPMG partner in Poland.