CSR Campaigns in Romania

8/10/2019 CSR Campaigns in Romania

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BUCHAREST ACADEMY OF ECONOMIC STUDIES

CORPORATE SOCIAL RESPONSIBILITY APPLIED TO

ROMANIAN MARKETS

PERSPECTIVES FOR IMPROVING PRACTICES

Author of the report,

MIU CRISTINA DANIELA

(Faculty of International Economical Affairs, 2nd year)

6th

of May 2014


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EXECUTIVE SUMMARY

In a climate of heightened social awareness and instant access to information, CSR must be a

fundamental part of company's targeted practices, its objectives, and overall culture. Therefore, social

responsibility must be fully integrated in ways that benefit both society and business.

Some examples of companies that were successful in the implementation of CSR are Coca-Cola HBC

and PepsiCo.

Coca-Cola believes strongly in giving back to the community. They consider that inside every bottle of

Coca-Cola is the commitment of a company that cares about community. They excel at supporting human

rights, creating a diverse workplace, protecting the environment and training future specialists.

PepsiCo strives to create a safe, healthy, diverse and inclusive workplace that reflects the global

communities in which they operate and to respect human rights in the workplace and across the supply chain

For that, in 2012 the Great Place to Work Institute ranked PepsiCo among the top 25 Worlds Best

Multinational Workplaces. They are recognized for creating valuable work experience for students, supporting

worthy causes and volunteering.

The recommendations that rise from the study of best practices in these companies are:

Implementing flexible working schedules

Donating to good causes

Instituting an internship program

Encouraging the team to volunteer


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Contents

INTRODUCTION ....................................................................................................................................................................... 4

FINDINGS ................................................................................................................................................................................. 4

1. Types of CSR ................................................................................................................................................................ 4

2. Models of CSR implementation .................................................................................................................................. 5

A. PepsiCo .................................................................................................................................................................... 5

B. Coca-Cola ................................................................................................................................................................ 6

RECOMMANDATION ............................................................................................................................................................... 7

CONCLUSION ........................................................................................................................................................................... 7

BIBLIOGRAPHY ........................................................................................................................................................................ 8

REFERENCES ............................................................................................................................................................................ 8


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INTRODUCTION

Corporate social responsibility (CSR) refers to a business practice that involves participating in

initiatives that society would benefit from. As consumers' awareness about global social issues experiences

continuous growth, so does the importance the customers place on CSR when choosing who to do business

with.

Corporate social responsibility is a vital part of long-term business success. Nowadays corporations

must be increasingly mindful of the impact that their operations have on society, and this requires much more

than a number of measures applied on an only-once basis. In a climate of heightened social awareness and

instant access to information, CSR must be a fundamental part of company's targeted practices, its objectives,

and overall culture.

Although the Corporate Social Responsibility (CSR) concept has a great tradition in the field of

Economics, it represents a relatively recent acquisition of the Romanian business environment. CSR took over

and developed different practices and activities within multinational companies. While entering the Romanian

economical environment, CSR activities started to be more and more diverse and gradually became increasingly

professional and often a constant pursuit integrated in the development strategy of the companies.

Social responsibility must be fully integrated in ways that benefit both society and business. An

overarching CSR strategy is suited to the unique requirements of the companyone that addresses the social

economic, and environmental effectsas it can create a better position for the organization for immediate and

future success.

Involvement in CSR activities plays an important role in anticipating and preventing conflicts between

the company and the community, but it is also a way through which part of the company profiles can go back

into the community. It is also an effective means of promoting the ethical values of the company. Through the

developed programs, there is also a communication function present, because companies are able to get to know

the social environment in which they operate.

This report will look at:

Types of CSR Models of CSR implementation

Recommendations for improving practices

FINDINGS

1.

Types of CSR


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CSR can encompass a wide variety of methods, from giving a portion of a company's profits to non-profit

organizations, to donating a product or service to a worthy recipient for every sale made. Some edifying

examples of the categories of social responsibility that businesses are practicing at the moment are as follows:

Environment: this is one of the primary focuses of corporate social responsibility. Businesses, both

large and small, leave a large carbon footprint. Any steps they can implement to reduce those footprints

are considered useful for both the company and society as a whole. Examples can include everything

from curbing pollution to developing clean energy solutions. Philanthropy: Corporations also practice social responsibility by donating to national and local

charities. Businesses have a lot of resources that can benefit charities and local community programs,

whether it involves giving money or time.

Ethical labor practices: By treating employees in a manner that is both fair and ethical, companies can

also demonstrate their corporate social responsibility. This is especially true in case of businesses that

operate in international locations with different labor laws than those in the United States. Research has

shown repeatedly that consumers will turn extremely quickly on companies if they are found operating

sweatshops or violating other ethical labor practices.

2.

Models of CSR implementation

Many businesses have started to incorporate social responsibility into their values, as is the case with

companies like Coca Cola, PepsiCo. A common ground that all CSR models have is one that concerns the

Human Resources department.

A. PepsiCo

PepsiCo strives to create a safe, healthy, diverse and inclusive workplace that reflects the global

communities in which they operate and to respect human rights in the workplace and across the supply chain.1

For that, in 2012 the Great Place to Work Institute ranked PepsiCo among the top 25 Worlds Best

Multinational Workplaces.

Also, they put a high price on volunteering.PepsiCo supports the passion of their employees to make a

positive impact. PepsiCorps is a skill-based volunteer program in which associates from around the world form

teams that are deployed to help local communities address societal challenges.

Another area that PepsiCo excels at is supporting worthy causes.The PepsiCo Foundation provides

funds for disaster relief to communities in need, working with best-in-class partners, including the AmericanRed Cross, Feeding America, Save the Children, International Rescue, Give2Asia and Habitat for Humanity.

Additionally, local PepsiCo businesses respond with donations of foods and beverages.2

They also provide internships in order to better prepare the future workforce. An example of an

internship program would be Butterfly Effect which provides trainings for all participants and selects a few for

1 According tohttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reporting

2Source :http://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reporting
http://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reporting


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a paid summer job in a multinational, giving them the chance to work with professionals and have lots of fun

throughout a fully flavored 3 month experience.3

B. Coca-Cola

Coca-Cola believes strongly in giving back to the community. They consider that inside every bottle of

Coca-Cola is the commitment of a company that cares about community.4

In terms of charity and supporting causes, their goal was to give back at least 1 percent of the operating

income annually. For nearly three decades, The Coca-Cola Company has given back to communities mainly

through The Coca-Cola Foundation, a global philanthropic arm. Through the Foundation, they partner with

governments, non-governmental organizations (NGOs) and other charitable organizations to support

community improvement in four main areas: water stewardship; active, healthy living; community recycling

and education.

Another important point that Coca-Cola makes is respecting human and workplace rights as they are

fundamental to our culture and imperative for a sustainable business. In order to achieve that, the Companybottling partners and suppliers are adopting processes for identifying, preventing and mitigating negative

impacts on human rights. They also hold a conference on human rights once a year convening more than 150

leaders from businesses, government and nongovernmental organizations (NGOs) to discuss the role of

businesses in respecting human rights.

An area that the company focuses on is diversity, as is one of their seven core values. They work hard to

ensure an inclusive and fair work environment, as it is imperative if the business is to continue to thrive in a

multicultural world. The workplace diversity strategy includes programs that attract, retain and develop diverse

talent, provide support systems for groups with diverse backgrounds and educate all associates through regular

diversity training.

Coca-Cola system's commitment to develop sustainable communities is focused on initiatives that

contribute to environmental protection and resource conservation, encouraging an active and balanced lifestyle,

creating a safe working environment for employees and promoting the economic development of local

communities.

Coca-Cola HBC is actively involved in the educational part of the CSR, as they provide young students

with opportunities to learn from the best through internship programs like Management Trainee Destination

Management.

Coca-Cola HBC Romania, mostly excels at environmental protection, being double awarded at the

International Business Awards for its social responsibility programs. The Adopt a river from its spring to its

3Source :http://www.pepsicojobs.ro/job/121/?lang=en

4Source :http://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdf
http://www.pepsicojobs.ro/job/121/?lang=enhttp://www.pepsicojobs.ro/job/121/?lang=enhttp://www.pepsicojobs.ro/job/121/?lang=enhttp://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://www.pepsicojobs.ro/job/121/?lang=en


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mouth program was awarded a Distinguished Honoree medal,in the Communications or PR Campaign of the

YearCommunity Relations category.

RECOMMANDATION

Looking at the findings in this report it is easy to recognize that the main points that would prove to be a

viable solution to be implemented in order to improve corporate karma, as CSR is recognized, are:

1. Encourage the team to volunteer

That is an effective method for the company to receive good press and it would help overall with the

companys imageby being perceived as a business that not only supports their causes of choice by donating part

of their profits, but also by volunteering their time.

2. Institute an internship program

By instituting an internship program the company can give back to the community, helping theeducational system and offering precious work experience and opportunities to learn from trained professionals.

Businesses offering internships and work experience are often best placed to identify the markets finest

talent and are in prime position to recruit them to permanent positions. Also, businesses in industries

particularly challenged by skills shortages have shown that by using internships and work experience initiatives

effectively, they can help to find the right talent to build a stable future for their business.

3. Donate to good causes

An idea would be to create a social media campaign for a cause supported by the company in which

every customer that donates receives social media mention from the business, along with a coupon or digital

media reward.

That way, the donor feels appreciated, positive social media will be generated for the business and the

cause, and sales will increase.

4. Implement flexible working schedules

In todays increasingly demanding society, employers have to become more flexible to accommodate

family-friendly work practices, therefore a more flexible approach to the work schedule would prove to be

extremely effective. That way, the employees would be more productive and the burnout due to overload would

be reduced. Plus, there will be a reduced consumption of employee commuting time and fuel costs.

Naturally, that would develop an image as an employer of choice with family friendly flexible work

schedules.

CONCLUSION


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Corporate social responsibility is avital element for many business corporations. It has been shown that

there are many different areas in which a company may choose to focus its corporate social responsibility. The

first area of focus in corporate social responsibility is with regard to the environment. Other areas that should be

considered in the development of corporate social responsibility programs are education, health, nutrition and

employment.These elements are not only aspects of corporate social responsibility, but also a show of the

ethical standards of a company.

BIBLIOGRAPHY

1. Oprea, L. 2005. Responsabilitate social corporatist, Bucharest: Tritonic.

2. Stoian, C. and Zaharia, R.M., 2009. Corporate social responsibility in Romania: trends, drivers

challenges and opportunities, International Journal of Economics and Business Research

3. erbnic, D. and Militar, G., 2008. Corporate social responsibility and competitiveness. Amfiteatru

Economic, X(23), pp.174-180.

4.

Kotler, P. and Lee, N., 2005. Corporate Responsibility: Doing the Most Good for Your Company and

Your Cause. New Jersey: Wiley, Hoboken.

5. Habisch, A., Jonker J.,Wegner, M. and Schmidpeter R., eds., 2005. Corporate Social Responsability

Across Europe. Heidelberg: Springer Berlin.

REFERENCES

1.

PepsiCo sustainability reporthttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability

Reporting

2. PepsiCo Butterfly effect http://www.pepsicojobs.ro/job/121/?lang=en

3. Coca Cola sustainability report

http://assets.cocacolacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdf
http://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reportinghttp://www.pepsicojobs.ro/job/121/?lang=enhttp://www.pepsicojobs.ro/job/121/?lang=enhttp://assets.cocacolacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://assets.cocacolacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://assets.cocacolacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdfhttp://www.pepsicojobs.ro/job/121/?lang=enhttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reportinghttp://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-Reporting

CSR Campaigns in Romania

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