Motives for CSR in the Lithuanian SMEs from non-manufacturing

industries

The motives are the objectivefor separating CSR into categories.Corporate citizenship, corporate constitutionalism,business power, political power, type of act, type of effects, business ethics, instrumental values, social demand and so on (Brummer, 1986).The motives for CSR actions are often mixed.

self-serving motives? Balanced Scorecard?

“Corporate social responsibility is a continuous commitment from companies to improve competitiveness while actively contributing to attain sustainable development of society through concrete, measurable action

Corporate social responsibility: “continuing commitment by business to contribute to economic development, while improving quality of life of workforce and their families as well as of the community and society at large”. (World Business Council for Sustainable Development)

We will present you interesting cases of businesses just like yours, who gained from responsibility.

People (employees, community)Planet (natural environment)Profit (value to shareholders)

INTERNAL

MOTIVES

Benefits to business - Improves sales and customer loyalty - Attracts quality investors and

associates Attracts quality emploees Improves operational effectiveness by

fostering innovation and learning Improves rganizational environment

and motivates staff Provides social license to operate Improves risk management Promotes new business opportunities Improves brand name and reputation Encourages positive ifferentiation

External Motives Powerful media Increased power and influence from the civil

society Influence from competitors and pressure

from the supply chain More demanding, sophisticated consumers More demanding regulatory frameworks and

public policies from Governments International community expectations:

Global Compact,Earth Summit, etc.

Pressure from investors and the financial sector, Pressure from activists groupsetc.

SMEs can be viewed as a disparate mix of businesses being far more informal in organisational structure, internal reporting and communication

SMEs are not homogenous, are sometimes driven by ownermanager values, and so can be difficult to compare directly both to each other

Week pressure from society

Number of enterprises, number of emploees (2009)

     

0–4 46889 56,3 84 6,2

5–9 15032 18,1 99 7,3

10–19 9039 10,9 122 9

20–49 7000 8,4 218 16

50–99 3103 3,7 213 15,6

100–149 982 1,2 118 8,7

150–249 603 0,7 114 8,4

250–499 342 0,4 117 8,6

500–999 136 0,2 90 6,6

1000 ir daugiau 75 0,1 186 13,6

At one extreme CSR participation can be viewed by SMEs as an extension of profit-making activities and, at the other extreme based on purely altruistic motives.

Gary Mankelow, Ali Quazi, University of Newcastle Motivations for SME CSR Item (a survey of members of the Hunter Business Chamber (HBC) based at Newcastle, Australia.)

Caring for the customers & community

Profit through caring Community orientation Business of business is

business Long-term survival Customer approval Customer loyalty

maintenance Enhancement of corporate

image Addressing recipient needs Addressing community needs

Profit maximization Enhanced staff morale Staff welfare Better contribution to

community Planned expenditure level Community acceptance Donations beyond tax

implications Business’s interest in CSR Donations based on tax

incentives Following industry standards in

CSR

Barriers / antimotivation for non-manufacturing (IT management, Finance, Human Resource, Sales and Services) industries SMEs)

Resource constraintsConcentration of activities and power

(owner=manager)Focus on short termLow pollution levelLow energy consumptionEducated staffThe end part of supply chain SMEs may well be doing CSR without knowing it

Sustainability and social responsibility through

learning (Responsibility towards employees) Skill development

For non- manufacturing SMEs On-the-job learning and Formal learning programmes are not always suitable

Health and well-being (learning)Work-life balance - the ability to balance work and non-work

commitments is key to attracting and retaining motivated and highly skilled employees.

http://www.csr360gpn.org/uploads/files/resources/WLB_Guide.pdf

CASE STUDYCompany: KPMG GROW: Workshops and

seminars covering a range of business etiquette, professional image and social skills for personal and professional

growth. RELAX: Social and recreational

activities, such as cooking classes, movie nights, which give staff the opportunity to unwind after work with their

colleagues. FITNESS: Health awareness

and exercise activities, including sports competitions and discounted gym membership plans

FAMILY: Fun days and other events open to family members, to allow staff to enjoy quality time with their family.

SUPPORT: Assistance and external professional counselling services

And what about KPMG.LT –

Nothing……

We can find some activities called work-family, but not work-life

http://www.spektramed.lt/content/view/4/4/

http://www.toshiba-medical.eu/

http://www.healthcare.philips.com/main/homehealth/respironics.wpd

http://www.cookgroup.com/

http://www.dynamic-imaging.com/myfclty/international.html