corporate social responsibility as a valuable contribution to ...

More documents

Recommendations

Info

30 Ewa Mazur-Wierzbicka • providing customers with volunteer services • fair price policy • ethical advertising activity • regulation of obligations toward suppliers and business partners on time • cooperation with local partners • propagation of standards via supply chains • support for reaching local/regional business agreements. “Opteam” firm from Finland and “Deante Antczak Sp.J.” from Poland can be cited as practical examples. “Opteam”, a medium-sized firm, is a franchise network of personal services that pays special attention to individual situation of particular employees by offering them flexible employment conditions which make them are adjusted to needs identified by employees and hence rotation of employees is minimized. Furthermore, the firm provides workers with special training programmes. “DEANTE Antczak Sp.J.” is a medium-sized enterprise from Poland that deals with wholesale of kitchen and bathroom products and offers customers a seven-year guarantee for products sold – longer than it is usually offered on the market. Moreover, customers are provided with effective technical and guarantee service. Thanks to good image (equated with a high quality of products), the firm has gained new clients and reduced the rotation of employees. Another sphere involves CSR actions in favour of natural environment. CSR initiatives in the scope of environmental protection refer to: • designing environment friendly products and production processes • effective exploitation of resources • reducing waste produced and pollution emitted • using the ”environmental assessment” of suppliers in the context of environmental standards • informing business partners, customers and society about issues relating to environmental protection CSR actions taken by European SME in favour of environmental protection can be observed in “Maja’s Salong” firm from Norway and “LUMAG Sp. z o.o.” from Poland. A small hairdresser’s “Maja’s Salong” from Norway puts CSR rules into practice by managing the waste in the way that involves their sorting and recycling, saving the energy by turning off the lights at night, and by using only as much water, shampoo and hair cosmetics as necessary. Furthermore, the firm is actively involved in establishing the environmental standards for the sector in which it functions. These actions are of great value not only from the environmental point of view but also allow to save money through cost reduction. “LUMAG Sp. z o.o.” is a medium-sized Polish enterprise functioning in automotive sector that manages not only waste produced within a firm but also collects and recycles its products once they have been used up and removed from vehicles. Elements created as a result of recycling may be used as a component of materials for the production of new elements of breaking systems. What is more, asbestos has never been used in the production process, and prescriptions worked out in firm’s laboratory do not contain any heavy metals that could pose a danger to natural environment or vehicle users. Firm has a good reputation in the opinion of local community and is perceived as honest and thriving enterprise. Many small and medium-sized enterprises do not focus only on one sphere of CSR but represent a holistic approach. i.e. combine various aspects of these actions. Norway firm “AS Marex” and Romanian company “SC TUV KARPAT SRL” are examples of enterprises that have adopted holistic approach to CSR in European SME.
Corporate Social Responsibility as a Valuable Contribution to Improvement ... 31 “AS Marex” is a medium-sized Norwegian enterprise that supports charity every year and cares about the environment (e.g. sorts and recycles waste), guarantees sustainable employment, provides its employees with medical care and training, and offers jobs to persons who need professional training. “SC TUV KARPAT SRL” is a counselling micro enterprise from Romania that offers its employees training, looks after the improvement in their working environment (e.g. modern computers, flexible working hours, greater security) and mutual communication. It devotes a lot of attention to customers, and services it provides are adjusted to quality standards established by the firm itself. Furthermore, business partners are taken into account in firm’s training plans and the firm has been awarded ISO 14001 certificate and organizes training courses in the scope of environmental issues (KMU Forschung Austria, 2005). CSR concept is becoming more and more important to small and medium entrepreneurs in the business world. Putting the concept into practice is becoming more and more common, which is reflected in the fact that the number of entrepreneurs participating in “Fair Play Enterprise” contest is growing every year (in 1998. there were 39 firms – winners, whereas in 2007 this number was 721). It also turns out that firms are more willing to involve in these actions when the atmosphere is favourable to ethical behaviour. This fact is connected, among other things, with changes in public opinion, social involvement, spreading the message of firms, that conduct their activity in accordance with ethical rules, in the media. It is also very important to encourage ethical behaviour and introduce changes within organizations through training. Thanks to external audit, firms and stakeholders can find out that the concept has been put into practice. Firms awarded are certain that economic success must go hand in hand with moral success. Awards for entrepreneurs who stand out are in a way an incentive for other firms to act in a moral way. Conclusion CSR is developing in various ways depending on a sector, geographical area and legal system, due to which every country as well as every firm are unique. It was assumed that CSR is a voluntary activity that goes beyond legal norms. Yet, different policy is pursed in e.g. the United States and different in Europe. Corporate social responsibility is connected with relation between business and society. This relation was subject to change as a result of changes brought about to business by globalization. Business had to find the way in which it could respond to new social expectations and face up a new role. CSR concept does not concern only large firms (as it is suggested by the word “corporate”) but also to small and medium-sized ones, which is usually referred to as responsible entrepreneurship. What is more, CSR is becoming more and more universal as a social responsibility (SR) in which sustainable development plays a major role and which refers to various organizations, i.e. not only firms but also non-governmental organizations or government departments. Contrary to appearances, CSR is a complex domain as it concerns economy, society together with its values, power relations in corporate environment and relations between a firm and its external environment. In practice, CSR is developing dynamically, which is reflected in strategic implementation of CSR in firms. Besides, applying CSR principles has a positive effect on the competitiveness of SME sector. It allows to improve products due to which customers are more satisfied and loyal. Stronger motivation and greater involvement of employees translates into greater creativity and innovativeness. A positive image of a firm is created and hence the situation in the labour market is improving and cooperation with business partners is becoming greater and greater. Thanks to the aforementioned aspects, sales increase and
Page 1 and 2: Ewa Mazur-Wierzbicka Microeconomics
Page 3 and 4: Corporate Social Responsibility as
Page 11: Corporate Social Responsibility as

corporate social responsibility as a valuable contribution to ...

Create successful ePaper yourself

Delete template?

Save as template?