Saturday, 29 March 2014 16:22

Corporative Social Responsibility

Survey of the Montenegrin companies regarding Corporative Social Responsibility (CSR) was conducted between July 18th and August 20th 2013 and it included 121 companies. It showed that their awareness about the concept and its importance rises in time which coincides with increased governmental, NGO’s and professional organizations’ efforts and activities with this regard.

However, more in depth analysis shows that implementation of the CSR is still not on the satisfactory level.

One set of questions in the research aimed to assess the way targeted companies organize CSR activities. The idea was to see whether companies have a specific department which is responsible for CSR. One could expect that existence of such unite would indirectly indicate higher understanding for the CSR within specific company. However, majority of them does not have such organizational unite (71.4%).

Part of the answer why is this case could be found in the following figure that shows division of the answers according to four sub criteria that we chosen. Namely, again we can see that as the company is larger its capacities raise. Having a special unite therefore is not only connected to the companies’ awareness but with its capacities (70% of large companies have a special CSR unite, while this is only the case with 26% of SMEs).

As for the sector, companies involved in financial and insurance business (53.8%) and companies involved in providing accommodation and food services (45.5%) are more likely to have a special organizational unit in charge of CSR.

Companies with foreign capital more often have such a unit (36%) then those with domestic (26%).

When it comes to business orientation there is no significant difference between companies with regard to having a special CSR unit.

The second question aimed to identify the type of department that a specific company delegates to be responsible for CSR. We only included respondents that had previously replied that they had a specific unite which is responsible for CSR in the distribution.

From the figure bellow we can see that in most cases this department is in fact CEO’s office (53.5%). In other cases this is most commonly department for corporative activities (25%) or department for human resources (14.2%).

The fact that in most cases it is CEO’s office that is in charge of CSR indicates the low level of institutionalization of CSR principles in the work of the company. Namely, CEO’s office is the one with the highest level of discretional powers which may suggest that CSR is not something that is being part of the beforehand defined companies’ policy but an ad hoc activity.