CSR IN THE CZECH REPUBLIC
COUNTRY OVERVIEW AND APPROACH
Ing. Pavel Adámek, Ph.D.
CORPORATE SOCIAL RESPONSIBILITY
CSR IN THE CZECH REPUBLIC
OUTLINE OF THE LECTURE
1. Facts about CSR in the Czech Republic
2. Trends in penetration of CSR Guidelines in the Czech Republic
3. Government interest in CSR
4. Sustainable development at the national level
5. National Action Plan on CSR
CSR IN THE CZECH REPUBLIC
INTRODUCTION
• CSR awareness and implementation in the region are advancing
rapidly. In contrast to Western Europe, it is mainly companies
themselves – often multinational corporations – that are the
main agents of change, whereas external pressure from civil
society, media and public authorities has so far been fairly low.
• Over the time, a number of companies have steadily been
growing and companies are engaged in a remarkable range of
activities. Today, Business Leaders´ Forum’s mission is
promotion and enforcement of CSR in line with European
methodology and best standards.
CSR IN THE CZECH REPUBLIC
INTRODUCTION
• From the perspective of CSR Policies and Legislation - most
legislation related to CSR priorities is implemented nationally,
the most important of which are the National Labor Code,
Consumer Protection Law, and Law on general product safety
and Environmental Law.
• The Czech government adopted the National Quality Policy in
2000, which includes CSR as a priority.
– The key players in the field of CSR can be assigned these main CSR
Actors: Ministry of Human Rights and Minorities (www.vlada.cz);
Ministry of Labour and Social Affairs (www.mpsv.cz); Ministry of the
Environment (www.mzp.cz); Ministry of Industry and Trade
(www.mpo.cz); Business Leaders Forum (www.blf.cz, www.csronline.cz);
Association of Fair Business (www.korektnipodnikani.cz);
and Czech Society for Quality (www.csq.cz).
CSR IN THE CZECH REPUBLIC
INTRODUCTION
• Companies in the Czech Republic use the following
international norms and standards as references for their CSR
activities: OHSAS 18001 – (System of management of
occupational health & safety), EMAS – (Eco-Management and
Audit Scheme), ISO 14001 – (System of Environmental
Management), SA 8000 – (Social Responsibility), ISO 26000 –
(Corporate Social Responsibility).
• Czech companies are often found within the supply chain of
many multinational companies.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• In the Czech Republic at the beginning was the impulse of most
companies involved to focus purely on philanthropic donations.
• The harmonization of Czech law with EU legislation, and the
Czech Republic's accession to the European Union, contributed
to major advances in the promotion of CSR.
• According to surveys in the business sector, it appears that the
main CSR-related priorities are the environment, well-being and
philanthropy.
• The broader concept of CSR is slowly taking root in educational
institutions such as universities.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• The most common issues companies when dealing with
suppliers - ensuring suppliers are competent in their field, legal
capacity and integration of statutory bodies, financial
correctness related to the state administration bodies, data
security and company transparency.
• The Labour Code plays a strong role in this area as well as the
pressure from the Czech-Moravian Confederation of Trade
Unions.
• Czech businesses currently benefit from a positive image within
local communities.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• The Czech Republic’s National Trademark on Quality is given to
products that meet certain standards regarding
quality/sustainability.
• Some of the traditional media start presenting CSR topics, but
the amount is till minimal and interest of media in this topic is
still very low in general.
• In the Czech Republic also exist a few competing CSR Awards:
Czech National Award for CSR, Top Responsible Company of
the Year, and other.
• There also exist surveys in the field of CSR – CSR Research is
a survey conducted yearly and other studies are prepared
mainly by NGOs.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• As CSR gaining its popularity among entrepreneurs, some nongovernmental
organizations have been focusing on building
partnership between profit and non-profit organizations in the
area of corporate philanthropy, corporate volunteerism, social
marketing, environmental protection and others
– (e.g. HESTIA, AISIS, Czech Donors Forum, Environmental Law
Service, Business Leaders´ Forum).
• In 2007 the Ministry of Labour and Social Affairs created a new
website on CSR, to inform users about the concept of CSR in
the European Union.
• Environmental awareness is largely promoted through the
Czech Republic’s National Cleaner Production Program –
adopted rules for the introduction of Eco-Management and Audit
Scheme (EMAS), and was prepared the National EMAS
Program.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• In the area of human rights; the responsibility for monitoring and
addressing this issue lays within several government councils
include the Council for Human Rights, for National Minorities,
for Roma Community Affairs, for Health and Safety at Work, for
People with Disability, among others.
• From the cooperation between local communities and
businesses there we found that the business community
involvement is generally not innovative.
• While normative projects and activities are carried out, ongoing
dialogue and cooperation between businesses and communities
is not common.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
• Sustainable products and services are included into the Czech
Republic’s National Trademark on Quality is given to products
that meet certain standards regarding quality/sustainability.
• The program consists of approximately 20 trademarks, including
several that focus solely on environmental impact of the
product.
• It was mentioned that company best practices is implemented
into the Business Leaders’ Forum. Currently, has collected and
disseminated practical CSR tools and guidelines.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR – ATTITUDE OF
BUSINESSES
Business Leaders Forum and Business for Society in 2012, as well
as public opinion polls (CSR Eurobarometr, surveys by the
agencies IPSOS, GfK) have resulted in the following findings:
Attitude of the business:
– Almost half of employees have come across the concept of CSR (large
firms up to 64 %, medium 36 % and small 30 %).
– The main priorities are proper relations with customers, employees and
owners, and efforts to help the needy.
– The main motives are ethical-moral reasons, interest in employee
loyalty, the chance to improve the performance and competitiveness of
the business, environmentally-friendly activities.
– The benefits that businesses see are primarily strengthening the
corporate culture, improving the image of the business, greater
employee satisfaction and customer loyalty.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR – ATTITUDE OF
BUSINESSES
Attitude of the business:
– The barriers that hinder them are excessive bureaucracy, lack of
support from the state (adverse legislative and tax environment),
difficult to prove financial benefits and often a lack of interest on the
part of senior management.
– CSR is seen as the basis for the use of other sustainable consumption
and production tools (an initial evaluation of sustainable consumption
and production has been carried out by more than 50 organisations).
– According to the survey carried out by Business for Society, 60 % of
business emphasise the voluntary nature of CSR.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR – ATTITUDE OF
BUSINESSES
Attitude of the public:
– 75 % of citizens admit that responsible corporate behaviour is a factor
when deciding on a purchase.
– 25 % know nothing about CSR (or do not follow CSR).
– Other respondents see CSR as an expression of ethics, integrity and
decency, responsibility to employees and customers.
– The main priority is firms’ relationship to the environment and their
customers.
– Citizens are willing to pay extra for a ―responsible‖ product.
– Citizens are willing to get involved personally (waste recycling,
donations, savings in households).
– The impact firms have on society and the environment is seen as
positive and constantly improving.
– Activities called for as part of CSR include customer-related activities,
job creation and product quality.
– Urgent problems are unemployment, poor-quality products,
environmental pollution and over-exploitation of natural resources.
CSR IN THE CZECH REPUBLIC
1. FACTS ABOUT CSR IN CR
Top Responsible Company Award
• Companies publishing quality reports on social responsibility
stated in the TOP Responsible in the category of Responsible
reporting.
• TOP Responsible Companies is award for a sustainable and
responsible business, organized and awarded by Business for
Society.
– They considered three broad criteria and it is completeness when it is
judged that the information provided on the activities and impact of the
organization in its entirety.
– Another criterion is credibility, that is, whether the information provided
is true and verifiable, and at the same time take into account whether
the views of stakeholders.
– The last criterion taken is communication, which is evaluated form and
manner of publication of reports on CSR.
CSR IN THE CZECH REPUBLIC
2. TRENDS IN PENETRATION OF CSR GUIDELINES IN
THE CZECH REPUBLIC
• The current concept of corporate social responsibility represents
a coherent set of activities and practices that are an integral part
of the control strategy of social, environmental and economic
organisations, and are implemented by organisations on a
voluntary basis beyond the scope of their legal obligations,
motivated by a desire to help to improve conditions in society.
• The NAP is being designed together by representatives of
government, academia, European Parliament, and associations
of socially responsible companies, and will recommend areas of
CSR that the Czech Republic should focus on.
• In the Czech Republic, there re is no obligation for either the
public or the private sector have thus audited CSR reports (e.g.
GRI), exists only voluntary approach.
CSR IN THE CZECH REPUBLIC
2. TRENDS IN PENETRATION OF CSR GUIDELINES IN
THE CZECH REPUBLIC
• Organizations in the Czech Republic initially implemented CSR
in the form of one-off projects from the sub-areas. Gradually,
companies began to integrate CSR into the management
system and becomes an integral part of their overall stratégy.
• The most common activities e.g. employee care, measures to
protect the environment and help communities, relationships
with suppliers and others.
• A penetration of international CSR principles into the Czech
environment in the form of UN Global Compact, OECD
Multinational Guidelines, Global Reporting Initiative and ISO
26000.
• International UN Global Compact brings together over 13,000
organizations in more than 165 countries around the world (from
April 2015, also operates in the Czech Republic), this number
continues to grow.
CSR IN THE CZECH REPUBLIC
3. GOVERNMENT INTEREST IN CSR
• First, governments are interested in CSR because the
respective business efforts can help to meet policy objectives
on a voluntary basis.
• Second, CSR policies are regarded as an attractive
complement for hard-law regulations in cases where new
regulations are politically not desirable or infeasible (in particular
at the international level).
• Third, governments inevitably define CSR negatively with
conventional social and environmental regulations because the
‘voluntary business contribution to sustainable development’
starts where the legal framework ends.
CSR IN THE CZECH REPUBLIC
3. GOVERNMENT INTEREST IN CSR
• Fourth, the soft approach of CSR policies coincides with a
broader transition of public governance altogether, which leads
away from hierarchical regulation towards more network-like
and partnering modes of self- and co-regulation.
• Fifth, since CSR is concerned with managing business relations
with a broad variety of stakeholders, the concept obviously
reshapes not only management routines but also the roles of,
and relations between, businesses, governments, and civil
society.
CSR IN THE CZECH REPUBLIC
4. SUSTAINABLE DEVELOPMENT AT THE NATIONAL
LEVEL
• The historically first Sustainable Development Strategy of the
Czech Republic (SDS) was approved by Government
Resolution no. 1242 of 8 December 2004 as a long-term
framework for political decision-making in the context of the
international commitments made by the Czech Republic in
connection with its membership in the EU, OECD and UN.
• By adopting the SDS, the Czech Republic fulfilled its
commitments derived from the conclusions of the World Summit
on Sustainable Development in Johannesburg in 2002, and
acknowledged the conclusions of the Earth Summit in Rio de
Janeiro in 1992, the UN Millennium Development Goals, and
the 2003 conclusions of the UN Commission on Sustainable
Development (particularly its International Multi-annual Action
Programme until 2017).
CSR IN THE CZECH REPUBLIC
4. SUSTAINABLE DEVELOPMENT AT THE NATIONAL
LEVEL
• In consequence to the SDS, Progress Reports are made under
the auspices of the Government Council for Sustainable
Development with the objective to map the fulfilment of the SDS
goals and inform both politicians and the public about the state
and development of the Czech Republic in respect of
sustainable Development.
• The proposal to establish the Council originated from the need
to create a body that would deal with the issue of sustainable
development on a systematic and long-term basis, serve as an
umbrella for the present efforts promoting sustainable
development, and efficiently coordinate all related activities.
CSR IN THE CZECH REPUBLIC
5. NATIONAL ACTION PLAN ON CSR
• The CSR National Action Plan was created and adopted as a
follow-up to the Renewed EU Strategy 2011-2014 for Corporate
Social Responsibility for 2011-2014 in accordance with the
initiatives of the Europe 2020 strategy.
• The purpose of the National Action Plan (NAP) is to help to
develop the concept of corporate social responsibility in the
Czech Republic and thus to promote the development of
society, the economy and the competitiveness of the Czech
Republic.
• The strategic document entitled National Action Plan for
Corporate Social Responsibility in the Czech Republic is a nonlegislative,
voluntary, open and live document.
CSR IN THE CZECH REPUBLIC
5. NATIONAL ACTION PLAN ON CSR
• The primary intentions of the strategic document of the National
Action Plan for Corporate Social Responsibility in the Czech
Republic are:
– to support the application of social responsibility by
organisations.
– to strengthening the understanding and credibility of the concept
of social responsibility in society.
– to support CSR in enterprises and other organisations in the
Czech Republic by providing the relevant information.
CSR IN THE CZECH REPUBLIC
5. NATIONAL ACTION PLAN ON CSR
National Action Plan for CSR defines the following key areas:
1. Promotion and support for the development of the concept of
social responsibility.
2. Dialogue and cooperation between all interested parties.
3. Self-regulation.
4. The role of public authorities, trade union umbrella
organisations, employers and entrepreneurs and other
interested parties.
5. Dissemination, implementation and observance of international
standards of behaviour.
6. International cooperation.
7. Observance of human rights.
8. Education and research in the field of social responsibility.
9. Recognising and rewarding organisations for social
responsibility.
10. Protection of consumer interests.
CSR IN THE CZECH REPUBLIC
SUMMARY OF THE LECTURE
• There is a strong link between CSR and inclusive and
sustainable development.
• It is considered a cross-governmental issue, with a broad
agenda related to social, environmental and international
issues.
• Government should therefore seek to develop frameworks
within which to assess local or national priorities as they relate
to a CSR agenda.
• The government has been a major, but not the only, driver of the
increased and increasingly institutionalized CSR in the CR.
Other drivers of CSR can be broadly categorized into business
and society.
CSR IN THE CZECH REPUBLIC
SUMMARY OF THE LECTURE
• Business drivers include imperatives acting on companies
from investors, suppliers, partners and customers, as well as
imperatives identified by corporations themselves, such as
reputation (with government or with other actors and publics),
marketing, branding, employee relations and knowledge.
• Social drivers can include demands from consumers, particular
publics (e.g. residents of specific geographic areas affected by
a business), organizations claiming to act on behalf of society
(e.g. non-governmental organizations, community groups) and
employees.
CSR IN THE CZECH REPUBLIC
SUMMARY OF THE LECTURE
• The government CSR policy topic use application through
vision, objectives, strategies and priorities.
• For position of political figure; organizational structure;
centralized or decentralized is concern of internal government
CSR structure. Important is crosscutting policies; regional and
local government for creation of CSR responsibilities at different
levels of government.
• Scope of CSR policy is focus on domestic vs. international
approach and CSR role of other organizations is in order to
government agencies, intermediary organizations, multistakeholder
and international organizations.