For 8 years ODIMM together with domestic partners achieves National competition “SME – Corporate Social Responsibility model”. The main aim of the competition is to promote the concept of CSR and motivate domestic entrepreneurs to actively engage in social responsibility actions on four strategic principles such as: responsibility towards employees, environment, market and community.
In determining the level of awareness among entrepreneurs of the need for, and willingness to actively engage in, CSR activities at local level, ODIMM organised online research between July 2017.
Main findings identified in the outcome of the study:
1. For 92 % of the entrepreneurs surveyed, the CSR concept is generally known, but only 33 % carry out activities in that area. According to the results of the study, the concern for these activities also does not depend on the organisational and legal form of the company’s fields of activity. The most important motivating factor is, according to the analysis, the willingness of the entrepreneur and his/her openness to such actions.
Share of entrepreneurs concerned with CSR activities and organisational and legal form
2. CSR activities can be carried out in a variety of ways. Among the most efficient for Moldova, entrepreneurs indicated that they would be direct aid and volunteering.
Most effective methods of achieving social responsibility actions for MRs (number of responses)
2a
At the same time, the most common activities carried out by entrepreneurs in the field of CSR were found to be supporting community development and activities for company employees, both of which fall within the group of direct support methods.
CSR activities carried out by the entrepreneurs interviewed (number of responses)
3
3. The age of the entrepreneur and the duration of the undertaking’s activity influence the pre-disposition to carry out CSR activities. According to the results of the study, 50 % of entrepreneurs over the age of 45 mentioned performing CSR activities versus 21 % of those aged 18-44. Companies up to 5 years of age also perform a lower measure of CSR activities – only 18 %, but in companies active in the market for more than 5 years this indicator amounts to up to 65 %. This is an objective situation because in the early years the company focuses its efforts on finding a niche in the market and strengthening its positions vis-à-vis competitors.
4. The size of the company by number of employees has an increased influence on the decision whether or not to carry out CSR activities. Thus, small enterprises are more active in carrying out these activities than the micro enterprises surveyed. This clearly indicates that CSR activities require the availability of financial resources, which in micro companies is more difficult to identify;
5. The most common reasons, according to the respondents, for Moldovan companies not being able or unwilling to carry out CSR activities are – “Lack of necessary funds” – 40.2 % of the replies and “Lack of knowledge in the field of CSR” – 19.4 % of the replies. A very small percentage of respondents think that CSR is not efficient – only 3 %.
6. At the same time, entrepreneurs are aware that the realisation of CSR activities are important actions for the sustainable development of the company and are influenced by a variety of dependent and independent factors.
Factors influencing the achievement of corporate social responsibility actions? (Number of replies)
4
7. Among the most recognised and active Moldovan companies in the field of CSR activities, entrepreneurs mentioned Orange, Moldcell, Coca-Cola, Gaz Natural Fenosa, Moldova Agroindbank, Efes Vitanta Moldova Brewery. They are all large companies, mostly foreign-owned and with a long-lasting culture of CSR activities. Regrettably, domestic SMEs that are active in this area have not been identified by respondents.
In conclusion:
The results of the study confirm the role and importance of corporate social responsibility activities both for the sustainable development of the company and for the community;
Although a well-known concept, the share of small and medium-sized enterprises concerned with CSR activities remains rather small for a number of reasons;
The lack of dependencies between the company’s period and fields of activity, with CSR actions being carried out, confirms that the main motivating factor is the entrepreneur’s personality and willingness to be active in this field;
The low level of awareness of CSR methods and actions among entrepreneurs confirms the need to continue the ODIMM competition “SME – Corporate Social Responsibility Model”. Through this ODIMM instrument, the promotion of good practices and raising awareness among stakeholders (entrepreneurs, APL, civil society, etc.) of the concept of CSR and active involvement in specific actions will continue.
Demography of study participants
64 entrepreneurs participated in the study, including 41 % women.
Distribution of entrepreneurs by age (%)
5
Distribution according to respondents’ position in the enterprise (%)
6
Distribution by number of employees (%)
7
Distribution by field of activity (number)
8
Author: Stihi Liudmila,
Dr., ODIMM Head of Analysis, Training, Innovation Directorate