BUCHAREST ACADEMY OF ECONOMIC STUDIES

CORPORATE SOCIAL RESPONSIBILITY APPLIED TO

ROMANIAN MARKETS

PERSPECTIVES FOR IMPROVING PRACTICES

Author of the report,

MIU CRISTINA DANIELA
(Faculty of International Economical Affairs, 2nd year)

6th of May 2014

EXECUTIVE SUMMARY
In a climate of heightened social awareness and instant access to information, CSR must be a
fundamental part of company's targeted practices, its objectives, and overall culture. Therefore, social
responsibility must be fully integrated in ways that benefit both society and business.
Some examples of companies that were successful in the implementation of CSR are Coca-Cola HBC
and PepsiCo.
Coca-Cola believes strongly in giving back to the community. They consider that inside every bottle of
Coca-Cola is the commitment of a company that cares about community. They excel at supporting human
rights, creating a diverse workplace, protecting the environment and training future specialists.
PepsiCo strives to create a safe, healthy, diverse and inclusive workplace that reflects the global
communities in which they operate and to respect human rights in the workplace and across the supply chain.
For that, in 2012 the Great Place to Work Institute ranked PepsiCo among the top 25 Worlds Best
Multinational Workplaces. They are recognized for creating valuable work experience for students, supporting
worthy causes and volunteering.
The recommendations that rise from the study of best practices in these companies are:

Implementing flexible working schedules

Donating to good causes

Instituting an internship program

Encouraging the team to volunteer

Contents
INTRODUCTION ....................................................................................................................................................................... 4
FINDINGS ................................................................................................................................................................................. 4
1.

Types of CSR ................................................................................................................................................................ 4

2.

Models of CSR implementation .................................................................................................................................. 5

A.

PepsiCo .................................................................................................................................................................... 5

B.

Coca-Cola ................................................................................................................................................................ 6

RECOMMANDATION ............................................................................................................................................................... 7
CONCLUSION ........................................................................................................................................................................... 7
BIBLIOGRAPHY ........................................................................................................................................................................ 8
REFERENCES ............................................................................................................................................................................ 8

INTRODUCTION
Corporate social responsibility (CSR) refers to a business practice that involves participating in
initiatives that society would benefit from. As consumers' awareness about global social issues experiences
continuous growth, so does the importance the customers place on CSR when choosing who to do business
with.
Corporate social responsibility is a vital part of long-term business success. Nowadays corporations
must be increasingly mindful of the impact that their operations have on society, and this requires much more
than a number of measures applied on an only-once basis. In a climate of heightened social awareness and
instant access to information, CSR must be a fundamental part of company's targeted practices, its objectives,
and overall culture.
Although the Corporate Social Responsibility (CSR) concept has a great tradition in the field of
Economics, it represents a relatively recent acquisition of the Romanian business environment. CSR took over
and developed different practices and activities within multinational companies. While entering the Romanian
economical environment, CSR activities started to be more and more diverse and gradually became increasingly
professional and often a constant pursuit integrated in the development strategy of the companies.
Social responsibility must be fully integrated in ways that benefit both society and business. An
overarching CSR strategy is suited to the unique requirements of the companyone that addresses the social,
economic, and environmental effectsas it can create a better position for the organization for immediate and
future success.
Involvement in CSR activities plays an important role in anticipating and preventing conflicts between
the company and the community, but it is also a way through which part of the company profiles can go back
into the community. It is also an effective means of promoting the ethical values of the company. Through the
developed programs, there is also a communication function present, because companies are able to get to know
the social environment in which they operate.
This report will look at:
Types of CSR
Models of CSR implementation
Recommendations for improving practices

FINDINGS
1. Types of CSR

CSR can encompass a wide variety of methods, from giving a portion of a company's profits to non-profit
organizations, to donating a product or service to a worthy recipient for every sale made. Some edifying
examples of the categories of social responsibility that businesses are practicing at the moment are as follows:

Environment: this is one of the primary focuses of corporate social responsibility. Businesses, both
large and small, leave a large carbon footprint. Any steps they can implement to reduce those footprints
are considered useful for both the company and society as a whole. Examples can include everything
from curbing pollution to developing clean energy solutions.
Philanthropy: Corporations also practice social responsibility by donating to national and local
charities. Businesses have a lot of resources that can benefit charities and local community programs,
whether it involves giving money or time.
Ethical labor practices: By treating employees in a manner that is both fair and ethical, companies can
also demonstrate their corporate social responsibility. This is especially true in case of businesses that
operate in international locations with different labor laws than those in the United States. Research has
shown repeatedly that consumers will turn extremely quickly on companies if they are found operating
sweatshops or violating other ethical labor practices.

2. Models of CSR implementation

Many businesses have started to incorporate social responsibility into their values, as is the case with
companies like Coca Cola, PepsiCo. A common ground that all CSR models have is one that concerns the
Human Resources department.
A. PepsiCo
PepsiCo strives to create a safe, healthy, diverse and inclusive workplace that reflects the global
communities in which they operate and to respect human rights in the workplace and across the supply chain.1
For that, in 2012 the Great Place to Work Institute ranked PepsiCo among the top 25 Worlds Best
Multinational Workplaces.
Also, they put a high price on volunteering. PepsiCo supports the passion of their employees to make a
positive impact. PepsiCorps is a skill-based volunteer program in which associates from around the world form
teams that are deployed to help local communities address societal challenges.
Another area that PepsiCo excels at is supporting worthy causes. The PepsiCo Foundation provides
funds for disaster relief to communities in need, working with best-in-class partners, including the American
Red Cross, Feeding America, Save the Children, International Rescue, Give2Asia and Habitat for Humanity.
Additionally, local PepsiCo businesses respond with donations of foods and beverages.2
They also provide internships in order to better prepare the future workforce. An example of an
internship program would be Butterfly Effect which provides trainings for all participants and selects a few for
1

According to http://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reporting
Source : http://www.pepsico.com/Purpose/Performance-with-Purpose/Sustainability-Reporting

a paid summer job in a multinational, giving them the chance to work with professionals and have lots of fun
throughout a fully flavored 3 month experience.3
B. Coca-Cola

Coca-Cola believes strongly in giving back to the community. They consider that inside every bottle of
Coca-Cola is the commitment of a company that cares about community.4
In terms of charity and supporting causes, their goal was to give back at least 1 percent of the operating
income annually. For nearly three decades, The Coca-Cola Company has given back to communities mainly
through The Coca-Cola Foundation, a global philanthropic arm. Through the Foundation, they partner with
governments, non-governmental organizations (NGOs) and other charitable organizations to support
community improvement in four main areas: water stewardship; active, healthy living; community recycling;
and education.
Another important point that Coca-Cola makes is respecting human and workplace rights as they are
fundamental to our culture and imperative for a sustainable business. In order to achieve that, the Company,
bottling partners and suppliers are adopting processes for identifying, preventing and mitigating negative
impacts on human rights. They also hold a conference on human rights once a year convening more than 150
leaders from businesses, government and nongovernmental organizations (NGOs) to discuss the role of
businesses in respecting human rights.
An area that the company focuses on is diversity, as is one of their seven core values. They work hard to
ensure an inclusive and fair work environment, as it is imperative if the business is to continue to thrive in a
multicultural world. The workplace diversity strategy includes programs that attract, retain and develop diverse
talent, provide support systems for groups with diverse backgrounds and educate all associates through regular
diversity training.
Coca-Cola system's commitment to develop sustainable communities is focused on initiatives that
contribute to environmental protection and resource conservation, encouraging an active and balanced lifestyle,
creating a safe working environment for employees and promoting the economic development of local
communities.
Coca-Cola HBC is actively involved in the educational part of the CSR, as they provide young students
with opportunities to learn from the best through internship programs like Management Trainee Destination:
Management.
Coca-Cola HBC Romania, mostly excels at environmental protection, being double awarded at the
International Business Awards for its social responsibility programs. The Adopt a river from its spring to its
3

Source : http://www.pepsicojobs.ro/job/121/?lang=en

Source : http://assets.coca-colacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdf

mouth program was awarded a Distinguished Honoree medal, in the Communications or PR Campaign of the
Year Community Relations category.

RECOMMANDATION
Looking at the findings in this report it is easy to recognize that the main points that would prove to be a
viable solution to be implemented in order to improve corporate karma, as CSR is recognized, are:
1. Encourage the team to volunteer

That is an effective method for the company to receive good press and it would help overall with the
companys image by being perceived as a business that not only supports their causes of choice by donating part
of their profits, but also by volunteering their time.
2. Institute an internship program
By instituting an internship program the company can give back to the community, helping the
educational system and offering precious work experience and opportunities to learn from trained professionals.
Businesses offering internships and work experience are often best placed to identify the markets finest
talent and are in prime position to recruit them to permanent positions. Also, businesses in industries
particularly challenged by skills shortages have shown that by using internships and work experience initiatives
effectively, they can help to find the right talent to build a stable future for their business.
3. Donate to good causes
An idea would be to create a social media campaign for a cause supported by the company in which
every customer that donates receives social media mention from the business, along with a coupon or digital
media reward.
That way, the donor feels appreciated, positive social media will be generated for the business and the
cause, and sales will increase.
4. Implement flexible working schedules
In todays increasingly demanding society, employers have to become more flexible to accommodate
family-friendly work practices, therefore a more flexible approach to the work schedule would prove to be
extremely effective. That way, the employees would be more productive and the burnout due to overload would
be reduced. Plus, there will be a reduced consumption of employee commuting time and fuel costs.
Naturally, that would develop an image as an employer of choice with family friendly flexible work
schedules.

CONCLUSION

Corporate social responsibility is a vital element for many business corporations. It has been shown that
there are many different areas in which a company may choose to focus its corporate social responsibility. The
first area of focus in corporate social responsibility is with regard to the environment. Other areas that should be
considered in the development of corporate social responsibility programs are education, health, nutrition and
employment. These elements are not only aspects of corporate social responsibility, but also a show of the
ethical standards of a company.

BIBLIOGRAPHY
1.

Oprea, L. 2005. Responsabilitate social corporatist, Bucharest: Tritonic.

2.

Stoian, C. and Zaharia, R.M., 2009. Corporate social responsibility in Romania:

trends, drivers,

challenges and opportunities, International Journal of Economics and Business Research

3.

erbnic, D. and Militar, G., 2008. Corporate social responsibility and competitiveness. Amfiteatru
Economic, X(23), pp.174-180.

4.

Kotler, P. and Lee, N., 2005. Corporate Responsibility: Doing the Most Good for Your Company and
Your Cause. New Jersey: Wiley, Hoboken.

5.

Habisch, A., Jonker J.,Wegner, M. and Schmidpeter R., eds., 2005. Corporate Social Responsability
Across Europe. Heidelberg: Springer Berlin.

REFERENCES
1.

PepsiCo sustainability report http://www.pepsico.com/Purpose/Performance-withPurpose/Sustainability-

Reporting
2.

PepsiCo Butterfly effect http://www.pepsicojobs.ro/job/121/?lang=en

3.

Coca Cola sustainability report

http://assets.cocacolacompany.com/44/d4/e4eb8b6f4682804bdf6ba2ca89b8/2012-2013-gri-report.pdf