TheMainHinderersofCorporateSocialResponsibilityActivitieswithinEstonian

CompaniesPreparedbyAnastasiiaKantcevaTallinn,2016

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CONTENTS

ACKNOWLEDGEMENTS.........................................................................................3

Overview......................................................................................................................4DefinitionofCSR........................................................................................................................5

Whycompanies,governmentsandpublicsectorshoulddealwithCSR?................................................................................................................................7CSRpracticeswithinEuropeanUnion.............................................................................8InternationalframeworktoenableCSR.......................................................................10

AbouttheQuestionnaire.....................................................................................12Thestructure............................................................................................................................12Methodology.............................................................................................................................12Goalsandobjectives..............................................................................................................12Backgroundofrespondents..............................................................................................13

Resultsofthesurvey.............................................................................................14

Analysisandsuggestions(forboth:enterprisesandpublicsector)21SituationwithCSRinEstoniaandworldwide...........................................................21FactorsthathaveinfluenceinrelationtoCSRpolicy.............................................23MainhinderersofCSRinEstonia....................................................................................23Suggestions...............................................................................................................................24

References.................................................................................................................31

Researchprojectteam..........................................................................................34

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ACKNOWLEDGEMENTSThis research was initiated by the Ministry of Economic Affairs andCommunicationsofEstonia.ThestudywasconductedwithsupportfromtheResponsibleBusinessForum(VastutustundlikuEttevõtluseFoorum).TheauthorsaregratefultoallorganisationsparticipatinginthequestionnaireandprovidinginformationconcerningtheirCSRactivities.

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OverviewTheconceptofcorporatesocialresponsibility,oftenabbreviatedas"CSR", isrelatively new subject in Estonia. In fact, some Estonian companies are notaware of corporate social responsibility’s notion, but they still considersocially responsible behaviour very significant for them. Today, Estoniansociety expecting local organisations to be more responsive and active insociety’s problems, but term responsibility and extent to which companieshave to deliver it can be understood differently. The society has not had aclear agenda in terms of what kind of responsibility is expected from allcompanies.Thishasleftcompanieswithahigherdegreeoffreedom.Actually there is a growing number of companies who have started or aredeveloping CSR activities in Estonia. European Union policies have haddefinitelyitsimpactonCSRdevelopmentinEstonia.ThesituationwithCSRinthecountrywaschangedforbetter.Sincethestartofthe2000s,theEuropeanCommissionhasactivelysupportedthedevelopmentofCSR.In2001yeartheEuropeanCommissionpublisheditsfirstGreenPaper1concerningCSR2.Suchdocument was created to promote CSR and related topics in Europeancountries.Worldwide CSR is recognised as an essential component of successfulbusiness. In recent times, it has grown in importance and became popular.Morethan9400organisationsbecameapartoftheGlobalReportingInitiative(GRI) andhad issued around34500 environmental and social sustainabilityreports3. There is a direct link between sustainability, responsible businesspractice and business success. Also, adopting CSR policy has becomenecessaryforcompetitivebusinesspractices.CSRactivitiesandinitiativesaimto benefit society's well-being, contribute to the community and theenvironment. CSR activity reflects the human side of businesses and theirleaders’intentiontocontributetothesocietyofwhichtheyareapart.The aim of this research is to investigate and identify obstacles of applyingCSRactivitieswithinEstoniancompanies.Theobjectiveofthepaperistofind

1GreenPaperisadocumentpublishedbytheEuropeanCommissioninordertostimulate2 Commission of the European Communities. Green Paper: Promoting a EuropeanframeworkforCorporateSocialResponsibility.DOC/01/9.18.07.2001.Brussels.Availableat:https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwibv-iV3urMAhVCESwKHaCvC9gQFggmMAA&url=http%3A%2F%2Feuropa.eu%2Frapid%2Fpress-release_DOC-01-9_en.pdf&usg=AFQjCNF-ef7j_hp0XUAG_mtQ16dSt6dpOQ&bvm=bv.122448493,d.bGg&cad=rjt.3GlobalReportingInitiative,“SustainabilityDisclosureDatabase,”availableat:http://database.globalreporting.org/.

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outofhowimportantroleCSRplaysinEstonianbusinessareaandwhatistheperceivedvalueofCSRbycompanies.Theotherobjectiveistoidentifywhichhinder the companies to execute CSR practices. Finally, the paper aims toidentify options for policymakers on how to help companies to implementCSRpractices.Inordertoachievetheseobjectives,first,anonlinesurveywascarriedout.Thecollecteddatawasanalysedusingstatisticaldataanalysis.This study was created to find out the perceived value of CSR by thecompanies operating in Estonia, to identify themain hinderers of EstoniancompaniespreventingfromCSRpractices,andtodetermineandspecifywhatactions thegovernmentcando inorder tohelpEstoniancompaniesstart toimplementCSRactivities.

DefinitionofCSROnecommonproblemindefiningCSRisthattheconceptofcorporatesocialresponsibilityitselfgoesbymanydifferentnames.AvarietyofothertermsforCSRinorganisations, includingcorporateresponsibility,responsivebusinessconduct (RBC); environmental, social and governance (ESG)4; sustainability;sustainabledevelopmentandmanymore.Theyareall related to responsivebusiness,but,infact,theymeandifferentthings.Currently, there is no agreement about the definition of corporate socialresponsibility;differentorganisationshaveframedvariousdefinitionsofCSR.For instance, theEuropeanCommission, in its2011CommunicationonCSR5definedcorporatesocialresponsibilityas“theresponsibilityofenterprisesfortheirimpactsonsociety”.MorecomprehensiveCSRexplanationcanbefoundintheActionPlanofCSRinEstonia2012–20146,accordingtowhich"CSRisasignofqualityofawell-managedenterprisewhichisoftenapreconditionforenteringintoeconomicrelations with international clients. An organisation is responsible for the

4ESG(environmental,socialandgovernance)isagenerictermusedincapitalmarketsandusedby investors to evaluate corporate behaviour and to determine the future financialperformanceofcompanies.5Communication from the Commission to the European Parliament, the Council, theEuropeanEconomicandSocialCommitteeandtheCommitteeof theRegions:ArenewedEUstrategy2011-14forCorporateSocialResponsibility.Brussels,25.10.2011COM(2011)681final.Availableat:https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjp2Mqw5OrMAhVEM5oKHRpSBAwQFggeMAA&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D9470%26langId%3Den&usg=AFQjCNGnTfrBLiF9vXs4BMez7k1frlAOoQ&bvm=bv.122448493,d.bGg&cad=rjt.6ActionPlanofCorporateSocialResponsibilityinEstonia2012–2014.Availableat:https://www.mkm.ee/sites/default/files/action_plan_of_corporate_social_responsibility_in_estonia_2012-2014.pdf

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effect of its decisions and activities on society and environment throughtransparentandethicalbehaviourwhich:-contributestosustainabledevelopment,includingthehealthandwelfareofsociety;-takesintoconsiderationtheexpectationsofinterestgroups,-conformstoappropriatelegalactsandinternationalrulesofconductand- is part of the daily operation of the enterprise and manifests itself inrelationswithpartnersandinterestgroups".The frequently used in literature definition is that CSR is a company'sinitiatives to assess and take responsibility for the positive effects onenvironmentalandsocialwell-being.InthisresearchwewillconsiderCSRwithtwocombinedapproaches:1. CSR is a voluntary commitment by the companies to be responsibletowardstheenvironmentandsocietywhichtheyoperate,and2. CSR means relationships building with partners, stakeholders,shareholders,clientsandcustomerstoimprovetheimage,increasecredibilityandreliabilityofthecompany,andoverallbusinessenvironment.Also there are different approaches to CSR classifications. In this paperwedistinguishanddealwiththefollowingtypesofCSR:

• Social (e.g. creating safe and healthy working environment, analysingsocial impact on society, stakeholder dialogues, philantrophy andsupporting vulnerable groups of society, voluntary work, addressingissues concerning human rights and equal opportunities, responsiblerecruitment,etc.);

• Environmental (e.g. measuring environmental impact, ensuringbiodiversity,improvingenergyefficiency,developmentofenvironment-friendlytechnologies,reusingandrecyclingofmaterials,etc.);

• Economic (e.g. ensuring fair and affordable prices at the market,preventing anti-competitive practices, supply chain analysis andimprovement,consumerprotectionissues,etc.);

• Legal (e.g. combatting corruption, law compliance and enforcement,providingequalaccesstoemploymentopportunities,respectingHumanRights,etc.).

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Whycompanies,governmentsandpublicsectorshoulddealwithCSR?During the last years CSR is recognised as an essential component ofsuccessful business. Itmeans thatmore organisations become familiarwithCSRsphere,andstarttobeactiveintheCSRissues.Let’strytoexaminewhytoday’sbusinesssectorneedtodealwithCSR.Firstofall,it’snecessarytounderstandwhyisCSRimportanttobusiness.Wecandividethereasonsintothreegroups:

• Corporate benefits (good reputation, better public image, attract &retaininvestors,competitiveadvantages,etc.);

• Non-profit benefits (positive social impact, varied sources of revenue,etc.);

• Employee benefits (positive workplace environment, professional &personalgrowth,etc.).

Then, the legal framework must be considered. It’s not surprising thatcommercial codes of different countries require only that business entitiesmustbemanagedinaneconomicallyprofitableway.Itmeansthatapplicationof CSR strategy is not mandatory obligation, it might be possible only onvoluntaryway.Thus,forsomecompaniesCSRandrelatedissueshavenotyetbeen recognised as an integral part of their activity leading to sustainablebusiness success. Making a profit is not enough, the most successfulbusinesses exist to domuchmore thanmakemoney. They exist to use thepowerofbusinesstosolveproblemswithsocietalimpact.Accordingtothelaststudies,themainreasonwhycompaniesapplyingCSRisa good reputation in the eyes of partners, shareholders, stakeholders,customers and clients. If entities engage in CSR activity, they can count forhigher positions on themarket. This is due to the fact that such firms havebetterpromotionandadvantagesovercompetitors,partners’trust,customersandclientsloyalty.Suchcompaniesmaygetdiscountsorotherbonusesfrompartners and reduce the costs of production. All these reasons lead toincreasingprofitabilityofthecompany.Alsoitcanhelpforsomecompaniestocreate new business opportunities and add value to business at the overallmarket.Sociallyresponsiblebusinesscancontributetorestoringtrustinthemarket.The aim of themost non-commercial institutions,which applying CSR, is togetapositivesocial impact.Itcanbetheircompanyprofile.Somenon-profitcompanieswerecreatedespeciallyforresolvingsocialissues.

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PositivedevelopmentalandenvironmentalimpactsalsomightbeconsideredastheimportantreasontoapplyCSR.Some countries offered a state aid and compensations to the responsivebusinesses.Organisations promoting CSR in Estonia include: the Responsible BusinessForum (Vastutustundliku Ettevõtluse Foorum)7, the Estonian Chamber ofCommerceand Industry8, theOpenEstoniaFoundation9,and theGoodDeedFoundation10.

CSRpracticeswithinEuropeanUnionAt EuropeanUnion level, since the beginning of the 2000s, the Commissionhas actively supported the development of CSR. First Communication paperconcerningCSRwaspublishedbytheCommissionin200111.Then,in200212and200613were adopted thenext communicationswith anewapproach toCSR.In October 2011 the Commission launched a new Communication on aRenewed EU Strategy 2011 – 2014 for CSR14 , which gave CSR a newdetermination.GovernmentsstillconsideredasimportantfacilitatorsofCSR,butbusinessesareencouragedtobethe‘agentsofCSR’.

7Moreinformationcanbefoundat:http://www.csr.ee/.8Moreinformationcanbefoundat:http://www.koda.ee/.9Moreinformationcanbefoundat:http://oef.org.ee/en/.10Moreinformationcanbefoundat:http://www.heategu.ee/.11 Commission of the European Communities. Green Paper: Promoting a EuropeanframeworkforCorporateSocialResponsibility.DOC/01/9.18.07.2001.Brussels.Availableat:https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwibv-iV3urMAhVCESwKHaCvC9gQFggmMAA&url=http%3A%2F%2Feuropa.eu%2Frapid%2Fpress-release_DOC-01-9_en.pdf&usg=AFQjCNF-ef7j_hp0XUAG_mtQ16dSt6dpOQ&bvm=bv.122448493,d.bGg&cad=rjt.12Communication from the Commission concerning Corporate Social Responsibility: Abusiness contribution to Sustainable Development. COM(2002) 347 final. 02.07.2002.Brussels. Available at: http://trade.ec.europa.eu/doclib/docs/2006/february/tradoc_127374.pdf.13Communication fromtheCommission to theEuropeanParliament, theCounciland theEuropeanEconomicandSocialCommittee-Implementingthepartnershipforgrowthandjobs:making Europe a pole of excellence on corporate social responsibility. COM(2006)136 final. 22.03.2006. Brussels. Available at: http://eur-lex.europa.eu/legal-content/ro/TXT/?uri=CELEX:52006DC0136.14Communication from the Commission to the European Parliament, the Council, theEuropeanEconomicandSocialCommitteeandtheCommitteeof theRegions:ArenewedEUstrategy2011-14forCorporateSocialResponsibility.COM(2011)681final.25.10.2011.Brussels.

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TheCompendiumonPublicCSRpoliciesintheEU15waspublishedin2011toshowcaseCSRactivitiesacrossEUMemberStates.Ithighlightedhownationalgovernments could support the development and implementation of CSRthroughthepublicpolicyframework.Itcoversthefullrangeofcurrentissues,including: human rights, reporting and disclosure, climate change, issuesaffectingsmallbusinesses,socially-responsible investment,education,publicprocurement.TheCompendiumalsocovers thedifferentkindsof toolsusedby national governments to encourage CSR: legislation, economic andfinancial incentives, awareness-raising, multi-stakeholder engagement. TheCompendium illustrated examples and includes an index of initiatives bycountryandlinkstorelevantnationalwebsites.ThelastCompendiumonPublicCSRintheEUwaspublishedinJune201416.This document is partly the result of seven peer reviews on CSR that tookplace in 2013 between EUMember Stateministries. It updated the actionstaken by EU Member States since the Communication from 2011. Thisdocument discussed the rationale for different priorities set at theMemberState levelaswell asprogress towards the implementationof theseactions.The Compendium highlighted how national governments could at that timesupport the development and implementation of CSR through the publicpolicyframework.Incomparisonwith the lastpublication,newapproachesandgoodpracticeswere offered. In the compendium, a wide range of government's CSRinitiativeswereidentified.All EU Member States have relevant initiatives on CSR issues. In each EUcountry, thedevelopmentofCSR initiatives is shapedbya rangeof cultural,economic, institutional and political factors. In Estonia Action Plan ofCorporate Social Responsibility 2012 – 2014was adopted. This action plancomplywithandsupplementtherelatednationaldevelopmentplans.TheCSRaction plan covers the transition between the EU funding periods of 2007-2013 and 2014-2020 in order to enhance target groups' awareness of therelevanceoftheCSRtheme.15Corporate SocialResponsibility.National Public Policies in theEuropeanUnionby theEuropeanCommission.Luxembourg.06.04.2011.Availableat:https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjiz7KG5-rMAhUJfywKHTb_CXgQFggjMAE&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D6716%26langId%3Den&usg=AFQjCNHKo41j5YQwIz7Zr1GQ5-F89pjSag&bvm=bv.122448493,d.bGg&cad=rjt.16 Corporate Social Responsibility. National Public Policies in the European Union.Compendium2014.06.2014.Luxembourg.Availableat:https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwiiy82Z7erMAhXrJJoKHf1rDjwQFggjMAE&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D12899%26langId%3Den&usg=AFQjCNFEi9jklbZcF0wtM9yRwwM02MfTlg&bvm=bv.122448493,d.bGg&cad=rjt.

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All EU countries have legislation to protect core human rights and preventdiscrimination.A fewEUcountrieshave takenadditional legislativesteps toenforcehumanrightsasaresultoftheirengagementwithCSR.Someofthesemakerequirementsonbusinessestopreventvariousformsofdiscrimination.Legislation isbeing introduced to removebarriers forbusinessesseeking todevelopCSRapproaches.The Charter of fundamental rights of the European Union17guarantees aprohibitionof slavery and forced labour (Art.5), protectionofpersonaldata(Art.8), freedom of expression and information (Art.11), non-discrimination(Art.21), integration people with disabilities (Art.26), fair and just workingconditions (Art.31), environment protection (Art. 37), consumer protection(Art.38)andprohibitionofabuseofrights(Art.54).SimilarrightsstatedintheEuropean Convention on Human Rights: prohibition of slavery and forcedlabour(Art.4),prohibitionofdiscrimination(Art.14),prohibitionofabuseofrights(Art.17),limitationonuseofrestrictionsonrights(Art.18)18.

InternationalframeworktoenableCSROver the past few decades, various international guidelines have beendeveloped by international organisations. The guidelines are designed tosupport governments, businesses and other organisations tomake progresstowardsestablishingeffectiveCSRpracticesandtosetcommonly-recognisedstandards. The guidelines are based on research, stakeholder and expertinput, and evidence from best practice and consultation with nationalgovernments.Attheinternationallevel,theUnitedNationsUniversalDeclarationofHumanRights 194819ensures a non-discrimination (Art.2) and a right to equal payforequalwork(Art.23).CSRguidelinesandprinciples:■OECDGuidelinesforMultinationalEnterprises;■10principlesoftheUNGlobalCompact;■UNGuidingPrinciplesonBusinessandHumanRights;■ ILOTri-partiteDeclaration of Principles onMultinational Enterprises andSocialPolicy;and■ISO26000GuidanceStandardonSocialResponsibility.

17Charter of fundamental rights of the European Union (2000/C 364/01). Available at:http://www.europarl.europa.eu/charter/pdf/text_en.pdf.18EuropeanConventiononHumanRights.Availableat:http://www.echr.coe.int/Documents/Convention_ENG.pdf.19 United Nations Universal Declaration of Human Rights 1948. Available at:http://www.ohchr.org/EN/UDHR/Documents/UDHR_Translations/eng.pdf.

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The principles and standards of good practice were stated by the OECDGuidelines for Multinational Enterprises 20 . The OECD Guidelines arerecommendations jointly addressed by governments to multinationalenterprises, which consistent with applicable national laws andinternationally recognised standards. Observance of the Guidelines byenterprisesisvoluntaryandnotlegallyenforceable.Somematterscoveredbythe Guidelines may also be regulated by national law or internationalcommitments. According to the OECD Guidelines, enterprises should:contribute to economic, environmental and social progress with a view toachieving sustainable development; respect human rights, environmental,health,safety,labour,taxation,financialincentives,orotherissues;cooperatewiththelocalcommunity,includingbusinessinterests,aswellasdevelopingthe enterprise’s activities in domestic and foreign markets; creatingemployment opportunities and facilitating training opportunities foremployees; support and uphold good corporate governance principles anddevelop and apply good corporate governance practices; develop and applyeffective self-regulatory practices and management systems; promoteawareness of and compliance by workers employed by multinationalenterprises with respect to company policies through appropriatedissemination of these policies; refrain from discriminatory or disciplinaryactionagainstworkers;carryoutrisk-basedduediligence,abstain fromanyimproperinvolvementinlocalpoliticalactivities,etc.Corporations also face “soft law” norms and standards that make themresponsiblefortheconductoftheirsuppliers.

20OECD Guidelines for Multinational Enterprises. Available at: http://www.oecd.org/daf/inv/mne/48004323.pdf.

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AbouttheQuestionnaireThe surveywas conducted inEstonia and carriedout betweenFebruary11andMarch09,2016.ItwasinitiatedbytheMinistryofEconomicAffairsandCommunications of Estonia. Тhe questionnairewas conductedwith supportfrom the Responsible Business Forum (Vastutustundliku EttevõtluseFoorum).

ThestructureThequestionnairecontained3differentsections:thefirstonewasabouttheCSR awareness, the presence of CSR practices in the company, andclarification of particular activitieswhichwere applied; second sectionwasaboutpotentialandgainedbenefitsfromCSRapplication,extentionofagoodpractice in the company, and opinions concerning CSR importance; thirdsection was optional and contained questions about additional and contactinformation.

MethodologyThesurveywascarriedoutonlinebyusingGoogleForms.ThequestionnaireformwasheldinEnglish,butitwaspossibletoaddadditionalcommentsalsoinEstonian.Theinvitationtothequestionnairewasspreadbye-mails,usingMinistry’spartnersmailing-lists.The study was based on a quantitative researchmethod in order to get asmuch as possible answers. The results are statically significant for thepractice.The inquiry form had one or multiple answer choices and free-responsequestions. Some questions were compulsory and semi-optional, but therewereoptionalquestionsalso.Thequestionnairewasanonymouswiththeopportunitytoleavethecontactinformationtoreceivetheoutputsofthesurvey.

GoalsandobjectivesThe survey was designed to develop CSR among Estonian companies. Themaingoalwas to investigateanumberofEstonian companies applyingCSRactivities,andtodeterminetherelevanceandobstaclestoapplyingCSRintheprivate sector. Results of the questionnaire outlined the benefits forcompaniesoperatinginEstoniawhichareinvolvedinCSR,anddefinehowtoimprovethedevelopmentofCSR.TheinformationreceivedcontributestotheimprovementofexistingsituationwithinthesphereofCSRinEstonia,facilitationthedevelopment,andmaking

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thepublicsectorsupporttoCSRissuemoreeffectiveatbothonthenationalandinternationallevels.

BackgroundofrespondentsFirstofall,weexpressourgratitudetoallsurveyrespondentswhofoundthetimetoanswerourquestions.Totalnumberofparticipants is81companies.Therespondentsof thestudydifferintermsofstructure,sector,sizeandownership.Mostorganisationsareprivately owned or partially ownedby the state. Some of them are foreign-invested. 39.5% of the interviewed firms are large companies, 18.5% aremedium-size,and42%aresmallcompanies.WhatisworthwhiletorememberisthathistoricallyCSRwasfirsttimeintroducedbybigcorporations.Whereasover time it has also become popular among small and medium-sizecompanies. The majority of entities mostly based in Tallinn, and 20% ofparticipants only located in other parts of Estonia. Respondents were ofdifferent roles, including managers, CEOs, directors, HR specialists, chiefaccountantsandconsultants.The following organisations participated in the questionnaire: banks, realestate agencies, law firms, insurance companies, social overhead facilitiescompanies,productioncompanies,universityandcompaniesfromotherareasofoperation.

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ResultsofthesurveyBefore starting the detailed analysis of survey answers, it can be said thatresults were quite assumptive. As it was expected, in the questionnairemostly participated businesses, which based in Tallinn. The majority oforganisations engaged in CSR are large sized. Also most respondents thinkthatCSRisimportantforcompanies.Asitwassaidbefore,therewereintotal81companieswhoansweredtothequestionnaire.ItisentirelyenoughquantityofanswerstomakeanextensivereviewaboutCSRinEstonia.

Figure1.Sizeofthecompanies.TheFigure1showsthesizedistributionoftherespondents.ThemajorityofentitieswhichapplyanykindofCSRactivitiesare large-sizedcompanies.Astheyhavemorefinancialresourcesandhiglyqualifiedstaff, largecompaniesmore involve in CSR practices more frequently. This is due to the fact ofsufficientfinancialsourcesandhighqualifiedstaff.SuchcompaniesstriveforsuccessthroughbuildingagoodreputationandengaginginCSRactivitiesisameansofdoingsoonwiderscale.Mostrespondentswhoansweredtothequestionnaire locatedinTallinnandHarjumaadistrict.Asitwasexpected,thestudyshowedthatmostrespondentsareawareoftheCSR concept. 87.7% those who asked were familiar with the term of CSRbefore answering the inquiry form, and they understood the term clearly.7.4%ofrespondentsrepliedthattheyhaven'theardaboutCSRatall.4.9%ofrespondentsansweredthatknewabouttheterm,butadmittedthattheydon'tunderstanditwell.The survey revealed that most of respondents are applying responsiblebusiness, with 87.7% giving a positive answer. In comparison with othercountries,EstoniahashigherCSRindex,around15yearspeoplehavetriedto

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implementresponsiblepracticeinbusinesssector.12.3%answeredthattheydon'tapplyanykindofCSRactivities.AmongthereasonswhycompaniesarepassivetoCSRactivitieswerehighlightedthefollowing:lackoftime,financialdifficulties, institutionalobstaclesand lowawareness.5respondentsrepliedthattheydon'twanttobe involvedinCSRactivities.FiveotherrespondentssaidthattheyareplanningtotakepartinCSRactivityinthenearfuture.Surveyalsorevealed thatmostcompaniesdealwithsocialandenvironmentissues.ThelesserpartofrespondentschooseeconomicandlegaltypesofCSRactivities,somefirmsusethestrategicapproachtoCSR21.Particular CSR practices which were chosen by the respondents were:businessconductandcompliance(67.6%),philanthropyandstrategicsupportofcommunities(54.9%);communitydialogues,stakeholdercommunications(59.2%), analysing themain impacts of your business processes on societyanditsdifferentgroups(49.3%),environmentprotectioninitiatives(59.2%),HumanRights initiatives(38%),publichealthprotection initiatives(32.4%),responsible supply chainmanagement (50.7%), safety protection initiatives(56.3%),sociallyresponsibleinvestments(49.3%),supportlocalcommunities(62%),volunteering(52.1%).Mostanswerswerereceivedwithchoosingtheoption of creating a proper workplace environment (85.9%), training andeducation(84.5%),developingandrespectingcustomercare(81.7%).Then the companies specified particular CSR related projects and activitieswhich they have been involved in. We received a lot of answers with thenames of different projects and events. The biggest part of interviewedcompaniesdealwithorganisingandsponsoringeventsforchildren,collectingand purchasing necessary stuff for children with special needs, heavydiseased people and pensioners (for instance, diapers, clothes, toys,medicines,etc.);supportingchildrenfromfamilieswithdifficulties,charitabledonations and volunteer activities. Some companies specified that they areorganisingsportandculturalevents.OtherfirmsstatedthattheyparticipateinCSRconferencesandseminars.Anti-bribery&corruptionactionswerealsomentionedinthelist.Thefollowingpracticeswerespecifiedinadditionalbox:

• acceptingsummerinterns,• assisting and monetary support for students in preparing forinternationalcompetitions,

• staffdevelopment• enforcingthesafeworkculture,• supportinglocalactivities(likesport,art,culture)• supportinglocalcommunities,

21A business strategy with core business objectives and competencies of the company,whichisdesignedtocreatebusinessvalueandpositivesocialimpact.

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• responsiblefinancingandinvestments,• financialliteracysocialentertainment,• havingdialogueswithcustomersonCSRsubject,• purchasinglocalproduction(fromEstonianroasters),• contributingtoenvironmentalexcellency.• investmentsintoenvironmentalprotection.

AnalysingthequestionaboutCSRstrategy, thestudyhasshownthat it'snotcommon for Estonian companies to have a strategy for CSR. Only 46,5% ofrespondentshaveaCSRstrategy.Itisalsointerestingthat76.6%consideredCSRasapartoftheoverallstrategyoftheircompany.The most important question on the inquiry form was about the potentialassistanceofEstoniancompaniesdealingwithCSRissues. ItwasaskedhowtheGovernmentofEstoniacanhelpcompaniesandbusinessenvironmentforfutureCSRdevelopment.

Figure2. How theGovernmentof Estonia canhelp your companyandbusinessenvironmentforfurtherCSRdevelopment?(answersfromCSRpassivecompanies)

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According to Figure 2, for companieswhich do not dealwith CSR themostpopularanswerwasthattheGovernmentcouldimplementeconomicbenefitstoCSR active companies. This is different toCSR active companies' point ofview.

Figure 3. How the Government of Estonia can help your company andbusinessenvironmentforfurtherCSRdevelopment?(answersfromCSRactivecompanies).ItwasaskedaboutbenefitsforcompanieswhichapplyCSR.Themostpopularanswers were a good reputation (91.5%), positive social impact (80,3%),adding value to business at the overall market (77,5%) and employeesatisfaction(77,5%).

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Figure4.BenefitsfromCSR.The company could improve working conditions, or support differentinitiatives and projects and encourage employees. The most responsibleorganisations (CSR focused) are trying to motivate their employees toparticipateinCSRactivitiesandprojects.Ourresearchillustratedthat73.2%ofrespondentsdothis,and26,8%donotdothis.Thenextquestionwasaboutparticularactionshowtomotivateemployees.Amongtheanswerswere thefollowingactions:

• organisingenvironmentaldayorworkingsafetydayyearlyforallstaff,• financialliteracydayinEstonianschools,• preparingarticlesintheinternet,• volunteerwork,• Greenofficecertification,• organisingsportsclub,• healthweek,• givesfreetimeforparticipatinginCSRprojects,• creatingfundamentalbackground,• promoting to act resource freindly - avoid printing, switching off thelightwhenleavingtheroom,

• explainingCSRanditsbenefitstopeople.

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Figure5.CSRasapartofabusinesscultureofthecompany.ThesurveyrevealedthatthemajorityofcompaniesdonotorganisetrainingstoenhancetheunderstandingandimportanceofCSR.

Figure6.OrganisingtrainingstoenhanceunderstandingandimportanceofCSR.Usuallyfirmsorganisetrainingsessionsonthefollowingtopics:

• CSRexplanation• Health• Safety• Environmentprotection• Recycling• Employeesatisfaction• Innovation• Responsibletreatmentofclients• Transparentbusinesspractices• Complianceandbusinesscases• Charity• Mentoringandvolunteering• Socialissues• GreenOfficemeetings• Stakeholdergathering

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The most popular answers were: health, safety and environment issues.WhereasoneofthecompanieshasaCSRe-trainingonenvironmental issuesthatiscompulsorytoallemployees.43.7%fromtherespondentspublishtheirownCSRreports,40,8%donotdothis and15,5%useother reportingor communication strategies (Facebook,Linkedin, webpage news, group level, local newspaper, participate in theResponsible Business Index, taking part different contests, produce naturalproducts).AmongthereasonswhycompaniesdonotapplyCSRactivitiesthefollowing:lack of knowledge and skills (40%), lack of time (40%), lack of financialresources(30%),lackofstaff(30%),lackofunderstandingofCSRandotherreasons (20%). Significantly, the number of companies who replied thisquestionwasverylowduetothefactthatmostrespondentsaredealingwithCSR.

Figure7.AttitudetoCSRactivities.Figure7 illustrates thatmost respondents considerCSRactivities importantfortoday'sbusiness.

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Analysis and suggestions (for both: enterprisesandpublicsector)

SituationwithCSRinEstoniaandworldwideDifferent sources have framed various definitions and explanations of CSRnotion.Ithasawidevarietyofmeaningsandsomeofthemoverlap.Butthereis a considerably common ground between them. CSR is a feature in thesociety,whichelaborateshowcompaniesconducttheirbusinessinanethicalway, and how companies manage the business processes to produce anoverallpositiveimpactonsociety.Itcoversalsohumanrights, integrationofdisabled persons, aid to orphan children (such as charity), labour andemployment practices (such as good working conditions, gender equality,employeehealth,well-being,etc.),environmentalissues(suchasbiodiversity,climate change, resource efficiency, life-cycle assessment and pollutionprevention), and combatingbriberyand corruption.The consumer interestsarealsopartoftheCSRagenda.АformalapproachtoCSRisprovidedbyinternationallyrecognisedprinciplesand guidelines. In particular, the OECD Guidelines for MultinationalEnterprises,thetenprinciplesoftheUnitedNationsGlobalCompact,theISO26000 Guidance Standard on Social Responsibility, the ILO Tri-partiteDeclaration of Principles Concerning Multinational Enterprises and SocialPolicy, and the United Nations Guiding Principles on Business and HumanRights. Estoniahas agreed at the country level to ensure implementationofabovementionedprinciplesbythecompanies.Inrecentyears,investmentstoCSRworldwidehavebeenincreasedaswellasthe importance of this notion. Responsible business has become inwidespread use. Legal documents concerning responsible business performonly an advisory role, not imperative, and most initiatives have not beensupported by the public authorities. Nowadays, there are differentorganisations practicing CSR activities: they vary from size and type to theareaoftheiroperation.Today,responsiblebusinessextendsalongthewholechain of value creation. Corporate social responsibility is applicable to allenterprises.Smallbusinessesarenotlessresponsiblethanlargecorporations.Nonetheless, some companies’ representatives aren’t familiarwith the term“CSR“anddoesn’tuseit,buttheirrelationswithemployees,businesspartnersandlocalcommunityshowthattheircompaniesapplyCSR.CSRcontinuestoattract.AstrategicattitudetoCSRisincreasinglyimportanttothecompetitivenessofcompanies on the market. It can bring benefits in terms of cost savings,

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customer relationships, partner and client relationships, human resourcemanagement,accesstocapital,andinnovationcapacity.Corporate social responsibility has an influence on the job satisfaction,meaning of work, attitude toward the firm, powerfulness of the firm incompetitionagainst rivals,behaviourofmanagementandpolicyof the firm.Civilsocietyorganisations(CSOs)andnongovernmentalinstitutionscanoftenbe a positive example inspiring corporations to attend to the social andenvironmentalchallenges.AsforEstonia,inthiscountryCSRisdevelopingrapidly.Estoniahasnationalpolicy frameworks to promote CSR. In general, CSR-related activities in thecountrycanbetracedbacktotheestablishmentoftheResponsibleBusinessForumin2004.Government involvement in CSR sphere has started in 2010 through aEuropeanCohesionFundproject,whichdevelopedanationalCSRplatforminEstonia.Theprojectresulted in theadoptedNationalActionPlanonCSR,aswell as the followingactions: a compendiumofbestpractices, ane-learningmodule for businesses, development of a CSR award scheme (index) and aseries of awareness-raising events and activities. Action Plan on CSR wasadopted in 2012, and it covers the years from 2012 to 2014. After joiningEstoniatheOECDGuidelinesforMultinationalEnterprises,thecountryhasanobligation to promote theOECDGuidelines and set up theNational Contactpoint(NCP)22.TheNCPs isanationalstructuresestablishedandfinancedbygovernmentsofthestatesassociatedtotheframeworkprogramme.TheNCPinaccordancewiththeNCPGuidingPrinciples23providedthefollowingbasicservices:

• GuidanceonchoosingrelevantH2020topicsandtypesofaction• Adviceonadministrativeproceduresandcontractualissues• Trainingandassistanceonproposalwriting• Distributionofdocumentation(forms,guidelines,manualsetc.)• Assistanceinpartnersearch.

In the countries concerned the type and level of services offeredmaydifferfromcountrytocountry.TheEstoniangovernmenthasdevelopedanawardscheme.ItwasintroducedanewCSRlabelcalledthe“SociallyResponsibleEnterprise20xx“.Thatlabel

22The network of National Contact Points is the main structure to provide guidance,practicalinformationandassistanceonallaspectsofparticipationinHorizon2020.23 Available at: http://ec.europa.eu/research/participants/data/support/20131125_NCP%20Minimum%20standards.pdf.

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shouldberecognizedonboththenationalandinternationallevel.ResponsibleBusinessForuminEstoniamanagedthedevelopmentofthelabel.This study illustrated, that corporate social responsibility is an importantvalueinEstonianenterprises.

FactorsthathaveinfluenceinrelationtoCSRpolicyNationalprioritysettinginrelationtoCSRpolicyisinfluencedbyanumberofseveralfactors:

• Economic structure (e.g. predominance of SMEs or micro-companies;prevalenceofstatedownedcompaniesetc.);

• Economicdevelopment;• Impactofthecrisis;• Levelofstakeholderengagement;• LevelofawarenessofCSR;• TheprevailingdefinitionofCSR;• Theexistingpolicyandregulatoryframework;• The structure of policy making (central v. regional and localresponsibilities).

MainhinderersofCSRinEstoniaSignificant barriers of CSR dissemination still remain, such as insufficientawareness, the need to sometimes pay a price premium24, and lack of easyaccesstotheinformationnecessaryformakinginformedchoices.The conducted study has shown that CSR in Estonia faces the followingchallenges:

• insufficientawarenessoftheconceptofCSR;• insufficientlegislativesupportforCSRactivities;• lackofinterest;• lackoffinancialresources;• lackoftime;• lackofqualifiedstaff;• insufficientpromotionofCSR;• insufficientstateandpublicsupport;• thestatedoesnotactivelyliaisewithcompaniestofindjointlysolutiontosociety’sproblems;

• consumers’unwillingnesstopaymorefortheproducts.

24The marketing practice of selling an elite or special product at a cost level abovecompetitiveinordertomakeitmoreexclusiveandwealthyconsumers.Producingahighendgoodor servicemight addapricepremium to its cost to attract affluent consumersthatcanpaymoreforahigherqualityitem.

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It should be pointed out that the abovementioned challenges are quitecommontoallnewinitiativesandprojects.

SuggestionsCSRneeds tobeactivelypursued furtherandappliedbybusinesses, societyand the government. To contribute to the development of CSR notion inEstoniathefollowingsuggestionscouldbeputintoaction:1.EnhancingpublicawarenessandcompetenceFirstofall,itisnecessarytoincreasepublicawarenessandcompetenceofthenotionofcorporatesocialresponsibilityandrelatedissues,tryingtoimproveawareness of CSR among entrepreneurs, investors, consumers, officials,businessprofessionals,mediaandopinionleaders.Itmightbepossiblebythefollowing actions: campaign events and seminars, training sessions forentrepreneursandbusinessgroups,collectingandshowcasinggoodexamplesand promotion of CSR in the sector. To enhance companies’ awareness ofwhat they could do in order to be socially responsible, and what benefitswoulddealingwithCSRbringalong.FivedifferenttypesofinstrumentsforpromotingCSR:• Legal instruments apply legislative, executive and judicial powers tomandateCSRpractices:laws,directivesandbindingregulations.• Economic and financial instruments make particular use of financialincentivesandmarketforces:taxes,taxabatements,subsidiesandawards.• Informational instruments which disseminate knowledge about CSR:campaigns,trainingsessions,coursesandwebresources.•Partneringinstrumentsaimatvoluntarycooperationbetweengovernment,business and relevant stake-holders: stakeholder forums and negotiatedagreements.• Hybrid instruments combine two or more of the aforementionedinstruments. CSR centres, for example, can be both informational andpartnering, and CSR action plans usually consist of and coordinate all fourtypesofinstruments.Various EU Member States have engaged in information and promotioncampaigns to support the SCR scheme with the Regulation on EU Eco-Management and Audit Scheme (EMAS)25. With EMAS an organisation canreduceitsenvironmentalimpacts,strengthenlegalcomplianceandemployeeinvolvement,andsaveresourcesandmoney.

25EMASisapremiummanagementinstrumentdevelopedbytheEuropeanCommissionforcompaniesandotherorganisations toevaluate, report, and improve their environmentalperformance.Itcoveralleconomicandservicesectorsandisapplicableworldwide.Moreinformationcanbefoundat:http://ec.europa.eu/environment/emas/index_en.htm.

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2.ActionplanupdatingThepossibleroleofgovernmentinCSRsphere:a) defining minimum legal standards and regulations for businessperformance,andb)implementationandenforcementofthesestandardsandregulations.Through the special document, action plan, the state can achieve thenecessary results. The objectives and action areas, the type of actionenvisioned under each action area, can be presented in the action plan.Usually a plan provides a mechanism to help with particular challenges. Itensures a progress in the actions through providing a consistent strategicdirection, regular oversight of implementation, and insight from theexperience provided by the different organisations. Like other policies, CSRpoliciesbenefitfrommonitoringandreview.Actionplansandstrategiesmaybe helpful since they set targets against which actual progress can bemeasured.Developmentisdynamic,anditmeansthatallthetimeitisnecessarytocheckandupdatetherules.Itcangiveapositiveresult.Oneofthemostimportantstepshereistorefinethestrategy,particularlyinlightofexperiencesgainedfromtheimplementationofthepreviousplan.Alsoplanupdatesmustreflectprogress.Theupdatedplanneedstodescribehowthecurrentstrategywillbeincorporated intootherplanningmechanisms.Theplanalsocandeclare thestatusof theactions identified in thepreviousplanbydescribing those thathavebeencompletedornotcompleted.Newactionscanbe identifiedbasedontheupdatedriskassessmentandcapabilityassessment.3.BusinessreviewThirdly, the state need to promote and motivate enterprises to make anannual report (or business review) in relation to applied CSR activities. Itmight be helpful, if more enterprises will inform on a regular basis aboutcompany’sviewpointsandactionsinsocietalandenvironmentalfields.Accordingtothelawsofthemostcountries,companiesrequiredtodisclosurefinancial results only. Estonia is not an exception in this regard. Lack ofreporting standards provide companies a right to choose if and how theyshare their charitable works, community involvement, commitment todiversityorenvironmentalstewardshipintheirannualreport.Presently there exists a Global Reporting Initiative26. It is an international,multi-stakeholder effort to create a common framework for voluntaryreportingoftheeconomic,environmental,andsocial impactoforganisation-level activity. Its aim is to improve the comparability and credibility ofsustainabilityreportingworldwide.

26Moreinformationcanbefoundat:https://www.globalreporting.org/.

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Organisations that apply suchpractice realise that effectiveand transparentcommunication is key to enhance investments, as well as promoting thecompany and its brand. Deloitte, Tallinna Vesi, KPMG, VKG are excellentexamplesinthisregard.4. Improvingworking conditions. Development of employees. Creatingemploymentopportunities.Companiescouldimproveworkingconditionsorsupportdifferentinitiativesandprojects.Eachemployercanmakeacontributiontosuchsphere.Thereisa direct link between the investment in workers training and theimprovement of their working and employment conditions and theeffectivenessofthecompany.In terms of human resources, thewellbeing of employees is at the heart ofconcerns. It covers practices about safety and health at work, includingawarenessraisingandpreventionofriskstobothphysicalandmentalhealthrelated risks. Skills development and change management are majorpriorities.Employersneedtocreateanenvironmentinwhichpeoplehaveanimpactondecisionsandactions that affect their jobs.As for theadvantagesfrom such practice, the employer’s projects can be completed andimplementedfasterandmoreefficiently.The most important projects for society in this regard are creatingemployment opportunities for students, for pregnant women, for disabledpeopleandpeoplewithspecialneeds.For instance,OmnivaEstoniarecruitsmanyemployeeswhohavesomekindofadegreeofdisability.Theaimoftheproject is to bring together disabled people looking for work. Omniva’semployees with disabilities represent the company at different companysportseventsandcompetitions.5. Employee Participation & Employee Involvement. Participation insocialprojects.Overthepastdecade,employeeengagementhastakenongreatersignificancethan ever before. Companies are increasingly recognising the importance ofengagingtheirstaff,becauseithasapositiveimpactonthesociety,employeeretentionandthecompany’seffectiveness.The corporate responsibility towards society and the environment createspositiveworkplaceoutcomesincludingengagement.Themainreasonforthisis thatworking for companieswith a strongCSR strategy in suchprogramscreatesasenseofpurposeandmeaning.Itmakesworkmoremeaningfulforemployees. Companies can engage employees in their CSR events. The bestexampleforitisthroughvolunteering.Employeevolunteeringisagreatwaytolettheemployeesdevelopnewskillsthatcanhelpthemontheirjob.Also

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it’s a great way to build leadership skills that will help them grow asindividuals,andalsoperformbetterintheirday-to-dayjobs.OnepotentialbenefitfromCSRinitiativesisestablishinganenvironmentthatcontributes to raisingcommitmentandmotivationofemployees tobemoreinnovative,creativeandproductive.Engagedemployeesarehappier,workharderandstay longer.Workerswhoare able to make social or environmental impact on the job or society aremoresatisfied.6.DevelopmentoftheawardschemeThestateandgovernmentcandeveloptheexistingawardscheme.CSRlabelcan help to promote responsible business and consumer behaviour.Government engagement in labelling and certification schemes has becomeamong the most visible ways, internationally, in which government hasrespondedtotheCSRactivecompanies.Usually,theawardschemesaimto:

• give higher visibility to CSR excellence and raise global awareness onthepositiverolethatbusinesscanplayinsociety;

• enhance the exchange of CSR best practice across the world orparticularcountry/region;

• encourageCSRcollaborationbetweenenterprisesandstakeholders• createinnovativesolutionstosolvesustainabilityissues;• bringingthebestmultistakeholderprojectsintofocus.

Reasonstoapply:1.GainrecognitionfrompartnersasaleaderinCSR2.Increasereputationandcredibilityatnationalandgloballevel3.Showcaseyourorganisation’sinnovationandcommitmenttosustainability4.Exchange‘bestpractice’andinfluenceCSRdevelopmentA few existing awards: European Union Commission’s EMAS Award;EnvironmentallyfriendlyOfficebytheMinistryofEnvironment;AwardoftheResponsibleBusinessForuminEstonia;SociallyResponsibleEnterprise20xx;BMAawards-NasdaqOMX-BestIR2ndintheBaltics;EuropeanCSRAwardScheme27.27 More information can be found at: http://www.europeancsrawards.eu/?caf&query=Csr%20Social%20Responsibility&afdToken=Cr4BChMIsLPz-Zb6zgIVTEMYCh12NACbGAEgAlDw0KABUIvRQFQydeWCVCYos4JUMOn0AlQxqfQCVDQp9AJUNGn0AlQ0qfQCVDVp9AJULbo4QlQ-IuZD1C8-ecSUIHg9CJQ0M2JNlCAu947UKmigz1Q0o3DPlD3m84-UKuZsrwBUKCtisgBUO6y9oYFaPDQoAFxYAisremEVRKCARMIx5D0Zb6zgIVWJkYCh2cYwUxjQHYYGuGkQEmL_vFOrt_ZRIZAG06ipAanCaYEGqUhiFF86XpoFtLhNzKVg

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7.StateaidA range of tax mechanisms have also found their way into nationalapproachesforincentivisingsociallydesirablebusinesspractices.EuropeangovernmentsrecognisethegrowingimportanceofpracticingCSRincreating attractive business environment and decide on the introduction ofincentivestosupportresponsiblebusiness.Therelatedtaxincentivesalreadyapplicable inthecountriessuchasPoland,Romania,UnitedKingdom,Spain,Greece, France, Finland, Belgium and Norway. Most of these incentives aredesigned to encourage environmental investments, charitable activities andemployment of disabled workers. The most commonly used tax incentivesincludeexemptionorreductionofcertaintaxesandduties.28Forinstance,Polishtaxsystemallowsthecompaniestobenefit fromseveralminor tax reliefs, such as those related to employment of disabled people,creating new workplaces in Special Economic Zones, donations for specificsocialpurposes,investingingreenfunds.8.GoodpracticesharingAttentionshouldalsobeturnedtogoodpractices.Acompanycantakeupbestpractices from other companies and adopt them. The same opportunityapplicablealsotodifferentcountries.Moreover,itwouldknowwhatpracticestoavoidandlearnfromthesuccessfulexperiencesofothers.Enterprisesneedtobetrustedbycitizens.ItisnecessarytouniteandsharebestpracticesandinnovativeinitiativesonCSR,throughthedevelopmentofCSRsourcesandevents,whichisprimarilyintended to familiarise SMEs with the concept of social responsibility,informing them and providing tools andmethodologies to incorporate CSRintotheirmanagement.BestpracticesinrelationtoCSR:•strategy•environmentalmanagement•CSRreporting•CSRpolicies•CSRexperience•CSRperformance•stakeholdermanagement•transparencyanddisclosureEstonian Responsible Business Forum is a platform for coordinatedexperiencesharinginEstonia.

28 http://www.taxand.com/taxands-take/media/review-tax-incentives-context-csr-selected-european-countries.

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Several EU Member States with Estonia (Denmark, Finland, Germany,Lithuania, Poland and Sweden) partners in the project “SustainableProductionthroughInnovationinSmallandMediumsizedEnterprisesintheBaltic Sea Region” (SPIN) 29 . The aim of the project is the sharing ofexperiences to promote innovative solutions for sustainable development,includingEcoinnovation,environmentaltechnologiesandCSR.309.Supportingsocialprojectsandprograms.Sponsorship.The aim is to support innovative, educational and social projects, to createsocial as well as commercial value. It is important that supporting varioussocial projects would contribute to culture, science and educationdevelopmentandpromulgationofahealthylifestyle.A CSR sponsorship means a marketing initiative that has a social cause orobjective associated with it. Sponsors increasingly engage in CSR activitiessurrounding sponsored events (e.g., educational, environmental and sportevents). Some companies open schools/kindergardens, others establishinformation technology classrooms, some distribute necessary stuff, andothersorganisecompetitions.For example, company like A. Le Coq, sponsoring a home for adults withlearningdisabilitiesMaarjaVillage.Also it isa long-standinggoldsponsoroftheEstonianFootballAssociation.Companyconcludeda10-yearsponsorshipagreementwiththeEstonianOlympicCommitteeandstartedsupportingtheBestYoungAthleteoftheYear.10.CSRintegratedwithmanagementstudiesTo widen the understanding and use of CSR principles among futuremanagers, the learningofCSRprinciples shouldstartalready in school. It isimportantthatCSRwouldbeintegratedtoeconomicandmanagerialstudiesalreadyfromgymnasium,vocationalstudiesorattheuniversitylevel.Solvingvariouscase-studies,participatingoncompetitionspromotingCSRorvisitingdifferent corporations applying CSR in their enterprises would educatealreadyearlyontheimportanceofusingCSRincorporateenvironment.Atthesame time, better awareness would help employees to acknowledgecorporations using CSR and not to settle with less. It is important toremember,thattoday’sstudentsaretheleadersandemployeesoftomorrowandtheirhabitsneedtobedevelopedearlyon.29SPINisaprojectsupportedbytheBalticSeaRegionProgramme2007–2013oftheEU,and by numerous national governments, sector associations, research bodies andtransnationalNGOs.30Moreinformationcanbefoundat:http://www.spin-project.eu.

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11.DevelopingmetricstoassessCSRactivitieswithincompanyMetricscanhelpdoidentifythecostsavedorrevenuegeneratedfromtheuseofCSR.Evidencecommunicatestowideraudienceofmorefact-basedbenefitsofCSRaswellasitisanargumentitselfforcompanytocontinuetoinvestinCSR. The metrics used might include measuring of how energy use andcarbonemissionsreductionsresultsincostssavingsandresourcesavings.Incase of more intangible CSR activities such as donations, engagement withcommunity activities or investments to employee training, the result isdifficult to measure. In such cases nonfinancial outputs such as employeevoluntary hours spent, grant funding to develop educational centers andmaterialsorother,couldbemeasured.

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http://www.heategu.ee/.http://www.koda.ee/.http://www.maarjakyla.ee/en/.http://www.oecd.org.http://www.spin-project.eu.http://www.taxand.com/.https://medium.com/@dccdegruijter/3-things-governments-companies-ngo-s-and-volunteers-can-do-starting-today-to-solve-society-s-cc44b86a549d#.388y4s12r.

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ResearchprojectteamProjectsupervisorPiretPotiseppContributorAnastasiiaKantcevaReviewersAndresKikasAnetteJärvpõldKarelLember