Motives for CSR in the Lithuanian SMEs from non-manufacturing industries

The motives are the objective for separating CSR into categories. Corporate citizenship, corporate constitutionalism, business power, political power, type of act, type of effects, business ethics, instrumental values, social demand and so on (Brummer, 1986). The motives for CSR actions are often mixed.

self-serving motives? Balanced Scorecard? “Corporate social responsibility is a continuous commitment from companies to improve competitiveness while actively contributing to attain sustainable development of society through concrete, measurable action Corporate social responsibility: “continuing commitment by business to contribute to economic development, while improving quality of life of workforce and their families as well as of the community and society at large”. (World Business Council for Sustainable Development) We will present you interesting cases of businesses just like yours, who gained from responsibility.

People (employees, community) Planet (natural environment) Profit (value to shareholders) INTERNAL MOTIVES Benefits to business - Improves sales and customer loyalty - Attracts quality investors and associates Attracts quality emploees Improves operational effectiveness by fostering innovation and learning Improves rganizational environment and motivates staff Provides social license to operate Improves risk management Promotes new business opportunities Improves brand name and reputation Encourages positive ifferentiation External Motives Powerful media Increased power and influence from the civil society Influence from competitors and pressure from the supply chain More demanding, sophisticated consumers More demanding regulatory frameworks and public policies from Governments International community expectations: Global Compact, Earth Summit, etc. Pressure from investors and the financial sector, Pressure from activists groups etc.

SMEs can be viewed as a disparate mix of businesses being far more informal in organisational structure, internal reporting and communication SMEs are not homogenous, are sometimes driven by ownermanager values, and so can be difficult to compare directly both to each other Week pressure from society

Number of enterprises, number of emploees (2009) 0– ,3846,2 5– ,1997,3 10– , – , – ,721315,6 100– ,21188,7 150– ,71148,4 250– ,41178,6 500– ,2906, ir daugiau750,118613,6

At one extreme CSR participation can be viewed by SMEs as an extension of profit-making activities and, at the other extreme based on purely altruistic motives. Gary Mankelow, Ali Quazi, University of Newcastle Motivations for SME CSR Item (a survey of members of the Hunter Business Chamber (HBC) based at Newcastle, Australia.) Caring for the customers & community Profit through caring Community orientation Business of business is business Long-term survival Customer approval Customer loyalty maintenance Enhancement of corporate image Addressing recipient needs Addressing community needs Profit maximization Enhanced staff morale Staff welfare Better contribution to community Planned expenditure level Community acceptance Donations beyond tax implications Business’s interest in CSR Donations based on tax incentives Following industry standards in CSR

Barriers / antimotivation for non-manufacturing (IT management, Finance, Human Resource, Sales and Services) industries SMEs) Resource constraints Concentration of activities and power (owner=manager) Focus on short term Low pollution level Low energy consumption Educated staff The end part of supply chain SMEs may well be doing CSR without knowing it

Sustainability and social responsibility through learning (Responsibility towards employees ) Skill development For non- manufacturing SMEs On-the-job learning and Formal learning programmes are not always suitable Health and well-being (learning) Work-life balance - the ability to balance work and non-work commitments is key to attracting and retaining motivated and highly skilled employees.

CASE STUDY Company: KPMG GROW: Workshops and seminars covering a range of business etiquette, professional image and social skills for personal and professional growth. RELAX: Social and recreational activities, such as cooking classes, movie nights, which give staff the opportunity to unwind after work with their colleagues. FITNESS: Health awareness and exercise activities, including sports competitions and discounted gym membership plans FAMILY: Fun days and other events open to family members, to allow staff to enjoy quality time with their family. SUPPORT: Assistance and external professional counselling services And what about KPMG.LT – Nothing…… We can find some activities called work-family, but not work-life

medical.eu/ medical.eu/ ilips.com/main/homehealt h/respironics.wpd ilips.com/main/homehealt h/respironics.wpd m/ imaging.com/myfclty/inte rnational.html imaging.com/myfclty/inte rnational.html