NATIONAL CSR STRATEGY FOR THE REPUBLIC OF SLOVAKIA

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NATIONAL CSR STRATEGY FOR THE REPUBLIC OF
SLOVAKIA

• Peter Ondrejka
• Director, Department of Economic Strategy
• Ministry of Economy of the Slovak Republic
• ondrejka_at_economy.gov.sk

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Current state of CSR in Slovakia according to
baseline study conducted by UNDP

• CSR promotion is still at early stage in Slovakia
  
• CSR promotion should evolve to reach a broader
  public and be incorporated into education and
  curriculum
• There is a need to build capacity of capacity
  builders
• The government should take leadership in giving
  more credibility to CSR practices and creating
  incentive mechanisms to reward and acknowledge
  good CSR practices
• Academic istitutions should play key role in CSR
  promotion (as institutions educating future
  business leaders)
• NGOs are currently drivers of CSR implementation
  but primarily in big companies. More attention
  should be paid to small and middle-sized
  companies as they have big potential in terms of
  CSR implementation
• Media should develop their own CSR strategies
  (especially public media)
• Employers associations and trade unions should
  be also involved in the process of CSR promotion
  and implementation

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National CSR Strategy for Slovakia Why?

• Lessons from other countries suggest that the
  government plays an important supporting and
  enabling role in promoting CSR and state should
  create its own CSR agenda
• State should create better conditions for
  effective implementation of CSR
• - support environmentally friendly
  entrepreneurs
• - initiate and support CSR at local, regional
  and national level
• - awards
• - allow preferences to companies with CSR
  activities during state tenders
• Opportunity for taking the lead?
• What is BRAND SLOVAKIA?
• Slovakia heritage to capitalize on in the future?

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National CSR strategy our approach

• UNDP initiated formation of the multistakeholder
  working group - consisting of the representatives
  of the Ministry of Economy, Ministry of Labour,
  Ministry of Environment, companies, trade unions,
  NGOs, academia, business associations, media
• Main goal of the working group to develop
  National CSR strategy and action plan for its
  implementation
• Suggested targets of the National CSR strategy
• to achieve sustainable economic growth and fair
  redistribution
• to contribute to solving social and economic
  development challenges
• to support the creation of intra-sector
  partnerships, contributing to the fulfilment of
  political targets related to permanently
  sustainable development
• to increase competitiveness of Slovak business
  environment
• to support transparency and standardization in
  the business environment
• to boost the quality of life

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National CSR strategy - activities

• Institutionalization of socially responsible
  business
• acceptance of the Strategy though a government
  decree (2008)
• establishment of an executive agency for CSR
  support (2009)
• CSR as the cross-sectional theme of current
  legislation
• There should be agreement with relevant
  ministries about the application of CSR
  principles in departmental legislation and about
  the mapping of departmental legislation with the
  goal to identify obstacles for application of CSR
  principles in practice (2010).
• Participation should be mandatory for the body in
  charge of the creation and amendment of relevant
  legislation (for the application of the proposed
  institutional structure it will be the National
  Contact Point for CSR) (2013).
• Promotion of CSR principles in business
• The Law (decree) about a CSR Support Fund and the
  establishment of the fund (2010)
• Revision of the Income Tax Law, allowing firms to
  expense the costs of applying CSR principles
  (2013).
• Increasing awareness and exchanging CSR
  experiences
• central CSR web portal (2009)
• approval of medium-term action activity plan for
  a period of three years (2009)

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National CSR strategy - activities

• Education and research on CSR
• Declared cooperation with a research institution
  that will research CSR and produce a methodology
  for an in-depth study of the economic impact of
  CSR principles in Slovakia (2011)
• Certification of a CSR course by the Ministry of
  Education of SR ( 2012)
• The CSR theme demonstrably included in economic
  and environmental fields of study at all Slovak
  universities (2013)
• Accreditation of a CSR field of study for a
  selected university (2018)
• Support of multi-department open dialogue and
  cooperation of all interested subjects
• Recommendation to include multi-stakeholder
  dialogues as part of the investment decision
  making process (2013)
• The obligation to realize dialogue as part of
  decision making process prescribed by law (2018)
• Standards and methodology on how to conduct
  dialogue (2015)
• Public procurement
• Standardization and certification
• Reporting duty
• Recommendation for the publication of reports
  about the environmental and social impacts of
  firms (2013)
• Obligation of large companies to publish reports
  about their environmental and social impacts
  prescribed by the law (2018)
• Establishment of report archives (2018)
• International cooperation

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National CSR strategy looking ahead

• The Strategy for CSR support in the Slovak
  Republic for 2008-2018 in electronic form
  currently available in Slovak and English
• The Strategy will be presented to the public on
  September 17, 2008 at the event attended by the
  representatives of companies, ministries, NGOs
  and academia
• The Strategy will be incorporated in the National
  Plan of Reforms to be submitted to the govt in
  September by the Office of the Deputy Prime
  Minister for Knowledge-Based Society, European
  Affairs, Human Rights and Minorities  

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National CSR Strategy for Slovakia Why?

• After 1989 a reductionistic approach was a
  typical feature of economic transformation, which
  prefers economy against other aspects of
  development of the whole society. Due to this
  fact, the value orientation of the society was
  subordinated in particular to the criterion of
  immediate and maximal profit.
• These facts can be considered to be the main
  obstacles in achieving sustainable development in
  Slovakia (including the change of economy).
• Slovakia National Sustainable Development
  Strategy, 2001

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National CSR strategy our approach

• CSR policy instruments by type
• Mandatory Are there CSR- related legal
  obligations?
• Soft law E.g., are there codes of conduct
  promoted by the government?
• Partnering E.g., are there alliances between
  politics and business?
• Incentivizing E.g. Are there CSR awards granted
  by public bodies?
• Awareness E.g. Are there campaigns on
  CSR-related topics organized by the government?

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National CSR strategy vision

• The Slovak Republic is developing a harmonious
  society with a competitive economy and high
  standards of living, social equity and
  environmental protection. All key sectors of the
  economy the public sector, the business sector
  and civil society are on the local, regional and
  national level involved in the creation of
  partnerships, contributing to the fulfilment of
  sustainable development targets.
• The atmosphere naturally motivates businesspeople
  to take into account not only economic but also
  social and environmental considerations. In this
  process, the government is in a strong position
  to encourage suitable conditions for the
  application of such types of business.
• Large enterprises, SMEs, independent farmers,
  self-employed persons and freelance occupations
  are prosperous, innovative and competitive on a
  local, national and international level and the
  application of CSR principles is an inseparable
  part of their strategic management.
• Their employees are prosperous because they apply
  ethical business principles, work in safe and
  dynamic environments and have the opportunity for
  lifetime learning.
• Their business activities and customers are
  spread across the whole country and across
  borders.
• At home and abroad, Slovak businesses are
  considered to be modern and competitive and are
  able to partner with the government and civil
  sector in order to solve social and economic
  development challenges.
• In short, Slovak businesses are active promoters
  of a modern Slovakia for the 21st century.