Increased commitment by Bulgarian companies to corporate social responsibility

A baseline survey on corporate social responsibility (CSR) in Bulgarian companies published in 2007 found a gradual penetration of CSR practices. The direct provision of funds, activities targeting the health, qualification and other social needs of staff, non-financial assistance, and investment in environmental issues are among the most widespread CSR activities. The survey identified a range of spending on socially responsible activities by companies.

About the survey

The year 2007 saw the publication of a baseline survey on corporate social responsibility (CSR) in Bulgarian companies. The [survey (2.03Mb PDF)](http://www.unglobalcompact.bg/publication/files/en/CSR ENG.pdf) was commissioned by the United Nations’ Global Compact Network Bulgaria and the Bulgarian Charities Aid Foundation (BCAF). It was conducted by the Sofia-based marketing and social research agency Alpha Research.

The baseline survey was carried out as part of a regional project Accelerating CSR in the new EU Member States and Candidate Countries to promote harmonisation, competitiveness and social cohesion, co-funded by the European Commission and the United Nations Development Programme (UNDP). The project aims to advance the implementation of CSR practices in eight eastern European countries: Bulgaria, Croatia, Hungary, Lithuania, the former Yugoslav Republic of Macedonia, Poland, Slovakia and Turkey.

Survey methodology

The survey methodology combined qualitative and quantitative methods.

Quantitative research involved a focus group and in-depth interviews with company representatives responsible for CSR. The aim was to establish how well CSR was understood and the ways in which it is practised in Bulgaria.

Qualitative research included direct standardised interviews with CSR managers in 121 medium-sized and large companies. The research mainly covered the services, trade and manufacturing sectors. About 95% of the respondents represented private businesses, while 12% came from multinational enterprises.

Main findings

Differing perceptions of socially responsible activities

Analysis of the data suggests there are three main perceptions of socially responsible business.

• The first and most widespread is the perception of socially responsible business as caring about company staff and their families. This may take the form of a closed, paternalistic dependence of employees on the employer, or of innovative approaches involving established practices relating to rights, protection and career development, training and other measures that enhance the capacity and social capital of the employees. Both of these forms co-exist in Bulgarian practice.

• The second type of perception is a commitment to social activities benefiting the local community. In most cases, this means improving the urban environment, public relations (PR) with a social focus, and help for children and the elderly in institutions.

• The third and least popular approach is commitment to activities with a long-term social impact (social cause). This includes investing in education and training, drawing society’s attention to an important social issue and the making of a permanent commitment by the company.

Figure 1 summarises how respondents define a socially responsible business. The analysis of the data from the quantitative survey and in-depth interviews showed that, in the majority of cases, there was no strict distinction between offering direct provision of funds, sponsorship, charity and public benefit activities.

Figure 1: How would you define a socially responsible business? (% of respondents)

Source: Alfa Research, 2007

CSR-related actions undertaken by companies

The most widespread forms of socially responsible activities (Figure 2) included the following:

• activities targeting the health, qualification and other social needs of staff (52% of companies interviewed);

• direct provision of funds/sponsorship (52%);

• non-financial support provided by the company in the form of free products or services (27%);

• energy efficiency and reduction of environmental pollution (25%).

These were the preferred options mostly for the large private sector companies, foreign companies and those with a special unit for public benefit activities.

Socially responsible activities were fragmented and sporadic according to 89% of companies. However, foreign companies (79%) and large companies (72%) were more active in supporting financially socially responsible activities compared with an average of 44%–50% of smaller and local companies.

Figure 2: Forms of CSR (% of companies)

Source: Alfa Research, 2007

Volume of resources allocated to CSR activities

Even though the number of companies engaged in direct provision of funds, sponsorship or public benefit activities has been growing in recent years, the amount spent on support was found by the survey to rarely exceed €2,556 (BGN 5,000) a year (nearly a third of companies fall into this category) (Figure 3). Around 10% of companies spent €2,556–25,560 (BGN 5,000–50,000).

However, 40% claimed there was a growing interest in this type of activity. Every second company planned to maintain its activities at their present level and 28% of companies planned to improve such activities, while 22% of companies did not intend to engage in similar activities at all.

Figure 3: Spending on socially responsible activities in the previous year (% of companies)

Source: Alfa Research, 2007

Commentary

EU accession processes helped to catalyse post-Communist CSR. The provision of funds and socially responsible practices are evolving – albeit slowly – from activities of limited scope, unclear focus and fragmentation towards higher profile and structured social activities. The growing attention paid to CSR in Bulgaria is demonstrated by the adoption of a national CSR strategy (in Bulgarian) in late 2009. The strategy has been elaborated by a working group made up of representatives from the government, social partners, private business and non-governmental organisations (NGOs). The strategy expresses the commitment of the government to support socially responsible practices and to ensure preconditions for the active and voluntary participation of all stakeholders. In the long term, it aims to improve the quality of life and well-being of employees by ensuring the sustainable economic development of the country.

Reference

Alpha Research, Corporate social responsibility within the Bulgarian context. Understanding, attitudes, practice, problems and challenges in implementing corporate social responsibility among the Bulgarian business, Sofia, UN Global Compact and BCAF, 2007, available online at [http://www.unglobalcompact.bg/publication/files/en/CSR ENG.pdf](http://www.unglobalcompact.bg/publication/files/en/CSR ENG.pdf ).

Nadezhda Daskalova, Institute for Social and Trade Union Research (ISTUR)