Microsoft Word - brain_7_issue1_version1 111 Romanian Campaigns on Corporate Social Responsibility – Signs of Glocalization Monica Pătruț Lecturer, Faculty of Letters, Vasile Alecsandri University of Bacău, Bacău, Romania monicapatrut@yahoo.com Camelia Cmeciu Associate Professor, Faculty of Journalism and Communication Studies, University of Bucharest, Bucharest, Romania cmeciu75@yahoo.com Abstract Organizations play an important role in the development of the modern society since managers have become aware that financial profit highly depends on community involvement. The active participation of organizations in community life implies to adapt global strategies to local issues or to promote local issues at a global level. Actually this is the essence of glocalization. The means by which organizations can achieve these glocal objectives is CSR campaigns. CSR represents an instrument used to solve diverse issues, such as: human rights, environment and climate change, education, support for vulnerable groups, sustainable development, or establishment of moral capitalism. Within the context of the ever-rising internet access of all audiences, CSR campaigns have become more visible and have capitalized on the advantages of collective intelligence, internet users’ participation and their user generated contents. The purpose of our study is to provide an insight into (1) the prominence of Romanian organizations which are the most socially responsible, (2) the domains in which Romanian organizations have invested; (3) the salience of CSR 1.0 and CSR 2.0 tools used in the promotion of CSR campaigns in Romania. Keywords: Glocalization, New media, Social Media, Corporate Social Responsibility. 1. Introduction Organizations have gradually undergone a shift (Grunig & White, 1992) from a pragmatic social role focused on financial benefits to a radical social role focused on contributing to social change in communities. This concern for the stakeholders’ benefits can be associated with the concept of corporate social responsibility (CSR). Since 1950, the concept of CSR has developed at a theoretical and practical level. The researchers’ and managers’ interest in CSR has mainly focused on the ways through which an organization can achieve its financial objectives by socially responsible means. As Figure 1 shows, the public debate has contributed to highlighting other concepts: corporate social responsiveness, public social responsibility, corporate social performance, corporate citizenship, corporate sustainability (Coman, 2009; De Bakker et al., 2005; Crişan, 2013). BRAIN. Broad Research in Artificial Intelligence and Neuroscience Volume 7, Issue 1, March 2016, ISSN 2067-3957 (online), ISSN 2068 - 0473 (print) 112 Figure 1. Developments in CSR-related concepts (De Bakker et al., 2005) Although CSR includes a large number of problems and themes, it focuses on three main aspects (Fisher-Buttinger & Vallaster, 2011): environmental issues and concerns; workplace issues: the way in which employers treat employees, the health and safety of products, the impact of organizational activities on the community; companies’ ethical behavior. This variety of CSR issues highlights two important aspects: 1. By planning CSR activities and campaigns, organizations seem to take into account the twofold syntagms embedded in the concept of glocalization (“think globally, act locally” and “think locally, act globally”, Wakefield, 2009). In terms of CSR activities, “think globally, act locally” implies to adapt well-known CSR strategies from developed countries to the national, regional, and local cultural and social life, whereas “think locally, act globally” implies to make known local CSR strategies worldwide by means of new media and social media. 2. Combining the CSR internal dimensions (the relationship company - employees) with the external dimension (the relationship company – all stakeholders), it is thought that profits, community members and environment may harmoniously coexist in a strategic organizational approach (Borţun, 2012; Ilieş, 2012; Oprea, 2011). Having as starting point the syntagm “Doing well by doing good” (Rawlins, 2005), CSR should not be associated with a compulsory law, but with an organizational necessity, without any external pressure. On the long run, the benefits of a constant CSR policy are: the company’s image improvement and reputation increase, a more efficient risk management and crisis situations, the brand revitalization, the motivation of valuable employees. Moreover, within the relations between organizations and communities, CSR is reciprocally advantageous because it generates profit for companies, it involves the support of the communities and of the socially disadvantaged groups and it contributes to the local development (Middlemiss, 2010). Placed between the economic profit obtained through the production of goods or services and the social profit resulted from the investment in society (Cmeciu & Cmeciu, 2011), the CSR strategy should be embedded within the management objectives and the social investments should be measured in economic terms. Table 1 shows the reasons for engaging in CSR and the basic approach on this community-based insight into organizational activities (Matten, 2006): M. Pătruț, C. Cmeciu - Romanian Campaigns on Corporate Social Responsibility – Signs of Glocalization 113 Table 1. Reasons for engaging into CSR activities (Matten, 2006) Why CSR ? Motto Nature of the drivers Key ideas and concepts CSR is enhancing the long-term profitability of the company “There is a clear-cut business case in CSR” Economic - Shareholder value maximisation - Socially responsible investment - Competitive advantage - Bottom of the pyramid strategies CSR solves day-to- day management problems “CSR enables us to manage our stakeholder relations!” Managerial -Stakeholder theory -Corporate social performance CSR is the morally right thnig to do “CSR means doing the right thing” Ethical -Business ethics -Sustainability CSR is a way to be a legitimate and accepted member of society “CSR makes us a good corporate citizen !” Political -Corporate citizenship -Accountability - Transparency Understanding that the sustainable financial success depends on the degree in which the business model includes the social responsibility and the proper administration, companies contribute to the shaping and consolidation of moral capitalism (Young, 2009). Within this new context of glocalization at an organizational level, companies generate five types of capital (reputational, social, human, financial and fixed) and the value of these capitals increases if the companies impose some clear ethical standards for the proper developments of activities. The socially responsible companies use their power wisely to obtain profits and with the help of the state, to provide civic order. Taking advantage of the quality of corporate citizens, the companies’ responsible actions at the local level will also imply to honor the human rights and the democratic institutions, to support educational, cultural and environmental projects, to respect the local cultures, to promote peace, security, social diversity and inclusion, to involve employees in civic and community problems, to fights against corruption in the political environment, to avoid the waste of social capital (Young, 2009). 2. CSR activities in Romania Corporate Social Responsibility is closely related to the economic development of a country and to the types of relationships established between organizations and community members. Communism and an up-down relationship had not been the proper contexts for the emergence of CSR activities in Romania. The slow economic development and the limited traction for communicating about the corporate responsibility efforts and achievements are the reasons for which Romania is placed in “the starting behind” quadrant, according to the KPMG International Survey5 of Corporate Responsibility Reporting 2011. Throughout the years, the CSR activities have been gradually implemented in Romania. The starting point was related to a local problem, namely abandoned children. After the revolution, the first CSR activities had a humanitarian role (Udrea & Ionescu, 2007; Dima et al., 2013), helping the disadvantaged categories (children, elder people, women). Once big transnational companies (Coca-Cola, Pepsi-Cola, Philp Morris etc.) have invested in Romania, the paradigm “think globally, act locally” seems to have been embedded in the Romanian companies’ CSR strategic management: community involvement, business behavior, BRAIN. Broad Research in Artificial Intelligence and Neuroscience Volume 7, Issue 1, March 2016, ISSN 2067-3957 (online), ISSN 2068 - 0473 (print) 114 relation with employees, workplace health, and relations with providers and clients. At the local level, the CSR actions in Romania, after 2000, have mainly focused on restructuring the technologies for improving environment, adopting social measures for employees, developing good relations with local authorities, and developing public-private partnership (source: CSR and Competitiveness European SMEs’ Good Practice – National Report Romania, 2007). Another aspect of glocalization in the CSR domain that has been implemented in Romania is related to the transparency of CSR campaigns. Visibility has been attained through two online initiatives which support organizations and governmental institutions to promote their CSR activities: CSR Romania - http://www.csr-romania. ro/, a common initiative of the foundation Forum for International Communications and of the Center for Sustainability and Excellence (CSE); Responsabilitate Socială/ Social Responsibility - http://www.responsabilitatesociala.ro – an initiative of JTI Romania). The visibility of companies’ CSR activities is communicated in two ways: (1) monthly online newsletters; (2) CSR case studies as good practices. The case studies encompass different fields into which Romanian companies and global companies have invested: � http://www.csr-romania.ro/: education, entrepreneurship, disadvantaged social categories, environment, safety, health, community; � http://www.responsabilitatesociala.ro: education, culture, environment, social and human rights. 3. New media and social media – means of attaining visibility of CSR activities at a local level Transparency has become the prevailing concept related to CSR since “CSR communication has become an integral part of corporate reporting” and since “its impact on image building and stakeholder relationship management is widely accepted” (Bittner & Leimeister, 2011). The technological development from old media system → Web 1.0 → Web 2.0 has facilitated the implementation of the paradigm “think locally, act globally”. Companies have wisely exploited the advantages of new media and social media (Wilcox, 2009): widespread broadband; cheap/ free online publishing tools; new distribution channels; mobile devices; 24/7 news and information, and democratized media. But at the same time, the challenges of Web 1.0 and Web 2.0 have some drawbacks: fragmentation, information overload, polarization (Dimitrova, 2007). The involvement of the community member is an important aspect that this technological development has brought. Thus at a communication level, glocalization within CSR activities has been achieved through the metamorphosis of every human being into a possible online publisher (Pătruţ et al., 2013).While Web 1.0 is known as “The Read Only Web” and implies only communication via the email, the dial-up, high costs, websites which cannot be changed by other users, Web 2.0 is known as “The Read Write Web” (O’Reilly, 2005), and it becomes a synonym of communication in real time, broadband internet (high speed, a better quality/ price measure), blogs, podcasts, social networks. 3.1. The shift from CSR 1.0 to CSR 2.0 Starting from the differences between Web 1.0 and Web 2.0., Wayne Visser (2010) highlights the discrepancies between CSR 1.0 and CSR 2.0 (Table 2). M. Pătruț, C. Cmeciu - Romanian Campaigns on Corporate Social Responsibility – Signs of Glocalization 115 Table 2. Discrepancies between CSR 1.0 and CSR 2.0 (Visser, 2010) CSR 1.0 CSR 2.0 A vehicle for companies to establish relationships with communities, channel philanthropic contributions and manage their image. Being defined by ‘global commons’, ‘innovative partnerships’ and ‘stakeholder involvement’. Included many start-up pioneers like Traidcraft, but has ultimately turned into a product for large multinationals like Wal-Mart. Mechanisms include diverse stakeholder panels, real-time transparent reporting and new-wave social entrepreneurship. Travelled down the road of “one size fits all” standardization, through codes, standards and guidelines to shape its offering. Is recognizing a shift in power from centralized to decentralized, a change in scale from few and big to many and small; and a change in application from single and exclusive to multiple and shared. Defined in terms of a journey and of the DNA code (Visser, 2010), CSR 2.0 is considered to have an organic character for organizations in their effort to establish reciprocally beneficial relationships with community members: CSR 2.0 = sustainablity (= destination) and responsibility (= journey). CSR 2.0 or systemic CSR implies a conjunction of responsibility which is “more about the journey – the solutions, responses, management and actions” (Visser, 2010) and of sustainability “conceived as the destination – the challenges, vision, strategy and goals”. CSR 2.0 = DNA CODE. Defining organizations as organisms, Visser identifies four responsibility bases that should prevail in every CSR 2.0-governed organization: value creation (capital investment, beneficial products, inclusive business), good governance (leadership, transparency, ethical practices), societal contribution (philanthropy, fair labour practices, supply chain integrity), environmental integrity (ecosystem protection, renewable resources, zero waste production). 3.2. Reports on CSR 2.0 initiatives at a global and glocal level The blending of firm-serving and public-serving motives (Kim & Lee, 2012) is meant to generate stronger activism among consumers, to help people and young scholars in need, to get involved in environmental, cultural, education issues (Pătruţ et al., 2013). Social media applications are the best means of making known these CSR initiatives since they involve informing, mobilization, and involvement of community members. As the 2011 Global Social Media and CSR report on the FTSE Global 500 shows the ‘banks’ sector is the most productive (12%) in the use of social media in their CSR activities, followed by the ‘oil and gas producers’ (11%), the ‘pharmaceutical and biotechnology’ (6%) and the ‘technology, hardware and equipment’ (5%). The advantages (‘collective intelligence’, ‘collaborative networks’, ‘user participation’, Visser, 2010) that social media provide were exploited by 60% of the companies, the hierarchy of the forms of social activity being the following: RSS posts (107 companies), Embedded videos (102 companies), Twitter (56 companies), Facebook (44 companies), Youtube (40 companies), Blog (22 companies) and Podcasts (7 companies). According to a Zelist study (http://www.zelist.ro), in Romania, in the last six months of the year 2011 there have been more online comments and posts on the banking services (11 Romanian banks included in the study) than on the telecommunications or car industries. The most frequently used social media applications used were: Twitter, blogs, and Facebook. BRAIN. Broad Research in Artificial Intelligence and Neuroscience Volume 7, Issue 1, March 2016, ISSN 2067-3957 (online), ISSN 2068 - 0473 (print) 116 4. Methodology and research questions In our study we will analyze the CSR campaigns (2004- 30.03.2015) that have been taking place in Romania since 2004, the year when companies made the first CSR reports public. These CSR reports were available on the following websites: � http://www.csr-romania.ro, � http://www.responsabilitatesociala.ro, � http://www.csrmedia.ro, � http://www.praward.ro. We have identified 564 CSR campaigns: 148 during 2004-2012 (Pătruţ, 2013) and 416 CSR campaigns during 2013-30.03.2015. The research questions of our study are the following: RQ1: Which are the main domains of the Romanian organization which planned CSR campaigns? RQ2: Which are the main social, cultural, and economic domains towards which CSR campaigns are targeted in Romania? RQ3: Which the distribution of Romanian CSR campaigns in time? RQ4: What types of CSR campaigns take place in Romania? RQ5: What type of promotion (online and/ or offline) did Romanian companies choose for their CSR campaigns? RQ6: What was the prominence of CSR 1.0 and CSR 2.0 tools in CSR campaigns in Romania? The research method is content analysis of the CSR public reports of Romanian organizations, posted on the above-mentioned websites. A discrete research method (Babbie, 2010), content analysis allows us to study this phenomenon without hindering its development. We started form the analysis framework provided by Abbott & Monsen (1979) and we adapted it taking into account the data provided by the Romanian companies running CSR campaigns. Corporate social responsibility is perceived as an investment in the organizational future and as a means of helping the community/ society in which organizations run their activities. In Romania, CSR initiatives have been implemented by multinational companies since 2000 and they have been gradually incorporated into the strategy of national companies. Figure 2 provides an insight into the hierarchy of the most socially responsible economic actors (RQ1): banking sector (134 CSR campaigns), telephone and telecommunications (112), pharmaceutical (73 CSR campaigns), oil and gas (64), foundations and NGOs (43). Number of campaigns 134 73 112 64 44 43 20 11 31 12 13 7 0 20 40 60 80 100 120 140 160 B a n k P h a rm a c e u ti c a l T e le p h o n e & T e le c o m m u n ic a ti o n s O il & G a s F o o d & (n o n )a lc o h o li c F o u n d a ti o n s & A s s o c ia ti o n s B u il d in g m a te ri a ls A u to m o ti v e i n d u s tr y IT C o s m e ti c T o b a c c o O th e rs Figure 2. Prominence of the Romanian organizations – planners of CSR campaigns M. Pătruț, C. Cmeciu - Romanian Campaigns on Corporate Social Responsibility – Signs of Glocalization 117 In order to provide an answer to RQ2, we have started from the main domains in which organizations have invested at a global level: environment, equal opportunities, investment in employees, community involvement, and product safety and quality. As observed in Table 3, the above-mentioned domains have been divided into subdomains in order to provide a more detailed image of the CSR campaigns at a local level. We should mention that in many cases a CSR campaign may focus on more subdomains because it has more objectives to be accomplished within a time interval. For example, the CSR campaign „Clujul are suflet”/ ”The city of Cluj has soul” (Transilvania Bank, 2007) succeeded in opening a day care center for disadvantaged young people, a center which was meant to provide them not only with food, shelter and financial support, but also with psychological counseling, personal and professional development programs, support for social inclusion. As observed (Table 3), the domain which triggered the economic actors’ attention more was the community involvement in problem solving (n=401), public health, social services, education and personal development, human rights, and non-governmental organizations’ development. On the second place, there are the CSR campaigns (n=96) focused on environment issue: pollution control, recycling of waste materials, environment improvement and green areas maintenance. Tabel 3. Romanian CSR campaigns – (sub)domains of interest Domain Subdomain Number of campaigns Percentage Environment (96 CSR campaigns) Pollution control 25 4,43 % Recycling of waste materials 23 4,07 % Environment improvement 23 4,07% Green areas maintenance 25 4,43 % Equal opportunity (18 CSR campaigns) Minorities, women, disadvantaged groups on the labor market 18 3,19% Investment in their employees (22 CSR campaigns) Health and safety of employees 10 1,77% Advice & training 12 2,12% Community involvement (401 CSR campaigns) Community-elected activities 13 2,30 % Public health 69 12,23% Assistance & social services 129 22,87% Education & Personal Development 92 16,31% Human Rights 16 2,83% Sports 22 3,90 % Tourism 9 1,59% Literature & Arts 14 2,48% History and heritage 12 2,12% Development NGOs 25 4,43 % Products (27 CSR campaigns) product safety and quality 27 5,03% The temporal evolution of CSR campaigns in Romania shows (Figure 3) that there was a timid start in 2004 (only 5 CSR campaigns posted on the CSR websites) but in time there was an increase by the end of 2010 (23 CSR campaigns posted on the CSR websites). The economic crisis has had an impact on the organizational budget for CSR campaigns and this is obvious in the decrease of the CSR campaigns posted on the CSR websites in 2011 (7 CSR campaigns) and 2012 (only 3 CSR campaigns). Then the number of CSR campaigns has increased in 2013 and 2014. BRAIN. Broad Research in Artificial Intelligence and Neuroscience Volume 7, Issue 1, March 2016, ISSN 2067-3957 (online), ISSN 2068 - 0473 (print) 118 Number of CSR campaigns in Romania 5 19 25 23 23 20 23 7 3 176 188 52 0 50 100 150 200 2002 2004 2006 2008 2010 2012 2014 2016 Number of campaigns Figure 3. The evolution of CSR campaigns in Romania (2004- 30.03.2015) To find out the most frequent types of CSR campaigns implemented in Romania (RQ4), we have started from Kotler and Lee’s typology (2005) of CSR activities: promotion of a cause, philanthropic actions, community volunteering, cause-related marketing, social marketing and socially responsible business practices. Taking into account the lack of information on the description of CSR campaigns provided on the CSR websites, we shaped our own typology of CSR campaign types (Figure 4) : monetary or goods donation, voluntary activities, cause-related marketing, sponsorships of special events, partnerships with public institutions, consultancy and training for internal and/ or external publics, information, education or awareness campaigns, philanthropic foundations within organizations. Types of CSR campaigns 8% 18% 20% 2%7% 13% 14% 18% Philanthropic foundation Monetary donation Voluntary activities Caus e-related marketing Sponsors hip Information/ education/ awareness campaigns Cons ultancy and training Partners hip with public authorities Figure 4. Types of CSR campaigns in Romania As Figure 4 shows, the most frequently used types of CSR campaigns in Romania are: employees’ and community members’ volunteering (20%), monetary or goods donations (18%), local or national partnerships with public institutions (18%), consultancy and training programs (14%), and information/ education/ awareness campaigns (13%). For the promotion of CSR campaigns (RQ5), Romanian companies used both the online and offline environment (Figure 5). Out of the 564 CSR campaigns that were analyzed, 56% campaigns were promoted only offline, 30% were promoted in both environments and 2% were promoted only online. 12% CSR campaigns were promoted neither online nor offline. This lack of promotion was either the investor’s desire to invest more money in helping the vulnerable groups or the immediacy of implementing urgent measures (the 2009 floods, for example). M. Pătruț, C. Cmeciu - Romanian Campaigns on Corporate Social Responsibility – Signs of Glocalization 119 Promoting CSR campaigns 30% 56% 2% 12% Offline and online promotion Only offline promotion Only online promotion Without promotion Figure 5. Offline and/ or online promotion of CSR campaigns in Romania The last research question (RQ6) focused on the prominence of the CSR 1.0 and CSR 2.0 tools used in the CSR campaigns promoted online (Figure 6). All of the 45% (n=243) campaigns used the website, as a CSR 1.0 tool, to promote their activities and used website title very similar to the CSR campaign titles. As CSR 2.0 tools, Facebook was the most frequently used (n= 125), followed by blogs (n = 124) and Youtube (n =56). Most organizations, which promoted their CSR campaigns online, chose both Facebook and blogs to make their events or the information about the campaign visible. Youtube was used to upload fragments from the events that took place in the CSR campaigns. CSR 1.0 and CSR 2.0 tools in CSR campaigns 45% 22% 23% 10% Websites Blogs Facebook Youtube Figure 6. CSR 1.0 and CSR 2.0 tools in CSR campaigns in Romania As mentioned in 3.2., at a global level, the hierarchy of CSR 2.0 tools used by the most profitable 500 companies in 2011 was the following: RSS posts, Embedded videos, Twitter, Facebook, Youtube , Blogs, and Podcasts (source: 2011 Global Social Media and CSR report on the FTSE Global 500). As observed, at a local level, the hierarchy is different: Facebook, Blogs and Youtube. The main reason lies in the increase of Facebook and blogs in Romania as means of self and organizational promotion. 5. Conclusions After the revolution, Romanian organizations have become aware that investing in local communities through CSR campaigns will bring financial benefits. Multinational companies investing in Romania have provided the global strategies on CSR activities, but Romanian organizations have adapted these global strategies to the local context. The banking sector is the BRAIN. Broad Research in Artificial Intelligence and Neuroscience Volume 7, Issue 1, March 2016, ISSN 2067-3957 (online), ISSN 2068 - 0473 (print) 120 most socially responsible both at the global and at the glocal level (Romania). The domains in which Romanian organizations implemented their CSR campaigns are: voluntary actions, donations and philanthropic foundations. Throughout the years, the promotion has moved from the offline environment to the online environment where CSR 1.0 tools, such as websites, and CSR 2.0 tools, such as Facebook, are the most frequently used. References : Abbott, W.F. & Monsen, R. J. 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