Corporate Social Responsibility as a Voluntary Initiative But a Mandatory Non-financial Reporting Link Between the Social and Financial Performance of Romanian Companies

Abstract

This chapter covers the issue of social responsibility in a double sense: a pragmatic research on how Romanian companies publish information on social responsibility and an empiric research on the connection between the social (CSR) and financial performance of companies (CFP). The conclusion drawn from the study of the official websites of 665 companies shows quite a low interest in CSR reporting. The link between CSR and CFP was only analysed for companies identified as publishing non-financial information. A linear regression model with a numeric endogenous variable (the turnover index, IT) and a dummy exogenous variable (CSR, with value 1 - for involvement in CSR projects; 0 - for non-involvement in CSR projects). The results of tests show a very weak connection between IT and CSR, with a slight trend to disfavour companies showing CSR-related concerns, compared to those who do not have such a focus.

Annex: Results of Quantitative Research

Field of activity	Total comp.	Comp_CSR		Comp_non CSR		Comp_ not investgtd
		No.	%	No.	%	No.	%
A—Agriculture, forestry and fishing	8	1	13	5	63	2	25
01 Agriculture, hunting and attached services	7	1	14	4	57	2	29
02 Forestry and forest management	1		0	1	100		0
B—Extracting industry	7	2	29	4	57	1	14
05 Extraction of high and low quality coal	1	0	0	1	100	0	0
06 Extraction of raw oil and natural gas	2	2	100	0	0	0	0
07 Extraction of metals	1	0	0	1	100	0	0
08 Other extracting activities	1	0	0	1	100	0	0
09 Service activities incidental to extraction	2	0	0	1	50	1	50
C—Processing industry	292	84	29	167	57	41	14
10 Food industry	29	9	31	18	62	2	7
11 Manufacture of beverages	10	4	40	6	60	0	0
12 Manufacture of tobacco products	2	2	100	0	0	0	0
13 Manufacture of textiles	9	1	11	7	78	1	11
14 Manufacture of clothes	38	3	8	23	61	12	32
15 Tanning and dressing of leather; manufacture of luggage, handbags, saddlery and harness n.e.c.	11	1	9	4	36	6	55
16 Wood processing, manufacture of wood products except furniture n.e.c.	6	4	67	2	33	0	0
17 Manufacture of paper and paper products	2	1	50	0	0	1	50
19 Manufacture of coke and refined petroleum products	1	0	0	1	100	0	0
20 Manufacture of chemicals and chemical products	7	1	14	5	71	1	14
21 Manufacture of basic pharmaceutical products and pharmaceutical preparations	3	2	67	1	33	0	0
22 Manufacture of plastic items	15	3	20	11	73	1	7
23 Manufacture of other non-metallic mineral products	7	1	14	6	86	0	0
24 Manufacture of basic metals	12	7	58	5	42	0	0
25 Manufacture of fabricated metal products, except machinery and equipment	10	2	20	6	60	2	20
26 Manufacture of computers, electronic and optical products	13	4	31	7	54	2	15
27 Manufacture of electrical equipment	16	6	38	9	56	1	6
28 Manufacture of machinery, tools and equipment n.e.c.	18	5	28	12	67	1	6
29 Manufacture of motor vehicles, trailers and semi-trailers	47	19	40	19	40	9	19
30 Manufacture of other transport equipment	13	4	31	8	62	1	8
31 Manufacture of furniture	18	2	11	16	89	0	0
32 Other industrial activities n.e.c.	1	0	0	0	0	1	100
33 Repair, maintenance and installation of machinery and equipment	4	3	75	1	25	0	0
D—Electricity, heating, gas, hot water and air conditioning supply	21	10	48	8	38	3	14
35 Production and supply of electricity and heating, gas, hot water and air conditioning	21	10	48	8	38	3	14
E—Water distribution; sanitation; waste management, decontamination activities	35	10	29	25	71	0	0
36 Water collection, treatment and supply	26	4	15	22	85	0	0
38 Waste collection, treatment and removal; recovery of recyclable materials	9	6	67	3	33	0	0
F—Constructions	23	6	26	13	57	4	17
41 Constructions of buildings	6	1	17	4	67	1	17
42 Electrical engineering	12	3	25	7	58	2	17
43 Special construction works	5	2	40	2	40	1	20
G—Wholesale and retail; Repair of motor vehicles and motorcycles	60	16	27	35	58	9	15
45 Wholesale and retail; maintenance and repair of motor vehicles and motorcycles	5	0	0	4	80	1	20
46 Wholesale, except for sale of motor vehicles and motorcycles	22	5	23	13	59	4	18
47 Retail, except for sale of motor vehicles and motorcycles	33	11	33	18	55	4	12
H—Transport and storage	48	9	19	37	77	2	4
49 Road transport and pipe-based transport	28	5	18	21	75	2	7
50 Water-borne transport	1	0	0	1	100	0	0
51 Air-borne transport	2	0	0	2	100	0	0
52 Storage and support activities for transportation	11	4	36	7	64	0	0
53 Mail and courier activities	6	0	0	6	100	0	0
I—Hotels and restaurants	13	3	23	9	69	1	8
55 Hotels and other accommodation facilities	7	0	0	7	100	0	0
56 Restaurants and other catering services	6	3	50	2	33	1	17
J—Information and communication	32	7	22	21	66	4	13
58 Editing activities	2	0	0	1	50	1	50
60 Television programming and broadcasting activities	2	1	50	1	50	0	0
61 Telecommunications	12	3	25	7	58	2	17
62 IT service activities	13	3	23	10	77	0	0
63 Computer service activities	3	0	0	2	67	1	33
K—Financial intermediation and insurance	23	8	35	12	52	3	13
64 Financial intermediation, except insurance and pension funding	18	6	33	10	56	2	11
65 Insurance, re-insurance and pension funding (except public insurance funding )	5	2	40	2	40	1	20
L—Real estate transactions	3	1	33	2	67	0	0
68 Real estate transactions	3	1	33	2	67	0	0
M— Professional , scientific and technical activities	22	7	32	10	45	5	23
69 Legal and accounting activities	1	0	0	0	0	1	100
70 Activities of (central) departments, central administrative offices; management and management consulting activities	5	1	20	3	60	1	20
71 Architecture and engineering activities; testing	7	4	57	3	43	0	0
72 Research and development	2	1	50	1	50	0	0
73 Advertising and market study activities	5	0	0	2	40	3	60
74 Other professional, scientific and technical activities	1	0	0	1	100	0	0
75 Veterinary activities	1	1	100	0	0	0	0
N—Administrative and supporting services	64	13	20	35	55	16	25
78 Workforce service activities	17	3	18	10	59	4	24
79 Activities of travel agents and tour operators; other booking and tourist support services	1	0	0	1	100	0	0
80 Investigation and project-related activities	28	4	14	16	57	8	29
81 Landscaping and building service activities	5	1	20	3	60	1	20
82 Secretarial activities, support services and other services mainly provided to companies	13	5	38	5	38	3	23
O— Public administration and defence; public social security	1	0	0	1	100	0	0
84 Public administration and defence; public social security	1	0	0	1	100	0	0
Q—Health and social work	6	0	0	6	100	0	0
86 Human health-related activities	6	0	0	6	100	0	0
R—Shows, cultural and recreational activities	5	0	0	3	60	2	40
92 Gambling and betting activities	5	0	0	3	60	2	40
S—Other services	2	0	0	2	100	0	0
95 Repairs of computers, personal items and household items	1	0	0	1	100	0	0
96 Other services activities	1	0	0	1	100	0	0
Total	665	177	–	395	–	93	–

1. Source: Authors’ processing