Republic of Serbia Ministry of Economy and Regional Development

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1 Republic of Serbia Ministry of Economy and Regional Development Serbian Agency for Development of Small and Medium-sized Enterprises and Entrepreneurship CSR in Serbia projects and initiatives Social Responsible Entrepreneurship for. SMEs BSEC / KAS, Moscow June, 2008 Ana Žegarac, Head of international cooperation Department

2 Definition of SMEs in RS Small enterprises: - Average number of employees up to 50 - Annual income less than 2,500,000 EUR - Value of assets is less than 1,000,000 EUR Medium-sized enterprises: - Average number of employees between 50 and Annual income 2,500,000 10,000,000 EUR - Value of assets 1,000,000 5,000,000 EUR

3 SMEs and Entrepreneurship in Serbia (total number of companies, ) 99% SMEs private entrepreneurs 63 % in total number of employees (average/small 5,3 and medium sized 124,7 employees) 57% of GDP

4 transportation real estate SMEs share in GDP other trade constructing manufacturing

5 Serbian Agency for Development of Small and Medium sized Enterprises and Entrepreneurship The Republic Agency was established by the Law on the Agency for Development of SMEs ( RS Official Gazette No. 65 from November 23, 2001) It is established with the basic aim to support (help, advise and protect) development and interests of SME sector, which should contribute to balancing of economic structure, invigorating of economic development and reviving of economic flows in the country.

6 Main activities Creation of enabling environment for SME development, Direct non financial support for SMEs (consulting, info, matchmaking, networking, facilitation of access to finance ) Preparation and realisation of educational programmes for trainers and for training of entrepreneurs and SME managers (trainings for unemployed,, ToT, mentoring...) Coordination of the Republic Network of regional agencies/centres centres (14 agencies, 8 offices) International cooperation Promotion of entrepreneurship Support for SMEs in the area of new technologies and support to their innovation activities (creating links between R&D, universities and SMEs)

7 Суботица Republic Network of Regional Agencies and Centres Кикинда Сомбор Шабац Нови Сад Сремска Митровица Зрењанин Београд Панчево Вршац Kragujevac Kruševac (Čačak, Kraljevo) Niš (Pirot, Prokuplje) Zrenjanin (Vršac, Pančevo, Kikinda) Zaječar (Bor, Negotin, Knjaževac) Užice Beograd Пожаревац Ваљево Неготин Novi Sad Subotica Ужице Чачак Крагујевац Бор Зајечар Novi Pazar Краљево Крушевац Ниш Књажевац Vranje Leskovac Прокупље Пирот Нови Пазар Лесковац Врање Sombor Šabac

8 Corporate Social Responsibility CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis as they are increasingly aware that responsible behavior leads to sustainable business success. (EU Commission Green Paper, 2001) Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. (Definition by World Business Council for Sustainable Development WBCSD)

9 Corporate Social Responsibility core areas Market People Environment Capital/assets Society/community

10 Corporate Social Responsibility core areas Internal view: External view: All actions and initiatives inside the company, e.g. code of conduct human resources management training of staff safeguarding of jobs environmental protection in the production risk management financial performance transparency safety at work etc Commitment and actions outside the company: business partners suppliers people society / community environment

11 Responsible Entrepreneurship The term responsible entrepreneurship denotes voluntary business strategies to achieve sustainable development (it was coined by UN environmental program UNEP) Responsible entrepreneurship means how to run a business in a way that enhances its positive contribution to society whilst minimizing negative impacts on people and the environment. It means the way in which entrepreneurs interact with their stakeholders on a daily basis: customers and business partners in the marketplace, employees in the workplace, the local community and the environment.

12 Responsible Entrepreneurs treat customers, business partners and competitors with fairness and honesty care about the health, safety and general well-being of employees and consumers motivate their workforce by offering training and development opportunities act as good citizens in the local community are respectful of natural resources and the environment

13 CSR in SMEs main challenges The challenges to a further awareness, dissemination and adoption of CSR practices among enterprises stem from insufficient : knowledge about the relationship between CSR and business performance (the business case ); consensus between the various parties involved on an adequate concept taking account of the global dimension of CSR, in particular the diversity in domestic policy frameworks in the world; teaching and training about the role of CSR, especially in commercial and management schools; awareness and resources among SMEs; transparency, which stems from the lack of generally accepted instruments to design, manage and communicate CSR policies; consumers and investors recognition and endorsement of CSR behaviours; coherence in public policies.

14 CSR in SMEs main benefits Strengthening company reputation and its brands Greater trust of investors and easier access to capital Minimized risk by improving connections with the local community Greater loyalty and motivation of the workforce Increased productivity and innovation Competitiveness and market positioning.

15 CSR initiatives and projects in Serbia Responsible Business Initiative Serbia (Smart Kolektiv, Fund for an Open Society, Serbian Chamber of Commerce) Introducing CSR, Smart Kolektiv Establishing CSR in Southeastern Europe-project for Serbia, Serbian Chamber of Commerce, German Federal Ministry for Cooperation and Economic Development, InWEnt ggmbh, ILTIS GmbH CSR Case studies Database of examples of the socially responsible practice, Government of Serbia Poverty Reduction Strategy Team, SIEPA Business leaders Forum Serbia leader s network for social responsibility, Smart, Institute for sustainable communities, USAID

16 Establishing CSR in Southeastern Europeproject for Serbia, SCC Started: 12 th June 2007 Duration: 20 months More then 400 companies 4 main components of the Project: CSR Award CSR Conferences, Workshops CSR Index CSR Newsletter/Bulletin

17 CSR Award (1) Original methodology has been developed Phases: Information and Public announcement for companies to apply for CSR Award Selection of applications 1 st Jury meeting Evaluation of applications (Part 1: questionnaire, Part 2: Example of good business practice) Coordination and checking of German partners 2 nd Jury meeting: selection of companies

18 CSR Award (2) Visits to the companies and auditing of the results verification Reports of the verification team 3 rd Jury meeting: selection of 5+5 and 3+3 companies Verification of German partners Final Jury meeting (with German partners ): presentations of finalists and final ranking and decision Final ceremony CSR winners!!!

19 CSR Case studies Database of examples of the socially responsible practice (1) Project started in August and finished in March The Government of Serbia PRS Implementation team and SIEPA with support of Smart Kolektiv Data base contains case studies of socially responsible activities of companies in Serbia (53-regional coverage) Covers all fields of CSR The CSR case studies data base will serve all the key players both as an important tool as well as a source of information CSR data base analyses and recommendations brought up CSR in focus as important tool for sustainable development

20 CSR Case studies Database of examples of the socially responsible practice (2) Some of the case study companies: BAT, Holcim, Galenika, Gorenje, Colliers International, B92 DELTA, Carnex, ComTrade,Hemofarm Philip Morris Int, Hewlett Packard, Japan Tobacco, Knjaz Milos Coca Cola HBC, MK Commercce, KPMG, Mercedes Benz Srbija

21 CSR Case studies Database of examples of the socially responsible practice (3) Social w ealthfare Local econom ic developm ent Environm ent Infrastructure Health and safety Science and education, schoolarship Hum anitarian activities Culture and art Education Sport Church 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1

22 CSR Case studies Database of examples of the socially responsible practice (4) Project provides recommendation for the Government: Establishing the coordination body for CSR in Government administration Development of CSR strategy Enforcement of the public dialogue on CSR among relevant stakeholders Social responsible companies included in creation of development policies Support to the sustainable development by introducing CSR in public administration (transparency, environmental protection, labor force rights, )

23 Business leaders Forum Serbia leader s network for social responsibility Established on June 4 th, 2008 (initiated by Smart, Institute for Sustainable Communities and USAID) Network of those companies which are ready on a voluntary basis to integrate social, ethical and environmental aspects into their everyday business operations over a long term (B92, Erste Bank, KPMG International, BAT, Pricewaterhouse Coopers, Coca Cola Hellenic, VIP mobile. Lafarge, Holcim signed an MOU) Business Leader s Forum serves as inspiration for other companies, stimulating positive changes and promoting best practices related to the business involvement in the society)

Serbian SME Agency- development, innovation and competitiveness of SMEs Entrepreneurial Service Legal and financial consulting Assistance in creation and revision of business plans Providing

24 Serbian SME Agency- development, innovation and competitiveness of SMEs Entrepreneurial Service Legal and financial consulting Assistance in creation and revision of business plans Providing information Access to financial institutions (Start up loans-fund for Development, Commercial banks, international credit lines ) Matchmaking (B2B meetings with foreign companies and investors) Internationalization Financial support for raising competitiveness

25 International Cooperation Cooperation and implementation of various projects with international organizations: JICA EU ( Cards, CIP,EURADA,CBC,EAR...) GTZ,EOMMEX SA SINTEF, BIP Norway UNIDO ITPO AECI,Spanish Agency for International Relations HELP, ATA/SPARK, ETF, UNDP, ILO, SDC, CIDA/CESO

Over 50 training modules for start up companies and SMEs (legal base of doing business, marketing, PCM, quality systems, intellectual property rights, etc) Education Education of the unemployed

26 Over 50 training modules for start up companies and SMEs (legal base of doing business, marketing, PCM, quality systems, intellectual property rights, etc) Education Education of the unemployed registered with the National Employment Agency and economic-technological redundant labor Education of entrepreneurs for the start ups, creation of business plan and business running Training of trainers in the field of entrepreneurship enabling institutions and individuals at the regional level Mentoring

Promotion International Trade Fair of Entrepreneurship BUSINESS BASE Participation and support to entrepreneurial fairs on regional and local level Promotional campaigns in

27 Promotion International Trade Fair of Entrepreneurship BUSINESS BASE Participation and support to entrepreneurial fairs on regional and local level Promotional campaigns in cooperation with the RN (promotion of banks, Register, EOT, SEMDAS project...) Workshops, B2B events, matchmaking, national and international conferences... SMEs News 10 issues 2,000,000 copies

Trade Fair Business Base The International Trade Fair of Entrepreneurship BUSINESS BASE was organised by the Belgrade Fair and Serbian Agency for the Development of

28 Trade Fair Business Base The International Trade Fair of Entrepreneurship BUSINESS BASE was organised by the Belgrade Fair and Serbian Agency for the Development of SMEs and Entrepreneurship Six events organized in Belgrade (September 2002 and 2003 and November-December 2004,2005,2006 and 2007) Business Base

29 Entrepreneurial library

30 REPUBLIC OF SERBIA Serbian Agency for the Development of Small and Medium-sized Enterprises and Entrepreneurship Contact us Topličin venac Belgrade Tel./faks: ;

Synergy with similar projects/initiatives in WBC countries

Synergy with similar projects/initiatives in WBC countries Project Acronym: WBCInno Project full title: Modernization of WBC universities through strengthening of structures and services for knowledge