Corporate Social Responsibility in the Polish reality

Theory and practice

A report from the Monitoring of Corporate Social Responsibility of the Largest Companies in Poland

Protest of inhabitants of Żurawlów (Lubelskie voivodship) against Chevron’s plans of shale gas extraction.

Corporate Social Responsibility in the Polish reality Theory and practice

A report from the Monitoring of Corporate Social Responsibility of the Largest Companies in Poland

Warsaw, 2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice. Grzegorz Piskalski, CentrumCSR.PL Foundation, 2015. Report published as part of projects mentioned: Monitoring of Social Responibility of the Biggest Public Companies The aim of the project is to increase the amount and enhance the quality of information materials related to Corporate Social Responsibility shared by the companies. The project is realized as part of Citizens for Democracy programme financed by EEA Grants. Dissemination of Corporate Social Responsibility as a Tool of Social Participation and a Standard of the Dialogue of Companies with Social Partners The aim of the project is to include social groups from the surroundings of the biggest Polish companies – including local communities – in the dialogue regarding the most important social and environmental aspects of their activities. The project is realised as part of the Civic Initiatives Fund Programme Publisher: CentrumCSR.PL Foundation ul. Grażyny 15, lok. 323-325 02-548 Warszawa Tel.: 0048 22 628 40 80

www.centrumcsr.pl www.facebook.com/CentrumCSRPL www.twitter.com/centrumcsrpl www.instagram.com/centrumcsr.pl

Friedrich-Ebert-Stiftung Representation in Poland ul. Podwale 11 00-252 Warsaw, POLAND

Phone: +48 22 831 13 03 E-mail: [email protected] www.feswar.org.pl

The text of the publication in available under the Creative Commons Attribution-NonCommercial 3.0 Poland (CC BY-NC 3.0 PL). Commercial usage of this report without written consent of the publisher is forbidden. The publication expresses only the opinions of the authors and cannot be identified with the official position of the institutions financing the project. Author: Grzegorz Piskalski Implementation of the monitoring: Marta Czapnik Text editing: Bartłomiej Kozek Tadeusz Joniewicz

English translation: Joanna Blangiewicz-Purgal [email protected], 501-155-858 Graphic project: Krzysztof Warszawski

Print:

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Cover project: Kajetan Łukomski

The material created in cooperation with:

IEH – Ethical Trading Initiative Norway Hausmanns gate 19 0182 Oslo, Norway Phone: 00 47 21 09 04 90 E-mail: info@etiskCOMMERCIAL SECTOR.no www.etiskCOMMERCIAL SECTOR.no/English

DNV GL Business Assurance Poland Sp. z o.o. ul. Łużycka 6e 81-537 Gdynia Phone: 0048 58 51 15 020 E-mail: [email protected] www.dnvba.com/pl

Printed in Poland Material for free-of-charge distribution. Material printed on paper complying with the FSC Certificate requirements. ISBN: 978-83-937969-5-3

TABLE OF CONTENTS INTRODUCTION

8

EXECUTIVE SUMMARY

10

1. WHAT DOES ‘RESPONSIBLE BUSINESS’ MEAN TO US?

14

1.1

BASIC PRINCIPLES OF RESPONSIBLE BUSINESS

15

1.3

STATE OBLIGATIONS REGARDING CSR 

18

1.4

NEW CHALLENGES FOR RESPONSIBLE BUSINESS

19

2. ANALYSIS OF INDICATORS – TO WHAT EXTENT DO MONITORED ENTERPRISES REFLECT KEY ASPECTS OF CORPORATE SOCIAL RESPONSIBILITY?

20

2.1

CSR ON CORPORATE WEBSITES

21

2.2

A PERSON RESPONSIBLE FOR CSR

24

2.3

CSR POLICY 

26

2.4

CODE OF ETHICS

28

2.5

SOCIAL REPORT

30

2.6

GRI (GLOBAL REPORTING INITIATIVE) 

32

2.7

CSR IN ANNUAL REPORTS

33

2.8

ENVIRONMENTAL PROTECTION 

34

2.9

SUPPLY CHAIN

37

2.10 HUMAN RIGHTS

39

2.11 CORRUPTION

44

2.11 CONFIRMED RESULTS

45

3. SECTORAL ANALYSIS – THE IMAGE OF PARTICULAR COMPANIES AGAINST THEIR COMPETITION 3.1

HOUSEHOLD APPLIANCES

46 47

3.2 CONSTRUCTION 

51

3.3

FINANCIAL SECTOR 

55

3.4

COMMERCIAL SECTOR

59

3.5

HORECA, CLEANING, SECURITY AND JOB AGENCIES

62

3.6

MEDIA, COMMUNICATION, IT

66

3.7

FASHION AND TEXTILES 

69

3.8

CHEMICAL INDUSTRY

72

3.9

WOOD AND PAPER INDUSTRY 

74

3.10 METAL, MACHINERY AND AUTOMOTIVE INDUSTRY 

76

3.11 FOOD INDUSTRY

80

3.12 HEALTHCARE AND PHARMACY

84

3.13 SPECIAL ECONOMIC ZONES 

89

3.14 RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING 

94

3.15 TRANSPORT AND LOGISTICS

100

3.16 MUNICIPAL SERVICES

104

4. STATE TREASURY COMPANIES 

107

5. PROJECT METHODOLOGY

113

INDEX OF COMMENTARIES: 1. CSR – a Fig Leaf for Corporations? (Aleksandra Antonowicz-Cyglicka, Polish Green Network – PZS)  22 2. Content in Polish – an Insurmountable Obstacle? (CENTRUMCSR.PL FOUNDATION)  25 3. Social Responsibility in Polish Business Practice (Włodzimierz Biel, Dominika Zielińska, DNV GL)  27 4. The Financial World’s Dark Side (CENTRUMCSR.PL FOUNDATION)  29 5. Polish Business Unprepared for Social Reporting (CENTRUMCSR.PL FOUNDATION)  31 6. CSR in the Retail Sector (Polish Chamber of Commerce)  32 7. Beautiful Pictures, Dirty Reality (CENTRUMCSR.PL FOUNDATION)  35 8. A Retail Empire Built at the Expense of Others (Edward Gollent, Against Exploitation – Biedronka)  38 9. Cheap Labour ( Lech Obara and Partners Legal Chancellery, Plenipotentiary of Persons Abused by Biedronka Supermarket Chain)  42 10. Game Over for Democracy? (Marcin Wojtalik, Institute for Global Responsibility)  43 11. New Technologies, Exploitation as Usual (CENTRUMCSR.PL FOUNDATION)  48 12. Developers Run the Town (CENTRUMCSR.PL FOUNDATION)  53 13. Stars, Small Print and CHF (Arkadiusz Szcześniak, Stop Banking Lawlessness Social Movement)  56 14. Slaves of the 21st Century (Krzysztof Świątek, Solidarność Weekly (No. 29, 2015))  60 15. Working for Peanuts! (Michał Kulczycki, Chair of NSZZ Solidarność Trade Union of Security)  63 16. Corpo-Babble for the Consumer (CENTRUMCSR.PL FOUNDATION)  67 17. Polish Trace in a Global Tragedy (CENTRUMCSR.PL FOUNDATION)  70 18. Lies and Great Emissions (CENTRUMCSR.PL FOUNDATION)  79 19. A Very Bitter Chocolate (Maria Huma, Buy Responsibly Foundation)  82 20. Long Queue for Public Money (CENTRUMCSR.PL FOUNDATION)  87 21. Promotion – One PLN Salary Rise! (Workers’ Initiative National Trade Union)  91 22. Drilling? No, Thanks! (Andrzej Bąk, Zielony Żurawlów Associtation)  96 23. How Much Does Energy Really Cost? (CENTRUMCSR.PL FOUNDATION)  98 24. The WEB OF Railway Companies (CENTRUMCSR.PL FOUNDATION)  102 25. Customer Is King? (CENTRUMCSR.PL FOUNDATION)  105 26. Non-financial Reporting and Its Enemies (CENTRUMCSR.PL FOUNDATION)  111

INDEX OF TABLES Table 1: HOUSEHOLD APPLIANCES  Table 2: CONSTRUCTION  Table 3: FINANCIAL SECTOR  Table 4: COMMERCIAL SECTOR  Table 5: HORECA, CLEANING, SECURITY AND JOB AGENCIES  Table 6: MEDIA, COMMUNICATION, IT  Table 7: FASHION AND TEXTILE  Table 8: CHEMICAL INDUSTRY  Table 9: WOOD AND PAPER INDUSTRY  Table 10: METAL, MACHINERY AND AUTOMOTIVE INDUSTRY  Table 11: FOOD INDUSTRY  Table 12: HEALTHCARE AND PHARMACY  Table 13: SPECIAL ECONOMIC ZONES  Table 14: RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING  Table 15: TRANSPORT AND LOGISTICS  Table 16: MUNICIPAL SERVICES 

50 54 58 61 65 68 71 73 75 79 83 88 93 99 103 106

ACKNOWLEDGEMENTS The preparation of this report was not easy and it would not have been possible without the contribution and selfless kindness of many people. Our thanks go to the authors of the comments who shared their knowledge with us and whose commitment inspired us to take action. We have been working with some of you for many years and we hope this to continue in the future. We would like to thank our partners DNV GL Business Assurance Poland Sp. z o.o. represented by Włodzimierz Biel and Dominika Zielińska and Per Bondevik of Ethical Trading Initiative Norway for supporting the project. Without their help, it would not have been possible to carry out the project in this way. Thank you to contributors of photographs which allowed us to illustrate the issues presented in the report and graphic designers Krzysztof Warszawski and Kajetan Łukomski who patiently ensured that our efforts received an appropriate graphic form. Our thanks also go to Łukasz Kraszyński, author of an Internet tool for illustrating monitoring results. We are particularly grateful to the employees of the monitored companies which appreciated the importance of our project, engaged in a conversation and confirmed the results of our monitoring. It is all the more important since the results were not always advantageous to them. We would like to particularly thank those companies which, inspired by our research, decided to publish data concerning corporate social responsibility and have thus proved that independent monitoring projects do make sense. We also send grateful thanks to our sponsors without whose financial support our monitoring would not have been possible. We are extending our thanks to the Stefan Batory Foundation (Citizens for Democracy programme) and the Ministry of Family, Work and Social Policy (Civic Initiatives Fund) for having faith in us. Grzegorz Piskalski dedicates this report to the memory of Antoine – a Friend of our Foundation and a visionary who selflessly helped us in difficult moments.

INT ROD U CT I O N

Big corporations have a huge impact on their surroundings. Employers greatly influence labour, life conditions and economic situation, corporations shape current consumption styles. Their representatives take an active part in the public debate and influence the Polish model of social policy and adopted solutions. They also affect the natural environment. The influence of enterprises on reality is so significant that instead of approaching them as powerless customers we should demand robust action and compensation for undesired effects of their activity. This is what corporate social responsibility was about originally, which together with the sustainable development principle assumes considering social and environmental aspects of business operation on par with economic aspects, postulating full accountability of enterprises in that respect. It is with growing concern that we observe the discussion on CSR being taken over and privatised by the business world. It has to be emphasised that social responsibility is not a private matter for corporations! The debate on CSR standards in Poland is increasingly moving away from the main European and global trend. As our report points out, enterprises define CSR in a random way, suited to their own needs. They have managed to impose their viewpoint and reduce the discussion on corporate social responsibility to charitable activity, thus distorting its meaning. They use it as an element of marketing and equate it with PR. All of this is happening under the guise of a democratic process with the participation of organisations creating the pretence of independence but which are actually financed by business. The voice of social partners is ignored and inaudible.

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The fact that companies do not care about them is understandable. However, what is problematic is the fact that Polish public administration has done little to include society in a real debate about the responsibility of Polish business. As a result, representatives of the third sector – trade unions, consumer organisations – withdraw from this area failing to see a place for themselves. Moreover, in our opinion, public institutions sometimes take action which is aimed at protecting corporations against the requirement to implement regulations concerning CSR. An example of this is involvement of Polish administration in limiting the scope of non-financial reporting and shortening the list of companies covered by this obligation. The Polish side created the so-called blocking minority during the work on the EU directive. Due to all these circumstances, companies still impose their form of communication withholding hard data without encountering any protest or critical comments. Nowhere in the world has CSR developed without the pressure of social organisations. We would like our report to initiate a broad discussion and force companies to become more transparent. We have also had a closer look at state-controlled companies, which should be an example to follow for commercial enterprises as far as good management practices are concerned. We have monitored 227 companies in Poland with the biggest range of operations. We have assumed the roles of customers who look for information on sustainable development on their websites. Because of this we did not include English-speaking services or documents and short declarations unsupported by specific commitments. We analysed whether companies conducted CSR

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

policy, published their codes of ethics, provided contact details of people dealing with social responsibility, made non-financial reports available and had policies associated with human rights protection and dialogue with stakeholders, among other things. Quantitative data is available in the first part of the report. Sometimes corporations which fulfilled all our criteria did not use them consistently in practice. We did not want to run the risk of presenting an incomplete picture. Therefore, the qualitative (descriptive) part of the report includes examples and comments providing a broader perspective for their activity. Our civic research was received by companies with surprise. Their representatives did not expect that companies could be subjected to an independent evaluation. Some of them were very enthusiastic about the results, particularly those companies which performed well in the research. Some companies tried to convince us that stakeholders do not expect to find such information so it made no sense to pub-

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

lish them. It was particularly surprising when such comments were made by representatives of global groups which did present detailed data on the social and environmental aspects of their functioning in their countries of origin. Others hesitated whether to confirm the results of our monitoring (every company received detailed information from us about their performance). They would often ask us whether they should pay for taking part in the research, just like for various certificates or diplomas which they receive, or rather, buy. In our opinion, the worst reaction was silence, which was an expression of total indifference. In such cases, all the lengthy documents associated with CSR could have easily ended up in a bin. During the course of the analysis (until March 2016), the companies can contact us and verify the results which we publish on the foundation’s website CentrumCSR.PL if they fulfil the criteria required by us after our report is published.

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EX EC U T I V E S U M MARY The report “Corporate Social Responsibility in the Polish reality. Theory and practice” is the result of civic monitoring of 227 of the most important companies operating in Poland over the period of 18 months. The nearly 130-page long document analyses 16 sectors with reference to 12 indicators key to corporate responsibility – from human rights to social reporting and measures against corruption. We have therefore verified 2,724 indicators. The team of the Foundation has not only studied the level of the companies’ declarations but also thoroughly analysed key social problems generated by Polish business – the report contains 26 expert comments. A combination of theory and practice, a bold analysis of both positive and negative sides of Polish business and exclusion of charitable contributions and philanthropic perspectives to concentrate on the analysis of the actual business model of firms are the factors attesting to the innovativeness and uniqueness of this publication. It constitutes the most comprehensive diagnosis of the current condition of CSR in Poland, rejecting ‘corporate speak’ and using language accessible to all.

ABOUT THE PROJECT The report concludes the project entitled “Monitoring of social responsibility of top Polish companies” conducted as part of the ‘Citizens for Democracy’ programme financed from the European Economic Area funds. The publication was also possible thanks to the support from the Civic Initiatives Fund programme as part of the project entitled “Popularisation of corporate social responsibility as a tool for public participation and dialogue of enterprises with social environment.” The initiative content was supported by international consulting company DNV GL Business Assurance Poland Sp. z o.o. and a Norwegian NGO IEH – Ethical Trading Initiative, which became the project’s partners. The research carried out using the method of civic monitoring was to achieve the following goals: increase transparency of CSR activity of top Polish companies, increase the quantity and quality of CSR materials made available by companies, establish a conversation with companies and exert

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pressure on them to persuade them to carry out CSR activity on a greater scale.

METHODOLOGY OF THE RESEARCH PART OF THE REPORT The selection of the companies was based on the following criteria: highest revenue, size of employment and the company’s importance to society. Apart from the sectors usually featuring in CSR rankings and listings, the study also considered special economic zones and companies carrying out utility services. This is the first study carried out by an independent organisation not connected to the world of business which selected companies for monitoring without asking their permission. The main part of the research consisted of the analysis of content published on companies’ website in Polish. The Internet is currently the basic source of information about corporate culture. 12 indicators were considered and we were interested in their presence or absence (+ / – ). The following issues were of interest to us: • • • • • • • • • • • •

Presence of CSR on the website; Presence of an employee responsible for CSR; Publication of CSR policy; Publication of a code of ethics; Publication of a social report; Use of the Global Reporting Initiative standard; Presence of CSR in annual reports of Warsaw Stock Exchange-listed companies; Consideration of environmental issues; Extension of responsibility to suppliers and subcontractors; Presence of human rights content on the company website; Anti-corruption measures; Acknowledgment of the results of the research.

Publishing materials in Polish was of key importance as it guaranteed domestic stakeholders wide access to information. We entered into direct dialogue with every company, requesting them to verify the results of the research. Before the report was sent off to print, the results of the monitoring had been confirmed by over 70 companies, i.e. over 30 percent of researched companies. They often provided extra data. Despite our best efforts, sometimes an indicator was missing, in which case we corrected results accordingly.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Apart from the report, the results of the study were presented with the aid of an interactive tool available on the Internet at www.screening.centrumcsr.pl.

HOW DO WE UNDERSTAND CSR? Our vision of corporate social responsibility is discussed at length in the introduction to the report. We are currently observing significant disappointment with this concept and a negative attitude towards it. The way this phenomenon has been promoted so far and the extreme commercialisation caused companies other than corporations to almost completely lose their trust in CSR. Environmental and consumer organisations or trade unions cannot see how social responsibility could solve their problems. They consider it a “fig leaf.” They do not believe that companies will voluntarily solve the problems which they created themselves. We agree with these statements – that is why we propagate a different vision of CSR. The comments of social activists whom we approached confirm our understanding of the situation. Making trade union activity difficult in special economic zones, protests of Swiss franc mortgage holders against bearing the costs of currency speculation risks, and the battle with Chevron over keeping the unique environmental features of the Roztocze region intact were just some of the issues mentioned by the NGO experts. The article on the Transatlantic Trade and Investment Partnership (TTIP) introduces the topic of global regulations for corporations. The comments serve the purpose of providing a local Polish context for CSR and confront the theory, i.e. what the companies declare, with practice, i.e. what really happens in the Polish economy. In our view, social responsibility does not include charitable contributions and philanthropy – it is important to distinguish between responsibility at business model level and sponsorship. It must not be considered a management strategy. The choice of a particular strategy is at the company’s discretion, for a wide range of stakeholders it is the result that counts. Strategies may be just a way of achieving a desired aim but their particular elements should be communicated for transparency (which was the subject of our research). According to the definition adopted by the European Commission, “CSR is the responsibility of enterprises for their impact on society.” Responsibility includes both the positive aspects of their functioning and the negative ones.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Social responsibility is not extended solely to optional activity – it is currently understood as a ‘smart mix’ of voluntary corporate initiatives, self-regulation and obligatory activity. The perception of corporate social responsibility in Poland would improve if enterprises moved away from defining it in an arbitrary fashion to adopting international definitions and binding solutions. Popularising sector initiatives (e.g. commitments associated with the treatment of sub-suppliers) and changing the dismissive attitude to people wishing to gain information on CSR activity may also help improve the relationship between business and society. Translating documents into Polish, starting a dialogue with stakeholders, popularising easy to verify standards and indicators or consenting to having most important aspects of CSR regulated by public institutions (both domestic and international) are all activities which would help enterprises not only improve their image but also render the strategy more transparent and friendlier to people and the environment. If these conditions were fulfilled, CSR would not only gain credibility in the eyes of the stakeholders but would also give complying companies an advantage over others.

TO WHAT EXTENT DO MONITORED ENTERPRISES REFLECT KEY ASPECTS OF CORPORATE SOCIAL RESPONSIBILITY? The criterion the enterprises found it easiest to meet was having CSR content on their websites, which 65.6 percent of them did. However, even this criterion was completely ignored by one third of companies. What draws attention is defining CSR in an arbitrary fashion, tailored to a company’s needs. The published information is vague, lacking in clear declarations and devoid of verifiable data. Companies still try to reinforce the image of CSR as being sponsorship and philanthropy since that is the main area of communications. Only 40 percent of utility services companies researched by us believe that they have something to say about their social responsibility. The list does not include the Warsaw public bus company Miejskie Zakłady Autobusowe or Katowice waterworks company Katowickie Wodociągi SA, among other enterprises. Also, these two companies did not fulfil any of the indicators researched by us.

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Some Polish branches of big international corporations also turned out to perform rather poorly, as they did not believe it to be appropriate to translate substantial body of work on CSR published abroad into Polish. Some companies worth mentioning in this context were Accor, BSH, Jabil, Fiat, Ikea Industry and Whirlpool. The subject of social responsibility was completely ignored by Polish companies which are treated by the media almost as some kind of national champions: Famur, Duda, Selena, Gołębiewski, Mieszko, Pesa or Wawel. Also, whole sectors important for the Polish economy such as the metal, machinery and motor industry or the electrical appliances sector did not perform well. In the metal, machine and motor sector only one of 19 companies (ArcellorMittal Poland SA) fulfilled all social responsibility indicators, while in the electrical appliances sector - none while three out of 12 companies did not carry out any CSR activities (Indesit, Jabil Circuit, Whirlpool Polska).

even though a few years ago it was involved with the Rana Plaza garment-factory collapse which we have reported on. Giants such as CCC, Gino Rossi, Redan or OTCF (a brand of 4F) do not do anything regarding this although they use Asian factories, just like the whole sector. The conditions of work at garment factories are described in a report by Buy Responsibly Foundation entitled “Sewn in Poland (Uszyte w Polsce).” Although the majority of the companies researched by us employ several hundred employees, only 22.4 percent of them have an employee responsible for CSR. Not a single such employee can be found in the whole utility services sector. The data shows that CSR is rarely the subject of management at the biggest Polish companies. If somebody deals with this subject at all, they are mainly marketing and PR specialists.

Our report also includes a company like Amazon, which does not reveal any information about itself – not even an address or a telephone number. It is classified under retail sector, which also did not perform well. Lack of CSR activities can be also observed on the Internet pages of Bonarka City Center, Empik Media & Fashion, Ruch SA or Silesia City Center.

The issue of supply chain is still misunderstood and underappreciated by Polish business – only 37 percent of the studied enterprises cared about the relationship with subcontractors and sub-suppliers. It fares worse than the presence of a dedicated CSR policy on Internet sites (45.3 percent) and slightly better than the presence of a code of ethics (32.1 percent) or issues associated with anti-corruption measures (34.8 percent).

Environmental issues are high on the list of priorities of corporate social responsibility. However, also this trend was ignored, particularly in the sensitive HoReCa, cleaning, security and job agencies sectors (42.8 percent) as well as the fashion and textile sector (30 percent). Out of 14 Special Economic Zones researched by us, only the one in Słupsk has published certain data in response to our request.

The availability of social reports turned out to be even worse – only 15.4 percent of enterprises decided to prepare it. Even in the fuel, raw materials and energy sector which performed best in that respect one could find companies such as PątnówAdamów-Konin power stations and a mining concern Kompania Węglowa which do not prepare such a report.

The presence of human rights issues on the website of 55.9 percent of the researched companies does not guarantee that we will find information on observing the right to associate in trade unions (in the Polish private sector participation in trade unions is the lowest in Europe and amounts to 5 percent) or caring about global supply chains. Companies treat this issue very randomly.

If a company does declare preparing social reports then it is almost certain (in 94.2 percent of cases) to choose to follow the voluntary indications of the Global Reporting Initiative. Unfortunately, this only concerns 35 companies. Out of 77 monitored companies listed on the Warsaw Stock Exchange, 49.3 percent mention social responsibility in their annual reports.

There are sectors in which this indicator has even poorer performance - in the food industry out of 15 researched companies only Animex – Amipol, Hortex Holding, Indykpol and Krajowa Spółka Cukrowa remembered to include it. As far as the clothing sector is concerned, LPP stands out as a positive example,

The passivity of business in this respect is surprising as non-financial reporting obligation for selected big companies introduced by an EU directive comes into force in Poland in 2016.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

SECTOR ANALYSIS – HOW PARTICULAR FIRMS PERFORM COMPARED TO THEIR COMPETITORS? Apart from analysing the indicators, we have also checked particular sectors of Polish economy. We have chosen 16 sectors and decided to discuss state-controlled companies separately. In sector comparison, the best result was achieved by the fuel, raw materials and energy sector. Over 90 percent of these companies include information on CSR on their websites and present their CSR policy. Nearly 85 percent also publish social reports. Companies like Energa, PGNiG, Lotos or KGHM Polska Miedź present a full package of information expected by us on their websites. The financial sector has also achieved good results. In 100 percent of companies, the topic of social responsibility was present on their websites and in stock exchange annual reports. A code of ethics appeared in over 80 percent of the researched financial companies, while sustainable development policy was present in over three quarters of them, which can create a positive impression of the sector. All of the indicators were present in the following companies: Provident Polska SA, BGŻ BNP Paribas, BPH, Bank Millennium, ING Bank Śląski and Grupa PZU. The media and communications sector also performed well. All of the 13 monitored companies had CSR content on their websites. Only three of them did not make any reference to human rights. In contrast, the performance of the Special Economic Zones leaves much to be desired. None of the 14 monitored zones published a code of ethics, anti-corruption declarations and supplier care documents. None of them has issued a social report either. Nine of them did not take any action related to their social responsibility. This is surprising considering the general criticism of labour conditions and abuse of public aid by special economic zones. The sector of utility services has not performed well either. Out of 15 companies from this sector, only three have a CSR policy. None of them declared any anti-corruption activity. These companies fulfil a spe-

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

cial function – paid by the state, often acting as monopolists, they provide essential services for the daily functioning of local communities. Although only two utility services companies failed to include references to the environment, we observed insufficient interest in issues such as use of renewable sources of energy, efficient waste management or saving water. Companies which did not include any information on CSR in Polish could be found in more than one sector researched by us. In the construction sector, there were four out of 13 (Marvipol, J.W. Construction, Polnord, Prologis), in the chemical sector - one out of 11 (Grupa Selena FM), and one out of ten in the timber and paper industry (Paged Meble), medical sector (Grupa Polski Szpital) or transport sector (Przewozy Regionalne).

POLISH REALITY Apart from analysing the results of monitoring, we have decided to confront company declarations with the opinions of experts, both from our foundation and civil society organisations. We remind everyone of the Biedronka chain’s continuing issues with its former employees and of how it treats its subcontractors, we write about the Volkswagen emissions scandal, show examples of greenwashing as carried out by ENEA and PGE and present excerpts from PLAY contracts impossible to decipher by consumers with examples of their complicated terminology. By constructing the report in this way we wanted to show that stakeholders’ access to the information on enterprises plays an important role. A lot of companies have not made this step yet. However, further steps are also needed – a constant monitoring of companies by employees, consumers or local communities and checking whether words are followed by actions. Nowhere in the world has CSR developed without the pressure from civil society organisations and Poland is no exception to this rule.

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WHAT D O E S ‘ R E S P O N S I B L E B USI NE SS’ M E A N T O US?

1

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

1.1 BASIC PRINCIPLES OF RESPONSIBLE BUSINESS Corporate social responsibility should not be understood only as management strategies. If it was, then civic society organisations would not be interested in it. The role of such organisations is not advising business on strategies. What counts for them are concrete results of the company’s activity but they also

expect detailed information on the activity aimed at preventing pollution, infringing employee rights and corruption. CSR is currently a combination of voluntary activity and national and international legislation.

CSR as defined by the European Commission: “CSR is the responsibility of enterprises for their impacts on society. Respect for applicable legislation, and for collective agreements between social partners, is a prerequisite for meeting that responsibility. To fully meet their corporate social responsibility, enterprises should have in place a process to integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders, with the aim of: - maximising the creation of shared value for their owners/shareholders and for their other stakeholders and society at large; identifying, preventing and mitigating their possible adverse impacts.” A renewed EU strategy 2011-14 for Corporate Social Responsibility, COM (2011) 681. A renewed EU strategy 2011-14 for Corporate Social Responsibility, KOM (2011) 681.

Human rights principles include among others the ban on forced labour, ban on children’s labour, ban on employment discrimination (related to sex, race, sexual orientation, nationality, age and others), ban on corporal punishment and mobbing. They guarantee the right to safe and hygienic work, right to organise trade unions, to associate, right to information and to freedom of speech. They are also about the right to decent pay which allows employees to support themselves and their families. Businesses should build upon a wide catalogue of norms and standards established by international organisations with a democratic mandate as well as upon domestic law. It is worth mentioning here the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, declarations and conventions of the International Labour Organisation, including the Tripartite declaration of principles concerning multinational enterprises and social policy. In the Polish context one must not forget about the Labour Code, Environmental Protection Law and the Constitution of the Republic of Poland. From December 2016, the EU will implement a Directive on revealing non-financial information, which introduces social reporting, one of the foundations of CSR, into the realm of hard legislation.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

An important role is also played by the so-called soft law documents, i.e. OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, as well as ISO 26000 norm. Businesses may find standards published by private organisations useful, such as the guidelines Global Reporting Initiative on non-financial reporting and Stakeholder Engagement Standard AA1000SES. It needs to be borne in mind that social responsibility of a company refers not only to its employees but also to subcontractors. Bigger companies should transfer their standards onto them and help them implement them, especially if this process generates costs. It is not enough for a company to provide appropriate working conditions to its direct employees and not to care about the situation of people providing outsourced services, e.g. cleaning or security. Enterprises should be obliged to carry out risk assessment associated with the possible breach of human rights so that they could not later use the justification that they had not been aware of the issue and that the breach was the result of an accident or an oversight. Another equally important task for CSR is creating space for a dialogue with stakeholders, i.e. everyone who is influenced by the business at the level

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of particular companies or employers’ organisations. Such stakeholders include e.g. customers, suppliers, administration, investors, local environment, etc. The influence can be positive (which we can observe with varying intensity), but it can also be negative. It is understandable because industry is always likely to interfere with natural environment, while trade will produce packaging. The most important thing is not to hide it. Corporations should have a comprehensive approach to issues associated with their operations. They must not concentrate only on good aspects and hide undesired effects, as this misinforms public opinion. Such a selective approach may lead to greenwashing – creating appearances of environmentally friendly activity to hide degradation of the environment from public opinion. This situation occurs e.g. when a big power company states in its adverts that its activity has a positive effect on the natural environment, i.e. it creates mountains, lakes and forests. The same principle concerns the social sphere and dialogue. It is not possible to discuss employee rights without including trade unions. It should not be possible to promote the good sides of a product without stating its side effects as is the case with medicines. Unfortunately, advertising is nowadays mostly about lifestyle communication rather than honest information about the features of products and services. Marketing propaganda will tell us that taking out a loan will give us amazing opportunities, a miraculous product will make us lose weight in three days, cosmetics will guarantee eternal youth and the latest car model will give us a sense of freedom. Anything that is disadvantageous is well hidden. This situation could be changed by independent consumer tests, which are rather rare. Corporations are not keen on having their products and their impact on consumers honestly evaluated. We respect the freedom of enterprises to choose a strategy of social responsibility. However, it would be good if it was associated with their profile, e.g. if they degrade the natural environment, they should compensate for the damage at least to some extent. A bank and a refinery face completely different challenges. That is why sector initiatives are so valuable. Corporations should not employ the principle of ‘one size fits all’, i.e. making one symbolic gesture compensating for all the negative impact they are responsible for. We

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believe

that

sustainable

should be based on standards. An accurate picture cannot be built upon materials provided by enterprises following randomly chosen schemes which include information selected by the companies. Such a flexible and selective approach results in companies displaying only the topics advantageous to them and hiding those which give a wider, sometimes unfavourable, picture of their activity. The data needs to be verifiable. It has to be standardised and unified so that consumers and public opinion can compare standards implemented by companies in this area. We believe that the state has an important role to play by propagating legal acts requiring companies to report on broadly defined socially responsible activity. We are of the opinion that in a medium-term perspective there is a need for an international convention which will be binding for corporations. Until now some companies have taken advantage of the institutional weakness of the countries in which they operate. The problem is particularly rife in developing countries. Enterprises must not exert pressure on the authorities e.g. by threatening to cut jobs or transfer their factories and blackmailing the state into adopting particular legislation. Enterprises should accept the right of external stakeholders such as civic society organisations, trade unions or independent media to critically evaluate their functioning. Their role is not to promote good practices of individual companies, as this is a job for the PR departments, but a meaningful analysis of the impact of their business activity on society. They have to have access to measurable, comparable information. Just like public figures, companies should be liable to judgement and they must not fight the freedom of speech. Unfortunately, situations in which companies try to gag unfavourable opinions by threatening people with lawsuits for alleged injury to their reputation are all too frequent. Sustainable development may contribute to the increase of a company’s competitiveness. However, this is not an essential condition. It is true that at the beginning responsible behaviour may increase costs but in the longer run it may result in considerable savings. An entity which will invest in a solution to a particular problem will bear lower costs of its elimination at a later date. For instance, if it degrades the environment to a considerable degree and will not attempt to repair the damage, it will be forced to pay huge amounts in damages (as the recent scandal involving Volkswagen illustrates) or its activity will result in the exhaustion of natural resources.

development

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

1.2 CSR AND CHARITABLE CONTRIBUTIONS Corporate social responsibility is not the same thing as philanthropy – the companies monitored by us seem to constantly forget about this fact. Enterprises often conflate these two areas, trying to outdo one another in communicating which projects they funded. We do not negate their involvement in noble initiatives. However, it needs to be emphasised that social responsibility should have presence in the core business activity and not appear only when some profit made from business activity is spent. Such activity may at best be defined as sponsorship. A company which avoids paying taxes in Poland and as such fails to contribute to the budget and medical and social care but which paid some money to a foundation, association, charity campaign or other initiative popularised by the media cannot be considered responsible. That is why our research excludes sponsorship and charitable contributions. It also needs to be pointed out that companies frequently autonomously decide on which social problems are worth solving and how. Managers or CEOs do not have the mandate to take such decisions. Corporate foundations cannot use moral blackmail and suggest that they are more efficient than the state and that they can in fact fulfil its role. They cannot become competition for civic society. Such activity should be decided about and carried out in partnership with public institutions and well-grounded social organisations. The third sector

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

in Poland is well developed and there have not been cases of companies having to run social campaigns, create or implement some programmes on their own. If companies feel the need to solve a local or global problem, then the best method of proceeding is to transfer the funds to a specialised entity and respect its autonomy and ways of working supported by a wealth of experience. Enterprises should reward their social partners accordingly to the work they put in to achieve the task. It is particularly important for the activity in this area to be transparent. The cost of a social project carried out by firms must not be higher than what is eventually received by a beneficiary. A beneficiary should not be treated as an element of PR activity. Failing to observe this rule negates the principles of voluntarism and disinterestedness and may at best be called a business arrangement. Transparency is also important for preventing bribery or unfair profiteering. Corporate foundations do happen to engage in corruption under the guise of educational activities, e.g. doctors whom they send to conferences in warm countries expecting the sale of their products in return. Social organisations working with business need to be very careful to maintain their independence and integrity. By donating funds corporations frequently attempt to shape public opinion and that way build their image. That is why NGOs need to be careful not to become a cheaper alternative to event agencies.

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1.3 STATE OBLIGATIONS REGARDING CSR According to the principle “Protect, Respect and Remedy,” propagated currently by the UN, the state is to protect human rights and make all the social actors including enterprises respect them. In case of irregularities, it is to take remedial action by providing efficient and effective functioning of administrative, state and justice mechanisms and supporting victims in demanding compensation or damages from enterprises. Alarmed by the situation in Poland, specialists emphasise that the standards remain unattained and victims are usually left alone and defenceless in the battle with a corporation which has an army of well-paid lawyers at its disposal. This must not continue. Business always has an advantage over citizens. It is the duty of those in power to provide citizens with some heNO. The central regulations on fair competition do not function as well as they should. The interests of consumers are in danger due to excessive influence exerted by some companies using their dominant position to gain advantage over their competitors. For example, big trade companies receive state subsidies and can take advantage of tax optimisation, while small companies cannot. Corporations must not drain the market. They have the duty to pay a fair price to their suppliers and provide decent wages to their employees. Situations in which a region specialising in a particular type of production suddenly finds out it has to drastically reduce prices or else hundreds of people will lose a source of income should not happen. All of this is done in the name of maintaining high profits of corporations. Public administration is a huge buyer of goods and services – according to the Public Procurement Office, the value of the Polish public procurement market amounted to PLN 230.4 billion in 2014, However, when choosing offers, social responsibility is often ignored with the lowest price treated as being most important. According to the monitoring of sustainable public procurement carried out by

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the CentrumCSR.PL foundation, only 1.8 percent of tenders in Poland included requirements on employment conditions, while environmental issues were present in every fifth tender. Such an approach is indeed shameful – particularly since the amendment to the act on public procurement of 2015 made it possible to consider also other criteria, e.g. social clauses guaranteeing decent working conditions, activation of groups threatened by social exclusion (such as disabled people, people struggling with addiction or refugees), and environmental clauses aimed at reducing the negative impact of the procuring institution on the natural environment (eco-friendly paper, biodegradable detergents, energy efficient electronic equipment, etc.). The state should make use of these tools in order to eliminate dishonest suppliers from the market and promote responsible enterprises. At present, spending public money is notoriously associated with creating social problems. People employed as part of outsourcing earn so little that they have to use the welfare system. We also have doubts regarding the effectiveness of EU projects, as part of which enterprises received financial aid for the implementation of CSR policy. Before the new projects become available, the state should evaluate the old ones and check if the money was spent wisely. Have they really changed something or has the money been spent without bringing lasting results? The media have a very important role to play in the monitoring of business standards. The relationship of journalists with the world of corporations is often too close. Having produced a favourable review, they do happen to be sent on so-called study trips. Instead of intervention and investigation, sponsored materials or inserts appear whose form suggests objective information. Setting standards in this area seems to be particularly important.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

1.4 NEW CHALLENGES FOR RESPONSIBLE BUSINESS The development of market economy and commercialisation of further areas of social life means that CSR standards will have to be implemented in new areas. It is difficult to mention all of these challenges but it is worth mentioning a few more important ones. One of the burning issues is the excessive privatisation of areas which should be the domain of the state but which due to overdone marketization are taken out of public control. One example is the creeping privatisation of medical health care reducing the access of citizens to services and raising health care costs. A huge challenge is access to legal aid, the high costs of which leave citizens alone in the battle with the corporate machine over consumer or employee rights. There is a similar situation with the privatisation of services associated with technical maintenance of public utility buildings or security, where such activities are transferred onto private cleaning companies or security agencies due to cost savings. The fact that outsourcing is so widespread with tendered contracts being won by those offering the lowest price promotes socially irresponsible companies which are not able to guarantee decent working conditions to their employees and services at an acceptable level to the taxpayers. Citizens’ privacy protection which is notoriously abused by business should also be mentioned in this context. Spamming mailboxes with offers of wellknown brands, profiling adverts or geolocation allow corporations to know nearly everything about us. They can even attempt to manipulate our behaviour and influence consumer decisions. Another area is the fulfilment the promise of combating climate change. Media and political discourse regarding this matter has been largely taken over by big power

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

companies imposing their solutions and undermining the rationale for a decentralized power sector. It can be said without great exaggeration that negating global warming has become the official approach of the Polish mining and power sector which spends considerable amounts of money from public funds to lobby in this area both in Poland and abroad. This phenomenon has surfaced recently during a public debate on mining shale gas in Poland using the dangerous method of fracking or when discussing the construction of a nuclear power station in Poland. It is also worth mentioning preventing excessive liberalization of trade, an extreme example of which is the secretly negotiated treaty on the Transatlantic Trade and Investment Partnership concerning a free flow of goods, services, capital and investments between the EU and the USA. Its adoption may lead to a total erosion of the European social model and brutal exertion of lower costs of production or quality of employment in Poland by corporations, made under the guise of battling non-tariff barriers to trade. European decision-makers have no intention of revealing the content of the negotiated agreement to public opinion before the document is signed and many sources point out that it is dictated by the lobbyists of multinational corporations. Another priority issue is genetically modified food. Its manufacturers emphasise its benefits and try to convince public opinion that there is no going back. Among the challenges we need to also mention animal testing for medical purposes and excessive consumption of meat – we produce and consume much larger quantities than we need. There is also the need to continue the fight with inequality between men and women which presents itself mainly in the gender wage gap.

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2

A NA LY S I S OF I NDI CATOR S – T O W HAT E XTE NT DO M O NI T O R E D E NT E R PR I SE S RE F L E CT KE Y ASPE CT S O F CO RP O R AT E SO CI AL RE S P O N S I B I L I TY ?

As part of our analysis, we played the role of stakeholders wanting to check declarations of enterprises on their social and environmental responsibility. In order to do this we used company websites, a basic source of information which at the same time is accessible to all. We have chosen 227 companies. The selection criteria were: revenue amount, number of employees and something we have defined as importance of the company to Polish consumers and public opinion, i.e. the range of its impact on social and the natural environment, market position and importance of provided services. We have divided the companies into 16 sectors. Between October 2014 and December 2015 we carried out two research cycles. Our analysts researched company websites according to their compliance with the indicators defined in the project methodology. We were looking for a CSR-dedicated part of the website, contact details to a person re-

sponsible for CSR, a published CSR policy, a code of ethics, a social report (and if there was one whether it complied with the GRI standard), we read all companies’ annual reports checking if CSR activities were reported on, we were looking for declarations regarding the environment, human rights, extending responsibility to subcontractors and suppliers and declarations of willingness to tackle corruption. We tried to confirm the results with the representatives of the monitored companies, which constituted a separate indicator. At this stage we checked the presence of information on the website on a ‘Yes or No’ basis. Every company received individual results of the study by email and a request to verify them. However, irrespective of whether a company has replied or not, the results were made public using a specially created Internet tool available in our Internet service. Full research methodology is available in the appendix to the report.

2.1 CSR ON CORPORATE WEBSITES A website is the main communication channel, which should include information on sustainable development of a given company. It’s a first port of call for stakeholders looking for relevant content. Its range is also the most far-reaching and makes it possible to evaluate to what extent a given issue is important to a company.

results were obtained by utility services sector (40 percent) and special economic zones (only 21.4 percent).

The performance of this indicator was one of the best in our research. It is worth pointing out that according to the methodology we adopted, its fulfilment was very simple – it was enough just to include any information on social or environmental involvement of the corporation, hence the high result.

Tabs devoted to social responsibility have various names. Sometimes they are called plainly “Social responsibility”, “CSR” or “Sustainable development” but also “Our mission,” “Our vision,” “Quality Policy,” “Environmental protection,” “Social work,” “Code of Ethics,” “Sponsorship” or even “Sustainable mobility.” There are plenty of other examples. A stakeholder can make an educated guess about where to look for data of interest to them. However, using standardised terms would certainly make this task easier.

As many as 65.6 percent of companies had CSR-related content on their websites. Only 34.4 percent completely ignored this issue. The best results were achieved by the financial sector, as well as media, communication and IT sectors, where 100 percent of the researched companies declared an interest in sustainable development. The fuel, raw materials and energy sector also performed well (92.3 percent), as did health care and pharmacy sector (90 percent), timber and paper sector (80 percent) and chemical sector (72.7 percent). The worst

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Some companies devote a separate area on their website to this issue (a sub-page, a tab), others only signal this dimension of their operations.

One could think that was a secondary matter for the research. On the contrary! This tendency clearly illustrates how many definitions of social responsibility are created by companies for their own use. By choosing a particular name they indicate which aspect they concentrate on.

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To a large extent, companies try to perpetuate the idea that CSR is mainly about sponsorship activities. In this way they incorporate this issue in the realm of PR, with other key CSR topics being ‘smuggled through’ in other tabs. In this way, companies impose their viewpoint on the sustainable development discourse. Finding all the information about social involvement of a company requires a lot of patience. An example of that can be found in the CCC SA group. Under the heading called simply “CSR” it publishes information on promoting professional sports groups, e.g. a cycling team. A short note on popularising sustainable economic growth and considering aspects of environmental protection when fulfilling investments can be found in the “Mission/Strategy” tab. Finally, in the tab “CCC as an employer” one can read “We employ over 6,000 employees in Poland, the Czech Republic and Slovakia on standard job contracts.”1 The information published by corporations is mostly vague, lacking in clear declarations and devoid of hard verifiable data. In many cases we 1

http://COMPANY.ccc.eu/pl/3,relacje-inwestorskie.html, accessed: 16.10.2015.

cannot check if some activities were carried out, we must take the company’s word for it. There are also sweeping statements like “we care about the environment” but with no details given. Some companies only pretend to take some action. Their websites have tabs related to responsible business but the information is in English. An example of this is Hilton Worldwide which has a well-developed ‘Corporate responsibility’ section on the Polish website (‘Corporate responsibility,’ ‘Creating opportunities,’ ‘Strengthening communities,’ ‘Celebrating cultures,’ ‘Sustainable living conditions,’ ‘Partnership’)2. At first sight, one has an impression that the corporation has a comprehensive policy regarding this matter. Disillusionment comes quickly though. No matter which tab we click on, we get transferred to a website in English. This approach to Polish stakeholders is rather disrespectful. Some companies go even further and do not provide Polish versions of their websites, like Amazon which having started its operations in Poland did not see the need to publish any information about CSR in Polish. 2

http://pl.hiltonworldwide.com/, accessed: 16.10.2015.

CSR – a fig leaf for corporations? Aleksandra Antonowicz-Cyglicka Project Manager of “Action for Global South”, coordinator of Polska Zielona Sieć (Polish Green Network, PZS) work on the impact of international financial institutions supporting the private sector. The aim of the concept of corporate social responsibility (CSR) was originally to make business more sensitive to objectives other than generating profits. It seems that CSR has become a perfect fig leaf for the private sector. The human face of business with environmental awareness and sustainable development focus has also got another face – the main activity which is focused on maximising profits without considering social or environmental costs, paying taxes or transparency. This other face of business tends to be hidden and treated as a private activity and a private matter. However, due to the dominance of supranational corporations operating in many remote parts of the world, it is this area that has a significant influence on reality. Thanks to the new paradigm of including the private sector in global development, businesses receive big public funds in the form of loans or guarantees from development banks. Loans from the European Investment Bank, the European Bank for Reconstruction and Development and Asian, African or domestic development banks (e.g. the Polish BGK) are an attractive way of building supranational powers. Another solution are Public-Private Partnerships. The monitoring of subsidised investments shows, however, that public funds do not guarantee positive results. And that is no longer a private matter of the richest few percent. It is a matter of determination and effectiveness of people, whose living conditions are affected by the activity of big corporations. It is a duty of the governments of the countries

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

in which these companies function and the countries which support them with their taxpayers money. Finally, it is a matter of consumer responsibility, which the responsibility of us all. The standards introduced by the UN guiding principles on business and human rights and OECD’s Guidelines for Multinational enterprises on socially responsible business are impossible to enforce. Individual attempts to create law obliging companies to operate transparently (the American Dodd-Frank Act, the EU Accounting Directive or the European Commission’s regulation on self-certification and disclosure of information on the supply chain of “bloody minerals”) were not strong enough to bring back the balance of power between business and the majority of the world3. We are witnessing a situation in which corporations design the world with public funds without control or legally binding standards of operation. In return they offer CSR to the world. The problem with CSR is that it does not promote business which is not harmful to people and environment but instead it just takes attention away from the uncomfortable aspects of its activity. Thanks to media promotion everybody knows about the philanthropic activity of the Kulczyk Foundation managed by Dominika Kulczyk who is at the same time responsible for corporate responsibility policies, social activities and international relations at Kulczyk Investments. But who has heard about the problems of the inhabitants of south Tunisia caused by the activity of mining company Winstar Tunisia B.V., a subsidiary of Serinus Energy Inc. from the portfolio of Kulczyk Investmets registered in a Luxembourg tax paradise? With the aid of a loan provided by the European Bank for Reconstruction and Development in 2013, Serinus Energy Inc. invests in exploration and production of oil and gas in the south of Tunisia. Local and European NGOs point out that an aggressive mining industry in a closed military zone in the south of the country does not bring economic benefits to the local community. On the contrary, it blocks the potential sustainable development of these areas and exacerbates the existing problem of scarce water supply (the mining industry requires huge amounts of water) and may lead to a plunder of natural resources. Additionally, due to the operation in a closed military zone, there is no public control over what happens at Winstar’s licenced sites. However, hardly anyone knows about it because this is that private activity, a private matter. And that is why CSR has to disappear so that business yet again has one face, more susceptible to public control. 3

More on the issue of public support for the private sector operating in the Global South: http://globalnepoludnie.pl/Broszura-Sektor-prywatny.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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2.2 A PERSON RESPONSIBLE FOR CSR One of the foundations of socially responsible business is engaging in a dialogue with stakeholders. It is important for the stakeholders to be able to directly contact the company in case of doubts or if they wish to get more information. Contact should not be limited to matters associated with sales or post-sales services. Giving stakeholders an option to contact somebody confirms that the matter of sustainable development is treated seriously by the corporation. The simplest and most logical solution is providing a direct phone number or e-mail address of a particular employee dealing with CSR. Written communications have a more binding character, obliging the receiver to respond. It is important for the contact details to be personalised. Preparing a message for an identified person is completely different than writing to an undefined recipient. Unfortunately, the results associated with this indicator are poor. The current model of communication is generally dictated by the rules defined by the companies themselves. In the majority of cases, we deal with their monologue in the form of communiqués published on their websites, social networking sites and in media. This limits the access of citizens to important corporate social responsibility matters, giving priority to sponsorship declarations and marketing activity. A direct contact to a CSR specialist was provided by only 22.4 percent of companies. Some of them like Enea4, despite having an extensive strategy 4

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https://www.enea.pl/pl/grupaenea/odpowiedzialny-biznes/kontakt , accessed: 19.10.2015.

on sustainable development, publish only a general e-mail address of the CSR department without providing the names of individual employees. The best result in that respect was achieved by financial companies, where 64.7 percent publish an e-mail of a person responsible for CSR. A similar approach is taken by 53.8 percent of companies from the fuel, raw materials and energy sector and 50 percent from the health care and pharmacy sectors. Special economic zones and utility companies again achieved the worst results, with 7.1 percent and 0 percent respectively naming their CSR contact. In general, company websites tend to provide the details of spokespeople or PR specialists. One can suppose that they are responsible for sponsorship as well but it is not clear whether they are responsible for the whole extended area of CSR. Sometimes corporations argue that providing contact to their foundation was the same as giving contact details of their CSR department. However, if a company foundation deals with fundraising for children’s causes, it is hard to say whether it will not have a problem providing trustworthy information on anti-corruption measures or observing human rights in the supply chain. Making it difficult to access information or ask a question is a particularly dishonest approach nowadays as enterprises have no problem interfering with our privacy. Every day they bombard us with hundreds of adverts, spam our mailboxes, get our mobile phone numbers and call at all hours. However, when we expect to get something in return, it turns out that reaching them is an enormous challenge.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Content in Polish – an Insurmountable Obstacle? CENTRUMCSR.PL FOUNDATION Corporations define the framework of open communication with the business and social environment according to their own needs. From our point of view, a website in Polish is a key source of information about corporate activity. An example of this may be Amazon, an e-commerce giant. Although it opened three enormous logistics centres in Poland, it has neither a website in Polish (only an independent fanpage and a website devoted to recruitment www.amazon-operations. pl) nor does it provide any contact details. Only the addresses of its offices can be found on the Internet. Access to the company has so far been possible only through temporary work agencies, which were outsourced to recruit a few thousand employees (about 9,000 according to estimates5). After making a few phone calls it turned out that none of the representatives of the agency had a direct number or an e-mail address to the Lower Silesia or Greater Poland branch. The hotline dedicated to the company has been closed down. Corporate policies tend to increasingly diffuse responsibility. Supply chains are constituted by people who are not part of the company, so they cannot directly represent it or speak on its behalf. Lack of contact to a local branch forces to use the company’s foreign websites (mainly in English), which can be inaccessible for a significant number of stakeholders. Another frequent practice of international concerns is giving access to CSR content only in English (e.g. Hilton Worldwide) and publishing social reports without a Polish translation (e.g. Samsung). This practice significantly narrows the access to key information on corporate impact on local and social environment, making it impossible for consumers to make conscious choices based on verifiable data. Although there is a growing interest in sustainable products and services in Poland, companies do not publicise these aspects of their activity frequently enough. Internal corporate privacy policies tend to limit direct contact with corporations. This means that despite the declarations of being open, they do not engage in a social dialogue with the stakeholders. They rarely open hotlines but tend to provide a general, depersonalised contact to employees who are highly unlikely to have specialist knowledge on the activity of the corporation. Companies still believe responsibility and sustainable development to be part of a company image, which is why they use PR specialists and spokespeople to spread the word about their broadly defined philanthropic work. Some companies do not even provide an e-mail address which seems incomprehensible in the digital age. Contact forms, which do not allow senders to choose the recipients, are becoming increasingly popular. What is interesting is that corporations make it difficult for the clients to initiate contact but they initiate it themselves through various adverts whose numbers steadily grow. At the same time, more and more of them use aggressive marketing. Communication strategies are not suited to the needs of stakeholders often enough, as businesses do not recognise them. This situation illustrates an increasingly widespread problem of information asymmetry. Contact with corporations is only possible on their own terms. Companies communicate mostly about matters which are convenient from the point of view of PR but do not include the whole impact which they have on the social and natural environment.

5

http://www.regiopraca.pl/portal/rynek-pracy/miejsca-pracy/amazon-poszukuje-pracownikow-w-polsce-oferty-pracy-poznan-wroclaw, accessed: 10.10.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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2.3 CSR POLICY A positive mark was given by us to companies which include their CSR policies on their websites, i.e. they declared their interest in corporate social responsibility as well as social and environmental issues. However, their declarations had to go beyond sponsorship and philanthropy. 45.3 percent of 227 researched companies complied with our requirements. The highest number of companies fulfilling this criterion came from the fuel, raw materials and energy sector (92.3 percent). Grupa Lotos declares its responsibility “for the product, toward employees, business at large and the capital group”6. It provides detailed descriptions of each of those areas and states what activities it carries out toward particular stakeholder groups. Additionally, it makes reference to “A dictionary of social terms” which defines entries such as human capital, an 6

NGO and distinguishes similar terms like sponsorship, sustainable development, corporate social responsibility and corporate social engagement. As was the case with the majority of other indicators, the worst performance was noted by fashion and textiles (20 percent), HoReCa, cleaning, security and job agencies (19 percent) and special economic zones (0 percent). The electrical appliances sector did not perform very well as it achieved 33,3 percent. A positive mark was only given to LG Electronics, Samsung Electronics Polska SP z o.o., Manta S.A. and Sharp Electronics (Europe) GMBH Spółka z o. o. In many cases the information on CSR was very brief. Some companies declared that their activity observed the principles of corporate social responsibility or environmental awareness but failed to publish any data supporting these statements.

http://odpowiedzialny.lotos.pl/, accessed: 16.10.2015.

Open cast mine in Turów (Lower Silesia) owned by the PGE corporation. In one of its advertising campaigns it stated that it “Creates electricity, mountains, lakes and forests”.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Social Responsibility in Polish Business Practice Włodzimierz Biel, Country Operations Manager Dominika Zielińska, Quality Manager & Business Analytics. DNV GL Business Assurance Poland Sp. z o.o. Changing market awareness and adjusting to new conditions is always a long-term process, especially when compliance with standards is not required directly by legal regulations or specific requests from customers. This has been the case with CSR so far. At the same time, EU regulations increasingly emphasise sustainable development requirements e.g. through the non-financial reporting obligation for public interest entities following from the 2014/95/UE Directive. For about 6,000 companies in Europe and a few hundred in Poland such reporting will no longer be just good practice as it is now but will become a legal requirement. Similarly, in local environments, CSR is promoted by including sustainable development principles in public procurement tenders, which may with time become an accepted formal requirement. With the development of civil society in Poland and increased transparency of companies, market participants and society at large will increasingly expect business interests to respect interests of other stakeholders thus creating shared value. That is why we strongly believe that CSR matters will be implemented in the core of a business, deeply ingrained in all company activities – from strategic issues, through communications and reporting up to daily operations taking into account the expectations of stakeholders. We support our clients in reaching better business results while at the same time respecting the natural environment, increasing safety and respecting social values. We are involved in promoting the idea of CSR by participating in organisations such as United Nations Global Compact, WBCSD (World Business Council for Sustainable Development), Red Cross, World Wildlife Fund, Sustainia and others. We have been promoting this topic among Polish entrepreneurs for over 10 years through i.e. training on CSR and promoting ISO standards development. Particular ISO norms refer to the expectations of the selected, most important stakeholders of the company: ISO 9001 / ISO 27001 for Clients and Consumers, ISO 14001 for the environment, OHSAS 18001 for employees, ISO 22000 for consumers. Seeing how important it is to raise awareness, DNV took an active part in the work on the publication of ISO 26000, the first comprehensive sustainable development norm. Although this norm is not a standard which could lead to certification, it is a set of good practices on how to implement the principles of social responsibility and can be a perfect guide for conscious representatives of the corporate world who want to increase their competitiveness in a changing environment. Together with CentrumCSR.PL we have also prepared a sustainable development manual commissioned by the Ministry of Economy. We notice that our clients face increasing challenges with objectives and risks associated with environmental, social and governance (ESG) issues fulfilling the idea of CSR. During the audit of management systems using DNV’s unique method of Risk Based Certification, both our clients and we ourselves focus more and more on issues from the border of financial and non-financial impact areas. These are important for the effectiveness of business processes being carried out and development decisions taken by companies. The pace of the systemic engagement of enterprises in the subject of sustainable development depends on many factors, e.g. pressure of legal and social environments, sector standards in the increasingly global business environment, awareness of future trends and decisions about competitive position (it is the company which decides whether it wants to be a leader or a follower). We also notice that due to requirements and enquiries coming from global supply chains, an increasing number of small and medium enterprises adjust their businesses to meet higher environmental and social standards, which can be seen through the rise in ISO 14001 and OHSAS 18001 / PN-N-18001 certification. Nowadays, more and more global corporations and Polish companies tend to evaluate their suppliers taking ESG issues into account. For the time being, apart from a few sectors like the power or construction sector, the evaluation is not treated as a critical parameter – it rather allows a supplier to rank higher. However, with time, it can be expected that some CSR aspects will be treated as a “ticket to trade”, just like possessing an ISO 9001 norm certificate was at the time of Poland’s accession to the EU.

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2.4 CODE OF ETHICS Put simply, a code of ethics is a collection of behavioural norms which a given corporation accepts and requires. It makes it possible to transparently determine the most important values for a given company and rules it employs while making decisions – both business ones (e.g. concerning the choice of contractors) and social ones. It often includes rights and obligations of employees, thanks to which a person starting employment in a given company understands which behaviours are allowed (e.g. right to associate, right to decent pay) and which are punished (e.g. gender discrimination or corruption). It contains not only standards binding inside the corporations but also those put on the collaborations and relationship with stakeholders. From the point of view of the study’s methodology, publication of such a document was an important aspect as companies received positive marks in many other categories, e.g. those associated with environmental protection, supply chain and human rights. Polish enterprises do not seem to see the point in creating such documents. Only 32.1 percent of the companies had them. Financial sector companies performed the best in that respect (82.3 percent). Only Aviva, GK PKO BP S.A. and mBank S.A. from this segment did not have such a code. The result of the fuel, raw materials and energy sector was 69.2 percent. Compared to this, food companies fared rather poorly, with only one in 15 companies having such a code (6.6 percent). The fashion sector had a similar result (10 percent). Once again, the worst result of 0 percent was achieved by special economic zones. Similarly to other indicators, we did not include documents written in foreign languages as in our opinion they are useless for Polish stakeholders. Some companies use the fact of having a code of ethics for image-building activity, like Provident Polska S.A. which incidentally had been heavily criticised i.e. for charging for the “money to your door service”. As much as companies publish codes of ethics on their websites, they do not reveal how they were created. Were they consulted with employees or experts? Are they the result of an independent board

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decision? Or maybe they were created in collaboration with a consulting or PR company? Very few companies provide contact details of an employee who deals with ethics and who could receive notifications of irregularities. One of the few exceptions is Bogdanka whose website provides the name, surname and e-mail address of a spokesperson. “In order to facilitate communication with the Spokesperson for ethics we are launching direct communication channel via the company website and additionally through correspondence boxes located in the pithead buildings of Bogdanka, Nadrybie and Stefanów mines. These channels are for notification of any breaches of the Code and other important ethics-related matters not featured in the Code and for offering suggestions on how to improve company procedures. Suggestions and reports addressed to the Spokesperson for ethics will be treated as confidential”7 – the company declares. A different strategy was adopted by Grupa Lotos S.A. which does not provide a telephone number or an e-mail address but instead collects information about breaches using a detailed contact form. The field with the full name of the person breaching the code is obligatory. It is also possible to provide the person’s job title, date and place where the event took place as well as its description. There is an option to attach a file with evidence and provide details of people who could have witnessed the event. Anonymity is granted until the end of the internal preliminary investigation procedure. However, if the company believes that the matter merits further official investigation, anonymity is no longer guaranteed. Although we understand the corporation’s motivation, we are afraid this disclaimer may discourage people from whistleblowing. “Grupa LOTOS S.A. reserves the right to make contact to verify the notification and receive further information and to provide relevant state authorities with the details of the person submitting the notification if a need arises”8 – the company explains.

7

http://www.lw.com.pl/pl,2,s343,kodeks_etyki.html, accessed: 16.10.2015

8 http://odpowiedzialny.lotos.pl/1073/nasza_odpowiedzialnosc/w_biznesie/kodeks_etyki, accessed: 16.10.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

The Financial World’s Dark Side CENTRUMCSR.PL FOUNDATION Although financial institutions rank highest in our research, their declarations do not always reflect the reality. It is a particularly sensitive sector, dealing with enormous amounts of money, whose activity impacts a lot of areas of life. And it is this desire to make more profit that makes talking about ethics a smoke screen for unethical activity. Corporations from this sector provide loans for controversial investments, e.g. those associated with arms production, gambling, genetic experiments or environmental degradation. Allianz group, one of the biggest insurers in the world which has its branch in Poland, is a member of the UN’s Global Compact Initiative. As a member, it promises to observe human rights, labour law standards and to respect natural environment. Despite this, according to organisations running the “Facing Finance” campaign9, it is involved in subsidising companies which break all of these standards. For instance, it funds mining concern Rio Tinto. People living in the vicinity of the Roessing mine in Namibia in which Allianz has 69 percent of shares were seriously ill due to contact with radioactive waste and inhaling harmful gases. Allianz group is running its investments through its subsidiary Allianz Global Investors (AGI). The European branch of AGI observes the policy on controversial weapons, according to which “Allianz Global Investors Europe investment funds do not invest in companies producing cluster munitions and anti-personnel mines.” However, this policy refers only to funds managed by AGI Europe. Subsidiaries of Allianz had shares of companies like Textron, which was accused of manufacturing cluster munitions which spread their content over a wide area and harm civilians banned by international law. Moreover, Allianz has shares of nuclear weapons manufacturers such as EADS or Lockheed Martin. Most of them did not implement policies on investing in other controversial sectors (tobacco, pornography, etc.). Another important subsidiary of Allianz, Pimco, has signed UN Principles of Responsible Investment because, as stated by the company representatives – “ESG matters may negatively impact the results of the investment portfolio (…), taking them into account may reduce the risk of being negatively surprised and increase the long-term quality of the investment portfolio.” In spite of that, Pimco manages the assets of numerous controversial companies, including Anadarko, Anglo American, Barrick Gold, BHP Billiton, Coca-Cola, Rio Tinto, Royal Dutch Shell, Vale and Vedanta. 9

Tadeusz Joniewicz, Grzegorz Piskalski, Brudny zysk. Jak korporacje, banki, fundusze inwestycyjne czerpią zyski z łamania praw człowieka, CentrumCSR.PL Foundation, październik 2013, s.33-34.

“The Swiss Frankers” demanding intervention from the state are proof that even the most noble declarations regarding the corporate social responsibility of companies or even whole sectors require constant control.

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2.5 SOCIAL REPORT Social reports are still a rarity rather than a norm. It is true that their preparation is time consuming as it requires the collection of a lot of detailed information. However, it is worth taking this challenge because the report allows for a comprehensive presentation of how the company operates and what their activities regarding sustainable development are. In the last two years, a social report was issued only by 15.4 percent of the companies. There has been an upward trend in Poland in the recent years but the result is still very far from being satisfactory – especially in the context of obligatory reporting which will be binding for some Polish companies. Enterprises do not mention reporting cycles on their websites (the reports appear mostly when there is something to boast about). Among the companies which published their reports in the last two years, the highest number (11) recruited from the fuel, raw materials and energy sector. As many as 84.6 percent of companies from that sector prepared the report. Seven reports were prepared by financial companies and three from the media, communication and IT sector. It is worth pointing out that the total number of all publications came to around 30. The worst results (0 percent) were obtained by special economic zones, utility services, electrical appliances sector as well as fashion. In the latter case, it is particularly surprising that no one attempted to create such a document. In recent years, this sector has been particularly susceptible to criticism, due to appalling working conditions in garment factories among other things. The Rana Plaza gar-

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ment-factory collapse in which over 1,100 people lost their lives was widely reported on. A social report would allow textile companies to clearly state whether they wished to prevent such situations in the future and how. Most of the reports were based on standardised international guidelines GRI (Global Reporting Initiative) on various levels of advancement. 94.2 percent of entities which scored positive in this category took them into account, including Energa, Tauron, Budimex or PKN Orlen. Most – but not all – reports are also subject to external verification and are based on GRI guidelines. Some firms only issue electronic versions of the report, others also provide an audio form. Some companies also provided other options, e.g. thanks to special applications on the website it is possible to generate a report on just those areas of the corporation’s activity which are of interest to us. For instance, one can focus on human rights rather than environmental issues. An increasing number of companies decide to issue an integrated report containing both information on corporate social responsibility and financial data, e.g. Lotos, Krajowa Spółka Cukrowa. Some corporations only issue an English version of the report (e.g. Samsung). We have not included such publications in our research. We treated them as if they did not exist. We believe issuing only English versions of documents is a superficial activity. The assumption that all Polish stakeholders can read in English is absurd.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Polish Business Unprepared for Social Reporting CENTRUMCSR.PL FOUNDATION: On 29 September 2014, the Council of the European Union passed a directive on disclosure of non-financial and diversity information by certain large undertakings and groups. It is supposed to allow for easier access to important information for stakeholders including consumers, employees, contractors and investors. NGOs from numerous countries including our Foundation and the international networks we belong to (e.g. ECCJ) were lobbying for it for a long time. We were pointing out the need for companies to conduct transparent policy and standardize their reports. Until now disclosure of non-financial data has been voluntary. Companies can do it in in their own way and to the extent they wish to. Some have used GRI guidelines at various levels of advancement. However, our study suggests that it is still very rare. Some corporations avoided defining their impact on the environment and employment issues. However, their impact on the natural environment and the job market is enormous. It extends to both local economy and the global supply chain. The change in regulations is to force corporations to increase the quality and quantity of published materials. In a report on their activity they would have to comment on policies concerning environmental, social and employee matters, respecting human rights, taking anti-corruption and anti-bribery measures. They would also have to state how advanced the implementation of the programmes concerning each area was, describe the results achieved so far and predict what negative impacts their activity may have in the future. All of that is to follow the “report or explain” principle. If a company fails to disclose the required data in just one area, it would have to state the reasons for its decision and justify it well. Initially, the regulations were to concern a much bigger group. However, after negotiations between the Council of the EU and the EU Parliament the amount of entities covered by the regulation was limited to 30 percent of the initial number. As a result, the obligation will be imposed on about 6,000 companies in Europe. The number in Poland may amount to around 300 companies. The reporting obligation will concern the so-called public interest entities from the banking or insurance sector or entities which are important and significantly impact society due to their profile or size. Poland is known to have tried to limit the scope of entities covered by the reporting obligation as part of the 2014/95/UE Directive. The ESC reporting guidelines for state companies have already been implemented in Western Europe in countries like Denmark, Sweden and the UK. In Poland, the previous legal solutions were not encouraging companies to view CSR holistically, treating it as a soft solution. We believe such an approach is based on flawed premises and unnecessary fears. Transparency and social responsibility do not lower companies’ competitiveness. On the contrary, they can raise it. This is because stakeholders have an impression they are treated fairly, which can greatly impact their buying decisions. The regulations come into force at the end of 2016. The final shape of the regulations is not known yet. Despite certain conservatism of the officials, we hope the final range of entities covered by the reporting obligation will be as wide as possible.

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2.6 GRI (GLOBAL REPORTING INITIATIVE) Voluntary Global Reporting Initiative (GRI) offers a set of indicators which make it possible to prepare a social report in an organised way taking into account the majority of key social responsibility issues. The issues mentioned in the report feature in a table of contents which makes it easy to find a topic of interest. It is the most widespread and recognised standard of social reporting in the world. The criteria are subject to updates. The most recent GRI G4 of 2013 obliges corporations to provide concrete examples of their activity in particular spheres, focus on key sustainable development issues and state how they are manifested at the management level. It also pays more attention to issues associated with the supply chain and human and employee rights, thus raising their profile. GRI at any level of implementation was employed by 94.2 percent of 35 companies, as only 35 out of 227 companies prepared a social report (15.4 percent of all researched companies). Not all of them declare

which version of GRI they use (e.g. Netia). Tauron, Bank Millennium’s capital group, Budimex, PKN Orlen and GK Azoty have all used the G4 version to create their reports. Other companies, whose reporting period concerned previous years, used GRI G3 level, with C/C+ mark (e.g. Polpharma, Pelion), B/B+ (e.g. Orange) and A/A+ (Lotos). As far as the number of reports was concerned, the best results were achieved by the financial sector as well as the media, communication and IT sector. The enterprises representing the former sector took GRI into account in six out of six cases (100 percent). Companies from the fuel, raw materials and energy sector prepared 11 reports in question but international criteria were used in 81.8 percent of them e.g. by Enea and KGHM Polska Miedź S.A. They were not employed by Jastrzębska Spółka Węglowa’s capital group and RWE Polska S.A.

CSR IN THE RETAIL SECTOR POLISH CHAMBER OF COMMERCE Corporate social responsibility activity is mostly carried out by bigger retail chains. It is not so popular among smaller entrepreneurs yet. Bigger retail companies frequently have their foundations or separate departments dealing with CSR on a big scale. They know that it is almost indispensable nowadays, it creates a good image of the brand and translates into financial results. Smaller companies are only beginning to notice and appreciate the effects of such activity. Scale can be adjusted to possibilities and projects can be local. It is mainly charitable activity such as the retail sector companies often donating food. The change of regulations on 1 October 2013 was important in that respect as it made it possible to hand over food to public benefit companies without paying VAT. Other popular CSR activities include running organic enterprises which creates a good image for customers. Few companies report their non-financial activity, which is why the requirements of the EU directive may be new to them. It is important to run an information campaign advising of this obligation although as the reports are to be prepared only by the biggest companies this should not present a problem. What is important is that disclosing such data builds the credibility of a company so it does not have to be interpreted as an obligation but rather as an opportunity to create a transparent brand image.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

2.7 CSR IN ANNUAL REPORTS This indicator concerned 77 enterprises of the total number of researched companies. Being listed on the Warsaw Stock Exchange (WSE) was an essential condition. 38 companies from WSE (49.3 percent) included references to social and environmental impact of their activity. For example, Grupa Azoty S.A. capital group mentions cooperation with scientific bodies, caring for sustainable production i.e. minimising its impact on the natural environment, increasing installation safety and engaging in a dialogue with those in its environment. GRUPA BUDIMEX S.A. also includes social responsibility in its 2013 annual report. It even devotes a separate chapter to it. “Budimex is a leader of responsible business reporting in the construction sector in Poland,” the report reads. “The company has been publishing social reports for five years. Between 2011 and 2012 they were prepared at B+ level which means that the wide range of GRI indicators was additionally sent for verification by an independent auditor. In 2013 the report followed the most recent guidelines GRI G4 and was also submitted for independent verification. UN Secretary General’s ‘Global Compact’ initiative is aimed at promoting corporate social responsibility. Budimex has actively participated in this project for the past five years which means that the company observes ten fundamental principles related to human rights, labour standards, environmental protection, counteracting corruption and it is committed to running initiatives which fulfil these principles.”10 The activity of companies which do not mention sustainable development either in their annual or social reports is usually quite superficial (philanthropy, voluntary work of employees). Polish textile companies perform rather poorly (11.1 percent) as not only do they not include CSR references in their annual report or publish social re10

http://raportroczny.budimex.pl/2013/, accessed: 16.10.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

ports but also have a selective approach to employee rights and supply chains, completely ignoring the problem of corruption. None of the listed HoReCa and electrical appliance companies mention sustainable development in their annual reports. The best performance was noted by finance companies (100 percent). “The bank pays special attention to building long-lasting relationships with the most important groups of its stakeholders: Clients, Employees, Suppliers, Shareholders, Social Partners and local communities,” states Bank Millennium S.A. capital group in its report. “Monitoring and limiting the negative impact of the Bank on the natural environment is increasingly important. In 2013, the Bank implemented its Code of Ethics which standardised the principles of ethical behaviour of the Group’s employees while performing professional activities. The principles of the Code were communicated to all employees and its understanding checked by a compulsory e-learning training. In 2014, the Bank committed its suppliers to also observe the Code. Every supplier taking part in a tender made a commitment to observing the principles included in the document by signing a declaration. (…) In 2015, the Bank will work on updating its CSR policy and creating a medium-term CSR strategy for the Bank Millennium’s group. The Bank is also planning to involve a wider group of Stakeholders, particularly business partners/suppliers, in CSR activities. In 2014, yet again, the Bank became part of the RESPECT index, the first index of socially responsible companies listed on the Warsaw Stock Exchange in Central and Eastern Europe and received an award in the national Responsible Company ranking. The Bank recognises cooperation with NGOs and social organisations as an important element of its social mission. The main areas of cooperation include culture, education and charitable activity.”11

11 http://raportroczny.bankmillennium.pl/2014/pl/sprawozdanie-zarzadu/odpowiedzialny-biznes-i-dzialalnosc-na-rzecz-spoleczenstwa, accessed: 16.10.2015

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2.8 ENVIRONMENTAL PROTECTION Based on the quantitative analysis of the indicators we may concur that environmental protection has become the most important aspect associated with corporate social responsibility. 67.8 percent of all companies scored positively in this category – nearly twice as much as in the supply chain or counteracting corruption. Corporations have to refer to environmental issues because all of them impact it in a direct or indirect way. The best results were obtained by the fuel, raw materials and energy sector. All companies from this sector met this criterion. Chemical companies were also in the leading group, as they obtained over 80 percent. Nine out of 10 timber and paper companies also declared interest in environment protection. A particular attention to rational use of natural resources was paid by Black Red White S.A. to name just one. Barlinek group in turn runs the “’One for One’ programme which co-finances the planting of one tree for the purchase of every pack of the Barlinek floorboard marked with the campaign’s logo.” 12 Unlike in other categories, utility services this time received very good results. A positive mark was given 12 http://www.barlinek.com.pl/pl/corporate/o-nas/179,grupa-barlinek. html, accessed: 16.10.2015.

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to 86.6 percent of them. Miejskie Przedsiębiorstwo Komunikacji in Poznań declares: „Our drivers go through eco-driving training. Thanks to buses equipped with an electronic fuel flow meters measuring the actual use of petrol on a given distance, they can learn how correct driving technique impacts fuel saving by the bus. (…) In order to contribute to air protection, we continually lower air pollutants by using eco-friendly fuel (CITY Diesel without sulphur), using buses complying with the EURO 5 norm, protecting green zones – we plant new bushes and trees to replace damaged ones – fulfilling a waste management programme of collecting, segregating and utilising of waste by certified companies and verifying the prices to keep the costs down, cleaning of the stock using modern bus washers with a closed water circuit and sewage purification, monitoring of sewage from all facilities belonging to MPK Poznań Sp. z o. o. and monitoring the soil and water environment in the vicinity of petrol stations for the presence of dangerous substances”13. Environmental protection is not high on the agenda of companies from the HoReCa sector (42.8 percent) and fashion companies (30 percent). This issue was ignored i.e. by Vistula, Monnari Trade and Gino Rossi S.A., despite the growing global trend of eco-clothing collections. 13

http://www.mpk.poznan.pl/o-mpk/Ecology, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Beautiful Pictures, Dirty Reality CENTRUMCSR.PL FOUNDATION Polish power companies which in most part produce energy from non-renewable sources harmful to the fossil fuel environment like to show off their concern with the state of the environment. Sometimes they go so far in doing that that they get criticised by the advertising sector. In 2010, the Wrocław-based association Eko-Unia filed a complaint to the Advertising Board about the campaign of ENEA, which used slogans like “Clean energy, clean business” and “The power of wind and water. We use nature to give you clean energy.” According to the environmental activists, such advertising breached article 8 of the Advertising Code of Ethics which states that “an advertisement cannot abuse the receiver’s trust nor take advantage of his lack of experience or knowledge.” They also used the evidence of ENEA’s website according to which the share of renewable energy in ENEA’s structure amounted at that time to… 5.26 percent. In comparison hard coal had a 71.3-percent share and brown coal, considered the dirtiest fossil fuel – 20.09 percent. The defendant argued that it did not mislead its customers and, compared to its competitors, believed itself to be a “green” company. The Advertising Board did not accept this argument. “In the opinion of the Arbitration Panel, the advertisement in question misleads consumers and takes advantage of their lack of experience or knowledge, because according to the information included in the advertisement, the advertiser supplies clean energy using solely natural forces. In the opinion of the Arbitration Panel, a misleading advertisement leads to the creation of an image which does not reflect reality. It is the perceptions of the advertisement’s addresses that are of crucial importance and not the opinions of advertisers or advertising agencies. The reasons for the perceptions of addressees which do not reflect the reality may be not only untrue statements but also statements which themselves are true but which can lead to incorrect conclusions. It is often the case that the evaluation of whether an advertisement is misleading depends on the circumstances in which the advertisement appears and may be different in different situations,” reads a communique on the Board’s website14. The experts considered ENEA’s advertisement as an incomplete advertisement, missing some vital information, like a 91-percent share of hard and brown coal in the energy supplied to customers. According to the Board, there was no justification for the fact that the concern defined its advertising campaign as an “image-building campaign.” That was not the only controversial advertisement of a Polish energy company. In 2013, Polska Grupa Energetyczna (PGE) ran an image-building campaign under the slogan “We make electricity, mountains, lakes, forests”15, in which it emphasised its environmental protection initiatives. “(…) it provides a comprehensive picture of re-cultivation and pro-environmental activities which PGE’s capital group has been carrying out for years,” the company states on one of its social networking sites. Meanwhile, as much as 90 percent of the energy produced by GK PGE in 2014 was based on coal burning – including 53.4 percent of hard coal and 36.8 percent of brown coal. The share of energy from renewable sources did not even exceed 5 percent and was slightly lower than natural gas16. The Bełchatów power station is currently the biggest source of industrial emissions in Europe– carbon dioxide emissions alone amounted to over 37 million tonnes in 2013. In the same ranking, the Turów power station owned by GK PGE 14

https://www.radareklamy.pl/uchwaly-ker/2010/uchwa%C5%82a-nr-zo-45-10-w-sprawie-reklamy-firmy-enea-s-a, accessed: 16.10.2015.

15

https://www.youtube.com/watch?v=AdYCiIi7K6s, accessed: 16.10.2015.

16

http://www.gkpge.pl/relacje-inwestorskie/grupa/kim-jestesmy, accessed: 16.10.2015.

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ranked 19 among the top largest CO2 emitting coal-powered power stations in Europe.17 According to Greenpeace Poland, power stations from PGE’s group are responsible for over 2,000 premature deaths caused by air pollution with toxic substances18. It is more than any other energy corporation operating in Poland. The concern has also caused much controversy with its plans to locate brown coal open-pit mines in the Gubin and Brody localities. This idea contradicted the ambitions of the European Union concerning the reduction of greenhouse gases as part of the power and climate package. A package, which Polish companies were very negative about. The advert “PGE. We make electricity, mountains, lakes, forests” is a classic case of the so-called greenwashing i.e. a marketing device aimed at persuading the consumers that the activity of a given company is environmentally-friendly. Greenwashing is subject to legal regulations in countries like Australia, Norway, Canada or the US and considered an intentionally misleading activity. 17

http://www.chronmyklimat.pl/wideo/energetyka/polska-wsrod-najwiekszych-trucicieli-europy, accessed: 16.10.2015.

18

http://greenpeace.pl/wegiel_zabija/, accessed: 16.10.2015.

The Białowieża Forest – the last primordial wood of the North European Plain being a place of conflict between nature conservationists and promoters of the idea of using it for industrial purposes.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

2.9 SUPPLY CHAIN Social responsibility of a given company cannot be limited to its immediate environment i.e. caring only about staff directly employed by the company or health and safety only at the company’s headquarters. Supply chains of modern business are very complicated as they sometimes include hundreds of sub-suppliers and have a global character. It is a real challenge to monitor ethical issues in this process but ignoring the risks associated with the relationship with subcontractors may have a detrimental effect on the company’s reputation. ‘Supply chain’ is focused on the efficient collaboration of all the entities whose activity is to bring profits to a given company. It is a system of mutual dependencies, based on mutual benefits. It excludes any antagonisms, using market advantage or transferring costs onto contractors, including suppliers. The concept of social responsibility obliges corporations to monitor how standards are met by their subcontractors, e.g. those related to working conditions, observing human rights and their impact on the environment. These issues still seem to be misunderstood and underappreciated by Polish business. Only 37 percent of companies took them into account. The largest number of them recruited from the fuel, raw materials and energy sector (76.9 percent) and

the financial sector (64.7 percent). The least attention is paid to this matter by fashion companies (10 percent) and utility services (6.6 percent). In the latter case, Sita Polska Sp. z o.o., a waste management company, stands out as a positive example. “In the relationship with suppliers one should follow the rules of justice and impartiality so as to prevent abuse or domination. Specialists responsible for purchasing decisions should be characterised by a flawless attitude and strictly observe binding regulations, particularly on competition law. We believe that caring about the environment and the society and including this requirement into the supplier selection criteria can increase quality. SUEZ ENVIRONNEMENT obliges its business partners, subcontractors and suppliers to establish ethical, environmental and employee principles in their respective organisations if they have not done so until now and to observe the practices in line with the Group’s values19,” reads the company’s Ethical Charter published on the website. Some companies provide a special hotline for suppliers (e.g. Tesco) or create a policy on collaborating with suppliers (Mlekovita).

19 http://www.sitapolska.pl/upload/kartaetyczna8032011_d74.pdf, accessed: 16.10.2015

Global corporations use complicated webs of subcontractors. Business optimisation usually means shedding responsibility. Pictured the place of the industrial tragedy in the Rana Plaza complex in Bangladesh when 1.127 people died. It produced clothes for lots of global brands.

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A Retail Empire Built at the Expense of Others Edward Gollent, Head of the “Against Exploitation – Biedronka (Stop Wyzyskowi – Biedronka)” Association My company Bog-Art supplied chemical products and cosmetics to Biedronka from its very beginning. While it had a Polish owner there were no problems. The collaboration was going smoothly. They cared about having high quality products, we cared about a large number of customers. Everything changed when the chain was taken over by the Portuguese. First irregularities occurred around 1999. They included not only delayed payments but also demands to pay huge sums for services which were not included in any contract and which were not carried out. For example, I would invoice Biedronka for PLN 600,000 for the products supplied in a month and they would respond with an invoice of PLN 300,000 for the alleged promotion of my products in their magazine. This way they reduced the amount due by 50 percent. Apparently, that was a scheme which they had already tested, used not only with me but also other entrepreneurs. That was economic fiction, featuring on an invoice created to avoid paying for the stock. In a verdict number IV CSK 290/09, the Supreme Court ruled that cheating suppliers was an element of Biedronka’s strategy. Suppliers did not accept these conditions but although they were aware of Jeronimo Martins’s dishonest practices, they were hoping that they would be treated differently and that they would not be drawn into this foul play. In many cases it proved and is still proving illusory. When I tried to clarify this matter and complained they explained that there must have been some mistake, led me on with the prospect of future cooperation in order to delay as much as possible. What they wanted to achieve was for the two-year deadline for making a claim at court to pass. This is what partly happened in my case. That’s when they said: it is not our fault that you cannot look after your business, couldn’t you take care of it? At some point a lot of companies refused to provide further supplies for them. For a little while they made a deal with them, but then everything started all over again. In the end, after a court ruling I got back PLN 1.054 million, i.e. an amount which was not paid to me and destroyed my company. It was too late though. I have lost my life’s achievement. The current production was suspended, there was no money for bills. I employed about 60 people, including disabled people. I had to let them go, they went on the dole. I was indignant when hearing important politicians like PM Ewa Kopacz or Donald Tusk publicly praise Biedronka, which harms Polish entrepreneurs. In another country, using a politician’s function to advertise a company employing dishonest practices would result in a dismissal. Biedronka tries to convince everyone that it is now history, which should not be mentioned. Nowadays Biedronka even tries to appear as a socially responsible business. However, it is a fact that it systematically failed to pay its former employees for overtime due. It is worth emphasising that Biedronka systematically deprived employees of remuneration for planned overtime as part of its criminal scheme. That is why we launched a calculator showing the chain’s debt towards them. At the moment, the debt with interest has exceeded PLN 290 million.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

2.10 HUMAN RIGHTS Human rights are considered the basis of socially responsible business and a main principle which companies should follow. It is emphasised – amongst others – by the United Nations and by international standards (e.g. OECD’s Guidelines, ISO 26000 norm, etc.) It is not possible to talk about sustainable development without respecting basic principles, such as health and safety at work, equal rights for men and women, anti-discrimination measures, ban on disciplinary practices and mobbing. Corporations are also obliged to provide decent pay, the possibility to associate and freedom of speech. In our civic study we focused on whether the companies noticed the importance of these issues in relation to employees and subcontractors. Evaluation criteria applied by us during qualitative analysis referred to i.e. issues related to working conditions and the character of employment.

this is a perfect way to present an employer in a favourable light and encourage candidates to take part in recruitment. Entrepreneurs sometimes use human rights as an image-building element, e.g. cleaning and security companies. A lot of them emphasise on their Internet sites that they are supported employment enterprises which employ disabled people. This fact is also sometimes mentioned in their mission and values. However, this declaration which is certainly laudable is often motivated by more practical aspects i.e. subsidies from the State Fund for Rehabilitation of People with Disabilities (PFRON), which provide employers with considerable savings.

We considered the indicator to be met in the case of companies belonging to the Global Compact initiative. Entities which become its members automatically declare respect for the principles of the Universal Declaration of Human Rights.

The right to associate in organisations protecting employee interests continues to be a major problem. Very few companies state that they have trade unions. In case of the companies analysed by us, the number of employees cannot be quoted as an obstacle. Trade union membership requires 10 members in a company, while our monitoring mainly concerned entities employing hundreds of employees.

Unfortunately, Polish companies do not indicate human rights as a component of their policy often enough and do not see it as a benchmark of their activity. Only 127 of all researched companies, i.e. 55.9 percent referred to it in some kind of way. In our opinion, it is not a good result, because enterprises should treat these norms as a priority. Perhaps they mistakenly assume that because their relationship with the employees is regulated by the Polish Labour Code and related documents, their role ends there.

The stereotype of a demanding trade union activist focused on winning unreasonable privileges is certainly not helping the set-up of trade unions. Such an approach and distorting the matter makes it impossible to conduct a rational discussion about working conditions in Polish enterprises. It is often forgotten that among trade union members are many ordinary workers who deal with difficult conditions like outrageously low pay, being forced to do overtime or suffering mistakes in recording working time on a daily basis.

In our research, an excellent result was achieved by the representatives of the financial sector (100 percent), followed by companies from the fuel, raw materials and energy sector (92.3 percent), media, communication and IT and transport and logistics (84.6 percent). The results of the special economic zones (7.1 percent), food industry (26.6 percent), fashion (30 percent) and utility services (33.3 percent) are disastrous by comparison.

This skewed perspective is to blame for a low percentage of those eligible joining the unions. According to the data of the Central Statistical Office (GUS), in 2014 trade unions associated 1.6 million people, i.e. every fifth Pole in the working age and only 11 percent of those employed. Additionally, as many as 66 percent of the organisations operate in public sector entities20. As can be seen, employee representation in private companies is considerably limited.

Corporations often treat human rights selectively, only paying attention to some aspects, e.g. they focus on informing on benefits offered to employees such as access to private health care or gym membership. It cannot be denied that

Meanwhile, Polish Constitution of 1997 guarantees

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

20

Central Statistical Office of Poland, „Trade Unions in Poland”, Warsaw, http://stat.gov.pl/obszary-tematyczne/gospodarka-spoleczna-wolontariat/gospodarka-spoleczna-trzeci-sektor/zwiazki-zawodowe-w-polsce-w-2014-r-,10,1.html , accessed: 13.07.2015.

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the right to associate, to negotiate and to organise employee strikes and other forms of protest to the extent described in the Act. These regulations are supported by the stipulations included in the conventions of the International Labour Organisation (nos. 87 and 98). Even if companies ostensibly declare being open to a dialogue with the staff, activists are often disliked. In July 2015, “Solidarność” trade union withdrew from Lidl supermarket chain. It failed to defend its leaders against dismissal and employees were too scared to admit that they belonged to the union. Talking to journalists they revealed how employees were penalised by being forced to work unsocial hours and dismissed for trivial reasons.21 The company’s management states that it is open for negotiations and boasts about employee benefits on their website, which include a social package and access to private health care. Meanwhile, the State Labour Inspectorate, which monitored the situation in the shops, detected as many as 106 irregularities! It imposed a total fine of PLN 30,000. As can be expected, a company with USD 11.5 billion turnover in 2014 did not find it a particularly painful sanction. In July 2015, trade unions operating in “Biedronka” supermarket chain issued an announcement in which they informed everyone that they were not allowed to enter shops or their back rooms. A representative of Jeronimo Martins was to include such a stipulation in a protocol addressed to the State Labour Inspectorate22. Using forms of employment guaranteeing employee rights such as the right to insurance are increasingly rare as companies try to avoid fulfilling this obligation. These days stability of employment is supported by flexible contracts, which results in the emergence of the so-called working poor i.e. people who despite having work are not able to support themselves. Companies increasingly use the services of temporary work agencies to save on potential severance or holiday pay. This system also makes it more difficult for temps to become associated or to make long-lasting relationships enabling them to fight for the improvement of working conditions together. Agency work, which was supposed to respond to the needs of young people (e.g. students) and peo21

Adriana Rozwadowska, „W Lidlu związków zawodowych nie będzie”, Gazeta Wyborcza Biznes, http://wyborcza.biz/biznes/1,100896,18508862,w-lidlu-zwiazkow-zawodowych-nie-bedzie. html , accessed: 6.08.2015.

22

http://www.solidarnosc.gda.pl/biedronka/?postId=47271, accessed: 16.10.2015.

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ple of post-working age, became a modern pathology of the job market. People sell their time increasingly cheaply, because they are not protected by a state minimum pay. There are more and more job adverts, published not only by agencies, in which the advertised hourly rate amounts to PLN 4-5 gross. Flexible forms of employment are increasingly drifting away from the idea of flexicurity, which they were originally to fulfil. Today, working on an employment contract basis is a luxury. Work Express, one of the temporary work agencies, surveyed satisfaction with employment conditions among its temps. Among the things they pointed out was unequal treatment with full-time employees23. The conflict between employees and employers affects mostly lower ranking employees in every sector of the economy. Such negative phenomena as failing to observe health and safety norms or cutting employment costs by lowering safety appear on the radar. It is clearly visible in sensitive sectors like the steel and iron industry or fuel sector where harmful working conditions are not subject to H&S regulations and employees or contractors are not always protected by the Labour Code. There is also the problem of mobbing and disciplinary practices in the work place. This matter is usually mentioned in the context of sexual abuse. According to research carried out by CBOS in 2014, “nearly one fourth of employees (24 percent) have stated that there were instances of harassment at their work place”24. Companies increasingly decide to include anti-mobbing clauses in their codes of conduct, which refer to a wide anti-discriminatory context in line with the company policy. Declarations of CSR should concern observing human rights in all areas of the company activity. The problem with the Polish job market and social responsibility of companies is that it is like fighting a fire which you set yourself. Lack of clearly formulated standards creates a big potential for abuse. The state, which is obliged to support victims in claiming their rights, fails to perform this function. One of the main problems is providing insufficient funds to auditing institutions like the State Labour Inspectorate, which is also claimed by the Inspectorate’s representatives. 23 http://workexpress.pl/7640/praca-tymczasowa/najwazniejsze-wnioski-z-badania-satysfakcji-pracownikow-tymczasowych, accessed: 16.10.2015. 24

CBOS, „Szykany w miejscu pracy”, Warszawa, http://www.cbos.pl/ SPISKOM.POL/2014/K_109_14.PDF , accessed: 11.07.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Right to association is enshrined in the Universal Declaration of Human Rights and the Polish Constitution. Trade unions have an important role in guaranteeing good working conditions. Trade union membership in the private sector is at about 5% - the lowest in Europe. Pictured the great protest of the three labour associations in Warsaw, September 14th 2013.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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Cheap Labour Lech Obara Lech Obara and Partners Legal Chancellery, Plenipotentiary of Persons Abused by Biedronka Supermarket Chain Bedronka is an example of hell created by business. Media were referring to the shops from that chain as modern labour camps. Employee rights e.g. to healthy and safe work were systematically breached. Women manually unpacked tonnes of stock from trucks. There were no electric forklifts in any of over a thousand shops. The number of hours worked was systematically underestimated. In theory, people were employed on 0.75 FTE basis but in reality they worked twice as hard, doing unpaid overtime and not getting any days off. One can even say that a Portuguese sweatshop was created in Poland. All sorts of regulations were snubbed. A few dozen victims of this treatment came to us and we decided to represent them and go to court. The trials continued for several years and the representatives of Biedronka constantly argued that there were no systematic irregularities, just isolated incidents. We have won all the trials. Over 300 people were penalised as a result, mostly store managers and regional managers. Unfortunately, the top management, creators of these pathological practices, escaped punishment. We have calculated that if the chain had to pay for all the overtime, the sum would have totalled PLN 125 million. This is the price of human suffering, which was the basis for the company’s initial input of capital. The company invested in simple warehouses which it painted and a significant part of the profit was derived from abusing its employees. The Supreme Court branding Biedronka a company infringing human dignity was the pinnacle of our battle. We have managed to prove that the so far toothless state can finally bare its teeth and activate institutions like the State Labour Inspectorate. We have also shown that justice can be with the employees. We have proved to companies that there is law which they have to abide by and health and safety conditions which they must not ignore. The changes began in 2005. Trade unions were created, thanks to which we managed to introduce some civilised practices in the 21st century. And even if their representatives act quietly and are exposed to harassment, they cannot be ignored when a crisis occurs. Biedronka has introduced evidencing of working time and electric forklifts. Unfortunately, a significant part of the damages for the victims could not be repaired. The chain argued that the claims expired. Also, not all forms of abuse which take more and more sophisticated shape could be eradicated. There are trials concerned with mobbing focused on demanding efficiency which results in depression. The case of Biedronka started affecting other chains as well. It has shown that even if there is a long line of unemployed people in front of the job centre, no-one would like to work at a place where employees are disrespected. The situation of employees is still very bad in Poland. In court proceedings they do not receive legal counsel or it happens sporadically. In addition, the fixed rate for the legal counsel for the preparation of extremely complicated applications amounts to just PLN 60! Under such circumstances, the victims have practically no chance winning with a big corporation employing whole legal departments. What is needed here is a real revolution.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Game Over for Democracy? Marcin Wojtalik Board member of the Institute for Global Responsibility (IGO), Manager of the Support and Development Programme The Transatlantic Trade and Investment Partnership (TTIP) treaty is an agreement of specific nature as it concerns the majority of economic and social life aspects in Europe and the US – directly or at least indirectly. For this reason, the TTIP draws attention of not only scientists and business people but also many societies in the EU. As part of social consultations on investment arbitration in the treaty, over a hundred experts unanimously opposed the idea of introducing this mechanism to TTIP25. The consultations attracted an unprecedented number of 150,000 participants and nearly 3 million signatures were collected in just one year by the European Civil Initiative Stop TTIP26. The interest in TTIP results from both the broad range of the agreement and its deeply undemocratic elements. One of the most notorious is investor-state dispute settlement (ISDS) which makes it possible for companies (often transnational corporations) to sue a country for damages when their interests are infringed. As experts point out, this privilege also concerns a situation when the action taken by the state is fully legal27. For fear of being sued by investors, parliaments may be reluctant to introduce regulations complying with the law and public interest but which are unfavourable to investors. For this reason, the ISDS mechanism which is to be included in TTIP is a direct threat to democratic law-making and implementation in all EU states. Another element of TTIP, which is less known but equally dangerous, is the so-called Regulatory Cooperation Body, i.e. a body under a strong influence of big business lobbyists which will issue opinions on whether legal regulations comply with the ‘free trade’ principle. The activity of this body will weaken the democratic character of the legislative process in Europe. It needs to be borne in mind that both mechanisms will affect the quality of democracy in Europe and therefore in Poland as well. Poland’s situation concerning ISDS differs from that of Western Europe where this mechanism is not in place yet in the relationship with the US. However, if TTIP was to come into force, the situation will worsen also for Poland. Changing of the agreement will require consent from all of the EU (member states, European Commission and European Parliament). For the time being, Poland as an independent country may demand renegotiation of the current agreement between Poland and the US. After TTIP comes into force, this will not be possible and it will be practically impossible to remove unfavourable regulations like ISDS. The very fashion in which the agreement is secretly negotiated, which was hotly debated by the European and domestic parliaments, has a negative impact on democracy. Threats to human rights associated with TTIP were pointed out by UN experts28, and the discussion on the legality of various aspects of TTIP is led by legal circles. Under such circumstances, lack of public debate about this topic in Poland and a thoughtless attitude of the Polish government are seriously harmful. More: Marcin Wojtalik, TTIP as a Threat to Democracy, Magazine of Global Responsibility no. 2, Le Monde Diplomatique Polish Edition

25

http://infarma.pl/fileadmin/templates/infarma_v1.0/design/gfx/KodeksDobrychPraktyk_Wyd_2_201014_PL.PDF , accessed: 10.07.2015.

26 J.w. 27

See the lecture of dr. Jan Kleinheisterkamp at the London School of Economics, http://www.lse.ac.uk/publicEvents/events/2015/02/20150212t1830vHKT.aspx, accessed: 10.07.2015.

28

http://infarma.pl/fileadmin/templates/infarma_v1.0/design/gfx/KodeksDobrychPraktyk_Wyd_2_201014_PL.PDF= . accessed: 10.10.2015.

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2.11 CORRUPTION Corruption is one of the most dangerous pathologies of social life. It is a breach of basic principles of democracy and the rule of law. It is a threat to competitive markets and state stability. It creates privileged and discriminated groups as it prevents some receivers from accessing services or products. In response to the scale of irregularities in 2005, the UN passed a UN Convention against corruption, which Poland ratified in 2006. Counteracting corruption and bribery is one of the most important aspects of responsible business. Companies must not give material goods as gifts to partners from both the public and private sectors to receive a favourable decision. Both offering or accepting a bribe in the form of cash, expensive gifts, attractive trips or dining at luxury restaurants is prohibited. Companies have a duty to clearly define reprehensible practices and build awareness about threats among its stakeholders – employees, partners, subcontractors. They should provide training devoted to these issues. Corporations should also create a risk map of areas most susceptible to the occurrence of illegal practices and constantly monitor the situation. In order to eliminate this phenomenon, it is necessary to immediately react to every concerning event. Penalties may be symbolic but they should have tangible consequences. They should concern employees at every level: from lower-level staff to board members and supervisory boards. Companies are obliged to not only treat notifications of corruption seriously but also to protect the interests of people who make them. They must appoint an employee or a unit which receives notifications and take care of appropriate conduct of the process. They are also obliged to inform suitable authorities

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like the police or the prosecutor’s office about the irregularities. Companies should prepare detailed financial reports and subject them to audit. According to our monitoring, the problem of corruption is noticed by a small percentage of companies. Only 34.8 percent of them had an anti-corruption statement. The majority (88.2 percent) recruited from the financial sector, which is understandable. The topic was not mentioned only by Aviva group and capital group of PKO BP S.A. “Employees are obliged not to engage in any direct or indirect form of corruption, whether passive or active,” states Credit Agricole Bank Polska SA. capital group in its Code of Ethics. “Employees are obliged to refuse to accept gifts or benefits resulting in a conflict of interests (…).Under no circumstances can gifts or other benefits be aimed at persuading the beneficiary to work in favour of the Bank, Client or a group of Clients and against the interest of another Client or a competitive entity. Accepting or offering a gift is permissible if it is an advertising or promotional item or if it is of low value, usually presented during formal events and does not require reciprocation29.” This topic is also important to the fuel, raw materials and energy sector, though to a lesser degree (69.2 percent). It is not mentioned at all by the fashion and textile industry and special economic zones. Utility services also performed poorly (13.3 percent). A small number of companies e.g. Comarch, employ a spokesperson for ethics, who also deals with corruption practices. 29 http://static.credit-agricole.pl/asset/k/o/d/kodeks-etykica-1120104_9095.pdf, accessed: 16.10.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

2.11 CONFIRMED RESULTS A lot of companies use corporate social responsibility as a springboard for advertising. They mostly boast about giving money to noble causes. Sometimes the amounts in question are rather insignificant but they are blown out of proportion. During our monitoring we encountered companies which boasted that their employees can devote a fraction of their pay to a given foundation through payroll. It is a controversial matter. Not only does the company refrain from transferring funds from its own budget but it also begs the question whether the contribution is voluntary. Or perhaps the board is pressurising their staff to sacrifice part of their salary so that it can create an impression of a philanthropic corporation? Some companies make a bigger effort: they prepare reports, inform about their environmental work and ways they engage in dialogue with their stakeholders. They are often rewarded for their efforts and receive awards from bodies supporting CSR and associating entities with similar engagement. That is why many enterprises were surprised by our independent monitoring. Their representatives did not expect that someone could say “show me your cards” and assume the role of an ordinary customer and just look for data on sustainable development on their websites. We sent an e-mail containing individual results to every company we researched, requesting them to confirm the results. We often heard the companies claim that the codes of ethics existed although they were not published but that they could be found on English-speaking

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

sites. A representative of one of the companies even argued that if a customer approached him, he would send him all the data – social reports included. Our follow-up question about whether he would translate several-hundred page long documents for just one person did not receive a clear response. We tried to convince him that as the company operates in Poland, perhaps it would make sense to do it properly so that no-one had to go through the same process as we did. Some people could not understand why we did not consider corporate foundations part of social responsibility. We explained that what was of key importance to the sustainable development of a company was how it earned its money and not just how it spent it. Not everyone accepted this argument as they tried to cling to their self-made definitions of CSR. Sometimes it turned out that it was enough to introduce small changes, like providing contact to an existing employee responsible for CSR. All in all, the results were confirmed by 31.2 percent of companies. Some companies kept their negative mark because they could not decide whether they agreed with the results or not. We appreciate the fact that company representatives called us, wrote to us, communicated on social networking sites and replied with information about our monitoring. We invite companies to send us more comments. The report contains data correct at 15.12.2015.

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S E CT O R A L ANALY SI S – T HE IM A G E O F PAR TI CUL AR C O M PA NI E S AGAI NST T HE I R C O M P E T I T IO N

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.1 HOUSEHOLD APPLIANCES Key aspects of responsibility in the sector This is one of major industrial sectors in Poland – the production is most frequently located in Special Economic Zones (SEZ). More about our expectations regarding the observation of employee rights, including the guarantee of stable employment, non-abuse of the cooperation with temporary job agencies, the right to form and join associations created by employees or decent pay can be found in the chapter devoted to SEZ. It is also where we also touch upon issues related to subsidising business by the state and the ban on blackmailing the authorities with the thread of transferring production to other countries. Other challenges in the area of corporate social responsibility facing this sector include environmental protection. Companies must perform professional product recycling and collect electro-waste from customers. It is impermissible to place additional conditions, e.g. the requirement to make an identical purchase in their network, e.g. the store will accept an old washing machine if the consumer buys a new one from them. Transport must occur at the expense of the company. It is necessary to maintain accurate documentation in this respect, showing what volume of hazardous waste has been appropriately deposited, or how it was destroyed. Corporations must also control recycling companies hired, and clear them of following the applicable regulations. Companies must not deliberately manufacture equipment with short lifecycle, usually ending with the end of the guarantee period, thus exposing customers to additional costs (e.g. planned product ageing). It is also necessary to observe consumer rights, namely rights to complain about a faulty device, its replacement or reimbursement of the cost, as well as to its return.

their annual reports either. It seems that, apart from working conditions, the issues of key importance seem to be related to environmental protection. Interest in these has been expressed by 66.6%, including Samsung. “Samsung is proud to have strong principles and clear guidelines for protecting the environment while also regularly assessing partners supplying raw materials on their worksite safety and environmental protection practices (…). Samsung protects the environment through its green activities, which minimise energy consumption and reduce carbon emissions.”30 This is also one of just 33.3% companies expressing interest in human rights. It declares that it “provides employees and local residents with the means to accomplish their goals and improve their community.” In turn, Sharp convinces: “It is the intention of our corporation to grow hand-in-hand with our employees, encouraging and aiding them to reach their full potential and improve their standard of living.”31 This is made precise in their Charter of Corporate Behaviour: “We will get actively involved in creating a safe work environment, as we put human life at stake and respect the law and regulations regarding safety at work. (…) We will respect individuality of each employee in order to create an atmosphere at work that is encouraging to individual initiative and creativity, where all employees can fully develop their skills to help them achieve their business goals.”32 The issues of corruption and supply chain are touched upon by 33.3% corporations. Only one of them, Samsung (8.3%) employs a person in charge of CSR, while the results were confirmed by just two: Samsung and Amica Wronki (16.6%).

Comment on the monitoring results Companies in the household appliances sector performed average in our survey. About 50% mention CSR on their websites, but specific policy appears in less than half of them. Ethical code has been developed by just 33.3%, whereas none of the companies issues a social report. Listed entities, namely GK Action and Amica Wronki do not account for sustainable development in

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

30 http://www.samsung.com/pl/aboutsamsung/samsungelectronics/ corporatecitizenship/environment.html, accessed: 16.10.2015. 31 http://infarma.pl/fileadmin/templates/infarma_v1.0/design/gfx/ KodeksDobrychPraktyk_Wyd_2_201014_PL.PDFaccessed: 16.10.2015. 32 http://www.sharp.pl/cps/rde/xchg/pl/hs.xsl/-/html/the_sharp_code_ of_conduct.htm, accessed: 16.10.2015.

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The Chung-Hong company located in Kobierzyce near Wrocław produces elements for the LG television sets. The workers – threatened to have their contracts nullified – have to work overtime and on Saturdays. Their salaries are set at minimum wage level. In 2012 due to the growing trade union membership the company opted for a lock out. The working conditions in the Special Economic Zones in Poland are not good.

New Technologies, Exploitation as Usual CENTRUMCSR.PL FOUNDATION In 2013, we prepared a report entitled “Working conditions in the IT sector in Poland”33. We analysed the respect for human rights in electronics factories in Special Economic Zones. We focused on such corporations as Sharp, Flextornics, Jabil Curit Poland and Chung Hong Holdings Limited. Sharp Factory in Ostaszewo used public aid at the Pomorze Special Economic Zone. It declared that in 2011 employment would total 5 thousand people. Eventually there were only 1070 employees. In 2012, the problem with decreasing number of orders was solved by laying off 29 people every month – thus avoiding the group lay-off procedure and the need to provide the severance pay. NSZZ “Solidarność” trade union and the manager of the SEZ joined the negotiations. These were suspended due to lack of the will to make concessions on the part of the corporation. Finally, the company assured that the further 211 to be made redundant in 2013 would be covered by statutory guarantees, with payment of an additional bonus in the form of a coupon worth 2 thousand PLN for the purchase of their equipment. Finally, the factory was sold to a Slovak entity, UMC Poland. As Toruń’s “Nowości” daily informed in May 2015, the new owner imposed new, much higher production requirements. The employees wrote a letter to the National Labour Inspection complaining about being allowed to use the toilet just once on an eight-hour shift. The company did not allow NLI for an anti-mobbing survey at the factory. Its representatives argued to the journalists that people should work more, or orders would not be executed and everyone would have to be made redundant34. In 2008, ChungHong Electronics Poland Sp. z o.o. opened its factory in Tarnobrzeg Special Economic Zone, Kobierzyce sub-zone, near Wrocław. Information about the difficult situation at the factory reached the public opinion owing to 33

Tadeusz Joniewicz, Katarzyna Szyniszewska, Warunki pracy w sektorze IT w Polsce. Studia przypadku firm: Sharp, Chung Hong, Jabil i Flexotronics, CentrumCSR.PL Foundation: Warsaw, 2013.

34

Małgorzata Maciejewska, Zmęczone ciała i bezcenne produkty. Warunki pracy kobiet w specjalnej strefie ekonomicznej, Online Library of the Feminist Think Tank, 2012.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Małgorzata Maciejewska, a PhD student of the University of Wrocław and a feminist activist. While analysing the situation of women in IT factories, she decided to find a job at such a plant and, through a temporary job agency, got employed at the factory in Kobierzyce, where she worked from October to December 2011. Based on her own experience, she wrote a report about working conditions there35. As she reported, there were many misconducts during the recruitment of temporary workers. They had to sign bylaws they had no opportunity of reading, there were also cases of working without a contract, as relevant documents were missing. Moreover, due to an intensive schedule, employees had problems contacting representatives of the agency. In an extreme case, one of the employees performed his duties for eight days without any contract at all. Work safety was also an issue. The personnel was not appropriately trained or even informed about dangerous chemical substances used in the production process. Employees did not have access to the relevant number of toilets and hot water during breaks. As time passed, the company started gradually depriving full-time workers of their benefits. They only received basic salary, not much higher than the statutory minimum wage (1,500 PLN gross in 2012), which could only be increased by overtime work or modest (approx. 100 PLN) attendance bonus for 100% attendance at work. Standards got increasingly higher, while the corporation consecutively cut on the number of jobs. In December 2011, a new trade union was established, which started collective dispute against the employer in 2012. Negotiations did not bring any effect, and the company laid off one of the protest leaders. This accelerated the decision to go on strike. Activists did not wait for the five statutory days, arguing that the decision about making their colleague redundant was illegal. The management stated the protest was illegal and laid off its participants. They notified the prosecutors about unauthorised strike and claimed compensation for the production losses. Jabil Circuit Poland in Kwidzyn, Pomorskie Voivodship near Kwidzyn, also used exemptions in the Special Economic Zone. At its peak, it employed about 5,000 people. First lay-offs started in 2008. At the time, 400 people lost their jobs, followed by 500 in 2010. Trade unions started collective dispute against the corporation. They demanded improved working conditions, including salary rises, and discontinuation of employment on part-time contracts (e.g. 1/2 and ¾ FTE). As a result, an agreement was reached, and the people remaining at the factory were employed on a full time basis. Early in 2012, the next wave of lay-offs started. According to the estimates of the Labour Office in Kwidzyn, job contracts of 2,000 temporary workers were not prolonged. Due to the type of employment, the company formally did not reduce the number of jobs, so they did not have to announce the group lay-off procedure. Trade unions concluded an agreement with the company in March 2012 assuring employment to permanent workers until the plant also employs those recruited by temporary job agencies. As one of solutions, the corporation introduced changes to job posts and different scopes of responsibilities, e.g. testing engineer would be transferred to production, which was also mostly related to a significant salary reduction. Persons not agreeing to worse employment terms had their job contracts terminated. The company also announced salary reductions by as much as 20%. Another issue related to salary increases was not solved. Jabil finally proposed reductions of 10% to factory workers, excluding white-collar employees from the administration. Among five crews at the production line, two first comprised workers on permanent job contracts, while three other – persons employed by agencies. Permanent employees worked exclusively on the first two shifts, while those employed by agencies - on the third shift and on weekends when permanent workers would be entitled to a benefit e.g. for working at night in the amount of 31%. In 2013, further 300 people lost their jobs. In April, however, the situation on the market improved and the company searched for 240 employees. The media regularly inform about similar conflicts and outrageous working conditions in the Special Economic Zones.

35

Małgorzata Maciejewska, Zmęczone ciała i bezcenne produkty. Warunki pracy kobiet w specjalnej strefie ekonomicznej, Online Library of the Feminist Think Tank, 2012.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 49

NO.

COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

1

AMICA WRONKI SA

-

-

-

-

-

ND

-

+

-

-

-

+

2

BSH SPRZĘT GOSPODARSTWA DOMOWEGO SP. Z O.O.

-

-

-

-

-

ND ND

+

-

-

-

-

3

ELECTROLUX POLAND SP. Z O. O.

+

-

-

+

-

ND ND

+

+

+

+

-

4

FLEXTRONICS SA

-

-

-

-

-

ND ND

-

-

-

-

-

5

GK ACTION SA

+

-

-

-

-

ND

+

-

+

-

-

6

INDESIT COMPANY POLSKA SP. Z O.O.

-

-

-

-

-

ND ND

-

-

-

-

-

7

JABIL CIRCUIT POLAND. SP. Z O.O.

-

-

-

-

-

ND ND

-

-

-

-

-

8

LG ELECTRONICS POLSKA

+

-

+

+

-

ND ND

+

+

+

+

-

9

MANTA SA

+

-

+

-

-

ND ND

+

-

+

-

-

10

SAMSUNG ELECTRONICS POLSKA SP. Z O.O.

+

+

+

+

-

ND ND

+

+

+

+

+

11

SHARP ELECTRONICS (EUROPE) GMBH SPÓŁKA Z O. O

+

-

+

+

-

ND ND

+

+

+

+

-

12

WHIRLPOOL POLSKA SP Z O.O.

-

-

-

-

-

ND ND

-

-

-

-

-

-

Table 1: HOUSEHOLD APPLIANCES

Human rights in the global supply chains are still a challenge for companies from the electronics sector. Pictured young workers of one of the Chinese factories producing elements for international companies such as Dell and Lenovo.

50 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.2 CONSTRUCTION Key aspects of responsibility in the sector Maintenance of fair relations with clients is the obligation of companies in this sector as regards corporate social responsibility. This is stated in the Code of Best Practices developed by the Polish Developers Association which focuses on these issues. It assumes that developers must assure appropriate insurance for the investment, clearly and understandably formulate contracts containing the description of their object, date of commencement, execution time, and a commitment that construction works executed by other entities for the developer are covered with the warranty and at least three years’ guarantee. Moreover, the companies are obliged to immediately inform the client about any changes to the works schedule and cost estimate36. Companies must also behave in an ethical manner in regard to their subcontractors. They must not abuse their privileged position and transfer investment-related costs on subcontractors, e.g. by understating the prices proposed in tenders, bringing them to bankruptcy. Undoubtedly, the priority is to follow the health and safety principles, including identification of potential risks and their mitigation, particularly in respect of risk posing danger to life and health, e.g. by reducing concentration and intensity of harmful agents from construction materials. The norm setting standards in this respect is ISO 18000. Companies in this sector, among others, exert impact on the natural environment. Therefore, they must apply environment-friendly technologies certified e.g. with ISO 14000 certificates. The construction industry must invest in ecological solutions, such as energy-efficient buildings or LED lighting. Furthermore, companies must not take over public space or prevent access to it. They must not form closed enclaves, e.g. fenced estates, or dominate the area at the expense of the neighbourhood, e.g. by placing a huge building on a small area and cutting off access to the sunlight. Investments must blend with the surroundings, without deteriorating its nature and rendering it ugly. 36

Code of Good Practices in Client – Developer Relations, http://www. pzfd.pl/strona,inicjatywy,kodeks_dobrych_praktyk.html , accessed: 10.08.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

It is also the companies’ task to take care of the appropriate infrastructure related to the investment, e.g. connecting the utilities at their own expense, or building access roads.

Comment on the monitoring results Companies in the construction sector seem to insufficiently notice the importance of corporate social responsibility. They prove to be average in our listing. Although interest in sustainable development is expressed by 61.5% on their websites, the results for other indices contradict such great involvement. Coherent CSR policy was developed by 38.4% companies, the same number accounts for human rights. This is disturbing in reference to the sector whose key theme should be the care for employee safety. Most companies met the criterion regarding ecology, namely 61.5%. Interest in preventing corruption was expressed by just 30.7%, while in the supply chain - by 23%. Code of ethics is seen in less than every fourth company (23%). Only two companies (15.3%) hire persons in charge of CSR: Drutex SA and Budimex Group. However, only Budimex drafts a social report, applying GRI guidelines and accounts for this area in their annual statements for the stock exchange. This Company meets most of our factors, namely ten of them. The minus was only received for absence of the Code of ethics and conCOMPANYtion of results. The policy regarding its social responsibility is vastly developed. It accounts both for employee rights and for minimisation of harmful impact on the ecosystem. “Budimex’ construction activities may exert strong impact on the natural environment,” the Company informs on its website. “Where interference with the functioning of local biosphere can be particularly significant, solutions are needed to allow for effective environmental protection. Therefore, environmental protection at Budimex is based on certified management system”37. The Company declares, among others, running technological routes in a manner assuring economical use of land and minimal transformation of its surface, restoration of the working site to the condition from before construction, reduction of tree cutting to the absolute minimum, transfer of plants in other 37 http://www.budimex.com.pl/pl/zrownowazony-rozwoj/srodowisko, accessed: 16.10.2015.

| 51

places and compensational planting, securing trees within the impact of the investment against mechanical damage, and transfer of amphibians and reptiles inhabiting the water sources damaged by the construction into new habitats. The Company assures that they also oblige their subcontractors to follow such standards, as they are “subject to preliminary qualification in the aspect of following the principles for environmental protection.” There are no references to corporate social responsibility on the websites or publicly available documents

by GK Marvipol and Polnord S.A. In turn, GTC Globe Trade Centre assures: “The care for long-term welfare of all stakeholders, both in the social and environmental aspect, has become one of integral elements of our strategy”38. The Company principally focuses on sponsorship campaigns, charity initiatives and the green concept.

38

http://gtc.com.pl/csr/, accessed: 16.10.2015.

Our cities are shaped by the construction sector. Bad decisions can change the urban landscape for the worse. It has a special responsibility for the safety and hygiene of people employed.

52 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Developers Run the Town CENTRUMCSR.PL FOUNDATION Developers decide more and more on the nature of towns and cities. Their expansion progresses at a horrifying pace, with tall office buildings emerging on the smallest pieces of land in convenient locations. An example can be found in Warsaw’s Wola district that used to be an industrial part of the city. In the coming years, there are several office buildings to be constructed, including Warsaw Spire, Mennica Legacy Tower, Art Norblin and Sienna Tower. All these are exclusive buildings set to become headquarters of major corporations, through which they are actually closed to the local surroundings. Some of them, as Spektrum Tower, are built very closely to blocks of flats. The building has already become known to residents from its worse side. According to the media, a night club with a view of the panorama of the city was opened. Parties were so loud that, even before its official opening, people called the police several times39. In the public opinion, this district has already been called a new Mordor – the name used to describe the Służewiec part of Warsaw. It turns out that similar problems are observed in both cases. Although the present urban studies promote taking cars away from city centres for the benefit of public transport, similar investments enforce rather opposite trends. The Town Hall at the Capital City wonders whether or not to extend Grzybowska Street, which will feature the greatest concentration of new buildings, to two lanes. They explain this with a high number of people commuting to work here. Such plans were protested against by municipal associations, such as Forum Rozwoju Warszawy, Zielone Mazowsze, and Siskom, arguing that this would be at the expense of pedestrians and greenery40. There can be many examples of conflicts caused by developers. For several years, the media have been writing about the dispute between Polnord and Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji (Water and Sewer Company) in Warsaw. The Company demands that the City pay over PLN 50 million of compensation for constructing water and sewer infrastructure in Wilanów, its connection to the municipal network and handing it over for operation by MPWiK. It is these pipes that serve to supply water to several thousand residents. Officials, however, claim that the original investor, Ryszard Krauze, while acting the notarial deed for land purchase in return for amendment of the spatial development plan, agreed to build the necessary infrastructure at his own expense. The land was sold to consecutive companies until it became the property of Polnord, which decided to pursue claims. The developer argued that he had never concluded a similar agreement with the city. The case was taken to the court. Companies in the construction industry also sometimes try to transfer the risk of investment failure onto their clients. Early in 2014, the Office for Protection of Competition and Consumers drafted a report entitled “Consumers on the developer market”41. Inspectors found breaches of law in 89 out of 93 companies. Irregularities referred to, among others, charging the buyers with costs if they execute the right to terminate the developer contract, demanding that the consumer should submit a statement a priori about the developer’s correct execution of specific activities, and on non-pursuit of any claims thereunder in future, reservation of the possibility of changing the shares in the common part of the property without any settlements thereunder, charging the consumers with costs in the event of terminating the contract for reasons not attributable to them, and imposing unjustified obligations on consumers (e.g. insurance, finishing of the apartment). Furthermore, companies contained in their contracts “indexation clauses in the context of the right to terminate the contract (including provisions indexing the price due to the change of VAT rate, provisions indexing the price due to increase in the costs of materials and labour, provisions indexing the price due to changes to property area detected during apartment takeover or as-built inventory), and provisions excluding or limiting developers’ liability for non-performance or improper performance of the contract (including provisions on untimely execution of the commitments), provisions containing waiver of consumer claims, provisions excluding liability for defects to the apartment/building, provisions limiting the developer’s liability to the contractual penalty specified in the contract, provisions awarding the developer the right to unilateral amendment of the contract or material properties of the service without an important reason indicated in the contract, provisions introducing changes to the design of the building/apartment, furnishing, technology, land management, material used, installations, and provisions introducing changes to the area”42. 39

Ewa Jankowska, Na dachu impreza życia, dookoła wielki hałas. The Viev Warsaw spędza sen z powiek mieszkańcom śródmieścia, Metro.pl, 8.07.2015.

40

Krzysztof Śmietana, Ile pasów z Woli do centrum? Nowy spór o szerokość Grzybowskiej, Gazeta Stołeczna, 6.07.2015

41

Office of Competition and Consumer Protection, Konsument na deweloperskim rynku, Warsaw, January 2014, pp. 171-177.

42 Jw.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 53

GRI

ConCOMPANYtion of results

Social reporting

-

-

-

ND

-

-

-

-

-

-

2

DRUTEX SA

+

+

-

-

-

ND

ND

+

-

-

-

+

3

GK MARVIPOL

-

-

-

-

-

ND

-

-

-

-

-

-

4

GK POLIMEX-MOSTOSTAL SA

+

-

+

+

-

ND

-

+

+

+

+

-

5

GK SAINT GOBAIN

+

-

+

+

-

ND

ND

+

-

+

+

-

6

GRUPA BUDIMEX SA

+

+

+

-

+

+

+

+

+

+

+

-

7

GRUPA FAKRO

+

-

+

-

-

ND

ND

+

-

+

-

+

8

GTC GLOBE TRADE CENTER SA

+

-

-

-

-

ND

ND

+

-

-

-

-

9

J.W. CONSTRUCTION HOLDING SA

-

-

-

-

-

ND

-

-

-

-

-

-

ND

Corruption

Code of ethics

-

Human rights

CSR policy

+

Supply chain

Person responsible for CSR

DOM DEVELOPMENT SA

Ecology

CSR on the webpage

1

CSR in the yearly report

NO. COMPANY

10

PANATTONI EUROPE

-

-

-

-

-

ND

+

-

-

-

-

11

POLNORD SA

-

-

-

-

-

ND

-

-

-

-

-

-

12

PROLOGIS POLAND

-

-

-

-

-

ND

ND

-

-

-

-

+

13

STRABAG SP. Z O.O.

+

-

+

+

-

ND

ND

+

+

+

+

-

Table 2: CONSTRUCTION

Priorities during construction work include safety and hygiene. It is important to identify the potential dangers and eliminating them – especially regarding the ones that are a danger to the life and health of workers. According to data from the Chief Labour Inspectorate there were 113 deadly accidents in the sector in 2013.

54 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.3 FINANCIAL SECTOR Key aspects of responsibility in the sector This is one of key sectors from the point of view of Polish stakeholders. In the contemporary world, one practically cannot normally function in a society without being a customer of a bank or an insurance company. This refers both to individuals (vast majority of payments of salaries and benefits such as disability or retirement pension are transferred on bank accounts), as well as businesses. Nowadays, almost no business project can be executed without external financing. Regardless of whether this is about building a shop or a nuclear power plant, apart from their own funds, investors take loans. The financial sector seems to be clean business, associated with elegant offices and consultants. This is business that at the first glance does not cause major harm to the environment, e.g. does not devastate the environment as much as mining corporations. In fact, its impact on the social sphere is often destructive. Wrong decisions have long-term consequences that determine lives of many people. Therefore, businesses in this sector face special challenges. Their fundamental task is to reliably inform consumers. It is not permissible to have contracts with terms in small print that are unfavourable to consumers and are not clearly explained before concluding the contract. All provisions should be presented in an understandable manner, permitting to learn about the effects of particular decisions, their approval or resignation from them. There no information asymmetry where complete knowledge is available exclusively to the financial institution. This refers to loans, deposits and investment funds. It is unfair to transfer the entire risk related to the operation onto an individual customer because, contrary to the corporation, he does not have mechanisms available to mitigate its negative consequences. The responsibility should be divided proportionately between both parties. Banks must also not prey on stakeholders, impose additional fees during the contract, or significantly increase charges for bank transfers or cash withdrawals from ATMs. They should also not charge any amounts related to customer access to information about themselves, e.g. checking the balance on their account.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Financial institutions are obliged to assure the same access to their offer to all participants of the market. If they invest exclusively in initiatives with high rate of return, they will support exclusively strong entities, thus contributing to increased economic inequality and discrimination of some groups. An example here is the significant reduction in the number of mortgage loans granted, argued with the economic crisis, which deprived many people of the possibility to buy their own place to live. Banks should be flexible towards consumers, as it is the trading with their funds that assures a major part of their revenue. They should aim at profit, but not at its maximisation as soon as possible and at all costs. Banks in Poland should improve access to the market of socially responsible investments, which is currently a marginal phenomenon in Poland, but also a fast developing niche on the global market of financial products. Such entities cannot profit on investments that bring significant losses in the social sphere. In the case of cooperating with major contractors, they are obliged to carry out due diligence in the area of human rights and environmental protection, namely checking the investment’s environmental and social impact, e.g. whether such investment is not related to the infringement of human rights, manufacture of weapons, pornography, hazard, or drugs. For example, in the case of investment loans co-financed by KfW (German national bank), Bank Gospodarstwa Krajowego requires contractors to present statements that they are not related to any of such sectors. Unfortunately, despite declaring similar principles in their policies, many financial institutions support unethical projects using their subsidiaries. Should make available access to similar data to individual customers, allowing them to locate their moneys in projects in conformity with their ideology and moral standards.

Comment on the monitoring results It is worth stressing that no major Polish financial institution participates in any of the international initiatives promoting similar investment criteria (UN PRI, Equator Principles, Eurosif, etc.). In our quantitative survey, the institutions yield very good results. Interest in CSR, similarly as in human rights is expressed on the websites by 100% of them.

| 55

Code of ethics is present in 82.3%; 88.2% wish to prevent corruption, and ecological aspects remain within the interest of 88.2%. Sustainable development policy has been developed by 76.4% entities, whereas 64.7% account for their supply chain. Person in charge of CSR is employed by 64.7%, whereas 41.1% draft social reports, all of which ap-

ply GRI guidelines. References to CSR in the annual statements for stock exchange were recorded in all cases.

Stars, Small Print and CHF Arkadiusz Szcześniak, Stop Banking Lawlessness Social Movement The truth we learnt post factum is that most of us were not eligible to obtain currency loans. Banks carried out simulations at the NBP mean exchange rate. They did not account for the spread. They concealed these facts to convince customers it was a good choice. It is worth stressing that, contrary to what is said, in most cases these were not loans in foreign currencies, but just indexed to the currency stated in the agreement. This occurred in two ways. One way was to grant “indexed loans”, namely the bank committed to provide the borrower with the amount expressed in PLN. After its disbursement in PLN, the bank converted the debt at the buying exchange rate for CHF (indexation) and since then it has been expressed in CHF for the consumer. The instalment is preliminarily calculated in CHF, whereas on the payment date it is converted to PLN under the selling exchange rate from the bank’s FX rate chart. Another method involved denominated loans, namely ones where the amount applied for what was expressed in CHF from the start, under preliminary conversion of the loan amount applied for by the consumer in PLN and its estimated conversion to CHF. The “denominated” amount is thus unknown upon conclusion of the agreement, as the disbursement and repayment involve amounts in PLN. Analogically, “start” conversion of the debt occurs at the buying exchange rates, while instalments are converted from CHF into PLN at the selling exchange rate. In fact, the loan in foreign currency has been granted, paid and repaid in the foreign currency. At no time is it converted to the national currency. The Supreme Audit Office checked the agreements in CHF. It turned out that in as many as 95% of cases they contained prohibited clauses. This was also the finding of the Office for Protection of Competition and Consumers (UOKiK) who stated that banks cannot themselves set the FX rate at which they granted loans and collected repayments. It pointed to spread as illegal profit. Also, demand for additional collateral was deemed illegal. Since then, the application of similar clauses has been prohibited. These are entered in the special register held by the President of UOKiK. The institution also addressed the case against Bank Millenium to the Court for Protection of Competition and Consumers, which confirmed this position in 2010. In October 2011, the Court of Appeals rejected the appeal from Bank Millenium, thus confirming the verdict of the Court of first instance. Despite further verdicts that were unfavourable to banks, they do not respond to them and still permanently apply such practices. They cut out single sentences from court justifications and interpret them in their own way. Complaints are only accepted in situations where small amounts are at stake. This was the case e.g. as regards bridge insurance. This is the additional sum to be paid until mortgage for the benefit of the bank is entered in the Land and Mortgage Register held for the property. In this way, the cost of the risk is transferred onto the customer. This takes place from a few months to over a year. In this case, if we point to a specific regulation, banks admit this does not apply. It is much different as regards indexation and involves much greater sums. In order to prove one’s right, one has to go to court in such a case. This requires payment of 5% of the loan value at the start, namely as much as several thousand zlotys. First of all, one has to have free cash, and few people have similar funds. This must be enlarged by quite significant payments to legal representatives. Secondly, one has to prepare the case would continue for years. Moreover, at the end,

56 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

everything may stumble on a formal error, as it may turn out some letter was not submitted on time, the attorney failed to appear at a single hearing, or cannot handle some minor detail. In such a case, one might lose everything invested in the proceeding, without gaining anything. It is for this very reason that banks continue with their reprehensible practices. They would have long been cornered if not for the court expenses. Smaller banks would even be ready to reimburse the illegally charged amounts of customers, yet the big ones would not allow it. The Polish Bank Association, principally representing western business, will not allow for striking it. When in 2008 the CHF exchange rate suddenly increased, many people started having problems with repayment. The difference in the amount of instalments is really large. It is sufficient to show this at my example. When I took the loan, the monthly repayment totalled 1,300 PLN. Even when I made a simulation what would happen if 1 CHF cost over 3 PLN, I got the result of approx. 1,600 PLN. Now I pay over 2,000 PLN. No calculations done by people could envisage that. Banks were not willing to enter into negotiations or to make any concessions. They did not undertake any talks or apply any incentives. When a proposal appeared to arrange with customers at the arbitration tribunal on division of responsibilities for increased instalments, no bank was interested. Sometimes, if someone had problems with timely repayment of the debt, they offered another, yet much more expensive cash loan with an unfavourable margin. As a result, instead of getting out of debt, people got trapped into a loop they could not escape in any way. Banks often use the powerful tool of the Bank Enforcement Title. It is enough not to pay two instalments, and the enforcement by bailiff is immediately imposed. Obviously, this decision can be appealed from, but this does not mean that the eviction process is suspended. Institutions prefer to sell the loan for 30% of its value to the debt collection company than allow a person to find a job and bounce off to be able to repay the debt again. Owing to this, they can indicate revenue in a particular year and boast profit. They are driven exclusively with business, not social motifs. In no other state are customers treated this way. In Germany, if someone has problems with repayment, banks give him/her a year to straighten the situation. They negotiate, but they give the person a chance. This is not possible in Poland. In the public debate, there are many statistical distortions as regards borrowers in CHF currency. They are shown to be in a good financial situation and it is often told that just 1% of them have problems with repayment. In fact, in the terminated loan, debt is stated in PLN, not in CHF. Owing to this, one can say this is not a debt in a foreign currency. This is the reason why, although courts deal with many evictions due to loans in CHF, this is difficult to prove. UOKiK first states that practices such as spread are illegal, and that the institution contradicts itself preparing listings of banks with the lowest spread, while it should do everything to eliminate such a practice from the market. The more so that such practices have been deemed illegal. Banks have vast funds for advertising, and thus the possibility of propagating their position. Various allegedly independent experts appear in the media, and later it turns out that they are somehow related to the financial sector. We attempt to explain the situation and the unclear issues, but we have much lower impetus. We were at the Parliament several dozen times, we talked to the MPs, but just a few representatives of the opposition seem to understand us. When special commission had a hearing as regards borrowers in CHF, our interests were represented by five organisations. The hearing lasted for 3.5 hours. The Chair gave us the total of 10 minutes to speak. That was two minutes each! Later we asked for additional two minutes. The problem of toxic loans, called loans in CHF, refers to over 500,000 agreements. Including families, these are almost two million people. Our association has gathered people who opposed the illegal practices of the banks. We act not for profit, often subsidising various campaigns we organise. Among us, there are also lawyers who also have loans in CHF and deal with regulatory issues. Unfortunately, still too few people are active to show our arguments and force banks to react.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 57

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

1

BANK BGŻ BNP PARIBAS

+

+

+

+

+

+

+

+

+

+

+

+

ND

GRI

NO. COMPANY 2

BANK GOSPODARSTWA KRAJOWEGO

+

+

+

+

-

ND

+

-

+

+

+

3

BANK HANDLOWY W WARSZAWIE SA

+

-

-

+

-

ND

+

+

-

+

+

-

4

BANK ZACHODNI WBK SA

+

+

+

+

+

+

+

+

+

+

+

-

5

GK BANKU BPH SA

+

+

+

+

+

+

+

+

+

+

+

+

6

GK BANKU MILLENNIUM SA

+

+

+

+

+

+

+

+

+

+

+

+

7

GK BANKU PEKAO SA

+

-

+

+

-

ND

+

+

+

+

+

+

8

GK CREDIT AGRICOLE BANK POLSKA SA

+

+

+

+

-

ND

ND

+

+

+

+

+

9

GK GETIN NOBLE BANKU SA

+

-

-

+

-

ND

+

-

+

+

+

-

10

GK ING BANKU ŚLĄSKIEGO SA

+

+

+

+

+

+

+

+

+

+

+

+

11

GK PKO BP SA

+

+

+

-

-

ND

+

+

-

+

-

+

12

GRUPA ALLIANZ

+

-

+

+

-

ND

ND

+

-

+

+

+

13

GRUPA AVIVA

+

-

-

-

-

ND

ND

-

-

+

-

+

14

GRUPA PZU SA

+

+

+

+

+

+

+

+

+

+

+

+

15

MBANK SA

+

+

+

-

-

ND

+

+

-

+

+

+

16

PROVIDENT POLSKA SA

+

+

+

+

+

+

ND

+

+

+

+

+

17

RAIFFEISEN POLBANK

+

-

-

+

-

ND

+

+

+

+

+

+

Table 3: FINANCIAL SECTOR

The state-wide “Stop Banking Lawlessness” movement was formed due to controversies over mortgage lending in CHF. The banks did not inform their clients in a sufficient way about the currency risks and the clauses in the deals turned out to be highly dubious. It led the activists to creat a report “24 lies about toxic ”.

58 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.4 COMMERCIAL SECTOR Key aspects of responsibility in the sector The elementary issue for the commercial company is the observation of workers’ rights. This sector employs a large number of people with low qualifications, poorly paid, performing heavy physical work. The characteristics of work in the commercial sector will remain such, but it should be remembered that such people should have a decent pay, namely they should have stable salary assured, and working conditions adequate to their work. Companies must guarantee freedom of association, otherwise employees will never have an opportunity to negotiate civilised terms. Companies are obliged to maintain transparent and honest relations with suppliers. They cannot make them dependent on themselves to the extent deciding about their existence or disappearance from the market. It is impermissible that companies fail to observe the obligation to timely pay invoices or to set payment periods for deliveries of several months – corporations cannot credit their business at the expense of small suppliers. Companies should also impose honest margins. They must not impose camouflaged charges, e.g. for shelf space, or charge fees from manufacturers for selling their goods labelled as marketing or advertising expenses. Similarly clear principles should be followed by corporations in respect of their agents and franchisees. Shopping centres should deal not only with space rental, but also monitor working conditions among their tenants and intervene in extreme cases.

ket position and lead to elimination of small retail by applying unfair pricing policy. They are obliged to diligently pay taxes and not attempt to optimise them or transfer charges onto customers. A very important task is to reliably inform consumers not only about advantages, but also about side effects or imperfections of the products and services offered. Instead of focusing exclusively on their image, companies are also obliged to provide reliable data regarding properties of products. Commerce will always generate high volumes of wastes, in particular from packaging. It is important to compensate for this harmful environmental impact, e.g. by promoting returnable packaging, while resigning from packaging made of harmful materials, also by way of recycling.

Comment on the monitoring results The commercial sector scores below the average in our monitoring. Although CSR is accounted for on the website of 61.9% companies, but the factor regarding the policy has been passed in 38% cases. Almost half of those involved general declarations. Companies in this area deem ecology as the most important criterion. It was met by 66.6% entities. Human rights were somehow referred to by 47.6% companies, the same as in the case of supply chain. Code of ethics could only be boasted by 23.8%, similarly as preventing corruption. Social report was published by just three companies, and the same number employ persons in charge of sustainable development (14.2%).

Companies must not abuse their dominating mar-

International big shops and discounts are strengthening their presence in the Polish commercial sector. Having an own shop is becoming more and more difficult…

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 59

Slaves of the 21st Century Krzysztof Świątek, Solidarność Weekly (No. 29, 2015)

During the conference in Warsaw organised on 7 July, Polish Organisation of Commerce and Distribution that gathers owners of major foreign chains operating in Poland - Auchan Polska, Carrefour Polska, Castorama Polska, Biedronka, Kaufland, Lidl Polska, Tesco Polska, and Żabka Polska – presented the results of a report ordered at PwC (global consulting organisation). In their analysis, PwC experts alarm that if legal and fiscal solutions analogical to Hungarian ones affect commercial chains, this will result in catastrophic consequences to employees. Ban on trading on Sundays and its limiting in heritage areas may cause loss of jobs by 60 up to as much as 100,000 people – claim the authors of the report. In response to the question from “Tygodnik Solidarność” weekly, however, they stated that the data was drafted on the basis of… questionnaires sent to chain owners. In its report, PwC claims that sales on Sundays constitute 13% revenues of the sector. But even Jeremi Mordasiewicz from Konfederacja Lewiatan admitted at the conference that if the ban on trading on Sundays was introduced, at least 2/3 of sales on Sundays would be made on other days. - Polish Organisation of Commerce and Distribution is Polish by name only. Indeed, it represents international chains operating in Poland. They have already played with many data, e.g. regarding alleged reductions to employment after free Sundays would be introduced. One should always look who is preparing the analysis and on whose request. “These are yet another arbitrary data,” comments Alfred Bujara, Chair of the Secretariat of Banks, Commerce and Insurance from the Solidarity Trade Union. “We have calculated that after banning trade on Sundays, in the first year, turnover of commercial and discount food chains would increase by from 3.5% to 7%. It would also increase by several percent also in the second year. A director of one major commercial chain in charge of sales department agreed with me. Why would that be? Customers would start to buy more before Sundays just in case, as it happens before holidays or long weekends.” Alfred Bujara points out that many chains have been reducing employment for several years. “As a result, employees are overworked, it happens that they work hard for two or three people previously laid-off. Soon, for the money offered to employees by hypermarkets and temporary job agencies, people will not wish to get a job,” he says. “How long can one work very hard for such low wages? We already receive signs that they are shortages in large cities. Despite unemployment, people do not want to labour for such poor pay. A few days ago, I got a call from employees employed through a temporary job agency. They get 5 PLN per hour. They would have to work 300 hours per month to work for the lowest net national salary, which means the work for 30 days ten hours per day! This is slavery! This is a crying shame.” During the presentation of the report report a PwC expert, Mateusz Walewski, stated that fees and taxes charged according to Hungarian principles, will reach the amount of approx. PLN 2.5 billion, which will reduce profit of 17 major commercial chains (selling for more than PLN 500 million annually) operating in Poland from 2.2 billion to 31 million PLN (according to data for 2013), namely “practically to nil,” as he said. Such calculations are really doubtful. In its policy, PiS speaks about 1% of tax on gigantic turnover of commercial chains. For example: in 2013, Biedronka recorded turnover for the amount of approx. 32 billion PLN (!), it would pay 320 million PLN tax and still record vast profit. “Ten commercial companies with the greatest revenue paid 633 million PLN of income tax for 2012,” informed Vice-Minister of Finance, Janusz Cichoń. Alfred Bujara stresses that low return (net profit) of commercial chains is artificial. “Profit worked out by Polish employees is transferred to the west. They transfer various fees to mother companies – for the use of trademarks, brands – and include this as costs. These practices take place in the light of the law and prove the immense vulnerability of the fiscal system,” comments the Chair of the Secretariat of Banks, Commerce and Insurance from the Solidarity Trade Union. General Director of the Polish Organisation of Commerce and Distribution, Maria Andrzej Faliński, and PwC experts also claim that covering commercial chains with taxes will result in price increases – it will be most harmful to the segment

60 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

most willingly purchased by poorer families: the price of the average product basket will increase by 9 PLN (namely by 4.6%). Director Faliński also stated that product prices in Poland constitute 0.67% average in the EU. “There is no justification for price increase at hypermarkets. In Poland, costs of labour and salaries are 3-4 times lower than in the west – this is a gigantic advantage to chain owners. With this, prices in Polish and, for example, German markets are comparable. Many goods are even cheaper outside our eastern border. Let the commercial chains share their profit not only with the state, but also with employees. Also banks record immense profits. They disclose specific ones, but much greater sums are transferred to the west,” Alfred Bujara points out. “Despite being an association of employers, Polish Organisation of Commerce and Distribution does not wish to undertake negotiations with trade unions on national issues, not to mention the supra-company collective labour agreement.”

Code of ethics

Social reporting

GRI

CSR in the yearly report

-

-

-

-

-

ND

ND

-

-

-

-

-

2

AUCHAN POLSKA SP. Z.O.O.

+

+

+

+

+

+

ND

+

+

+

+

+

3

BONARKA CITY CENTER

-

-

-

-

-

ND

ND

-

-

-

-

-

4

CARREFOUR POLSKA SP. Z.O.O.

+

-

+

-

-

ND

ND

+

+

+

-

-

5

CENTRUM HANDLOWE ARKADIA W WARSZAWIE

+

-

-

-

-

ND

ND

+

-

-

-

+

6

CENTRUM HANDLOWE ZŁOTE TARASY W WARSZAWIE

-

-

-

-

-

ND

ND

+

-

-

-

+

7

GK NFI EMPIK MEDIA&FASHION SA

-

-

-

-

-

ND

-

-

-

-

-

-

8

GRUPA ALLEGRO

+

-

-

-

-

ND

ND

+

-

-

-

-

9

GRUPA EUROCASH SA

+

-

+

-

-

ND

+

+

+

+

+

-

ND

Corruption

CSR policy

AMAZON

Human rights

Person responsible for CSR

1

Supply chain

COMPANY

Ecology

NO.

CSR on the webpage

ConCOMPANYtion of results

Even if we assume that prices in Poland are slightly lower than in Germany, the purchasing power of an average pay by a Polish employee remains much lower. For average national pay, a Pole can buy 644 litres of fruit juices and 1,933 yoghurts (150 ml), while a German, respectively, 2,333 litres of juices and 7,000 yoghurts.

10

IKEA RETAIL SP. Z O.O.

+

-

+

-

-

ND

+

+

+

-

-

11

JERONIMO MARTINS POLSKA SA

+

-

+

-

-

ND

ND

+

+

+

-

-

12

KINGFISHER SOURCING EASTERN EUROPE

+

-

-

+

-

ND

ND

+

+

+

+

-

13

LIDL POLSKA SKLEPY SPOŻYWCZE SP. Z O.O. SP. K.

+

-

+

+

-

ND

ND

+

+

+

-

+

14

MANUFAKTURA ŁÓDŹ

+

-

-

-

-

ND

ND

+

-

-

-

-

ND

15

METRO GROUP W POLSCE

-

-

-

+

-

ND

-

+

+

+

-

16

ROSSMANN SUPERMARKETY DROGERYJNE POLSKA SP. Z O.O.

+

+

+

-

+

+

ND

+

+

+

-

-

17

RUCH S.A.

-

-

-

-

-

ND

ND

-

-

-

-

-

18

SILESIA CITY CENTER W KATOWICACH

-

-

-

-

-

ND

ND

-

-

-

-

-

19

STARY BROWAR W POZNANIU

-

-

-

-

-

ND

ND

-

-

-

-

+

20

TESCO W POLSCE

+

+

+

+

+

+

ND

+

+

+

+

+

21

ŻABKA POLSKA SP. Z O. O.

+

-

-

-

-

ND

ND

+

-

-

-

-

Table 4: COMMERCIAL SECTOR

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 61

3.5 HORECA, CLEANING, SECURITY AND JOB AGENCIES Key aspects of responsibility in the sector Similarly as in the case of employees from the commercial sector, companies from this sector have the key issue of observing employee rights. According to the Labour Code, companies are obliged to conclude contracts with employees in conformity with the time and scope of responsibilities. The document must also specify the place where the work will be executed and detail the type of activities. It is impermissible to replace a job contract with a civil law agreement while keeping the terms for work performance. One must not abuse employment under “junk contracts” deprived of additional benefits, which is particularly visible in the case of cleaning and security sector. Companies are obliged to assure health and safety and to timely pay wages assuring decent living, namely to satisfy one’s living, social and cultural needs. Wages must also account for the time devoted to job-related activities and the related effort. Pursuant to the regulations of the Labour Code, employers must assure the right to rest, including days off, vacations, as well as observe the right to at least 35 hours of continuous rest, including at least 11 hours of continuous break per day. Being available must not exceed eight hours per day and 40 hours on the average five-day working week in the settlement period not exceeding four months. Including overtime work, it must not be more than 48 hours per week in the adopted settlement period. It is also the companies’ task to appropriately organise the work of employees in a shift system. It is reprehensible to overuse the services of temporary job agencies and to eliminate staff on job contracts for the benefit of persons hired seemingly as substitution or as part-time workers. It is unacceptable to require employees to be extremely flexible as regards the time of performing their duties, not to pay for overtime work, and to keep them insecure of whether they will be employed on the next day or not. Companies are also obliged to assure freedom of association within employee organisations. The status of protected labour entity must also not be abused and used exclusively to draw subsidies from the state. This is a form of employment to principally benefit employees, activate them and prevent social exclusion. It must not be principally oriented at

62 |

savings and cost reduction on the part of companies. Corporations must not apply for contracts at the expense of their employees, namely they must not submit offers scandalously valuating their work at the rate of 3 or 4 PLN per hour. Following this principle and the elimination of similar pathological cases from the market is also the task of the public administration, which may apply additional clauses in their tender announcements forcing contractors to apply job contracts. Companies in the HoReCa, security and cleaning sector must also pay greater attention to ecological solutions, e.g. electricity consumption, overuse of detergents harmful to the environment or waste segregation. To the greatest extent this refers to hotels.

Comment on the monitoring results Entities representing this sector score much below the average in our survey. Although 52.3% have tabs on their website regarding corporate social responsibility, CSR policy was developed by just 19% of them. The factor related to human rights yielded the best score. As many as 47.6% companies met this condition. For example, Securitas assures on its website: “We are advocates of fair working conditions. We are not perfect. However, we continue to pursue a method to improve working conditions of people representing our Company. We do so because we praise their work. Our care is manifested by listening to and using feedback”43. Konsalnet Group, in turn, boasts that in praise of the quality of cooperation and care or collaborates, in 2012, it received the Leader of Dialogue Award from NSZZ “Solidarność” Trade Union44. Interest in ecological issues was expressed by 42.8% companies, while in the supply chain – by 19%. Code of ethics is present among 28.5%, yet social report was drafted by just one company, GK Work Services S.A. (4.7%), relying on GRI guidelines. Principles for preventing corruption are published by 23.8% companies. None of the three corporations listed at the stock exchange mentions sustainable development in their annual statements (GK Work Services, Impel Group, Sfinks Polska).

43 http://www.securitas.com/pl/pl/Career/Dbamy-o-Pracownikow/, accessed: 16.10.2015. 44

http://www.konsalnet.pl/praca,9,1,pl, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Hotels score the worst in our listing. For example, Hotel Gołębiewski does not meet any criteria. Starwood Hotels and Resorts scored minuses in all columns except for one: they confirmed the results of our analysis, as we consider contact with stakeholders as one of the principles for responsible business. In the case of entities publishing CSR prin-

ciples in English, we deemed they did not meet our requirements apart from the declaration of interest in non-financial aspects on their websites. This refers to e.g. Hilton Wordwide Polska.

The security sector is one of those especially negatively influenced by unfair competition, outsourcing and lowering of standards in public procurement. Pictured a trade union protest under an Ikea shop in 2013.

Working for Peanuts! Michał Kulczycki The Chair of NSZZ Solidarność Trade Union of Security, Catering and Cleaning Service Staff According to estimates, security services in Poland employ around 300,000 people. This is more than the police force. These include convoy security, porters and watchmen. They work for 350-400 hours per month on average. This is equivalent to two average jobs. We also recorded extreme cases, e.g. 700 hours, whereas the entire month features 720. They are often people from satellite villages, who arrive to greater regions such as Mazowsze or Śląsk in search of jobs, as unemployment in their areas reaches 40-50%. They agree to any terms, wanting to get anything, just for their children not to cry of hunger. They have no other choice. They work non-stop all week long, 24 hours per day. On Monday, they start at one company, and then are formally transferred to three other daughter-companies, where they continue with the same work. It lasts until Friday when they return home. Their wages are at the level of 3.50-4 PLN per hour. This is just unbelievably low. I have recently seen a job offer for just 3 PLN. If I were the employer, I would be ashamed to publish it.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 63

In such a case there is no talking about any dignity. Basic human rights are violated: rights to wages sufficient for basic living needs, to rest, to social welfare and benefits, to healthcare, to contracts guaranteeing stabilisation. People work to live and live to work. They have no time for anything else, which is reflected in their family relations. Some time ago we organised an exhibition entitled “Dad’s return” where we showed pictures by children of security officers. They most frequently drew a sleeping or tired father. We have long heard explanations that the rates are caused by the crisis. We have managed to get out of it somehow, while this is only reflected in increased employment, not better wages. They have remained at the same level. There are also entities that just do not want to pay more - for example hospitals managed by private operators. Their objective is principally not to indebt the centre. They explain that they have specific contracts with the National Health Fund and cannot find more funds. A problem is also a large number of companies dealing with similar services. There are over three thousand security companies alone. They compete for contracts by drastically lowering the rates. Such a situation has prevailed for many years. There was a good situation in the years 2001-2002, shortly after the profession of a security officer was regulated. Employees had to be qualified, have relevant permits and training - particularly in facilities subject to mandatory security, such as airports or banks. At first, there were shortages of staff, hence companies financed medical checks and necessary exams. They tried to buy out people from their competitors. The hourly rate totalled 16-18 PLN, so it was at least four times higher than now. Later on the market got saturated and collapsed. Wages started plummeting. Everything got worse, and this trend still continues. In the years 2006-2007, the ratio of civil law agreements to job contracts amounted to 50/50. Nowadays this is 70/30. Formerly this was a way to conceal overtime work – a possibility of extra money. This has now become the basic form of employment. This means that we do not speak about any range of hours. If someone cannot do the job, they can hire a subcontractor paying 2 PLN rate; nobody cares. The service must be done. There is a small group of clients who choose quality and prefer to pay a little more to have certain employees, for example verified for no penal record. These entities include banks or companies with foreign capital from Germany or the United Kingdom, who wish to instil their standards in Poland. They treat employees differently, perhaps because democracy is more mature in their countries. This, however, does not always work. Several years ago, G4S, one of the leading western companies dealing with security operated in Poland. Until the very end, they tried to keep some standards, e.g. social packages. They showed how this should look like. Unfortunately, they did not stand up to competition. They withdrew from the Polish market. Securitas also struggled for a long time to keep job contracts, but they had to surrender. We have been alarming about the situation for years. There has been no improvement. We do not ask for excessive wealth for people from this sector, because we are aware that such tasks do not require significant skills. They are often performed by people with primary or secondary education. But their work must be respected. When we surveyed them, they pointed out that the biggest problem to them are the very low wages – not unkind or harsh managers. They respond that they would readily take it if they got higher wages. Governments one after the other admit this is an important issue and promise us they would deal with it. At the Tri-Partite Commission for Social and Economic Affairs, a special sub-committee has been established, as procurement from public entities in the case of security services market constitute over 40% of the market, while cleaning – 70%. And so we are talking and talking. Everyone meets, present declarations, assure they would attempt to regulate issues, and cry over the fate of the people. You can write anything you like on paper while life goes on. There was a situation once where a lady from the Ministry of Labour came to the meeting and said this is a free country and if someone wishes to, he or she can work for as much as 0.50 PLN! When the amendment of the Public Procurement Law was issued and the price criterion ceased to be decisive, we hoped that the situation will improve. If, however, ordering parties apply social clauses, they often do it in a manner not translating in any way onto the situation of the staff. For example, they include a provision in the specification that 10% of employees are to be disabled. This is not a problem, as most companies dealing with security and cleaning are protected labour entities. When there is a requirement for employment under a job contract, this can be bypassed assuring e.g. 1/10 FTE. Formally, everything will be fine. We talk to people in charge of procurement at public institutions who explain that they fear to select more expensive offers,

64 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

as the Central Anticorruption Bureau will start investigating. Authorities get lost in this themselves. Public Procurement Office claims that the price does not have to be the lowest, but if it is not, they order an inspection. On the one hand, the authorities establish minimum pay, and then they are unable to execute it. National Labour Inspection finds it the easiest to enter the largest companies, and order preparation and submission of documents. Small companies are not checked whether, for example, they can deliver the service offered for a specified price. They operate in peace. The state, which should guard the law established by itself, entirely fails to do so. I fear that mandatory payment of social insurance premiums on all contracts of mandate on the amount of minimum salary, which is to apply from January 2016, will still deteriorate the situation and increase the grey zone. Money will be paid under the table.

NO.

COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

Nothing will change until people get themselves organised. They must understand that if they don’t ask for it, nobody will give it to them. It is worth stressing that if cleaners or security officers worked 168 hours according to the Labour Code, companies would record 40% vacancies.

1

ACCOR POLSKA

+

-

-

-

-

ND

ND

+

-

-

-

+

2

ADECCO POLAND SP. Z O.O

+

+

+

+

-

ND

ND

-

-

+

+

+

3

AGENCJA ZATRUDNIENIA TRENKWALDER

+

-

-

-

-

ND

ND

-

-

-

-

-

4

AMLUX SP. Z O. O.

-

-

-

-

-

ND

ND

-

-

-

-

-

ND

5

AMREST HOLDINGS SE

+

-

+

-

-

ND

+

+

+

-

+

6

EKOTRADE SP. Z.O.O.

-

-

-

-

-

ND

ND

-

-

-

-

-

7

GK WORK SERVICE SA

+

+

+

-

+

+

-

+

-

+

-

-

8

GRUPA IMPEL

+

-

-

+

-

ND

-

+

-

+

-

-

9

GRUPA SOLID

-

-

-

-

-

ND

ND

-

-

-

-

-

10

HILTON WORLDWIDE POLSKA

+

-

-

-

-

ND

ND

-

-

-

-

-

11

HOTEL GOŁĘBIEWSKI

-

-

-

-

-

ND

ND

-

-

-

-

-

12

INTERCONTINENTAL HOTELS GROUP

-

-

-

-

-

ND

ND

-

-

-

-

-

13

ISS POLSKA

+

-

+

+

-

ND

ND

+

-

+

+

-

14

KONSALNET SECURITY SP. Z O.O

-

-

-

-

-

ND

ND

-

-

+

-

-

15

LOUVRE HOTELS GROUP

-

-

-

-

-

ND

ND

-

-

-

-

-

16

MANPOWER GROUP W POLSCE

-

-

-

+

-

ND

ND

+

+

+

+

-

17

MCDONALD’S POLSKA SP. Z O.O

+

-

-

+

-

ND

ND

+

+

+

+

-

18

RANDSTAD POLSKA SP. Z O.O

+

+

-

-

-

ND

ND

+

-

+

-

-

19

SECURITAS POLSKA SP. Z O. O.

+

-

-

+

-

ND

ND

+

+

+

+

+

20

SFINKS POLSKA SA

-

-

-

-

-

ND

-

-

-

-

-

+

21

STARWOOD HOTELS AND RESORTS

-

-

-

-

-

ND

ND

-

-

-

-

+

Table 5: HORECA, CLEANING, SECURITY AND JOB AGENCIES

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 65

3.6 MEDIA, COMMUNICATION, IT Key aspects of responsibility in the sector Telecommunications is a sector increasingly affecting our lives. Currently, it is difficult to find people not using these services: not having a mobile phone, Internet, or cable TV. Therefore, companies from this sector face special challenges in the area of corporate social responsibility. First of all, corporations must not abuse this situation. They must not infringe consumer privacy. Operators perfectly know when contracts terminate not only in respect of their own customers, but also of customers of competitive networks. Tele-marketers call them several months prior, encouraging them to change the service provider. Doing so, they do not pay attention to time, interfering people with work, troubling them in the evenings, on non-business days, or early in the morning. They also attack our mailboxes with large volumes of spam. Companies should abstain from similar practices, which are close to stalking. They also notoriously try to convince people to conclude contracts on the phone. Such practices are impermissible. Companies are obliged to provide customers with a possibility to get acquainted with the terms of contracts concluded. There is also another reprehensible practice, namely trading with personal data. Companies must not conceal fees in contracts, e.g. by proposing allegedly free tablets and laptops as an addition to Internet or phone, which only seem to be costing us the symbolical one zloty, whereas they are repaid in instalments for many months. Operators must also take care of proper customer service. They must not exclude the elderly by not leaving them any other alternative than an online contact form or a helpline where one has to switch to consecutive numbers depending on the topic we are interested in. They are obliged to establish points where the case can be explained in direct contact with the consultant. The media are obliged to provide reliable information, accounting for various points of view, and to initiate a debate on topics important to the public opinion. They must also act against the consequences of media commercialisation. It is obvious that no TV or press title will survive on the market without

66 |

advertising from public institutions or business. It is important, however, that the sponsored messages should be separated from editor contents, and media should avoid projects requiring reciprocity, e.g. press tour trips to yield materials on some company.

Comment on the monitoring results The media, communications and IT sector scores well in our monitoring. It must be stressed that the reason is not because they excellently fulfil the obligations related to corporate social responsibility, but because of poor scores of other sectors. All companies account for sustainable development on their websites. Interest in CSR policy is expressed by 69.2%, the same level as ecology. The need to prevent corruption is stressed by just 46.1%, whereas monitoring of the supply chain – by 30.7%. Social reports are drafted by 23% companies, while all do so according to GRI guidelines. Six companies are listed on the stock exchange, but corporate social responsibility is mentioned in the annual statements by just four (66.6%). Person in charge of CSR is employed by 30.7% corporations. The best score in our listing belongs to Orange Polska S.A. This is one of the few companies who met all our criteria. “For us, CSR is not just a philosophy, but principally the foundation of our daily business, accounting for expectations of our shareholders at each phase of company functioning,” the company assures on its website. “This required the approach to CSR as a significant element of our long-term business strategy. We popularise corporate social responsibility outside the organisation. We are an active participant to the discussion about CSR in Poland, and we share our experience and best practices.45” The company also adopted a CSR strategy for the years 2013-2015, key areas of which are defined as: “safe network”, “digital integration”, “clean environment”, “interesting team”. In our assessment, we missed the most important issue of transparent relations with customers and observation of consumer rights. The corporation, however, assures that “in 2011-2013, it conducted one of major dialogues with stakeholders in Poland according to AA 1000 standards. The dialogue relied on key social chal45 http://www.orange.pl/odpowiedzialny-biznes-nasze-podejscie.phtml, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

lenges.” The talks included, among others, “meetings with customer organisations and ombudsmen, meetings with trade unions, individual meetings of

the President and managers with representatives of public administration and business organisation, as well as opinion leaders.”

Corpo-Babble for the Consumer CENTRUMCSR.PL FOUNDATION Telecommunication contracts have been analysed by the Polish Language Council which, in August 2015, prepared an expertise for the Senate. The document entitled “Report on protection of the Polish language for the years 2012-2013. Polish language in documents used in consumer trading”46 can be read like a good thriller. Unfortunately, this just reflects the everyday reality of customers. In the introduction, specialists observe that operators “make available contracts or amendments to contracts only upon their conclusion being completely aware that the customer has just a few minutes to read and sign them. At the Customer Service Offices, exclusively the terms of promotional offers are made available on request”47. They point out that companies should express good will and take all efforts that texts of the contracts should be understandable to “an average Pole”, namely a person with at least lower secondary education. The analysis, however, shows that deciphering and understanding of the full meaning of all documents requires university education at least at a PhD level. Texts are illegible, saturated with complicated terminology, contain complex syntax structures. For example, one sentence in a document by Play contained as many as 92 words, including 7.61% difficult words. “Information related to financial commitments in contracts, although they should be transparent, turn out to be the most vague”, observe representatives of the Council. “When analysing contracts, one can have the impression that authors particularly care to introduce terminology where this is not required, as general language provides means for clear and precise expressing the contents, e.g. instead of using the term “service e-mail”, one can say “e-mail address provided by the subscriber”, instead of “order placement channel” – “method of order placement (by phone or at the customer service office)”, instead of “disclosing the will in respect of” – “consent to something”. Sometimes, there are even bizarre creations, such as “Customer statement in respect of the lack of will to continue the Contract” or “the statement can be done with meeting (…) terms.” Some terms can be explained by stating their definition or adding examples, e.g. when writing about means of remote communication, one can explain that these are e.g. printed or electronic form, printed or electronic letter, etc. Unfortunately, this is not practiced”48. “Apart from terminology, contract understanding is rendered difficult also through saturation of the text with abstract vocabulary, such as integrity, distribution, integration, telecommunications system, claims, commitments, update, synchronisation, transmission, identification, equivalent, incorporated, benefit, debt. Authors of contracts do not look for meaning equivalents for difficult and abstract words, which could make it easier for the recipient to understand the contents of the message. (…) In texts of contracts and documents enclosed to them, authors very often refer to contents included within the same document (to its other points, sentences), but also to other documents – bylaws, price lists, offer terms. Understanding of one statement thus requires the recipient to know the provisions of other documents (if these are external references) or multiple passing to other fragments of the text read (if these are internal references). (…) The graphic form of analysed materials does not encourage reading, either. These are vast documents – from several to several dozen thousand characters. A normalised page includes 1,800 characters. Printing them in the standard format would thus take several pages hence, in order to reduce the number of pages, authors of the contracts print them using fonts sized 7 and 8 points, with a single interline. This is actually an illegible text. There are also documents printed in the layout of two columns per page, yielding the font even smaller – of 6 points.

46

Polish Language Council, Report on the State of Protection of the Polish Language fo 2012-2013. Polish in Documents Used in Consumer Conduct, Warsaw 2015, pp. 107-125.

47 Jw. 48 Jw.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 67

Most of all, one can get the impression that contracts and other documents forming an integral part of telecommunication contracts are prepared by their authors so as to secure the interest of the sender only. It seems that the graphic form, layout of the text and the method of its preparation (syntax structure, saturation with terminology) serve to discourage the recipient from reading the contents of the contract,” assesses the Polish Language Council49.

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

1

AGORA SA

+

-

-

-

-

ND

+

-

-

-

-

-

2

GK AB SA

+

-

+

-

-

ND

+

+

-

+

-

-

3

GK ASSECO POLAND SA

+

-

-

-

-

ND

-

-

-

-

-

-

4

GK COMARCH SA

+

-

+

+

+

+

+

+

+

+

+

-

5

GK NETIA SA

+

+

+

+

+

+

-

+

-

+

-

-

Corruption

COMPANY

Human rights

NO.

CSR on the webpage

ConCOMPANYtion of results

49 Jw.

6

GK TVN SA

+

-

+

+

-

ND

-

-

-

+

+

-

7

MICROSOFT SP. Z O.O.

+

-

-

-

-

ND

ND

+

+

+

+

-

8

ORANGE POLSKA SA

+

+

+

+

+

+

+

+

+

+

+

+

9

P4 SP.Z.O.O.

+

-

+

-

-

ND

ND

+

-

-

-

-

10

POLKOMTEL SP. Z.O.O.

+

-

+

-

-

ND

ND

+

-

+

-

-

11

T-MOBILE SP. Z.O.O.

+

+

+

+

-

ND

ND

+

-

+

+

+

12

UPC POLSKA SP. Z O.O.

+

+

-

+

-

ND

ND

+

+

+

+

+

13

VECTRA SA

+

-

+

-

-

ND

ND

-

-

+

-

-

Table 6: MEDIA, COMMUNICATION, IT

68 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.7 FASHION AND TEXTILE Key aspects of responsibility in the sector The fashion industry is particularly exposed to all issues related to the violation of human rights in Poland and in developing countries, where production occurs at the lowest possible costs. A large part of European companies locates their factories there, with Polish brands not being an exception, hence they are obliged to account for global issues in their strategies. Their task is to control the supply chain: check whether the requirements of health and safety are met, employee payroll amount, monitoring whether people can associate within trade unions. It is also necessary to fight against slavery and use of children’s labour. Corporations should disclose the list of their suppliers. They must not apply tax optimisation, e.g. by transferring the right to brands to “tax heavens”. Their duty is to pay taxes in the countries they operate in, and thus to support budget expenses on education or healthcare. This is because such services are used by their employees on everyday basis.

for pure pleasure, but often also contamination of the environment due to improper utilisation of the corpses. Fashion must pay special attention to equality issues. Every day, we are attacked by advertising campaigns where women are shown in a sexist manner, being brought down to the role of a pretty item. Companies also shape the applicable idea of beauty and thus affect the well-being and even health of thousands of people. Therefore, they must not show such severe diseases as anorexia as a lifestyle, promote excessively thin models or exaggerate with improving their photos and elimination of the slightest imperfections by using graphic software. Corporations, directed with the sales incentives, cannot create the only applicable and unachievable canons of beauty every season.

Comment on the monitoring results

Respect for animal rights and resigning from the production of natural furs are other important issues. Breeding means not only killing of feeling creatures

Despite the fact that the fashion industry has recently become immensely criticised, the results of the monitoring show that this did not force companies to greater transparency. Textile companies score very poorly in our monitoring. Although the interest in sustainable development is declared on the websites of 40%, the policy in this respect has been developed by just every fifth of them (20%). Most companies have accounted for ecological factors (30%), and human rights (30%). Only one (LPP) expresses interest in the supply chain, has some Code of ethics, and employs a person in charge of CSR. None of the companies refers to methods for preventing corruption. Our e-mail with a request to verify the results achieved in the monitoring was answered by just one company (Monnari).

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 69

It is also important to protect the ecosystem. Textile production often means excessive exploitation of the environment. Cultivation of some fibres, e.g. cotton, is related to vast contamination of soil with pesticides and immense water consumption. An alternative solution is to use secondary materials that are fit for recycling. One can also use organic raw materials, e.g. natural cotton or hemp.

April 24th 2013. In the collapsed Rana Plaza complex on the outskirts of Dhaka 1.127 people die and almost 2.000 are wounded. Tags from the most important apparel companies – including the Polish LPP, owning the Cropp brand – are find on the scene of the tragedy.

Polish Trace in a Global Tragedy CENTRUMCSR.PL FOUNDATION On 23 April 2013, employees of the Rana Plaza textile factories complex in Bangladesh alarmed their superiors with horror about the technical condition of the building – cracked walls included. At first, this was to be a shopping centre, yet after illegal addition of two storeys, a factory was established there. The superiors ignored their dramatic appeals, assured that everything was OK, and ordered them to return to their duties under the penalty of lay-offs. People working for drastically low rates, fearing the loss of the only source of income, had no other choice. They were destined to their fate. On the next day, the building collapsed. Everything occurred instantly. This was the largest industrial disaster in history, burying 1,127 people alive! Hundreds of injured workers ended up in hospital. This shocked the public opinion worldwide. It soon turned out that clothes were also made there for the Polish company LPP. Czech photographer Zbynek Hrbata found tags of their brand Cropp in the rubble. Under the pressure of the media, the company confirmed such information stressing that the issue referred to a small percentage of their assortment. “Production of clothes of brands owned by LPP is ordered from independent manufacturers whose seats are located principally in Asia. About 19% of our offer originates from Bangladesh. The share of clothes manufactured on LPP’s request constitutes approx. 0.3% of entire export of textiles from that country. Cooperation with manufacturers occurs via agents who locate the production in various factories. This year, one of the agents collaborating with LPP located the production of a part of clothing under the Cropp brand (0.6% share in all this year’s orders placed by LPP in Bangladesh) in the factory situated in the Rana Plaza building,” explained Dariusz Pachla, Vice-President of the Board of LPP50. Early in July, over 70 companies worldwide ordering production at the factory signed the agreement entitled “Accord on fire and building safety in Bangladesh” aimed at improving employee safety in Bangladesh. Their objective was to, among others, check the condition of buildings and carry out necessary repairs. At first, LPP did not participate in the initiative. Company representatives explained they investigated such a possibility but, for the time being, riots in Bangladesh were intensifying, hence they did not wish to send their employees in a dangerous area. Angry customers announced boycott of its brands on the Internet. They also pointed out that the company paid no compensation to the families of the victims. The wave of criticism and losses in respect of image were immense. Finally, LPP joined the ACCORD coalition and, on the occasion of the first anniversary of the tragedy, issued a statement on their website: “The tragedy in Bangladesh moved 50

70 |

Metki gdańskiej marki Cropp na gruzach zawalonej fabryki w Bangladeszu. Oświadczenie LPP SA, Dziennik Bałtycki, http://www.dziennikbaltycki. pl/artykul/905357,metki-gdanskiej-marki-cropp-na-gruzach-zawalonej-fabryki-w-bangladeszu-oswiadczenie-lpp-sa,id,t.html?cookie=1 , accessed: 27.05.2013.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

and surprised us at the same time; nevertheless, we did not want to act hastily. In order to undertake, in a fully aware manner, the long-term commitments related to the support for the Rana Plaza victims, we needed time to thoroughly analyse the situation. As a result, a complex action plan was developed, related both to financial support for the victims, and strengthening of internal structures controlling the working conditions at factories we collaborate with. Accord on Fire and Building Safety in Bangladesh is a pioneer initiative accessed by over 150 textile companies, as well as international and local non-governmental organisations. Under the agreement, we have undertaken to pay membership fees that will assure the possibility of control measures and training at factories. Moreover, during the five-year term of the agreement, a number of actions will be introduced, as related to independent inspection of the factories, as well as their modernisation. As a company, we have no own production plants, we have our clothing sawn in factories whose services, apart from us, are used by other global textile corporations, so we are convinced it is important that the repair measures should refer to the entire sector, not just particular companies”51. The company also boasted that it has provided a voluntary donation to the Rana Plaza Coordination Committee. The funds were to be given as compensation to the victims and their families. The company did not, however, state the amount of its donation. It informed that it carries out intensified control of the global supply chain. It also announced it created internal audit structures in its representative office in Bangladesh. Its employees are to monitor conditions at the factories, namely, in fact, the company is checking itself. A question should be asked whether such a solution gives hope for an objective assessment of the situation. This is certainly the most dramatic, but not the only situation where the company had to rescue its reputation. Another pretext to irritate consumers involved tax optimisation. LPP placed the right to its brands in companies located at the United Arab Emirates and in Cyprus. Thanks to this it avoided a large portion of payments to the Polish tax authorities. After mass criticism, in June 2015, the company announced that the other of the listed companies would be incorporated by the national branch, which means it would settle taxes in Poland again52.

NO.

COMPANY

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

http://www.lppsa.com/33488, accessed: 16.10.2015.

Person responsible for CSR

http://www.lppsa.com/informacje-prasowe/rocznica-tragedii-w-bangladeszu, accessed: 16.10.2015.

52

CSR on the webpage

51

1

BYTOM SA

-

-

-

-

-

ND

-

-

-

-

-

-

2

GINO ROSSI SA

-

-

-

-

-

ND

-

-

-

-

-

-

3

GK CCC SA

+

-

-

-

-

ND

-

+

-

+

-

-

4

GK LPP SA

+

+

+

+

-

ND

-

+

+

+

-

-

5

MONNARI TRADE SA

+

-

-

-

-

ND

+

-

-

-

-

+

6

OTCF SP. Z O.O.

-

-

-

-

-

ND

ND

-

-

-

-

-

7

PRÓCHNIK SA

-

-

-

-

-

ND

-

-

-

-

-

-

8

REDAN SA

-

-

-

-

-

ND

-

-

-

-

-

-

9

VISTULA GROUP SA

-

-

-

-

-

ND

-

-

-

-

-

-

10

WOJAS SA

+

-

+

-

-

ND

-

+

-

+

-

-

Table 7: FASHION AND TEXTILE

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 71

3.8 CHEMICAL INDUSTRY Key aspects of responsibility in the sector What should be the most important for chemical industry is the environmental protection and activities to mitigate its harmful impact. This is stated, for example, in the Responsible Care Global Charter. The companies’ task is to apply the most environmentally neutral production processes, prevention of excessive generation of waste, recycling of waste, as well as utilisation of particularly harmful waste and treatment of industrial wastewater. They should also use raw materials in a closed circuit, reduce emissions of harmful substances, and take care of safe storage of their products. What is the most important, however, is the drafting of the risk analysis to determine what risks to the ecosystem can be related to the company’s business, and developing a strategy to prevent them. Corporations should also define limits to pollution. They are obliged to apply remediation, namely cleaning and elimination of contaminants generated as a result of their business and accidents. Work in this sector is related to special risks. Employees are exposed to chemical materials and installations that can cause burns, fires or explosions, to toxic substances and dust mixes. Therefore, corporations must perform regular training, assure employee access to state-of-the-art and safe technologies, as well as guarantee the necessary protective clothing. Companies are obliged to draft a policy for prevention of severe failures. Such a document must contain information, among others, on rules of procedure in such a situation, and guidelines for rescue forces on possible harmful substances and their effects. All works and investments carried out by companies must be consulted with local communities. This is stated in Aarhus Convention regarding the participation of stakeholders, with special consideration of associations and organisations dealing with environmental protection. The dialogue must refer to, among others, location of new plan or determining safe distances.

Comment on the monitoring results Corporate Social Responsibility is accounted for on websites of 72.7% corporations from the chemical industry. CSR policy was also developed by 72.7%. “The mission, vision and values of the compa-

72 |

ny reflect the Grupa Kapitałowa Grupa Kęty S.A.’s approach to corporate social responsibility. CSR practices are a standard here, not an obligation. Management Boards of all companies forming part of the Capital Group, in their business, consciously and voluntarily account for social interests, environmental protection, as well as relations with various groups of stakeholders. For the Group‘s Companies, being responsible does not only mean meeting all formal and legal requirements, but also increased investments in human resources, environmental protection, and its relation with the Company’s environment, namely voluntary involvement,”53 – assures Kęty Group. Environmental protection seems to be of the greatest importance to companies. Issues related to ecology were accounted for by 81.8%. Sanockie Zakłady Przemysłu Gumowego Stomil Sanok SA declares “delivering environment-friendly products and services at optimal costs, continuous improvement of the Environmental Management System aimed at meeting all legal regulations regarding environmental protection, continuous reduction of the Company’s harmful impact on the environment below specific standards and limits, prevention of environmental pollution”54. Human rights are in the centre of attention of 63.6% of corporations. GK Boryszew SA focuses on the sense of security at the workplace, possibility of getting involved in campaigns to improve working conditions. “Employees, human capital, are treated as the most important resource of the Group. The key element of the HR policy is to create conditions for liberating one’s own creative initiative on the basis of the principles of Kaizen philosophy, fundamental rule of which is continuous involvement of all employees in the process of improving the Company’s quality and its products”55, the company explains. Person in charge of sustainable development is employed by two companies (18.1%), whereas 45.4% feature Code of ethics; the same refers to the corruption and supply chain. “Supplying innovative solutions and promotion of sustainable development are two integral parts of our strategy. In both of them, our 53

http://www.grupakety.com/pl/26,czym-dla-nas-jest-csr.html, accessed: 16.10.2015.

54

http://www.stomilsanok.com.pl/about_jakosc.xml, accessed: 16.10.2015.

55

http://www.boryszew.com.pl/zespol-boryszew?print=please, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

partners and suppliers play a key role”56, says Henkel Polska Sp. z o.o.

56

http://www.henkel.pl/partnerzy-i-dostawcy, accessed: 16.10.2015.

Social report was drafted by just one company, GK Grupy Azoty SA, applying GRI guidelines. In their annual statements, CSR was included by just three out of eight companies to which the criterion applied (37.5%).

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

-

-

-

- ND ND -

-

-

-

-

2

COMPANY OPONIARSKA DĘBICA SA

-

-

-

-

- ND +

+

-

-

-

+

3

GK BORYSZEW SA

+

-

+

+

- ND -

+

+

+

+

-

4

GK GRUPY AZOTY SA

+

-

+

+

+

+

+

+

+

+

-

5

GRUPA CIECH

+

-

+

-

- ND -

+

-

+

-

-

6

GRUPA KĘTY

+

+

+

+

- ND +

+

-

+

+

+

7

GRUPA SELENA FM SA

-

-

-

-

- ND -

-

-

-

-

-

8

HENKEL POLSKA SP. Z O.O.

+

+

+

+

- ND ND +

+

+

+

-

9

MICHELIN POLSKA SA

+

-

+

-

- ND ND +

+

+

-

-

10 SANOCKIE ZAKŁADY PRZEMYSŁU GUMOWEGO STOMIL SANOK SA

-

-

+

-

- ND -

+

-

-

-

-

11 SYNTHOS SA

+

-

+

+

- ND -

+

+

+

+

+

+

Ecology

Code of ethics

+

CSR in the yearly report

CSR policy

BRIDGESTONE POZNAŃ SP. Z O.O.

GRI

Person responsible for CSR

1

NO. COMPANY

Social reporting

CSR on the webpage

The chemical sector looks quite good in our monitoring. Its social responsibility is especially important, as it often uses substances harmful for human health or the environment.

Table 8: CHEMICAL INDUSTRY

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 73

3.9 WOOD AND PAPER INDUSTRY Key aspects of responsibility in the sector The fundamental task for companies in this sector is the sustainable management of forest resources, namely joining the needs of people, nature and economy. They should take actions to keep the production capacity, regeneration and biological diversity of forests, and not just invest in the species most profitable from the industrial point of view. Companies must also acquire wood considering the forest’s biological capacities, namely the ratio of size to growth, and plant new trees to replace the trees cut out. They are also obliged to take initiatives securing forest areas of major importance from the ecological point of view. They must not turn forests into other forms of use, or apply harmful chemical substances, cause damage to other ecosystems, or introduce genetically modified species. All this is stated in PEFC (Programme for the Endorsement of Forest Certification Schemes). It also imposes observation of workers’ rights and rights of the natives, support for the local job market, carrying out social consultations on planned actions with surrounding residents and stakeholders, as well as accounting for traditional land use rights. It is also their task to protect habitats of species in danger of extinction. Companies should promote recycling, use recycled materials, and act to reduce carbon dioxide emissions. An important task is to appropriately utilise industrial waste so as to minimise its negative environmental impact, including by thermal processing. Producers must also verify the origin of the wood they purchase and whether it was acquired in a legal manner. This means the need to monitor the supply chain and perform audits. This is testified to by FSC CoC Certificate (Forest Stewardship Council Chain of Custody).

Comment on the monitoring results As many as 80% of companies from the wood and paper industry sector account for CSR on their websites. Most of them (90%), which seems obvious for the sector, attach great attention to ecological issues. “Our involvement in the activities for environmental protection is manifested with the launch of a stateof-the-art CHP plant in Biłgoraj holding a certificate of green energy producer,” states GK Black Red White SA. “It produces energy cogenerated from biomass by processing approx. 95 tonnes of post-production

74 |

materials per day, with the possibility of producing heat or electricity, depending on the needs. Owing to this, our production plant is partly self-sufficient, whereas energy surplus is sold to external entities”57. CSR policy was drafted by 50% companies. Human rights are in the focus of attention of 60%, whereas the supply chain and preventing corruption – of 40%. Code of Ethics is held by 30% companies. Sustainable development is mentioned in the annual statements by 25%, namely one out of four to which this factor refers. The companies, however, declare their involvement in many areas. Swedish Arctic Paper corporation supports, among others, the Sten Lovén Marine Research Centre and gets involved in the protection of bird breeding habitats in the Warta Mouth National Park located near its factories. Furthermore, the company openly declares its support to trade unions in its branches, requiring a similar policy from all of its business partners. This is a rare example. It also takes action to reduce its carbon footprint. “An example is formed by Arctic Paper Kostrzyn paper plant, where significant funds have been invested in state-of-theart efficient energy solutions,” the company explains on its website. “In the modernised plant fuelled with local natural gas (which is a much cleaner fuel than oil or coal), over 50% reduction has been achieved in CO2 emissions resulting from paper production, as well as complete self-sufficiency in the aspect of paper plant’s energy, both as regards heat and electricity. Arctic Paper openly and clearly declares the volume of CO2 emissions in relation to each of its products via “Paper Profile” documents and “Carbon Footprint” communications to be downloaded from our website58. Just one of the companies in the wood and paper industry, namely Nowy Styl Sp. z o.o., issued a social report accounting for GRI criteria. As one of two companies, it employs a person in charge of sustainable development.

57

http://www.brw.com.pl/ofirmie/o-nas/, accessed: 16.10.2015.

58 http://www.arcticpaper.com/pl/Start/Arctic-Paper/Sustainability/Carbon-Footprint/, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

NO. COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

The wood and paper industry is one of the engines of the Polish economy. The demand for wood from the industry is huge and creates pressure on further cuts. Control over the sources of the wood is key to enforce sustainability in the sector. Pictured Białowieża Forest.

1

GK ARCTIC PAPER SA

+

-

+

+

-

ND

+

+

+

+

+

-

2

GK BLACK RED WHITE SA

+

-

-

-

-

ND

ND

+

-

-

-

+

3

GK FORTE SA

+

-

-

-

-

ND

-

+

-

-

-

-

4

GRUPA BARLINEK

+

+

+

-

-

ND

-

+

-

+

-

-

5

IKEA INDUSTRY POLAND

-

-

-

-

-

ND

ND

+

-

-

-

-

6

INTERNATIONAL PAPER – KWIDZYN SP. Z O. O.

+

-

+

+

-

ND

ND

+

+

+

+

-

7

MONDI ŚWIECIE SA

+

-

-

-

-

ND

ND

+

-

+

+

-

8

NOWY STYL SP. Z O.O.

+

+

+

+

+ +

ND

+

+

+

+

+

9

PAGED MEBLE SA

-

-

-

-

-

ND

-

-

-

-

-

-

10

PAŃSTWOWE GOSPODARSTWO LEŚNE „LASY PAŃSTWOWE”

+

-

+

-

-

ND

ND

+

+

+

-

+

Table 9: WOOD AND PAPER INDUSTRY

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 75

3.10 METAL, MACHINERY AND AUTOMOTIVE INDUSTRY Key aspects of responsibility in the sector Companies representing the mentioned sector often apply for multimillion contracts involving e.g. the supply of a fleet for public carriers. They should therefore attach special attention to preventing corruption. Factories of some of them are located in Special Economic zones, thus profiting from co-financing of the state through tax exemptions and subsidies, which should not be abused. Environmental protection is a major challenge for the sector. The automotive industry contributes to significant increase in emitted pollutions, including nitrogen oxides, carbon oxides, sulphur compounds, or acetylene compounds. Manufacturers should aim at using ecological drives and alternative fuels, such as natural gas, bioethanol or electricity. It is

the companies’ task to take actions to reduce the noise. It is their role to utilise inoperative vehicles. It is also recommended to carry out the LCA (Life Cycle Assessment), namely techniques in the area of management processes to determine potential risks to the environment and estimate consequences to the ecosystem at each phase of the production process, until utilisation of the used product. The steelworks business is also problematic. Their duty is to modernise production processes leading to reduced CO2 emissions and energy consumption, as well as reuse of materials. Heavy industry must recognise global warming and account for it in their actions, particularly by abstaining from financing measures negating climate change, or advertising characterised with greenwashing. Corporations should also carry out a continuous di-

Heavy industries mean high emissions of greenhouse gases. Companies from this sector often oppose ideas on more ambitious UE climate and energy policies. Pictured ArcellorMittal branch in Zdzieszowice.

76 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

alogue with stakeholders to monitor problems created by their business, aspects causing the greatest nuisance to the neighbourhood, and take repair measures.

Petrol and compression ignition engines based on TSI and TDI technologies, owing to their downsizing, become increasingly economical and clean, without losing any of their dynamics.

Comment on the monitoring results

This allows for presenting to customers a broad and affordable offer of economical, extremely effective and ecological cars”60.

As many as 63.1% companies in the metal, machinery and automotive industry account for CSR on their websites. CSR policy is made available by 47.3% of them. Toyota Motor Manufacturing Poland Sp. z o.o. has developed principles to follow in respect of specific groups of stakeholders. In the case of customers, it promises to supply safe, top quality gearboxes, engines, as well as other products and services. It declares that employees are assured equal opportunities of employment and professional career, supports individual development and friendly working conditions. It explains that all suppliers are guaranteed honest assessment of offers and there is a free competition of candidates. It convinces that it conducts an open dialogue, and maintains honest relations with social partners in order to mutually understand their roles in the sustainable development of the local community. It assures that shareholders are provided with reliable and timely information on the company’s operating results and financial standing. The company also sets challenges related to environmental protection: “Our goal is to follow the idea of a Green Factory in a Green City, understood as the company development in the harmony with the natural environment through mitigation of our impact on the natural environment. We continuously take measures to improve our environmental results in the areas of water and energy consumption, as well as reduced emissions and waste volumes. We attempt to build local partnerships for the benefit of pro-environmental campaigns and promoting ecological awareness through an open dialogue with many organisations and persons involved in protection of the natural environment”59. Ecology is the area most frequently noticed by corporations in this sector (78.9%). “Proecological measures are of increasingly greater importance to automotive producers,” informs Volkswagen Poznań Sp. z o.o. “Volkswagen Engineers also participate in the global race for creating effective drives with zero emissions of exhausts. Many limitations, however, make the path to popularisation of hybrid or electrical vehicles more of a marathon than a sprint race. Therefore, Volkswagen currently focuses on the effective use of conventional energy sources. 59 http://www.toyotapl.com/walbrzych/kat_Polityka-OdpowiedzialnegoBiznesu_118.htm, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Human rights are accounted for by 63.1% of companies in the sector. “By creating employee development and employment security – job contracts for indefinite terms (over 97% employees are on permanent contracts), we affect loyalty, identification and attachment of the employees to the Company,” boasts RAFAKO SA. “(…) While caring for sustainable development of our employees, we do not forget about social and living needs of the employees, among others by assuring mutual communication, representation, working conditions, social care, and activities related to interests not related to their jobs, such as sports, tourism, recreation, as well as a broadly understood promotion of health. We respect the right to privacy and freedom of choice in all activities addressed to employees”61. Code of ethics is present among 31.5% corporations monitored. Supply chains are accounted for by 47.3%. Man Bus Sp. z o.o. has a special Code of Conduct for suppliers and business partners. “Suppliers and business partners of MAN corporation follow and support globally applicable regulations on human rights as fundamental and generally recognised guidelines. The above particularly means that MAN’s suppliers and business partners do not apply forced labour and do not employ children. Our suppliers and business partners follow the provisions of the convention of the International Labour Organisation ILO 138 and 182, which specify minimum age for employment of young workers. (…) MAN’s suppliers and business partners do not apply discrimination due to ethnic, national or social origin, skin colour, gender, religion, ideology, age, health, sexual orientation, political views (if in conformity with the principles for democracy and tolerance of persons representing different views), or due to other legally protective characteristics, unless the applicable laws state otherwise. The fundamental right of all employees to establish and join trade unions and organisations representing employee interests is recognised. If such a right is limited under local regulations, legal initiatives of alternative nature must 60 http://www.volkswagen.pl/pl/volkswagen/ochrona-_rodowiska/bluemotiontechnologies.html, accessed: 16.10. 2015. 61

http://www.rafako.com.pl/pracownicy, accessed: 16.10. 2015.

| 77

be supported, as aimed at assuring employees the possibility of representing their interests”62. As many as 42.1% companies wish to prevent corruption. ArcelorMittal Poland SA, in its Code of ethics, has a fragment entitled: “Offering economic and material benefits to state officials”, where “ArcelorMittal will act in compliance with the anti-corruption regulations applicable in countries where the Company runs business, including American act on preventing corruption practices abroad, in respect of global business. No benefits must be offered to state officials, directly or indirectly, including to employees of state enterprises, to affect their actions or decisions 62 http://www.entry.man.eu/man/media/content_medien/doc/entry_ page_poland_1/man-code-of-conduct-for-suppliers-and-business-partners-v02-pl1.pdf, accessed: 16.10. 2015.

in order to obtain or keep orders or to pass them on to other parties. Moreover, one must make sure that dealers authorised to run business on behalf of the Company have a good opinion and also follow the above guidelines”63. This company, as one of two corporations (apart from GK Kopex), drafted a social report, according to GRI guidelines. A person in charge of CSR is employed by 26.3% companies. Sustainable development is mentioned in the annual statements of two out of five companies to which this criterion refers. Results were confirmed by 26.3% companies. 63 http://poland.arcelormittal.com/fileadmin/content/03_odpowiedzialnosc/03_odpowiedzialnosc/projekty_spoleczne/Program_zgodnosci/kodeks_etyki_pol.pdf, accessed: 16.10.2015.

The automotive industry is one of the most important sectors of the Polish economy. It is also one of the biggest lobbyists, fighting with stricter ecological standards. But it can play a different role – i.e. as a supplier of mobility services or a producer of electrical vehicles for public car-sharing schemes.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Lies and Great Emissions CENTRUMCSR.PL FOUNDATION In September 2015, Volkswagen appeared in all the headlines. As the media informed, the company falsified data on exhaust emissions from Diesel engines, and thus violated the act on climate protection. The case was revealed by the American Environmental Protection Agency (EPA). According to its findings, cars had special software installed owing to which, during the tests, they met standards applicable in the United States. However, after handover for use, exhaust gases included 40 times more NOx particles. In fact, the cars were advertised as environment-friendly. A scandal erupted. The corporation’s shares plummeted. Its management desperately sought a way out of the crisis. It announced the company suspended sales in the USA and a payment of immense compensation. The President lost his job. Nevertheless, people loudly spoke of the loss of confidence in – allegedly reliable – German technology. The German Minister of Transport informed that the case probably also referred to European countries. When we were closing the report, journalists alarmed similar cars may also drive on Polish streets.

NO.

COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

This is a clear example of how corporate irresponsibility may lead to immense losses – not only in the financial aspect, but also to ruining the reputation of companies, which is the most difficult to rebuild.

1

ABB POLSKA

+

+

+

+

-

ND

ND

+

+

+

+

-

2

ALSTOM POLSKA

+

-

+

+

-

ND

ND

+

+

+

+

-

3

ARCELORMITTAL POLAND SA

+

+

+

+

+

+

ND

+

+

+

+

+

4

FAMUR

-

-

-

-

-

ND

-

-

-

-

-

-

5

FAURECIA AUTOMOTIVE POLSKA

-

-

-

-

-

ND

ND

-

-

-

-

+

6

FIAT AUTO POLAND SA

-

-

+

-

-

ND

ND

+

-

+

-

-

7

GK INTER CARS SA

+

-

-

-

-

ND

+ +

-

-

-

-

8

GK KOPEX SA

+

+

+

-

+

+

+ +

+

+

-

-

9

GK NSG (PILKINGTON)

+

-

-

+

-

ND

ND

+

+

+

+

-

10

GRUPA VALEO

-

-

-

-

-

ND

ND

+

-

+

-

-

11

MAN BUS SP. Z O.O.

+

-

-

+

-

ND

ND

+

+

+

+

-

12

NEWAG SA

-

-

+

-

-

ND

-

-

-

-

-

-

13

OPEL POLSKA

-

-

-

-

-

ND

ND

+

-

-

-

+

14

POJAZDY SZYNOWE PESA BYDGOSZCZ SA

-

-

-

-

-

ND

ND

-

-

-

-

-

15

RAFAKO SA

+

-

+

-

-

ND

-

+

-

+

-

-

16

SOLARIS BUS & COACH SA

+

-

-

-

-

ND

ND

+

+

-

-

+

17

TOYOTA MOTOR MANUFACTURING POLAND SP. Z O.O.

+

+

+

+

-

ND

ND

+

+

+

+

-

18

VOLKSWAGEN POZNAŃ SP. Z O.O.

+

+

+

+

-

ND

ND

+

+

+

+

+

19

ZF TRW AUTOMOTIVE HOLDINGS CORP

+

-

-

-

-

ND

ND

+

-

+

-

-

Table 10: METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 79

3.11 FOOD INDUSTRY Key aspects of responsibility in the sector It is the obligation of companies in this sector to reliably inform consumers about the ingredients and health properties of products. All respective data – expiry date and allergen content must be placed on the label with a font allowing for reading them (according to the Regulation of the European Parliament, this is at least 1.2 mm, on very small packaging 0.9 mm). Companies are obliged to assure food safety, namely they must know the source of origin of ingredients used, control the conditions of their production, as well as order independent and reliable quality tests. They are obliged to regularly check employees’ health in the aspect of sanitary and epidemiological risks. Principally, they must not apply genetic engineering, modify food in this manner, and conceal this from buyers. The similar applies to using antibiotics. Corporations must also carry out responsible marketing. They must not mislead customers as regards the consequences of consuming a particular product, e.g. they must not advertise sweets as a health-related product, or assure that assortment with high fat content will not contribute to weight gain. They must not address its message to children, build negative eating habits in them, e.g. by convincing that the purchase of crisps or sweets will make them be renowned among peers. It is also reprehensive to use actors in advertising, presented as doctors or dieticians, and thus to build brand credibility on false premises. Companies also must not brand their products with certificates or logos of institutes of public confidence, presented as awarded by an independent body according to objective criteria, while they are simply purchased for a specific amount of money. It is the companies’ duty to take care of working conditions along its supply chain. Farming of many ingredients (e.g. cocoa, palm oil) takes place in the Global South countries, and is related to forced children labour, dangerous conditions, or the use of pesticides that pose a threat to human lives. It is worth stressing that no Polish company participates in international agreements to eliminate similar phenomena.

80 |

Undoubtedly, ethical treatment of animals is a challenge to companies in this sector. They are obliged to assure relevant breeding conditions, e.g. appropriate space in cages. They are obliged to prevent unauthorised cruelty and apply slaughter methods guaranteeing the least suffering. They must also take care of proper utilisation of post-slaughter waste, so as not to pose risk to the environment.

Comment on the monitoring results In our monitoring, companies from the food industry scored poorly. Although 60% feature CSR on their websites, the results for further factors show that these are largely pure declarations. 66.6% focus on ecology, often forgetting about other issues of importance from the sustainable development point of view. “We are a company strongly related to the nature, hence we perfectly understand the need for caring about the natural environment,” convinces Bakoma Sp. z o.o. “In our Production Plant in Elżbietów, there is a state-ofthe-art wastewater treatment plant (…). We have the necessary permits for water intake, wastewater discharge, emissions of pollutants to the air, and for waste generation. All wastes are segregated and safely stored to prevent their permeation to the environment. Waste collection is entrusted exclusively to professional companies who are authorised to run such business. In our Production Plant, there are two installations for renewable energy recovery. These are heat pumps that allow for using the renewable heat gathered in the natural environment. Energy recovery is very ecological, as it reduces the consumption of non-renewable energy sources, such as coal, furnace oil, or natural gas”64. Supply chain is in the focus of just 26.6%, including GK Hortex Holding S.A. “We vigorously support national suppliers with our knowledge and experience: in cooperation with the Institute of Horticulture in Skierniewice, we organise training in production and culture protection; instructors from Hortex’s raw material departments continuously help with solving problems related to cultures, we introduce an early warning system against risks related to pest occurrence. Apart from companies and manufacturer groups, Hortex collaborates with several hundred individual farmers. (…) We follow the principles of fair 64 http://bakoma.pl/o-bakomie/odpowiedzialnosc-spoleczna/ochrona-srodowiska/, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

and equal market competition”65 – we read on the company’s website. CSR policy has been developed by 40% of companies. Corruption remains in the interest of just two of them (13.3%): Krajowa Spółka Cukrowa and ANIMEX – ANIMPOL. Both these companies ob65

http://hortex.com.pl/o-firmie/odpowiedzialnosc-spoleczna/, accessed: 16.10.2015.

tained most pluses in our listing. Human rights have been accounted for in 26.6% cases. Code of Ethics is held by just one entity (6.6%). Also only one company drafts a social report, following GRI guidelines, and one entity employs a person in charge of CSR. In the annual report for the stock exchange, CSR issues are accounted for by one out of four companies to which this criterion referred (25%). Monitoring results were confirmed by just three companies (20%).

The economic and ecological footprint of the food sector is huge. Its condition plays an important role in the quality of life of suppliers – including those living on the other side of the planet.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 81

A Very Bitter Chocolate Maria Huma Kupuj Odpowiedzialnie (Buy Responsibly) Foundation (www.ekonsument.pl) Theobroma cacao L. is the species of a tree yielding precious grains from which cocoa is produced. The plant originates from South America, precisely upper Amazon region, but currently it is grown in the tropical belt of America, Asia and Africa. The accurate translation of the Latin name awarded by Linnaeus means “gods’ beverage”, which refers to pre-Columbian Indian beliefs about the divine genesis of the tree. Cocoa planting strongly depends on human labour. Cocoa tree gives fruit throughout the year; on one tree, there may be flowers and ripe fruit growing out of the trunk and on the branches. Fruits contain 20-30 grains embedded in the white sweet puNO. During a year, one tree yields half a kilo of cocoa. Ripe, cut and slightly fermented cocoa fruit serve to extract grains that are subjected to further fermentation processes, dried, cleared and packed. Afterwards, the grains from the farmers are exported to countries dealing with chocolate manufacture. Further processes include roasting and milling. As a result, cocoa pulp is obtained, which further on turns to cocoa butter and dry powder. Products obtained are used not only for chocolate production, but also in the cosmetic and pharmaceutical industries. 70% of the global cocoa farms are located in four countries of West Africa: Côte d’Ivoire (36% global production), Ghana (20% global production), Nigeria (about 5%) and Cameroon (about 5%). Cocoa manufacturing countries outside Africa include Indonesia (11%), Brazil (5%), and Ecuador (5%). 90% of production include small family farms not exceeding 5 ha. Cocoa farming is the fundamental source of income for 5.5 million small farmers, assuring survival of 14 million rural employees and their families from the countries of the Global South. In fact, global chocolate market (including cocoa trading) is dominated by just a few grand corporations. When they fight for increasingly greater income and greater profits (currently reaching 70% of the price of each chocolate bar), the farmers incur the costs of the increasingly less fair profit distribution, receiving just a small percentage (e.g. 6.4% in Ghana, 5.7% in Côte d’Ivoire, while in the 1980s, this figure stood at 16%). At the same time when the chocolate market achieves the profits of around 80 billion dollars per year, cocoa grain prices have been continuously decreasing since the end of the 1980s, which, together with increased farming costs, results in decreased revenues, and thus economic instability and millions of small farmers becoming poor. Farmers must face not only plagues, draught, culture diseases, or political instability in their own countries, which affect cocoa prices, but also speculators. The giants of cocoa trading can affect cocoa prices by controlling the sales level. They also use long life of the grain, which is stored in warehouses. Farmers cannot afford to do anything similar due to the need to achieve revenue on grain sales, and the impossibility of grain storage in tropical conditions. Poverty of farmers leads to further problems of social and ecological nature. Farmers cannot afford to assure fair pay to their workers, accommodation in decent conditions, board and healthcare. In order to reduce costs, children’s labour has become a general practice (with side effects: kidnapping and child trafficking, as well as forced labour). It is currently estimated that even up to 2 million people work on cocoa farms in West Africa. Some of them perform very dangerous works, often resulting in injuries. Moreover, work deprives them the right to education. Due to low revenues, farmers are also forced to extend their farms, often at the cost of rainforests. Wrongly planned agriculture results in quick degradation of soil, as well as the need to use fertilisers and pesticides. It is estimated that losses due to wrong agricultural maintenance reach up to 40% of the harvest. Moreover, farmers are often forced to resign from other products and focus exclusively on cocoa growing, which results in additional reductions of biodiversity. Cocoa farmers are a numerous group on the cocoa market, but without any powers. They are often very poorly organised and have no idea about possible associations. Moreover, they are poorly informed on the cocoa market, and lack basic knowledge on economics. Another problem is the unskilful management of their own farms. Therefore, they are forced to sell their harvests on the terms dictated by the dealers.

82 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

Authors of the Make Chocolate Fair! campaign initiated in 2013, through four organizations from Germany, Austria, Estonia and the Czech Republic, additionally involving partners from 12 other European countries (including Poland), claim that changes are to be promoted in the international commercial relations. They believe that it is the main chocolate market players that have the responsibility for improving social and ecological effects of cocoa production. Buying FairTrade chocolate is a good alternative. Nevertheless, Fairtrade chocolate still has a very small share in the global market.

1

ANIMEX – ANIMPOL SF SP. Z O.O. SP.K.

+

-

+

+

-

ND

ND

+

+

+

+

+

2

BAKOMA SP. Z.O.O.

+

-

-

-

-

ND

ND

+

-

-

-

-

NO. COMPANY

3

COLIAN HOLDING SA

+

-

+

-

-

ND

-

+

+

-

-

+

4

GK HORTEX HOLDING SA

+

-

+

-

-

ND

ND

+

+

+

-

-

5

GK INDYKPOL SA

+

-

+

-

-

ND

+

+

-

+

-

+

6

GK POLSKI KONCERN MIĘSNY DUDA SA

-

-

-

-

-

ND

-

-

-

-

-

-

7

GK SOKOŁÓW (SOKOŁOWSKIE ZAKŁADY MIĘSNE SA)

-

-

-

-

-

ND

ND

+

-

-

-

-

8

GRUPA KONSPOL

-

-

-

-

-

ND

ND

-

-

-

-

-

9

GRUPA MASPEX WADOWICE

+

-

-

-

-

ND

ND

+

-

-

-

-

10 GRUPA MLEKOVITA

+

+

+

-

-

ND

ND

-

-

-

-

-

11 KRAJOWA SPÓŁKA CUKROWA

+

-

+

-

+

+

ND

+

+

+

+

-

12 MIESZKO SA

-

-

-

-

-

ND

ND

-

-

-

-

-

ND

13 MORPOL SA

+

-

-

-

-

ND

+

-

-

-

-

14 SM MLEKPOL

-

-

-

-

-

ND

ND

+

-

-

-

-

15 WAWEL SA

-

-

-

-

-

ND

-

-

-

-

-

-

Table 11: FOOD INDUSTRY

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 83

3.12 HEALTHCARE AND PHARMACY Key aspects of responsibility in the sector Right to one’s health is a fundamental human right. This is an area where people do not apply savings, hence an easy temptation to use their fear or desperation to gain immense profits. In Poland, we deal with deteriorating access to free-of-charge medical services (covered under the social insurance). Areas such as dentistry or gynaecology have been practically eliminated from them. People wait for months for tests, visits at specialists, procedures and surgeries. Privatisation of this area progresses, resulting in a chaotic mix of the national and commercial sector. In the public debate, people increasingly more often speak of rationalised spending and savings, while forgetting that not all services can be, and sometimes will never be profitable. This does not mean one can resign from them. We more and more don’t deal with healthcare, but with a market of medical services governed with purely economic mechanisms. Therefore, companies in the medical and pharmaceutical sector face special challenges. Their representatives should abstain from manipulation, excessive criticism of public services, instilling negative opinions among patients, their fears, creating an impression that themselves and privatisation of healthcare are a remedy to all problems, acting more efficiently than the state. We assess all such activities as done exclusively to increase one’s revenue, not out of care for service quality. One of the most important challenges to corporations is to carry out responsible marketing. They must not blur the distinction between a medical product and a regular product, suggesting it is a harmless primary necessity to be applied without any consequences practically on everyday basis, eating it as sweets. Poles are global leaders in consumption of OTC drugs and dietary supplements. Companies cannot focus on the allegedly beneficial properties of the preparations, omitting information about possible adverse effects. Advertising must exclusively rely on credible, latest and principally reliable data and statistics. Companies should not use misleading valuating terms, such as “the best”, “the quickest”, or “the most effective” product on the market without providing test results confirming so. Moreover, they must not use such expressions as “We have helped millions of satisfied Poles”, as this is information that cannot be verified. The message should be objective.

84 |

As the Patients’ Ombudsman points out, among the main risks related to the medical sector, corruption stands out. “It is necessary to point to its immense social costs, as the practices affect the poorest (the sick, children, the elderly), and corrupted goods are the priceless values – human life and health,”66he explains on his website. Therefore, it is a very important task to have transparent cooperation with doctors. This is stated in the “Code of Good Practices for the Pharmaceutical Industry” (for cooperation with representatives of healthcare and patient organisations) drafted by Employers’ Association of Innovative Pharmaceutical Companies INFARMA. “In the event where advertising or promotional activities of medical products are addressed to doctors holding public functions in the understanding of art. 115 § 19 of the Penal Code, in particular: national consultant, regional consultant, hospital or ward coordinator, special attention must be drawn to whether the activities addressed to such people are not in conflict with their functions and whether they do not violate the law,” the Association explains. “Advertising of medicinal products and promotional activities, including training for medical representatives, must be conducted according to the applicable regulations, good manners, and with high ethical standards. (…) Promotional, scientific, or professional meetings, congresses, conferences, symposiums, and other similar events, including meeting of consulting bodies, visits at research centres, production plants, meetings of researchers, meetings devoted to planning, training and other issues related to clinical trials or non-intervention meetings (for the purposes of the Code, referred to as “meetings”) organised or sponsored by or on behalf of a Signatory to the Code, must occur at a place appropriate for the main purpose of such a meeting. Places deemed extravagant or famous for their entertainment offer must be avoided. Meetings abroad should not be directly or indirectly organised or sponsored, unless this is justified with material organisational reasons, in particular where most persons invited originate from outside the country where the meeting is organised. Manifestations of hospitality offered to participants to the meeting must not be excessive and must remain in strict relation to the fundamental purpose of the meeting, namely they should be limited to covering the costs of: travelling expenses, accommodation, 66 http://www.bpp.gov.pl/dla-pacjenta/Corruption/czym-jest-Corruption/, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

board, and registration fees related to participation in the meeting. Costs (…) must only refer to participants of the meeting, not accompanying persons, including members of their families. Manifestations of hospitality must not include sponsorship or organisation of the entertainment part of the meeting (e.g. sports or recreation events)”67. Companies should also inform about their research, point to sources of their financing, and publish present results. They are obliged to observe the principles of fair competition. They must not use their dominating position on the market, apply unfair pricing policy, limit access to cheaper generic drugs, cut the competition off the sources of supply, impose disproportionately high margin or blackmail with withdrawing preparations unless they are to be refunded. 67 http://infarma.pl/fileadmin/templates/infarma_v1.0/design/gfx/ KodeksDobrychPraktyk_Wyd_2_201014_PL.PDF, accessed: 16.10.2015.

It is the corporations’ responsibility to cooperate with patient organisations on fair and partner terms. They must not impose their opinion, convince to neglect the results of medical tests, use them for PR, and encourage to promote their products. They should publish information on all subsidies awarded to them with clear explanation of the purpose allocated. Their task is also to invest in the development of state-ofthe-art technologies, continuous training for the staff, and not to expect additional benefits in return.

Comment on the monitoring results Companies in the healthcare and pharmacy sector score well when compared to other sectors. Information regarding CSR is present on 90% of their websites. CSR policy was drafted by 60% of the companies. GK Pelion SA, one of the leaders in the aspect of our factors, not only accounts for issues directly related to health, but also

The nurses in Poland are the ones facing the consequences of marketising healthcare. Low wages, getting demoted from permanent work into contracts or outsourcing them altogether – all of this forces them to protest on the streets, as was the case in September 2013.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 85

boasts initiatives for the benefit of environmental protection. It is also a member of Global Compact initiative that gathers entities declaring respect for human rights. The Company drafted its own Advertising Code, where it declares: “All information provided and published must be reliable and in line with the factual status. (…) Contents included in them must not suggest approval for behaviours that are illegal or contrary to good manners, and they must not be misleading. Test results, scientific terms, quotes from technical or scientific publications must not be used in a misleading manner. Statistical data must not be presented in a manner suggesting their greater value than actual. References can only be made to current and true recommendations, also if they refer to own experience of people presenting them”68. Sanofi Group in Poland stresses its cooperation with patient organisations. “The priority is the patient’s good – one of the supreme values of the organisational culture,” the company convinces. “Sanofi aims at fully focusing on the patient, his needs and availability of treatment. Moreover, we commit ourselves to an open dialogue, to listening and learning on patients’ needs, as well as to act for their benefit”69. The company also explains that the dialogue is based on several main principles. These include respect for independence of patient associations in reference to their policies and forms of activities, complete abstaining from addressing requests or encouragement for promotion of any of the group’s products by patient associations, encouragement to broad support for patient association, abstaining from being the only or dominating founder of patient associations or their particular projects. 68

Also, 40% expresses interest in their supply chain. “We attach great importance to control of our products from the very beginning of the process of their manufacture, hence we carefully select suppliers and materials,” assures TZMO SA Group (Toruńskie Zakłady Materiałów Opatrunkowych SA). “We continuously take steps aimed at shaping the awareness of our staff, because it is owing to the persons directly working on production that our products meet the safety standards. We want to make sure that Customers will only receive safe products. We cooperate with leading global suppliers of raw materials, machinery and technology, being a guarantor of the top quality of components, and therefore – the final product supplied directly to the Customer”70. Monitoring results were confirmed by five companies, namely LUX MED Group, Adamed Group, Zakłady Farmaceutyczne Polpharma, Sanofi Group, and Medicover Group. It is worth stressing that these were entities not always meeting requirements for all factors. Admitting this must be recognised and gives hope that it will translate to better results in the future.

http://www.pelion.eu/uploads/aebf987b2d.pdf, accessed: 16.10.2015.

69 http://www.sanofi.pl/l/pl/pl/layout.jsp?cnt=CB5F7A19-3114-46DA-A4B4-51637C408219, accessed: 16.10.2015.

86 |

Code of ethics is present among 40% companies, while social report is drafted by 20%, following GRI guidelines (GK Pelion SA, Zakłady Farmaceutyczne Polpharma SA). A person in charge of CSR is employed by 50% companies, while environmental protection and human rights are stressed by 70%. In the annual statements, issues related to sustainable development are included by one of two companies to which this factor refers (GK Pelion SA). 50% wish to prevent corruption, including Falck Medycyna Sp. z o.o.

70

http://tzmo.pl/pl_PL/content/jakosc-i-bezpieczenstwo, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Long Queue for Public Money CENTRUMCSR.PL FOUNDATION Representatives of entities providing private medical care convince that privatisation of hospitals is the inevitable future. This means more effective management, better use of resources, broader service offer, better conditions and new investments. In April 2015, the Supreme Audit Office published a report where it analysed the situation of several dozen centres transformed into limited companies. “The Supreme Audit Office points out that the reconstruction of the healthcare system should lead to competition among centres for public funds on the basis of quality and effects of their services. It will only then be possible to discontinue the wrong practice where an attractively priced service – not actual needs of the patients – will decide on the focus of the hospital applying for funds from the National Health Fund (NFZ),” the institution informed in the communication summarising the results of the inspection. “After hospital transformation into limited companies, the number and scope of health services have not materially changed. The number of services and diagnostic tests performed was still exclusively dependent on the limits specified in the contracts concluded by hospitals with NFZ, and any ward liquidations performed after hospital transformation into a company were due to reduced value of such contracts, e.g. due to low interest in specific services on the part of patients. The transformation of hospitals into companies did not affect access to healthcare financed from public funds. Waiting time for the services still depended on the contract with NFZ, and could stretch to as long as several months. In turn, in the case of charged medical services, patients were provided services immediately. The Supreme Audit Office, however, positively assesses the clear division of the admittance times for patients admitted under the NFZ health insurance from the “commercial” patients who pay for services. Therefore, fears related to the predicted phenomenon of “preferring commercial patients”, namely limiting access to services for patients treated from public funds were not confirmed. The transformation of independent public healthcare centres into limited companies did not result in changing the structure of centres’ revenues. Over 90% hospital revenues still originated from contracts with NFZ, with just about 5% of revenues from payable medical services. (…) Making hospital-companies dependent on the only source of revenues, namely on contracts with the Fund, resulted in a situation where none of the controlled hospitals worked out tools to allow for continuous analysis of the local demand for medical services. As a result, it was not actual needs of residents, but the value of contract with the NFZ, that set the range of services offered by hospitals. Only few hospitals performed any analyses, and usually on the basis of available external studies, or checking queues of patients awaiting specific services under contracts with the NFZ. Broader analysis of health-related needs was only carried out in two hospitals out of 20 controlled (Mazowieckie Centrum Neuropsychiatrii and Dolnośląskie Centrum Zdrowia Psychicznego). Hospital transformation into companies did not cause a significant improvement to their financial standing. In half of the hospitals transformed, which obtained subsidies to support the transformation procedure and debt relief, effects proved to be short-lived. Hospital companies, similarly as previous healthcare centres, did not perform accurate and precise cost analysis in respect of particular medical procedures. As a consequence, they could not determine whether services they had provided were profitable to them, and managers could not use such data for possible modification, or reconstruction of the business. The Supreme Audit Office, however, draws attention of the National Health Fund to the fact that almost half of the hospitals controlled (9 out of 20) had specialist “optimiser” computer software pointing to a possible additional medical procedure that allowed for classification of the service provided to the patient (test, examination, procedure, etc.) to a better paid group, regardless of the actual medical need for such a procedure. The Supreme Audit Office warns that the very use of the software is, of course, not illegal, but execution of unnecessary procedures bringing about unnecessary risk to the patient is. “Optimisers” allowed for increasing the hospital’s revenues, but their use could result in quicker exhaustion of the limit of funds awarded by NFZ and elongation of the queues of patients awaiting their services. The Supreme Audit Office estimates that the use of such software may result in ineffective use of public funds for patient treatment, and even lead to fraud, and should be the object of special attention on the part of the NFZ”71. 71

https://www.nik.gov.pl/aktualnosci/nik-o-przeksztalcaniu-szpitali-w-spolki-kapitalowe.html, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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When analysing the conclusions from the report by the Supreme Audit Office, it is hard to talk about innovation and improvement. It seems that private companies, instead of acting to improve service quality, simply joined the existing system of financing from public funds, and got a piece of the cake for themselves. The pharmaceutical sector also tends to face new problems every now and then. Several months ago, Members of Parliament adopted an amendment of the Pharmaceutical Law, most regulations of which started to apply in July 2015. It was aimed at reducing the scale of practices involving drug export abroad. Instead of supplying drugs to domestic pharmacies, wholesales sold the preparations to Germany or Austria, where they received more money for them. As a result, Polish patients could not buy them. Although the objective was, by principle, right, the Supreme Pharmaceutical Chamber alarms that provisions guaranteeing all wholesales and pharmacies equal access to refunded medical products to the extent necessary to satisfy patients’ needs were entirely omitted. “Governing parties again resolved that the shape and method of drug distribution in Poland will be decided upon by large pharmaceutical companies, as well as selected pharmaceutical wholesales and the created pharmacy chains,” wrote the representatives of the organisation in a letter to the Minister of Health. “It was confirmed again that on the drug market, there is no “rule of law” in Poland, but “rule of the stronger” who, unfortunately, imposes his will not only to individual pharmacies and pharmaceutical wholesales, but also to the Polish Government and Parliament.” “Such scandalous situation makes it impossible for us to correctly perform our profession of pharmacists, which is aimed at protecting public health by satisfying patients’ needs for drugs,” they add on their website. “We cannot execute statutorily guaranteed health services in the form of providing patients with refunded drugs. We cannot perform our duties resulting from contracts concluded by pharmacies with the National Health Fund for handling prescriptions”72. The situation is to refer, among others, to antithrombotic, antiasthmatic, and cardiological drugs, or drugs used in diabetes and cancers. Let us add that when we closed the works on this report in early October, the protest of the Supreme Pharmaceutical Chamber, started in April 2015, was still in progress.

NO. COMPANY

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

http://www.nia.org.pl/dat/ListAptekarzyDoMinistraZdrowia.pdf, accessed: 16.10.2015.

CSR on the webpage

72

1

CENTRUM MEDYCZNE ENEL-MED SA

+

-

+

-

-

ND

-

-

-

-

-

-

2

FALCK MEDYCYNA SP. Z O.O.

+

-

-

+

-

ND

ND

+

-

+

+

-

3

GK PELION SA

+

+

+

+

+

+

+

+

+

+

+

-

4

GRUPA ADAMED

+

+

-

-

-

ND

ND

+

-

+

+

+

5

GRUPA LUX MED

+

+

-

-

-

ND

ND

+

-

-

-

+

6

GRUPA MEDICOVER

+

-

+

-

-

ND

ND

-

-

+

-

+

7

GRUPA POLSKI SZPITAL SA

-

-

-

-

-

ND

ND

-

-

-

-

-

8

GRUPA SANOFI W POLSCE

+

+

+

+

-

ND

ND

+

+

+

+

+

9

GRUPA TZMO SA (TORUŃSKIE ZAKŁADY MATERIAŁÓW OPATRUNKOWYCH SA)

+

-

+

-

-

ND

ND

+

+

+

-

-

10

ZAKŁADY FARMACEUTYCZNE POLPHARMA SA

+

+

+

+

+

+

ND

+

+

+

+

+

Table 12: HEALTHCARE AND PHARMACY

88 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

3.13 SPECIAL ECONOMIC ZONES Key aspects of responsibility in the sector Special economic zones is an area not covered so far with surveys on corporate social responsibility. In fact, these are enclaves where dozens of large companies locate their premises (e.g. Volkswagen, Electrolux, Mondi Świecie, Toyota, Michelin), employing approx. 296 thousand people. At companies managing them, most votes belong to the State Treasury or local government. The report of the Ministry of Economy indicates that by December 2014, their area totalled over 18.1 thousand ha in 162 towns/cities and 232 municipalities. In turn, the Ministry of Finance informs that revenues of companies managing the zones exempted from tax over 15 years exceeded 14.6 billion PLN. Total public aid granted to companies operating there totalled another 14.4 billion PLN73. Moreover, the government has extended the period for functioning of such areas on preferential terms by 2026. Zone operation in Poland balances on the verge of compliance with EU regulations. They were established with the assumption that they will be located in places with high structural unemployment. The objective was to draw investors. As a result, we deal with a paradoxical situation: companies do not wish to locate their capital where there are no zones. They blackmail local governments, imposing their borders according to their own needs. In March 2015, councillors decided on the establishment of a tax heaven at the very heart of Wrocław. A branch of Swiss bank UBS is planned in two office buildings, right now under construction74. In this way Poland, where there are plenty of tax privileges for large business, has become the hostage of corporations. Enclaves that were to give people jobs, and thus decent lives, have become black holes and centres of exploitation. All pathologies of the Polish labour market can be seen there as in a lens.

73

Ministry of the Economy, Information about the State of Implementation of the Special Economic Zones Act as of December 31st 2014, Warsaw 2014.

74

Tomasz Matejuk, Szwajcarski bank chce u nas otworzyć centrum usług. Radni zgodzili się na strefę ekonomiczną, ale wielu było przeciw, Tu Wrocław, 20.03.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Investors notoriously fail to fulfil their promises regarding the number of people to be employed. Even if they execute but a fraction of what they promised, nobody clears them of that or makes them liable. Companies have a specific profile, usually being not so complicated industrial production. The presented Poland’s main strengths and competitive advantage involves low labour costs. In fact, this is a barrier to economic development. Undoubtedly, there are new jobs, but they are of little value. Employees do not earn enough there to buy what they produce. A job should bring money and possibilities of development, while jobs in the zones give nothing. People go there not because they want to, but because they have no alternative. To a marginal extent, there are any trade unions there. Recruitment is largely conducted via temporary job agencies, owing to which corporations take off further costs, such as severance pays, paid leaves, sick leaves. Contracts are not disclosed to show how much public aid companies have received, or how the funds were spent, as such data are treated as commercial secrets. These are secret enclaves about which there is almost no information. The state has practically withdrawn from monitoring this area. If subsidies are granted, it should expect investors to meet specific social and environmental criteria. In a highly-developed economy, the state cannot place itself in the role of the applicant, and agree to imposed terms, but it must start requiring something in return. Particularly, if such large exemptions are granted. It is the responsibility of companies locating capital in the zones to keep the promises made before receiving subsidies. They should be obliged to follow the OECD Guidelines promoted by the Polish Information and Foreign Investment Agency, which is also in charge of investor acquisition. Even more so, it should make them accountable for the terms it itself promotes. The guidelines refer to respect for human rights, not taking revenge actions against employees reporting illegal practices, Guidelines or company’s strategy. Provisions also speak of establishment of one’s own policy for violations, monitoring its effects, as well as having a control mechanism to allow for eliminating all irregularities. Companies are obliged to respect trade union rights and rights to public negotiations, pre-

| 89

venting all discrimination. Their task is to provide information necessary to negotiate employment terms, to allow for obtaining the complete and true image of the unit’s results. This is about financial results, employment structure, ownership relations. In a conflict situation, companies must not blackmail authorities with transferring their branches elsewhere. Corporations are also obliged to offer employees the highest possible wages, namely such that is sufficient to satisfy their and their families’ basic needs and to assure health and safety. Corporations must also present data regarding their environmental impact, provide them to the public opinion, as well as to the local community and their subordinates. Another duty is to timely and honestly pay taxes applicable in the country where they operate, and to avoid their optimisation.

Comment on the monitoring results There are no references to such values on websites. Undoubtedly, this sectors scores the worst of all sec-

tors, and this refers to all factors. In all cases, they scored 0% for factors such as: Code of ethics, corruption, supply chain, CSR policy, annual report. As regards other factors, criteria are met in single cases. CSR features on the websites of three zones (21.4%). These are, however, mentions about sustainable business rather than complex solutions. SEE Łódzka SA declares: “Taking example from the Zone’s patron, Henryk Grohman, we attempt to account for the needs of the local community and exert positive impact on the surroundings”75. It mentions programmes promoting vocational education, organisation of Christmas charity events, concerts, performances, exhibitions, and an award for entrepreneurs supporting art. This is very little. In our view, the issues do not comply with the true meaning of corporate responsibility, but were sufficient to pass on the factor involving accounting for this issue on the website. 75

http://www.sse.lodz.pl/pl/o-strefie/csr, accessed: 16.10.2015.

The international corporation Amazon used public subsidies for businesses investing in the Special Economic Zone near Poznań. A tendency towards maximising profits ends in higher performance requirements for workers and deteriorating working conditions. Pictured the protest of the Workers’ Initiative, December 16th 2015.

90 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

At this background, SEE Słupska SA differentiates positively. It was the only one to account for human rights, person in charge of CSR and ecology on its website. It also confirmed the results of our survey. Majority of the zones focus on only one recipient: investors, who are to be convinced about the benefits from locating capital in a particular enclave.

Undoubtedly, creation of jobs is a great value. A discussion should, however, be undertaken not only about their quantity, but also about their quality. Otherwise, Poland’s only strength will be to supply cheap labour to corporations that will continue to abuse their dominating role in the negotiations.

Promotion – One PLN Salary Rise! Ogólnopolski Związek Zawodowy Inicjatywa Pracownicza (Workers’ Initiative National Trade Union), Intercompany Committee at Amazon Polska The most notorious shifts are those lasting 10.5 hours. Throughout that time, depending on the position, people cannot sit down, as in the case of stowers (persons in charge of product scanning and their placement on relevant shelves) or they walk all the time, as in the case of pickers (employees in charge of bringing goods ordered by customers from the shelves). It happens that they cover as much as 20 kilometres per day. Goods-in, packaging, picking, are tiring, imitative tasks, where we do not use our talents, minds, or creativity – just hands and legs. The result are e.g. joint injuries or water in knees. All our movements are monitored by a computer that sees every scan we make. It is known exactly when and into what box or which shelf we place a particular item. If the system does not indicate any movement for e.g. 5 minutes, the manager or leader checks why there is stoppage. During the shift, we have two payable 15-minute breaks. The hall size is equal to 13 football pitches, which means that after we reach the canteen, there are about 7 minutes left. Average wages total 1.8-2 thousand PLN net. This is the pay without any overtime work, but people wishing to spend just a little time with their families cannot afford to stay longer. Daily duties are sufficiently exhausting. At first, people were employed by Amazon itself, nowadays mostly through temporary job agencies. This is a major problem, as contracts are concluded for two weeks, a month, not longer. The temporary workers are exposed to the carrot on a stick method: they are promised that if they work efficiently, they will be hired permanently, directly by the company. Then, they do their duties even quicker, thus exceeding the already very high standards. Later on we learn that if they managed to do so, we also should. In this way, allegedly to praise one’s effort, there are attempts to play us against one another and to discipline us. We even have different badges: permanent workers – blue ones, temporary workers – green ones. As a trade union, we aim to abolish all such divisions, to show that we are in the same boat. The hottest time for Amazon is before Christmas. At the time about 2 thousand people over half of the staff, is additionally employed. These people do not know how long they will have the job. It happened that they arrived after Christmas, and an hour before the end of the shift were informed they were no longer needed. At the company there is a settlement period of three months where we have to work the assigned number of hours, e.g. 520. If there is stoppage in some month, we work less, and then have to make up for it in consecutive months, e.g. by coming for night shifts five days in a row. Such a marathon requires sleeping for at least two days later on. And this does not count as overtime work. We get monthly schedules, not annual ones, as in Germany. Because of that, we find out the way we are to work just a

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 91

week before the next schedule is handed in. We cannot plan much in a longer perspective. Recently, we have faced facts related to new times of working shifts. So far, the daily shift lasted from 6 AM to 4.30 PM, now from 7 AM to 5.30 PM. This is a major problem for people commuting from afar. Some cover as much as 100 km with company busses. In the afternoons, they will have even less time for their families. This also results in reduction of benefits for working at night, as now the shift includes fewer hours in that period. A survey was to be conducted on this issue, but finally new solutions were introduced without any consultations with the staff. Amazon is a corporation that is difficult to catch (so far) on violation of employee rights, but in all countries where it operates it uses regulations the least favourable to employees in order to squeeze even more from them, while deriving immense profits. Trade unions emerged rather quickly. This was in December 2014, after about three months of the Company’s operation in Poland. They were initiated by regular workers who have just passed the three-months’ test period and obtained permanent job contracts, as well as lowest level leaders who previously went for training at Amazon’s foreign plants, including Germany or England. They saw that their conditions were worse than those of people employed at the same positions; e.g. in Poland, we get no shares, there are no benefits for job experience. The organisation was joined by 250 people so far. We are not employed on trade union jobs, we are part of the crew, we work together at the hall. Owing to this, we have mutual trust and we know where the ailments are, what postulates to report. There are 14 employees who openly talk to the management board, the others are anonymous. Officially, there has been no open hostility against us so far, everything is done with a smile on the face, according to the corporate culture. We are not openly fought against. We are simply kindly ignored – this is a more refined way of showing that the company does not want to account for a trade union. Although there have been cases where people were publicly discouraged by the director from joining the union. He said that there is no sense in paying some premiums if there are other free-of-charge possibilities of reporting one’s remarks at the company. He did not prohibit strikes, just said it was an ineffective loss of time. We, however, know it is otherwise. Amazon claims they have given us salary rises this year. In July 2015, regular workers had the hourly rate raised by 1 PLN: from 13 to 14 PLN. The management board convinces us this is standard, and that the wage review is done every year. We found out, however, from our colleagues in Germany that the review was also done there, but wages remained the same. This only changed after the first strikes. Anyway, what rise is that if a month later they cut the productivity bonus to nil, and people in effect had lower payments at their bank accounts than before? Nevertheless, employees are not passive. Early in the year, we organised a petition against working on holidays – one hundred people signed it. In April, there was a petition against increasing expectations. This one was signed by 400 people. In summer, we collected signatures against the change of working times. This time 750 people presented their opinion. On the night from 24 to 25 June, Amazon workers in Poznań spontaneously slowed down their work in solidarity with their colleagues on strike in Germany. This was also the way to protest against the mandatory elongation of working time to 11 hours. The staff was convinced it was to make up for work by striking colleagues abroad, so they did not want to break out. Some took leaves on demand. After such events, in order to strengthen the employees’ position, the intercompany committee of the Workers’ Initiative at Amazon entered into collective dispute against the employer. The management board tried to pursue with consequences for participation in that riot. Five persons that Amazon wished to make redundant for participation in an organised protest signed agreements with the employer and decided to leave. Other two deem lay-offs unjust and submitted their claims to the Labour Court. We shall not leave them alone. As regards the collective dispute, at the phase of negotiations, Amazon rejected all proposals from the union in September. Transfer to the next phase of mediation shall mean escalation of the conflict. Our main proposals include salary rises to at least 16 PLN, introduction of employee shares, application of annual schedules, introduction of inter-company regulations for break time, so as to fully use them for relaxation and our personal issues, as well as an award of benefit for work experience after 12 and 24 months of work by, respectively, 10% and 15%.

92 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

NO.

COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

Our objectives also include unification of Amazon employees from various countries, so that we can compare working conditions and payroll and to coordinate our actions. We have already organised one open international meeting. Other meetings will take place every six months. We wish to show that company policy refers to all of us. During the last two years, there were several dozen days of strike in German and French branches. These and other actions are painful to Amazon and have already led to improved working conditions and slow increase in wages at some logistic centres. The company responds to that with shifting work to its other branches in Germany or abroad – to France and to Poland. We will not allow to play us against one another.

1

AGENCJA ROZWOJU PRZEMYSŁU SA. OD. W TARNOBRZEGU / SSE TARNOBRZESKA/ EURO-PARK WISŁOSAN

-

-

-

-

-

ND

ND

-

-

-

-

-

2

AGENCJA ROZWOJU PRZEMYSŁU SA. ODD. W MIELCU / SSE EURO-PARK MIELEC

-

-

-

-

-

ND

ND

-

-

-

-

-

3

SSE KAMIENNOGÓRSKA / SSE MAŁEJ PRZEDSIĘBIORCZOŚCI SA

-

-

-

-

-

ND

ND

-

-

-

-

-

4

SSE KATOWICKA SA

-

-

-

-

-

ND

ND

-

-

-

-

-

5

SSE KOSTRZYŃSKO-SŁUBICKA SA

-

-

-

-

-

ND

ND

-

-

-

-

-

6

SSE KRAKOWSKA / KRAKOWSKI PARK TECHNOLOGICZNY SA

-

-

-

-

-

ND

ND

-

-

-

-

-

7

SSE LEGNICKA SA

+

-

-

-

-

ND

ND

-

-

-

-

-

8

SSE ŁÓDZKA SA

+

-

-

-

-

ND

ND

-

-

-

-

-

9

SSE POMORSKA SA

-

-

-

-

-

ND

ND

-

-

-

-

-

10

SSE SŁUPSKA SA

+

+

-

-

-

ND

ND

+

-

+

-

+

11

SSE STARACHOWICKA SA

-

-

-

-

-

ND

ND

-

-

-

-

+

12

SSE SUWALSKA SA

-

-

-

-

-

ND

ND

-

-

-

-

-

13

SSE WARMIŃSKO MAZURSKA SA

-

-

-

-

-

ND

ND

-

-

-

-

-

14

SSE WAŁBRZYSKA „INVESTPARK”

-

-

-

-

-

ND

ND

-

-

-

-

+

Table 13: SPECIAL ECONOMIC ZONES

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 93

3.14 RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING Key aspects of responsibility in the sector The business in the raw materials, fuels, energy and district heating will always be related to significant negative environmental impact. This includes soil contamination with heavy metals, its acidification, landscape changes thanks to creating heaps, voids, dumps, lowering of underground water levels, distortion of the ecosystem on a particular area. The sector may cause many social conflicts. Therefore, corporations in this sector face particular challenges related to sustainable development. Mining companies must not exhaust resources. They should use environment-friendly technologies, and accurately determine the place of their works, limit them exclusively to the necessary minimum, so that exploitation means as little interference with the environment as possible. Mining must not take place on the area or in the very close neighbourhood of enclaves covered with protection under Natura 2000 programme, national or landscape parks. Also in other areas, they are obliged to account for such issues as bird nesting periods, and to suspend their activities for this time, or to transfer them to other areas. Corporations are also obliged to protect animal habitats in the investment area, and – if this is unfeasible, to transfer them, recreate or to compensate for them in adjacent areas. It is the companies’ responsibility to provide reliable information regarding their impact on the ecosys-

tem, and social aspects, based on hard evidence and analyses prepared by independent experts. It is particularly important to make such data available to the local community. Dialogue with the stakeholders must be serious. This must not be unilateral communication. It must be participated by representatives of various circles, e.g. ecological organisations. Real consultations need to be held, instead of just providing pieces of positive information from the company’s image point of view to be promoted in paid materials published by the media. Public opinion must not be misled by promises that are of little importance from the point of view of mining business, such as construction of a new playground or pavement, and making it a substitute topic. Elimination of negative effects should refer to the area directly related to company functioning. Companies must not proceed with greenwashing. It is about presenting one pro-ecological initiative to hide other destructive activities, or providing untrue information regarding environmental impact, e.g. illegal use of certificates, creating certificates for its own use, or buying them to improve one’s image. Corporations must not take lobbying actions under the cover of social campaigns. Their marketing must be principally responsible. Corporations must also report actions taken to prevent such phenomena as global warming and excessive CO2 emissions. They must not take these

Places in which the extraction of shale gas in Poland was planned are at the same important water reservoirs. It is not common knowledge that Poland is not a country rich in water – its potential contamination due to fracking would have severe ecological consequences. The industry – as can be seen – completely changes the landscape.

94 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

issues lightly, discredit the role of renewable energy or blackmail states and press for the latest possible introduction of solutions under international commitments to fight climate change. Companies must also take care of fair relations with consumers, including by drafting agreements in a way to allow understating of their provisions by average customers, clearly justify issues of surplus payments or the need to pay additional sums. At present, it takes an expert to understand settlements or delivery terms of utilities provided by companies. Corporations must not abuse their position due to monopoly on the market. They must not use blackmail of immediate cutting off electricity or water supplies; particularly sensitive customers must have various forms of support guaranteed, e.g. debt restructuring programmes (in 2010, UN General Assembly adopted resolution deeming access to clean water for household and personal use as a human right). Costs of fighting with competition must not be transferred onto users, including by way of high fees related to reconnection to other network).

Comment on the monitoring results The raw materials, fuels, energy and district heating sector scores as one of the best in our listing. CSR is accounted for by as many as 92.3% companies on their websites; the same

number got a positive mark for CSR policy. It is worth mentioning that in most cases this is a complex policy, covering all major issues in the area of sustainable development. PGNiG website allows to easily find not all the factors we analysed, but also a document accurately describing the Strategy for Sustainable Development and Corporate Responsibility of GK PGNiG for the years 20092015. It relies on six strategic pillars related to major business areas: care for the customer, environmental protection, safe and friendly workplace, cooperation with social and business partners, search for new business areas, effective communication and marketing. Although the intention was right, it must be stated that it principally focuses on listing sponsorship and educational campaigns, without containing hard data on non-financial activities. All companies declare their interest in environmental protection, while human rights remain in the interest of 92.3%. Preventing corruption is touched upon by 69.2%, while the interest in supply chain is manifested by 76.9%. Corporations in this sector issue most social reports. This is done by as much as 84.6%, leaving representatives of other sectors far behind. 81.8% report on the basis of GRI standards. Code of Ethics is present among 69.2%, while a person in charge of CSR is employed by 53.8%. Results were confirmed by 61.5% companies from the sector.

Poland has the second largest CO2 emissions in Europe – just after Germany. The biggest emitter in the country is the Bełchatów power plant. Climate change denial can often be found amogst the higher ranks of the Polish energy companies. Pictured Bełchatów power plant and the neighbouring open cast mine.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 95

Drilling? No, Thanks! Andrzej Bąk President of Zielony Żurawlów Association My wife and I come from Zamość. We bought a house in Żurawlów in 2008, and we merged with the local community at the time. I am an electrician by profession. I have never been an ecologist, I have not acted in any organisation, and have never taken part in any protests. It was only the situation with Chevron that forced us to actively deal with environmental issues. The company never told anyone about their plans. They first addressed people with plots of land near the site where they wished to drill the bore-holes. These were the poorest farmers for whom several thousand zlotys per year is a lot of money. They concluded a lease agreement with a confidentiality clause. It was said from the start that they were not to talk with anyone about it - especially with the neighbours. They could not even consult the provisions with their lawyers, they could only address Chevron’s lawyer. If they were to violate these rules, they would have to pay a penalty. In 2012, the corporation attempted to organise a meeting. It was, however, stated that it was to be participated only by residents, namely approx. 100 people, including the elderly and children. Nobody from the outside had the right to come. Almost until the last moment, the date was kept secret. Only the wójt (head of a commune) knew it. Such an approach was at least disturbing. We wanted to participate in those talks, as we have previously heard Chevron would start drilling soon. We heard the opinions of how much gas there would be, and what bright future we are to have. However, there were a few people in the village who got interested in the topic. We started checking what this was all about. When it turned out the meeting was to be on 19 January, we invited people from across Poland: media, scientists, representatives of associations. When at 3 PM, the President of the corporation for Poland arrived at the hall where the meeting was to take place, he was stopped by journalists. He was surprised, but spoke to the cameras how fantastic it would be. After entering the room, he saw there were much more people than he expected. He demanded that the wójt asked them to leave, but people said no. Instead, it was him who left. He feared the discussion with open curtains. He only left his spokeswoman who showed us a presentation in Power Point with some pretty pictures. She was to convince us how cool the drills were. Later on, we discussed with residents and experts until 9 PM. After that, everyone stated they were against drilling, apart from two aforementioned plot owners. Next, Chevron seemed to try to renew the attempts to have dialogue, but it took the form of an information point at the Municipal Office, where one of their employees or the spokeswomen were to be on duty, and if anyone wished to ask about something, they would provide the answer. We managed to find the Project Information Charter submitted by the investor at the municipality before obtaining the environmental decision. We found out that Chevron had to apply for a new concession, as the old one was applicable exclusively to seismic surveys, but expired as regards drilling. The corporation wanted to act illegally from the start. We wrote protests to the wójt and to starost (local representative from the powiat). To no avail. We pointed out that over twenty concessions were given, covering three largest Main Underground Water Reservoirs in Poland, with numbers 405, 406, 407. The water in them is of top quality. Toxic chemical agents used for drilling could cause contamination. Such reservoirs are not yet formally protected in Poland, but there is a Framework Water Directive of the European Parliament that orders the establishment of such protection by the end of 2015. The company applied for environmental decision to the neighbouring Skierbieszów Municipality. According to the law, the environmental decision is to be issued by the authority having the greatest share in the area of the concession.

96 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

We appealed from this proceeding to the Local Government Appeals Committee pointing out that we were not deemed as a party. We explained that the sołtys (village manager) neighbouring with the area where shales are to be mined should be such a party. The Committee deemed us right, considering the environmental decision as invalid for formal reasons. We also knew that Chevron cannot conduct any works in the area due to the bird nesting period. Despite all these circumstances, on 13 March 2012 at 6 AM, they insolently entered the plot with heavy equipment. They used a public road, which they were not allowed to do. We organised a blockade. Wójt, starost and the police arrived. We explained that the company was not allowed to do anything and that they did not have legally required documents. If a regular citizen wished to e.g. build a house without a permit, they would get fined immediately. Deputy starost answered that we should not make arguments, that perhaps they have no permit today, but tomorrow they will have one. Discussions lasted for eight hours. Finally, vehicles arrived, they took the heavy equipment and left. From the start, local authorities clearly took Chevron’s side. If anyone from the company called the starost office, clerks stood up and smoothed their jackets. The policy was to issue the necessary documents immediately and not to pose any obstacles. They explained everything was fine, as such a large company would not permit itself for acting illegally. We have found out that it is to the contrary: the bigger it is, the more it avoids regulations. Around April 2013, the corporation moved to the neighbouring municipality of Ministrówka. They thought it would be more peaceful there. They wanted to perform drills in the surroundings of the Skierbieszów Landscape Park. It turned out that people had already found out what this was related to. They also protested. On 3 June 2013, they returned to Żurawlów. They brought a container and power generators. They said they only wanted to put a fence to “secure ownership”. But why, if nothing was to happen? We started another blockade, this time lasting until 7 July 2014 – 400 days. They arrived with a security company and a cameramen who filmed before we arrived. They waited hoping we would get provoked. We blocked the road and placed a tent on a neighbouring private plot. Owing to this, they could do nothing to us. Our protest was like an ulcer to be cut. Chevron kept its place. The Vice-Minister of the Environment, neglecting our arguments, stated in one of the TV materials that the situation is like fighting about a wall from Andrzej Fredro’s “Revenge” play. At all cost, they wanted to prove they were right. The wójt was bombarded with phone calls with requests to end this. He later admitted that he started to doubt the sense of the investment when he felt the pressure on himself. He got the way out by establishing police security in 24/7 mode. He did not order to pacify us, but to protect us. Someone hinted we should place a web camera at the site of the protest. This certainly saved us. At any time, on the website, people could see what was happening. People travelled to us from afar: the Czech Republic, Lithuania, Germany, France, Romania, Denmark, USA, Argentina, RSA. As a proof of support, they left their flags in national colours. We have nine of them. Chevron tried to convince people that we entered their area. They brought their poles and a geodetic engineer, made measurements themselves, and set the borders while omitting the applicable legally required procedures. It was completely otherwise on geodetic maps. As many as 34 people had proceedings initiated against them under the Code of Offences for minor issues, e.g. not listening to a policeman or leadership of an illegal association. People received judgements [issued without the need for a hearing] they appealed from. We won all the cases. The last one took place this May. I now think the corporation wanted to have an argument that we had a criminal past. In such a case, they could claim compensation. This is confirmed by a civil case against 13 people. In the justification, they wrote that these were people with criminal past, while forgetting that the appeal proceeding was in progress. We wrote to all local and state authorities: Ministry of the Environment, the Prime Minister and the President. Nobody answered. Everyone either neglected the case or tried to stay silent. Only the Ombudsman dealt with it initiating a proceeding. Until now, however, there is no end to this. The last letter we received from him is dated November 2014. Only once the contemporary Vice-Minister of the Environment, Piotr Woźniak, agreed to take part in a TV debate with our sołtys. The invitation took the form of a phone call on a particular day where the sołtys was to appear. The Vice-Minister spoke from the studio in Warsaw, while our sołtys – in Lublin. Obviously, our arguments were taken lightly.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 97

We were later invited to the session of the Commission for Agriculture and Environmental Protection at the Parliament. There was the Vice-Minister, and representatives of Chevron. We were allowed to speak. We had as much as 3 minutes! The Vice-Minister said that there was no issue, that they had all the documents. He contradicted himself by previously answering the interpellation by MP Sławomir Zawiślak, who submitted an inquiry on our behalf. He admitted that the company has just the concession for seismic studies, not drills, as we spoke from the start. This changed nothing. In Poland, nobody wanted to listen to us. Instead, we were invited to the European Parliament by an MP from the French Green party, Jose Bove, to a conference on shale gas. He financed our trip, as we could not afford the tickets. We had our presentation there. We were supported by MPs from the Czech Republic, France, Germany, and the United Kingdom. They addressed a letter to Prime Minister Donald Tusk and Minister of Foreign Affairs, Radosław Sikorski. Previously, they carefully checked everything, confirming our information. There was silence. The case was ignored at such a high level. Finally, in July 2014, Chevron withdrew from Żurawlów and neighbouring Ministrówka. The area was cleaned. In January 2015, the company completely resigned from its presence in Poland. Since July, there are no Chevron’s concessions on the map of Poland. Unfortunately, such situations will repeat. The rule of procedure of all big corporations is the same. They try to get in quietly, promise benefits, e.g. of building playgrounds or a meeting hall in return. They count on people’s lack of knowledge. But it will get more difficult, as there is greater awareness. Increasingly more people see through similar actions and will protest against any illegal steps.

How Much Does Energy Really Cost? CENTRUMCSR.PL FOUNDATION The raw materials, fuels, energy and district heating sector includes companies of key importance to consumers, namely GK PGNiG SA and RWE Polska S.A. These are major suppliers of electricity and gas to millions of Polish apartments. Many people have found out that a forgotten invoice results in a rather quick deprivation of such utilities. Companies effectively execute fees from customers. It, however, seems that they are not very willing to share information on justifiability and the amount of such fees. Obviously, they regularly send invoices, where we will have no problem finding the sum to be paid and the bank account number. It is worse with clear justification. Similarly as in the case of telecommunications contracts, such explanations are completely incomprehensible from the point of view of most consumers. Often, one does not know how to react. Moreover, it is hard to say whether the changes are favourable to us or not. As an example, we quote information addressed to customers by GK PGNiG SA.

98 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

19.02.2014. “Ladies and Gentlemen, Polskie Górnictwo Naftowe i Gazownictwo Spółka Akcyjna (hereinafter “PGNiG SA”) kindly informs that, by decision No. DRG-4212-15(18)/2013/652/VI/AG of 17 December 2013, the President of the Energy Regulatory Authority (URE) approved Tariff for supply of gas fuels No. 6/2014 PGNiG SA (hereinafter “PGNiG SA Tariff”) by 31 July 2014, then corrected by decision by the President of the Energy Regulatory Authority No. DRG4212-65(2)/2013/652/VI/AG of 19 December 2013. The above PGNiG SA Tariff was published in the Sectoral Bulletin of URE- Gas Fuels No. 106(663) of 19 December 2013, and enters into force as of 1 January 2014. Moreover, on 17 December 2013, by decision No. DRG-4212-10(19)/2013/22378/I/AIK/PD/KGa, President of the Energy Regulatory Authority approved Tariff No. 1 for gas fuels distribution services and liquefied natural gas regasification services by Polska Spółka Gazownictwa Sp. z o.o. (hereinafter “PSG Sp. z o.o.’s Tariff”), published in Sectoral Bulletin of URE – Gas Fuels No. 104(661) of 17 December 2013, and which shall enter into force as of 1 January 2014. The approved tariffs were drafted in line with the principles specified in art. 44 and 45 of the Energy Law (OJ of 2012, item 1059, as amended), and Regulation of the Minister of Economy of 28 June 2013 on detailed principles for tariff shaping and calculation, and settlements in gas fuel trading (OJ of 2013, item 820 – hereinafter referred to as “Tariff Regulation”). The provisions of the Tariff Regulation introduce the regulation whereby rates of distribution fees previously contained in network fee rates shall be included in the distribution system operator Tariff (of PSG Sp. z o.o.). As a consequence of the above, PGNiG SA’s Tariff no longer contains network fees, but exclusively prices of gas fuels and subscription fee rates. In turn, previous network fees have been replaced with distribution fees, applicable depending on the Customer’s connection site. Therefore, Customers collecting gas fuel under a complex agreement shall be settled under two separate tariffs in respect of supply (PGNiG SA’s Tariff) and gas fuel distribution services (PSG Sp. z o.o.’s Tariff). The following costs previously included in network fee have been transferred to the price for gas fuel: costs of purchasing the transmission service at the points of entry to the transmission system (Entry – excluding entry points from warehouse installation, and at exit points from transmission system located at the connection with another transmission system), costs of stock establishment and maintenance (including mandatory stock).”

Human rights

Corruption

ConCOMPANYtion of results

+

+

+

-

+

-

-

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

-

+

-

ND

-

+

-

-

-

-

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

+

ND

ENEA SA

+

-

+

+

+

+

2

ENERGA SA

+

+

+

+

+

+

3

GK JASTRZĘBSKIEJ SPÓŁKI WĘGLOWEJ SA

+

-

+

-

+

-

4

GK LUBELSKI WĘGIEL BOGDANKA SA

+

-

+

+

+

5

GK PGNIG

+

+

+

+

6

GK POLSKA GRUPA ENERGETYCZNA

+

+

+

7

GK TAURON POLSKA ENERGIA SA

+

+

8

GK ZESPOŁU ELEKTROWNI PĄTNÓW-ADAMÓW-KONIN SA

-

-

9

GRUPA LOTOS SA

+

10

KGHM POLSKA MIEDŹ SA

Ecology

1

CSR in the yearly report

GRI

+

Social reporting

-

Code of ethics

+

CSR policy

+

COMPANY

Person responsible for CSR

+

NO.

CSR on the webpage

Supply chain

Next, the letter instructs that if we do not agree to the new terms, we can terminate the agreement. But how are we to know? Who can answer whether the fees will be higher, lower or the same?

+

+

+

+

-

+

+

+

+

+

-

+

+

+

-

-

+

+

+

+

11

KOMPANIA WĘGLOWA SA

+

-

+

-

-

ND

+

+

+

-

-

12

PKN ORLEN SA

+

+

+

+

+

+

+

+

+

+

+

-

13

RWE POLSKA S.A.

+

-

+

+

+

-

ND

+

-

+

+

+

Table 14: RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 99

3.15 TRANSPORT AND LOGISTICS Key aspects of responsibility in the sector

door-to-door mobility, both for passengers and for freight”76.

One of the major tasks for companies in the transport and logistics sector is to act for improvement of safety on roads. This is stated in United Nations Decade of Action for Road Safety 2011-2020 announced by UN in 2010. Authors alarm that almost 1.3 million people die in road accidents every day, and over 20-50 million more suffer injuries. Companies are obliged to act to improve the situation not only by educational campaigns, but principally by focusing on the quality of their fleet. Pursuant to UN recommendations, they should implement new programme for fleet assessment, and make attempts to assure that all motor vehicles should have safety equipment, e.g. seatbelts. They should also aim at promoting broader application of technologies for collision avoidance, effectiveness of which has been confirmed (e.g. electronic control of stability and systems preventing wheel blocking while braking). Companies must also have valid documentation to testify vehicles’ technical operability, legality and freight.

Comment on the monitoring results

It is the companies’ responsibility to assure maximum safety both to their employees and passengers. It is necessary to strictly follow the health and safety rules. The issue of working time is of particular importance. Corporations must not force employees to exceed standards or to falsify tachograph records. Another challenge to the sector is the environmental protection, and especially the reduction of greenhouse gas emissions. This is stated in the European Commission’s “Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system”. Companies should aim at improving energy efficiency of vehicles in all types of transport, apply ecological fuels and optimise activities in their supply chains, including by selecting alternative means of transport to vehicles, such as rail or water transport. The EC document also contains guidelines for carriers. “Attractive frequencies, comfort, easy access, reliability of services, and intermodal integration are the main characteristics of service quality. The availability of information over travelling time and routing alternatives is equally relevant to ensure seamless

Issues related to CSR are present on websites of 76.9% companies in the transport and logistics sector. 84.6% declare their interest in ecology. CSR policy was drafted by 53.8% of the companies. Code of Ethics is present among 30.7%, including PKP SA Polskie Koleje Państwowe, which touches upon relations with individual customers and business clients. “We keep our commitments to Customers in the care for their safety and comfort. By upgrading the fleet and modernising railway stations, we come forward to the growing expectations,” the Company assures. “In order to improve our products and services, as well as technology, we pay attention to the market needs and challenges. While preparing our offer, we aim at assuring benefits and comfort to Customers while using our services (…). We provide Customers with reliable information about products, services and operation of PKP Group, except for information constituting technical, technological, or commercial secrets. We do not abuse trust, and we do not use possible lack of Customers’ knowledge or experience. We take full responsibility for the products and services offered. If they do not meet quality or safety standards, we analyse the causes for complaints and implement repair measures”77. The company is also one of the few to touch upon the problem of corruption (38.4%). Social reports based on GRI standards were published by DB Schenker Sp. z o.o. and Raben Group. Human rights are referred to by 84.6% entities, including Raben Polska Group. “Raben defines corporate social responsibility as a dialogue,” they convince on their website. “This is because we wish to involve stakeholders in affecting the company’s surroundings that constitute their micro-world. Measures taken by the company result from feedback from its key stakeholders – including Employees. We share common values that constitute a certain DNA of persons employed at Raben. Friendly and safe

76 http://eur-lex.europa.eu/legal-content/pl/TXT/PDF/?uri=CELEX:52011DC0144, accessed: 16.10.2015 77

100 |

http://pkpsa.pl/download/kodeks-etyki.pdf, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

work environment is one of our goals within CSR”78. Issues related to supply chain are mentioned by 46.1% companies, whereas a person in charge of sustainable development is hired by just 23%. There are two companies listed at the stock exchange, and they both account for CSR in their annual statements. The results were confirmed by 38.4%. 78 http://polska.raben-group.com/nasza-odpowiedzialnosc/pracownicy/, accessed: 16.10.2015.

The working conditions of truck drivers – including their wages – leave much to be desired. Risky practices, potentially dangerous for their health, such as long driving hours at night, occur on a regular basis.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 101

The Web of Railway Companies CENTRUMCSR.PL FOUNDATION For many years, PKP was the leading carrier in Poland. Despite delays and poor conditions, it was difficult to find any alternative. As time passed, however, passengers switched to cars and busses of private companies. In order to rescue the railway, its reform was initiated, namely crawling privatisation in the disguise of restructuring and modernisation. The fact that assumptions were that it should be taken as an opportunity, contributed even more to the difficult situation of the company. Several subsidiaries were spun out, including PKP Intercity in charge of international, fast and express transport, PKP Cargo in charge of freight, Szybka Kolej Miejska (Fast Municipal Railway), and PKP Energetyka supplying electricity for railway. Przewozy Regionalne were also established, to be financed by local governments. “On average, Przewozy Regionalne’s services are used by 230 thousand people daily, and about 1,800 PR trains run along the tracks across Poland. The Company’s share in passenger railway transport market totals about 30%.”79 – we can read on Przewozy Regionalne’s website. Region Marshals do not hide that they find it increasingly more difficult to finance this burden. At present, each entity deals with a narrow area. Cooperation among them is far from perfect. One can get lost trying to determine who is in charge of the schedule, condition of trains and ticket sales. Passengers had to find their way with it, paying increasingly more for continuously poor services. Moreover, they often face the situation where some line has been cancelled from one day to another, or departure times have been changed again. It is also worth stressing that if the railway functions rather correctly within one region, it is much worse on the interregional routes. This is because connections are agreed at the local government level. It turned out that intentionally innovative solutions caused the number of connections to decrease from year to year and services are used by increasingly fewer persons. This is confirmed by official data. The study entitled “Assessment of Railway Transport Market and Railway Safety in 2013” drafted by the Railway Transport Office indicates as follows: “In the years 2010 – 2011, dynamics of the number of passengers in trains remained negative. In 2012 significant growth was recorded in this respect, changing the trend to a positive one. In 2013, we continue to observe the positive trend in the dynamics of the number of passengers in trains. In the case of transport in Intercity trains, a dynamic decrease has been recorded since 2008, at the end of 2011 totalling over 41% acc. to the number of passengers. In 2012, continuation of the trend was observed, yet the dynamics of the decrease was reduced to -5.73%. In 2013, dynamics of the decrease grew to the level of -26.37%. The main factor affecting the demand in this market segment is the relation of the price (which is twice higher than economy transport) to the travelling time (similar in both segments) with the simultaneous high flexibility as regards comfort of travelling by train”80. In September 2015, Przewozy Regionalne informed about “reducing the commercial segment of their business, namely interREGIO, REGIOekspres and interREGIObusses.” In the communication on their website, the company explains: “Most trains launched by Przewozy Regionalne have regional and agglomeration-wide range. This means that the connections made by the company on request of the owners (local governments) cover one region or neighbouring regions, according to the public mission of the carrier. This offer has so far been complemented with interREGIO trains of national range, international REGIOekspres trains, and interREGIObus busses. Przewozy Regionalne have decided, however, to reduce services in this segment as from 1 September. This is caused by the currently implemented restructuring process which aims to achieve permanent profitability, and thus allowing for investments in the new fleet, which will be principally benefited from by passengers. According to the European regulations, within restructuring, the Company is obliged to free a part of the market, which is done by resignation from the support of interREGIO connections. Moreover, restructuring means broadly understood optimisation. Vast majority of IR trains running on national routes are typically commercial, namely launched individually by the company without any subsidies. Financial analyses indicate that income from ticket sales for those connections cannot cover the costs related to their functioning. What is also of importance is the technical aspect, and thus also the quality aspect for passengers – currently most trains of the carrier are not adjusted for long-distance connections”81.

79

http://www.przewozyregionalne.pl/o-nas, accessed: 16.10.2015.

80 http://utk.gov.pl/pl/analizy-i-monitoring/oceny-roczne/201/5555,Ocena-Funkcjonowania-Rynku-Transportu-Kolejowego-i-Stanu-Bezpieczenstwa-Ruchu-Ko.html, accessed: 16.10.2015. 81

102 |

http://www.przewozyregionalne.pl/node/18425, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

+

-

+

-

-

+

+

ND

+

+

+

+

-

-

-

ND

ND

+

+

+

-

-

-

-

ND

ND

+

+

+

-

+

-

+

-

ND

ND

+

+

+

+

-

-

-

-

-

ND

+

+

-

+

-

+

+

+

+

+

+

+

ND

+

+

+

+

+

PKP SA POLSKIE KOLEJE PAŃSTWOWE

+

-

+

+

-

ND

+

+

+

+

+

+

PLL LOT SA

+

-

-

-

-

ND

ND

+

-

-

-

-

10

POCZTA POLSKA SA

+

+

-

-

-

ND

ND

+

-

+

+

+

11

POLSKIBUS

-

-

-

-

-

ND

ND

-

-

+

-

-

12

PRZEWOZY REGIONALNE SP. Z O.O.

-

-

-

-

-

ND

ND

-

-

-

-

-

13

UPS POLSKA

+

-

+

-

-

ND

ND

+

-

+

-

-

Code of ethics

ND

CSR policy

ND

COMPANY

Person responsible for CSR

-

NO.

CSR on the webpage

Social reporting

In July 2015, the media informed that another company, namely PKP Energetyka, is to be privatised. It is to be purchased by the investment fund from Luxembourg, CVC Capital Partners. Specialists alarm this can have tragic consequences, as the new foreign owner may not properly fulfil the company’s present commitments.

1

CTL LOGISTICS SP. Z OO

+

-

+

-

2

DB SCHENKER SP. Z O.O

+

+

+

+

3

DHL GLOBAL FORWARDING SP. Z O.O

+

-

+

4

DPD POLSKA

+

-

+

5

FEDEX EXPRESS

+

-

6

GRUPA KAPITAŁOWA INTEGER.PL SA

-

7

GRUPA RABEN POLSKA

8 9

Table 15: TRANSPORT AND LOGISTICS

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 103

3.16 MUNICIPAL SERVICES Key aspects of responsibility in the sector Similarly as with Special Economic Zones, municipal services remained at the margin of the corporate social responsibility discussion. In fact, this is one of key sectors both from the point of view of effective functioning of the regions or cities, as well as individual customers. Its effects are felt by all of us on everyday basis. In our list, we accounted for companies dealing with snow removal, cleaning, waste collection, neutralisation of municipal and industrial waste, septic tank clearing, public transport, and water supplies. Companies in this sector should rely on fair competition and transparent pricing policy, particularly in local governments, where they have a dominant role. They must not apply monopolist practices, namely impose prices inadequate to their services, or transfer unjustified costs on customers. This is a special challenge in the conditions of progressing privatisation of the sector. Moreover, they must not apply price-fixing practices, divide the market among themselves, hinder competition’s access to the market, or agree on the terms of offers submitted in tenders. They must also not blackmail the authorities with discontinuation or reducing the scale of their services to the detriment of consumers. It is the companies’ task to take care of health and safety at work. Persons employed in this sector often deal with difficult surroundings and have contact with hazardous substances. Therefore, entities are obliged to carry out regular safety audits. Undoubtedly, environmental protection is also a major issue. Companies should apply state-of-the-art technologies, take actions aimed at reducing electricity consumption, CO2 emissions, or dusting, use renewable energy sources, reduce the volume of waste, as well as correctly segregate and recycle waste.

Comment on the monitoring results Results of our monitoring show that companies in this sector must do a lot in the area of corporate social responsibility. Clearly, better results were scored by those with the headquarters in the West. CSR appeared on websites of 40% of companies. 33.3% have developed a sustainable

104 |

development policy. “Just as in the ancient times people believed the Earth is flat, we used to believe that all the resources of our planet would never be exhausted,” states SITA Polska Sp. z o.o. dealing with waste management and cleaning, which had the best results in our listing. “Unfortunately, for several decades, we have already known that natural resources are very sensitive and we must manage them in a completely different way in the future”82. They explain that the involvement in sustainable development relies on four main priorities: protection of natural resources, participation in propagating the idea of sustainable development, introduction of innovative solutions, and development of the sustainable development concept with the partners. It is also one of two companies featuring the Code of ethics (13.3%). This factor is also met by Veolia Poland. “Social responsibility to the employees is manifested in the following activities: - Implementation of active practices in the area of developing professional skills, professional mobility and professional promotion (…) Taking global initiatives in the area of basic and lifelong vocational education to improve employees’ independence, efficiency and their scope of responsibilities. In our business, Veolia Environnement campus is our model and reference point. The improvement of health and safety at work, preparation of a campaign to prevent accidents, showing interest in anxiety about occupational diseases. Promoting innovative employee initiatives and development of the spirit of entrepreneurship, responsibility and loyalty. Assurance of high-quality employee benefits, both in the area of insurance (against diseases, disability and death), and pension”83 – assures Veolia Poland in their document. Most companies declare activities for environmental protection (86.6%). “We are the only entity on the Capital City market with an Integrated Waste Management System which manages and finally utilises wastes generated by inhabitants of Warsaw in a responsible and environment-friendly manner. Each kilogram of waste collected from our Clients is recorded and transported to the final utilisation

82

http://www.sitapolska.pl/zrownowazony-rozwoj.html, accessed: 16.10.2015.

83 http://sekcjaecicprc.poznan.pl/pliki/veolia/Kodeks%20etyczny%20 i%20odpowiedzialno%9Cci%20Veolia.pdf, accessed: 16.10.2015.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

system”84 – convinces Miejskie Przedsiębiorstwo Oczyszczania w Warszawie Sp. z o.o.

84

http://www.mpo.com.pl/, accessed: 16.10.2015.

Human rights are accounted for by 33.3% companies, while the supply chain – by just 6.6%. Also 13.3% wish to prevent corruption. None of the companies drafts a social report or employs a person in charge of CSR.

Customer Is King? CENTRUMCSR.PL FOUNDATION Monopoly is a threat at the municipal services market. Absence of competition makes companies able to dictate disproportionately high rates for their services. An example of this is the proceeding conducted by the Office for Protection of Competition and Consumers (UOKiK) against Miejski Zakład Wodociągów i Kanalizacji (Water and Sewer Company) in Myślenice. The institution found that “its actions could be a manifestation of abuse of the dominating position on the market of collective water supplies and collective sewer discharge.” What is this specifically about? The company imposed fees not approved by the Municipal Council. Moreover, inspectors found irregularities in charging the residents with costs they should never pay for. “Being the only supplier of water and sewer discharge services in the Municipality of Myślenice, in the cost forming the basis for price setting, the Company included costs of representation and advertising referring to: organisation of an ecological picnic, contest for schools, advertising banners promoting water quality, organisation of the opening of water treatment station, publication of sponsored texts at a gazette, or purchase of advertising materials” UOKiK explains in its communication of 12 August 2015. “In fact, pursuant to the regulations on water supplies and sewer discharge, costs of representation and advertising are not costs forming basis for setting tariff prices and fees. Setting prices, among others, on the basis of such costs could cause prices and fees being unfair. It is worth pointing out that in 95%, MZWiK’s services are offered to consumers, thus weaker participants to the market, who require special protection, including in the area of the control of price setting principles. MZWiK agreed that the objections raised by UOKiK were justified and committed not to include the costs of representation and advertising in the basis for setting prices and fees for water supplies and sewer discharge services. They also took actions aimed at elimination of the effects of such practices by committing to reduce prices in the next tariff by the equivalent of the questioned costs of representation and advertising. This decision has not been enforced. MZWiK has the right to appeal to the court against it”85.

85

https://uokik.gov.pl/aktualnosci.php?news_id=11839 accessed: 16.10.2015

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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NO. COMPANY

CSR on the webpage

Person responsible for CSR

CSR policy

Code of ethics

Social reporting

GRI

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

1

VEOLIA POLAND

+

-

+

+

-

ND

ND

+

-

+

+

-

2

AQUANET SA

+

-

-

-

-

ND

ND

+

-

-

-

-

3

BYŚ – WOJCIECH BYŚKINIEWICZ

-

-

+

-

-

ND

ND

+

-

-

-

-

4

KATOWICKIE WODOCIĄGI SA

-

-

-

-

-

ND

ND

-

-

-

-

-

5

MIEJSKIE PRZEDSIĘBIORSTWO GOSPODARKI KOMUNALNEJ W KATOWICACH SP. Z O.O

-

-

-

-

-

ND

ND

+

-

-

-

-

6

MIEJSKIE PRZEDSIĘBIORSTWO KOMUNIKACYJNE W POZNANIU SP. Z.O.O.

+

-

-

-

-

ND

ND

+

-

-

-

-

7

MIEJSKIE PRZEDSIĘBIORSTWO OCZYSZCZANIA W KRAKOWIE SP. Z O.O

-

-

-

-

-

ND

ND

+

-

-

-

-

8

MIEJSKIE PRZEDSIĘBIORSTWO OCZYSZCZANIA W WARSZAWIE SP. Z O.O

+

-

-

-

-

ND

ND

+

-

-

-

-

9

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI SP. Z.O.O. W KRAKOWIE

-

-

-

-

-

ND

ND

+

-

-

-

-

10

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI W WARSZAWIE SA

-

-

-

-

-

ND

ND

+

-

+

-

-

11

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI WE WROCŁAWIU SA

+

-

+

-

-

ND

ND

+

-

+

-

+

12

MIEJSKIE ZAKŁADY AUTOBUSOWE SP Z O.O

-

-

-

-

-

ND

ND

-

-

-

-

-

13

REMONDIS SP.Z.O.O.

-

-

-

-

-

ND

ND

+

-

-

-

-

14

SITA POLSKA SP. Z O.O.

+

-

+

+

-

ND

ND

+

+

+

+

-

15

TRAMWAJE WARSZAWSKIE SP. Z O.O.

-

-

+

-

-

ND

ND

+

-

+

-

-

Table 16: MUNICIPAL SERVICES

The companies in the utilities sector have an enormous impact on our quality of life. Our monitoring makes us doubt that for a big part of this sector (in which public companies still play a big role) know how huge influence they have on both people and nature.

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Corporate Social Responsibility in the Polish Reality. Theory and Practice.

4

S TAT E T R E ASURY CO MPANI E S

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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Our monitoring assumes a particularly thorough analysis of websites of State Treasury companies. These were established during the ownership transformation processes, principally carried out by the Ministry of State Treasury (SME)86, or were established by the State to perform a specific function (e.g. Special Economic Zones). According to Forbes Magazine, at present, they constitute 20% of the largest companies and at the same time seven out of ten largest in Poland. These are entities of strategic importance, both due to their vast revenues, and the position on the local market (e.g. the role of employer, taxpayer). Companies with the State Treasury as a shareholder are, among others, in charge of the national security and public order. They function at the meeting point of the business and the administration. For this reason, they are considered of key importance in the area of corporate social responsibility. This is confirmed, among others, by the Efficient State 2020 Strategy, which explains that they should have the leading position in “adopting innovative solutions in business management. It is important to spread the application of the concept of corporate social responsibility (CSR), including in particular monitoring and reporting the actions taken. The planned solutions should be based on the experience and solutions adopted by other countries”87. “Recommendations on the implementation of the Corporate Social Responsibility concept in Poland” by the Corporate Social Responsibility Team at the Ministry of Economy also refer to these issues. The authors point out that activities in the CSR area “should principally comprise state-owned companies selected after prior analysis, State Treasury joint ventures”88. Their role as leaders involves a commitment to reach out beyond the framework of applicable regulations to excel at social and environmental innovations. There is a need for promotion of sustainable solutions at the top level. Companies executing public tasks must be transparent, present initiatives in the area of corporate social responsibility to the public opinion, as well as publish their Code of ethics and reports related to non-financial aspects. They must inform stakeholders about the compliance with human rights, cooperation with suppliers, and elimination of corruption. This particularly refers to key companies where the state owns most shares.

86

Act of 30 August 1996 on commercialisation and privatisation.

87

Efficient State 2020 Strategy, Warsaw, 20.12.2012

88

Recommendations on the implementation of the Corporate Social Responsibility concept in Poland, 2011.

108 |

The companies are also obliged to make available public information (also in Biuletyn Informacji Publicznej, Public Information Bulletin), which is the starting point for affecting their business policy. Without a reliable access to such data, it cannot be verified whether they actually deliver their commitments. On 29 September 2014, the Council of the European Union adopted a directive on disclosure of non-financial and diversity information by large companies and groups. This means that in their reports and statements, companies will have to account for environmental aspects, social (including employee) criteria, declarations of respect for human rights, and anti-corruption policies. It must be pointed out that most State Treasury companies we have analysed will meet the criteria of units of public interest, defined by the Act of 7 May 2009 on auditors, their self-government, and entities authorised to audit financial statements, and their public supervision. This means that, by the end of 2016, they will be covered with mandatory reporting on CSR.

Comment on the monitoring results In our study, we have checked forty-five major State Treasury companies. These included both companies with the State Treasury as a shareholder, as well as municipal companies and special economic zones. 55.5% of them have a tab on their websites devoted to sustainable development. Just 22.2% provide direct contact data to the person in charge of social and environmental aspects at the company. Less than half (42.2%) have implemented a CSR policy. Code of ethics appeared on websites of 26.6% of companies. A similar result referred to the social reports made available (28.8%). Almost all of them were issued on the basis of GRI guidelines (92.3%). 14.2% companies listed at the Warsaw Stock Exchange did not refer to CSR in their annual reports. Most companies (64.4%) publish information on environmental protection. Other markers, however, look much worse: human rights (48.8%), supply chain (33.3%), and corruption (28.8%). Just five State Treasury Companies jointly met all the criteria - Grupa Lotos SA, KGHM Polska Miedź, PGNiG, Energa SA, and GK PZU. The greatest interest in CSR was recorded among the companies in the energy and mining sector. The worst, in turn, were the special economic zones.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Our analysis of the contents of State Treasury companies’ websites points to a mixed image of their involvement in CSR. The websites are characterised with high diversity. On this basis, the companies can be divided into three groups. One is formed by entities scoring maximum number of points (or a similar result). These constituted almost 25% of the listing. Their involvement ratio, measured with their score, is among the highest. The concept of corporate social responsibility is broadly confirmed on their websites. The CSR tab is exposed, also accompanied with a separate page dedicated to the examples of their philanthropic and sponsorship activities. There is a strong correlation between taking measures in the area of sustainable development and company’s profitability. This example is confirmed by the largest companies - PKN Orlen, Lotos, Tauron, PGNiG – which are at the top of the list of the richest companies in Poland. It must be, however, noticed that their activity has strong sectoral foundations related to the risk in this sector. This is obviously due to their harmful impact on the environment. The companies have complex policies, particularly in the environmental area, and more frequently refer to global issues on their web-

sites (e.g. human rights across the supply chain). They periodically draft reports applying international GRI standards. Their involvement goes beyond the ratios in the project. The implementation of their corporate social responsibility strategy is supervised by an allocated employee or a team of experts. There is a visible division between the company’s PR and CSR. In their activities, the companies follow the latest trends in the area of sustainable development (participation in international initiatives, integrated reporting, etc.), while partly also belong to the Respect Index operating within the Stock Exchange. The only company outside the raw materials, fuels and energy sector scoring 100% was the PZU Group. Another large company, forming almost half of the listing, included companies treating CSR as their promotion tool. This is not accompanied with a more thorough reflection on the company’s impact on its social and environmental surroundings. The concept of corporate social responsibility is treated interchangeably with such terms as sponsorship or philanthropy. Companies do not identify their impact on stakeholders, and do not measure the efficiency

Polish public railways were divided into smaller companies. The regional rail networks went into the hands of regional governments and turned out to be a big financial challenge for them. The problems of the local governments mean problems for the passengers. The rail network being used is shrinking year after year.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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of their measures. This is accompanied by lack of reporting. Documents such as a CSR policy or Code of ethics are very rare. Informative value of such websites is low, and the content related to sustainable development are just slogans. Accentuating some aspects of their business is also related to legal requirements referring to their business profiles, e.g. as regards safety (Bank Gospodarstwa Krajowego) or environmental protection (State Forests). Other companies referred to CSR in a selective and fragmentary manner, or not at all. Majority of them did not feature tabs dedicated to social or environmental issues. Data regarding sustainable development were scattered on the website and referred to single indices, thus preventing the inclusion of CSR into the company’s vision. The lowest results in the listing were observed for Special Economic Zones (SEZ, Polish abbreviation: SSE) acting on the basis of the Act of 20 October 1994 on special economic zones. Currently, there are 14 such zones in Poland. Originally, they were established to attract investors in the regions with poorer economic development, in return offering many tax exemptions. On 23 July 2013, the Council of Ministers extended the operation of the zones by the end of 2026 (first it was assumed they would operate until 2004, later – than by 2020). These are managed by companies with the majority shareholding of the State Treasury or local governments (exception: SSE EURO-PARK MIELEC and TSSE EURO-PARK WISŁOSAN – managed by the Industrial Development Agency). Just three out of fourteen (in Słupsk, Legnica, and Łódź) had tabs on their websites dedicated to CSR. SEZ in Słupsk as the only one referred to human rights, getting involved in activities for social integration (Ośrodek Wsparcia Ekonomii Społecznej – Support Centre for Social Economy). It is the only company informing about ecological aspects of its business. None of the companies had an integrated CSR policy, issued codes of ethics or published social reports. This is a very poor result. At the same time, interestingly, SEZ continuously improve in the

110 |

international rankings, including fDi Magazine from Financial Times group. In 2014, SEZ in Pomorze region was awarded for “CSR activities, including programmes for young mothers, scholarships for scientists and vocational education”89. CentrumCSR.PL’s own study confirms the trends observed in the analysis prepared for the governmental Corporate Social Responsibility Team. It indicates that 60% of the State Treasury companies do not publish any data in the ESG area on their websites90. Although our analysis involved just the largest companies, which overestimated the result, it is still hardly satisfactory. CSR is treated superficially by companies, possibly as a promotional activity, while at its best as casual sustainable development. Still too many companies do not perceive the need for business strategies based on their social and environmental impact. Short-term thinking prevails. Business grows at the expense of its impact on local communities and the environment. Communication on the part of State Treasury companies must be deemed deeply insufficient. This is confirmed by the contents of their websites, principally oriented at promotion and investor acquisition. Websites should be drafted and updated in the aspect of the needs of all stakeholders, while in this case the role and importance of local communities and employees must be pointed out. The objective of owner’s supervision over such enterprises by the Ministry of State Treasury is, among others, to assure their transparency. Currently, however, there may be situations where the State Treasury draws indirect benefits from breaching ethical standards. Without the relevant legal regulations, and promotion of best practices that are successfully applied in the western Europe, the concept of corporate social responsibility will remain an empty promise. This is because the example should always come from the top.

89

http://www.mg.gov.pl/node/21951, accessed: 14.09.2015.

90

GES Reporting in State-Owned Companies and Companies with State-Owned Shares. Analysis Prepared for the Governmental Corporate Social Responsibility Team, 2011, p. 6.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Non-financial Reporting and Its Enemies CENTRUMCSR.PL FOUNDATION At the end of 2016, regulations will be enforced forcing selected companies to report on their non-financial activities. This is a result of the EU Directive. It is to make it easier for the stakeholders, including consumers, employees, contractors and investors to access data of importance to them. This has long been the focus of attention on the part of non-governmental organisations from many countries, including our foundation and international coalitions we are members of (e.g. ECCJ). The reports will have to be presented by entities of public interest, including from the banking or insurance sector, or ones that, due to their business profile or size, are of major importance and significantly affect the society. It is already known that in Poland this will be just about 300 companies. The adjustment of the requirements to the Polish regulations is the responsibility of the interdepartmental team at the Ministry of Economy and at the Ministry of Finance. It is worth reminding that it was the representatives of these institutions that, during the negotiations at the European Council, successfully co-formed the blocking minority who demanded narrowing of the number of corporations to be covered with the new requirements. The officials continue to argue that companies should not be forced to anything, but should only be encouraged to take action in the area of CSR. This is exactly the tone of the working groups or conferences they organise. Company representatives appear there exclusively as examples to be followed. The issue of why CSR is so important and what specific negative social and environmental consequences of lack of commitments in this respect there might be is not touched upon. On 15 September 2015, during the meeting entitled “Business and Social, Environmental and Economic Challenges. Role and Responsibility”, Grażyna Henclewska, under-Secretary of the State at the Ministry of Economy pointed out: “The role of public administration is to create favourable circumstances for the benefit of sustainable development of the business.” In turn, under-Secretary from the Ministry of Labour and Social Policy explained that the discussion on social achievements of the business and its responsibility is excessively dominated by the dark vision of the difficult situation on the job market. He praised companies for joining the noble initiative of the Large Family Card. One of the guests to the panel rightly pointed out that this is practically the only such major project for the benefit of families that business can boast. Moreover, this did not happen out of the companies’ will. They only agreed to participate in the project. Representatives of ministries stress that what is the most important is to promote best practices. Their attitude suggests that we should be grateful to companies for doing anything. We asked the Ministry of Finance why, instead of acting for the benefit of the broadest possible regulations obliging the business to sustainable development, they adopted the opposite approach. “As regards Poland’s activities to reduce the number of companies obliged to reporting non-financial information, we kindly explain that such an approach was a result of the Government’s statement in respect of the draft Directive,” officials argue. “Its key justification was the fact that, in the conditions of Polish economy, non-financial information is hardly accounted for by investors and the fact that, for companies not listed on the stock exchange and not being entities of public interest, such additional reporting requirements would result in increased costs, which is contrary to both the EU programme oriented at reducing administrative levies for enterprises, and to the priority of the Polish Government to reduce administrative levies to business entities. In the case of such companies, there would be no evident value added, as these are not companies searching for investors on capital markets.” This explanation shows that company stakeholders have been brought down by the administration exclusively to investors. They seem to have forgotten about consumers, employees and NGOs, assuming from the start that they would not be interested in such data. The Ministries also attempt to protect enterprises against additional costs due to the need of drafting the reports. It is worth pointing out that these are often companies recording multimillion profits. Moreover, during the aforementioned conference at the Ministry of Economy, Paweł Tamborski, President of the Board of the Warsaw Stock Exchange, explained that the share price of companies applying CSR is more stable than the one of those not touching upon the issue. They are treated as more predictable, with lower risk. In practice, this allows for raising their capital on the market. The Ministry of Finance also organised pre-consultations, results of which are to be helpful with legislation works on draft regulations implementing the Directive. In mid-June, they placed a survey on their website asking respondents, among others, whether they currently use financial information while making decisions on investment, whether they intend to account for non-financial data to a greater extent, and whether such data should be verified by entities offering attestation services. The survey was filled by just 53 respondents, including 13 entities being users of non-financial information and

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

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40 businesses. Representatives of the Ministry, however, assure that draft assumptions or draft act amending the Accountancy Law (it is still unknown which formula will be adopted) will be presented for public consultation, namely published on the website for a period not shorter than 14 days. This will probably be in the first quarter of 2016. There is a major issue to be considered. If the administration does not wish to pose any requirements to businesses, does not raise the bar, praising them for any initiatives while not even thoroughly analysing their value, why should they do anything at all? For applause? Fame? Out of their good heart? It is like telling students that from now on they are to attend classes not for grades and attendance rates, but exclusively for their satisfaction. Would they really come to school on the next day? Or would just the top students appear?

Dumping ground of the „Szczerców” open cast mine in KWB Bełchatów.

112 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

5

P R O J E CT M E T HO DO L OGY

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 113

The “Monitoring of social responsibility of top Polish companies” project is an independent social audit of corporations involving several phases. The study analysed information regarding selected aspects of corporate social responsibility (12 factors) available on the websites of companies selected for the study. Pursuant to independent rankings of opinion leaders: “Forbes”, “Rzeczpospolita” and “Polityka”, using expert knowledge in many areas, we selected 227 companies of major importance in Poland. The selection criteria did not only include company revenues, but also the number of employees, brand recognition, and the impact on the social and natural environment. Each factor had the same weight allocated. The list (despite economic potential) did not include entities whose scope of business by principle does not match the idea of sustainable development. These include tobacco corporations, liquor manufacturers, and weapon suppliers. Over 20% of the companies listed are the State Treasury Companies and Municipal Companies. The monitoring exclusively accounts for information published in Polish. Information published in a foreign language (usually English) is potentially not understandable to major part of Polish stakeholders, hence it cannot be accounted for in our evaluation. The study involved two phases: 1. Analysis of companies’ websites. In order to search for information, we used simple tools that can be used by prospective stakeholders

– all mechanisms (e.g. search engines) and links made available by companies at their websites, as well as Google browser. 2. Dialogue with the companies and verification of results. In order to confirm the data generated by the investigator, their contents (meeting the requirements of specific factors “+/-/na”) is presented for verification by companies. If the investigator has omitted any piece of information and/or in the event of a change of a factor by the company, such information is recorded on the www.centrumcsr.pl website and in the Summary Report. Pursuant to the information gathered, Summary Report will be drafted with a comment to the data. Listing of the results achieved by particular companies will also be published in the Internet in the graphic form using a specially developed web tool.

Description of the factors Before starting describing particular factors, it must be pointed out that the applied criteria are of the quantitative nature. A company could be given a positive mark for presence of a particular piece of information, a negative mark for its absence, or not be given any mark at all if a particular criterion did not apply to it. In our survey, we evaluated the presence of information on companies’ websites according to a binary principle. The assessment of the quality of information presented will appear as a comment in the Summary Report.

The survey involved 12 factors: 1.

CSR on the website A positive mark goes to a company having a page/tab referring to activities within the area of CSR/sustainable development.

2.

Person in charge of CSR at the company A positive mark goes to a company allowing for contact with the person in charge of corporate social responsibility. In order to obtain a “+”, the company must provide a direct contact channel (phone, e-mail, form) to such a person, stating his/her full name.

3.

CSR policy A positive mark goes to a company placing a declaration on its website regarding their CSR policy (statement of interest in corporate social responsibility, environmental issues or sustainable development).

4.

Code of ethics / Code of conduct A positive mark goes to a company publishing their Code of conduct (Code of ethics) on their website. We deemed such a code to be a set of the company’s principles regarding their relations with clients, employees, suppliers and/or other stakeholders.

114 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

5.

Social report A positive mark goes to a company making available their current social report on their website (namely not older than two years; if a company defined their reporting cycle otherwise – e.g. every three years – this could be an older report). A report was deemed as any aggregated and published form of information about the company’s impact on stakeholders and the environment.

6.

Social report based on GRI standards A positive mark goes to a company applying the guidelines of Global Reporting Initiative (GRI) in their reporting process. We did not analyse actual report conformity with such guidelines – in order to obtain a “plus”, it was sufficient to provide information about having applied such guidelines at any level of advancement.

7.

References to CSR in their annual report A positive mark goes to a company who, in any manner, in its annual report, refers to the issue of corporate social responsibility and issues related to environmental protection (the criterion exclusively refers to companies listed at the Warsaw Stock Exchange).

8. Ecology A positive mark goes to a company referring to environmental protection – namely, the manner in which they attempt to reduce its negative impact and optimise its positive impact on the natural environment. 9.

Supply chain A positive mark goes to a company declaring the application of the adopted CSR principles in its relations with business partners, e.g. suppliers and subcontractors.

10. Human rights A positive mark goes to a company who, on its website, refers to the protection of human rights or points to human rights as a source of principles applied within the company’s corporate social responsibility. Human rights are understood here as both reference to labour standards at each phase of producing an item/service (accounting for subcontractors in the supply chain), but also the care for broadly understood company stakeholders. A company may also receive a positive mark for membership in the Global Compact initiative. 11. Fighting against corruption A positive mark goes to a company who places information on its website referring to the problems of corruption, e.g. a declaration of aiming at elimination of all forms of corruption, publication of the respective policy regulating, among others, the issue of accepting gifts and relations with contractors. 12. Results confirmed by the company The criterion for obtaining a positive mark was that the company should confirm the survey results received by e-mail. This factor was exclusively informative.

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 115

Person responsible for CSR

CSR policy

Code of ethics

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

+

+

+

- ND ND +

+

+

+

-

2 

ACCOR POLSKA

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

-

- ND ND

+

-

-

-

+

3 

ADECCO POLAND SP. Z O.O

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

+

+

+

- ND ND

-

-

+

+

+

4 

AGENCJA ROZWOJU PRZEMYSŁU SA. OD. W TARNOBRZEGU / SSE TARNOBRZESKA/ EURO-PARK WISŁOSAN

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

-

5 

AGENCJA ROZWOJU PRZEMYSŁU SA. ODD. W MIELCU / SSE EURO-PARK SPECIAL ECONOMIC ZONES MIELEC

-

-

-

-

- ND ND

-

-

-

-

-

6 

AGENCJA ZATRUDNIENIA TRENKWALDER

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

-

- ND ND

-

-

-

-

-

7 

AGORA SA

MEDIA, COMMUNICATION, IT

+

-

-

-

- ND +

-

-

-

-

-

8 

ALSTOM POLSKA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

+

+

- ND ND +

+

+

+

-

9 

AMAZON

COMMERCIAL SECTOR

-

-

-

-

- ND ND

-

-

-

-

-

10 

AMICA WRONKI SA

HOUSEHOLD APPLIANCES

-

-

-

-

- ND

+

-

-

-

+

11 

AMLUX SP. Z O. O.

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

-

12 

AMREST HOLDINGS SE

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

+

-

- ND ND +

+

+

-

+

13 

ANIMEX – ANIMPOL SF SP. Z O.O. SP.K.

FOOD INDUSTRY

+

-

+

+

- ND ND +

+

+

+

+

14 

AQUANET SA

MUNICIPAL SERVICES

+

-

-

-

- ND ND +

-

-

-

-

15 

ARCELORMITTAL POLAND SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

+

+

+

+

+ ND +

+

+

+

+

16 

AUCHAN POLSKA SP. Z.O.O.

COMMERCIAL SECTOR

+

+

+

+

+

+ ND +

+

+

+

+

CSR in the yearly report

CSR on the webpage +

GRI

SECTOR METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

Social reporting

COMPANY ABB POLSKA

NO. 1 

-

17 

BAKOMA SP. Z.O.O.

FOOD INDUSTRY

+

-

-

-

- ND ND +

-

-

-

-

18 

BANK BGŻ BNP PARIBAS

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

19 

BANK GOSPODARSTWA KRAJOWEGO FINANCIAL SECTOR

+

+

+

+

- ND ND +

-

+

+

+

20 

BANK HANDLOWY W WARSZAWIE SA

FINANCIAL SECTOR

+

-

-

+

- ND +

+

-

+

+

-

21 

BANK ZACHODNI WBK SA

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

-

22 

BONARKA CITY CENTER

COMMERCIAL SECTOR

-

-

-

-

- ND ND

-

-

-

-

-

23 

BRIDGESTONE POZNAŃ SP. Z O.O.

CHEMICAL INDUSTRY

+

-

-

-

- ND ND

-

-

-

-

-

24 

BSH SPRZĘT GOSPODARSTWA DOMOWEGO SP. Z O.O.

HOUSEHOLD APPLIANCES

-

-

-

-

- ND ND +

-

-

-

-

+

+

+

25 

BYŚ - WOJCIECH BYŚKINIEWICZ

MUNICIPAL SERVICES

-

-

+

-

- ND ND +

-

-

-

-

26 

BYTOM SA

FASHION AND TEXTILES

-

-

-

-

- ND

-

-

-

-

-

27 

CARREFOUR POLSKA SP. Z.O.O.

COMMERCIAL SECTOR

+

-

+

-

- ND ND +

+

+

-

-

116 |

-

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

CSR policy

Code of ethics

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

-

-

- ND ND +

-

-

-

+

29 

CENTRUM HANDLOWE ZŁOTE TARASY W WARSZAWIE

COMMERCIAL SECTOR

-

-

-

-

- ND ND +

-

-

-

+

30 

CENTRUM MEDYCZNE ENEL-MED SA

HEALTHCARE AND PHARMACY

+

-

+

-

- ND

-

-

-

-

-

-

31 

COLIAN HOLDING SA

FOOD INDUSTRY

+

-

+

-

- ND

-

+

+

-

-

+

32 

CTL LOGISTICS SP. Z OO

TRANSPORT AND LOGISTICS

+

-

+

-

- ND ND +

-

+

-

-

33 

DB SCHENKER SP. Z O.O

TRANSPORT AND LOGISTICS

+

+

+

+

+

+ ND +

+

+

+

-

34 

DHL GLOBAL FORWARDING SP. Z O.O

TRANSPORT AND LOGISTICS

+

-

+

-

- ND ND +

+

+

-

-

35 

DOM DEVELOPMENT SA

CONSTRUCTION

+

-

-

-

- ND

-

-

-

-

-

-

Ecology

Person responsible for CSR -

CSR in the yearly report

CSR on the webpage +

GRI

SECTOR COMMERCIAL SECTOR

Social reporting

COMPANY CENTRUM HANDLOWE ARKADIA W WARSZAWIE

NO. 28 

36 

DPD POLSKA

TRANSPORT AND LOGISTICS

+

-

+

-

- ND ND +

+

+

-

+

37 

DRUTEX SA

CONSTRUCTION

+

+

-

-

- ND ND +

-

-

-

+

38 

EKOTRADE SP. Z.O.O.

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

-

39 

ELECTROLUX POLAND SP. Z O. O.

HOUSEHOLD APPLIANCES

+

-

-

+

- ND ND +

+

+

+

-

40 

ENEA SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

-

+

+

+

+

+

+

+

+

+

-

41 

ENERGA SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

+

+

42 

FALCK MEDYCYNA SP. Z O.O.

HEALTHCARE AND PHARMACY

+

-

-

+

- ND ND +

-

+

+

-

43 

FAMUR

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

-

-

- ND

-

-

-

-

-

44 

FAURECIA AUTOMOTIVE POLSKA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

-

-

- ND ND

-

-

-

-

+

45 

FEDEX EXPRESS

TRANSPORT AND LOGISTICS

+

-

-

+

- ND ND +

+

+

+

-

46 

FIAT AUTO POLAND SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

+

-

- ND ND +

-

+

-

-

47 

COMPANY OPONIARSKA DĘBICA SA

CHEMICAL INDUSTRY

-

-

-

-

- ND +

+

-

-

-

+

48 

FLEXTRONICS SA

HOUSEHOLD APPLIANCES

-

-

-

-

- ND ND

-

-

-

-

-

49 

GINO ROSSI SA

FASHION AND TEXTILES

-

-

-

-

- ND

-

-

-

-

-

-

50 

GK AB SA

MEDIA, COMMUNICATION, IT

+

-

+

-

- ND +

+

-

+

-

-

51 

GK ACTION SA

HOUSEHOLD APPLIANCES

+

-

-

-

- ND

-

+

-

+

-

-

-

52 

GK ARCTIC PAPER SA

WOOD AND PAPER INDUSTRY

+

-

+

+

- ND +

+

+

+

+

-

53 

GK ASSECO POLAND SA

MEDIA, COMMUNICATION, IT

+

-

-

-

- ND

-

-

-

-

-

-

54 

GK BANKU BPH SA

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

+

+

55 

GK BANKU MILLENNIUM SA

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

+

+

56 

GK BANKU PEKAO SA

FINANCIAL SECTOR

+

-

+

+

- ND +

+

+

+

+

+

57 

GK BLACK RED WHITE SA

WOOD AND PAPER INDUSTRY

+

-

-

-

- ND ND +

-

-

-

+

58 

GK BORYSZEW SA

CHEMICAL INDUSTRY

+

-

+

+

- ND

-

+

+

+

+

-

59 

GK CCC SA

FASHION AND TEXTILES

+

-

-

-

- ND

-

+

-

+

-

-

60 

GK COMARCH SA

MEDIA, COMMUNICATION, IT

+

-

+

+

+

+

+

+

+

+

-

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

+

| 117

Person responsible for CSR

CSR policy

Code of ethics

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

+

+

+

- ND ND +

+

+

+

+

62 

GK FORTE SA

WOOD AND PAPER INDUSTRY

+

-

-

-

- ND

-

+

-

-

-

-

63 

GK GETIN NOBLE BANKU SA

FINANCIAL SECTOR

+

-

-

+

- ND +

-

+

+

+

-

64 

GK GRUPY AZOTY SA

CHEMICAL INDUSTRY

+

-

+

+

+

+

+

+

+

-

+

CSR in the yearly report

CSR on the webpage +

GRI

SECTOR FINANCIAL SECTOR

Social reporting

COMPANY GK CREDIT AGRICOLE BANK POLSKA SA

NO. 61 

+

65 

GK HORTEX HOLDING SA

FOOD INDUSTRY

+

-

+

-

- ND ND +

+

+

-

-

66 

GK INDYKPOL SA

FOOD INDUSTRY

+

-

+

-

- ND +

+

-

+

-

+

67 

GK ING BANKU ŚLĄSKIEGO SA

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

+

68 

GK INTER CARS SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

-

-

- ND +

+

-

-

-

-

69 

GK JASTRZĘBSKIEJ SPÓŁKI WĘGLOWEJ SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

-

+

-

+

-

-

+

-

+

-

-

70 

GK KOPEX SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

+

+

-

+

+

+

+

+

+

-

-

71 

GK LPP SA

FASHION AND TEXTILES

+

+

+

+

- ND

-

+

+

+

-

-

72 

GK LUBELSKI WĘGIEL BOGDANKA SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

-

+

+

+

+

+

+

+

+

+

+

73 

GK MARVIPOL

CONSTRUCTION

-

-

-

-

- ND

-

-

-

-

-

-

74 

GK NETIA SA

MEDIA, COMMUNICATION, IT

+

+

+

+

+

+

-

+

-

+

-

-

75 

GK NFI EMPIK MEDIA&FASHION SA

COMMERCIAL SECTOR

-

-

-

-

- ND

-

-

-

-

-

-

76 

GK NSG (PILKINGTON)

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

-

+

- ND ND +

+

-

+

-

77 

GK PELION SA

HEALTHCARE AND PHARMACY

+

+

+

+

+

+

+

+

+

+

+

-

78 

GK PGNIG

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

+

+

79 

GK PKO BP SA

FINANCIAL SECTOR

+

+

+

-

- ND +

+

-

+

-

+

80 

GK POLIMEX-MOSTOSTAL SA

CONSTRUCTION

+

-

+

+

- ND

-

+

+

+

+

-

81 

GK POLSKA GRUPA ENERGETYCZNA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

-

+

+

+

+

+

+

+

+

82 

GK POLSKI KONCERN MIĘSNY DUDA SA

FOOD INDUSTRY

-

-

-

-

- ND

-

-

-

-

-

-

83 

GK SAINT GOBAIN

CONSTRUCTION

+

-

+

+

- ND ND +

-

+

+

-

84 

GK SOKOŁÓW (SOKOŁOWSKIE ZAKŁADY MIĘSNE SA)

FOOD INDUSTRY

-

-

-

-

- ND ND +

-

-

-

-

85 

GK TAURON POLSKA ENERGIA SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

-

+

86 

GK TVN SA

MEDIA, COMMUNICATION, IT

+

-

+

+

- ND

-

-

-

+

+

-

87 

GK WORK SERVICE SA

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

+

+

-

+

+

-

+

-

+

-

-

88 

GK ZESPOŁU ELEKTROWNI PĄTNÓWADAMÓW-KONIN SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

-

-

-

-

- ND

-

+

-

-

-

-

89 

GRUPA ADAMED

HEALTHCARE AND PHARMACY

+

+

-

-

- ND ND +

-

+

+

+

118 |

+

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

-

- ND ND +

-

-

-

-

Ecology

-

CSR in the yearly report

-

GRI

Code of ethics

+

Social reporting

CSR policy

COMMERCIAL SECTOR

Person responsible for CSR

SECTOR

GRUPA ALLEGRO

CSR on the webpage

COMPANY

NO. 90  91 

GRUPA ALLIANZ

FINANCIAL SECTOR

+

-

+

+

- ND ND +

-

+

+

+

92 

GRUPA AVIVA

FINANCIAL SECTOR

+

-

-

-

- ND ND

-

-

+

-

+

93 

GRUPA BARLINEK

WOOD AND PAPER INDUSTRY

+

+

+

-

- ND

-

+

-

+

-

-

94 

GRUPA BUDIMEX SA

CONSTRUCTION

+

+

+

-

+

+

+

+

+

+

+

-

95 

GRUPA CIECH

CHEMICAL INDUSTRY

+

-

+

-

- ND

-

+

-

+

-

-

96 

GRUPA EUROCASH SA

COMMERCIAL SECTOR

+

-

+

-

- ND +

+

+

+

+

-

97 

GRUPA FAKRO

CONSTRUCTION

+

-

+

-

- ND ND +

-

+

-

+

98 

GRUPA IMPEL

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

+

- ND

-

+

-

-

99 

GRUPA KAPITAŁOWA INTEGER.PL SA

-

+

TRANSPORT AND LOGISTICS

-

-

-

-

- ND +

+

-

+

-

+

100  GRUPA KĘTY

CHEMICAL INDUSTRY

+

+

+

+

- ND +

+

-

+

+

+

101  GRUPA KONSPOL

FOOD INDUSTRY

-

-

-

-

- ND ND

-

-

-

-

-

102  GRUPA LOTOS SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

103  GRUPA LUX MED

HEALTHCARE AND PHARMACY

+

+

-

-

- ND ND +

-

-

-

+

104  GRUPA MASPEX WADOWICE

FOOD INDUSTRY

+

-

-

-

- ND ND +

-

-

-

-

105  GRUPA MEDICOVER

HEALTHCARE AND PHARMACY

+

-

+

-

- ND ND

-

-

+

-

+

106  GRUPA MLEKOVITA

FOOD INDUSTRY

+

+

+

-

- ND ND

-

-

-

-

-

107  GRUPA POLSKI SZPITAL SA

HEALTHCARE AND PHARMACY

-

-

-

-

- ND ND

-

-

-

-

-

108  GRUPA PZU SA

FINANCIAL SECTOR

+

+

+

+

+

+

+

+

+

+

+

109  GRUPA RABEN POLSKA

TRANSPORT AND LOGISTICS

+

+

+

+

+

+ ND +

+

+

+

+

110  GRUPA SANOFI W POLSCE

HEALTHCARE AND PHARMACY

+

+

+

+

- ND ND +

+

+

+

+

111  GRUPA SELENA FM SA

CHEMICAL INDUSTRY

-

-

-

-

- ND

-

-

-

-

-

112  GRUPA SOLID

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

-

GRUPA TZMO SA (TORUŃSKIE 113  ZAKŁADY MATERIAŁÓW OPATRUNKOWYCH SA)

HEALTHCARE AND PHARMACY

+

-

+

-

- ND ND +

+

+

-

-

114  GRUPA VALEO

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

-

-

- ND ND +

-

+

-

-

115  GTC GLOBE TRADE CENTER SA

CONSTRUCTION

+

-

-

-

- ND ND +

-

-

-

-

116  HENKEL POLSKA SP. Z O.O.

CHEMICAL INDUSTRY

+

+

+

+

- ND ND +

+

+

+

-

117  HILTON WORLDWIDE POLSKA

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

-

- ND ND

-

-

-

-

-

118  HOTEL GOŁĘBIEWSKI

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

-

119  IKEA INDUSTRY POLAND

WOOD AND PAPER INDUSTRY

-

-

-

-

- ND ND +

-

-

-

-

120  IKEA RETAIL SP. Z O.O.

COMMERCIAL SECTOR

+

-

+

-

- ND ND +

+

+

-

-

-

-

-

-

- ND ND

-

-

-

-

121  INDESIT COMPANY POLSKA SP. Z O.O. HOUSEHOLD APPLIANCES

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

+

+

+

-

-

| 119

CSR policy

Code of ethics

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

- ND ND

-

-

-

-

-

WOOD AND PAPER INDUSTRY

+

-

+

+

- ND ND +

+

+

+

-

124  ISS POLSKA

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

+

+

- ND ND +

-

+

+

-

125  J.W. CONSTRUCTION HOLDING SA

CONSTRUCTION

-

-

-

-

- ND

-

-

-

-

-

126  JABIL CIRCUIT POLAND. SP. Z O.O.

HOUSEHOLD APPLIANCES

-

-

-

-

- ND ND

-

-

-

-

-

127  JERONIMO MARTINS POLSKA SA

COMMERCIAL SECTOR

+

-

+

-

- ND ND +

+

+

-

-

128  KATOWICKIE WODOCIĄGI SA

MUNICIPAL SERVICES

-

-

-

-

- ND ND

-

-

-

-

-

129  KGHM POLSKA MIEDŹ SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

COMMERCIAL SECTOR

+

-

-

+

- ND ND +

+

+

+

-

131  KOMPANIA WĘGLOWA SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

-

+

-

- ND ND +

+

+

-

-

132  KONSALNET SECURITY SP. Z O.O

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

+

-

-

123 

130 

INTERNATIONAL PAPER - KWIDZYN SP. Z O. O.

KINGFISHER SOURCING EASTERN EUROPE

GRI

Person responsible for CSR

-

Social reporting

CSR on the webpage

-

SECTOR

-

COMPANY

-

NO.

HORECA, CLEANING, SECURITY AND JOB AGENCIES

122  INTERCONTINENTAL HOTELS GROUP

+

-

+

-

133  KRAJOWA SPÓŁKA CUKROWA

FOOD INDUSTRY

+

-

+

-

+

+ ND +

+

+

+

-

134  LG ELECTRONICS POLSKA

HOUSEHOLD APPLIANCES

+

-

+

+

- ND ND +

+

+

+

-

COMMERCIAL SECTOR

+

-

+

+

- ND ND +

+

+

-

+

136  LOUVRE HOTELS GROUP

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

-

137  MAN BUS SP. Z O.O.

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

-

+

- ND ND +

+

+

+

-

138  MANPOWER GROUP W POLSCE

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

+

- ND ND +

+

+

+

-

139  MANTA SA

HOUSEHOLD APPLIANCES

+

-

+

-

- ND ND +

-

+

-

-

140  MANUFAKTURA ŁÓDŹ

COMMERCIAL SECTOR

+

-

-

-

- ND ND +

-

-

-

-

141  MBANK SA

FINANCIAL SECTOR

+

+

+

-

- ND +

+

-

+

+

+

142  MCDONALD’S POLSKA SP. Z O.O

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

+

- ND ND +

+

+

+

-

143  METRO GROUP W POLSCE

COMMERCIAL SECTOR

-

-

-

+

- ND ND

-

+

+

+

-

144  MICHELIN POLSKA SA

CHEMICAL INDUSTRY

+

-

+

-

- ND ND +

+

+

-

-

145  MICROSOFT SP. Z O.O.

MEDIA, COMMUNICATION, IT

+

-

-

-

- ND ND +

+

+

+

-

MIEJSKIE PRZEDSIĘBIORSTWO 146  GOSPODARKI KOMUNALNEJ W KATOWICACH SP. Z O.O

MUNICIPAL SERVICES

-

-

-

-

- ND ND +

-

-

-

-

MIEJSKIE PRZEDSIĘBIORSTWO 147  KOMUNIKACYJNE W POZNANIU SP. Z.O.O.

MUNICIPAL SERVICES

+

-

-

-

- ND ND +

-

-

-

-

MIEJSKIE PRZEDSIĘBIORSTWO 148  OCZYSZCZANIA W KRAKOWIE SP. Z O.O

MUNICIPAL SERVICES

-

-

-

-

- ND ND +

-

-

-

-

135 

LIDL POLSKA SKLEPY SPOŻYWCZE SP. Z O.O. SP. K.

120 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

- ND ND +

-

-

-

-

MIEJSKIE PRZEDSIĘBIORSTWO 150  WODOCIĄGÓW I KANALIZACJI SP. Z.O.O. W KRAKOWIE

MUNICIPAL SERVICES

-

-

-

-

- ND ND +

-

-

-

-

MIEJSKIE PRZEDSIĘBIORSTWO 151  WODOCIĄGÓW I KANALIZACJI W WARSZAWIE SA

MUNICIPAL SERVICES

-

-

-

-

- ND ND +

-

+

-

-

MIEJSKIE PRZEDSIĘBIORSTWO 152  WODOCIĄGÓW I KANALIZACJI WE WROCŁAWIU SA

MUNICIPAL SERVICES

+

-

+

-

- ND ND +

-

+

-

+

MIEJSKIE ZAKŁADY AUTOBUSOWE SP Z O.O

MUNICIPAL SERVICES

-

-

-

-

- ND ND

-

-

-

-

-

154  MIESZKO SA

FOOD INDUSTRY

-

-

-

-

- ND ND

-

-

-

-

-

155  MONDI ŚWIECIE SA

WOOD AND PAPER INDUSTRY

+

-

-

-

- ND ND +

-

+

+

-

156  MONNARI TRADE SA

FASHION AND TEXTILES

+

-

-

-

- ND +

-

-

-

-

+

157  MORPOL SA

FOOD INDUSTRY

+

-

-

-

- ND ND +

-

-

-

-

158  NEWAG SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

+

-

- ND

-

-

-

-

-

159  NOWY STYL SP. Z O.O.

WOOD AND PAPER INDUSTRY

+

+

+

+

+

+ ND +

+

+

+

+

160  OPEL POLSKA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

-

-

- ND ND +

-

-

-

+

161  ORANGE POLSKA SA

MEDIA, COMMUNICATION, IT

+

+

+

+

+

+

+

+

+

+

+

162  OTCF SP. Z O.O.

FASHION AND TEXTILES

-

-

-

-

- ND ND

-

-

-

-

-

163  P4 SP.Z.O.O.

MEDIA, COMMUNICATION, IT

+

-

+

-

- ND ND +

-

-

-

-

164  PAGED MEBLE SA

WOOD AND PAPER INDUSTRY

-

-

-

-

- ND

-

-

-

-

-

165  PANATTONI EUROPE

CONSTRUCTION

-

-

-

-

- ND ND +

-

-

-

-

PAŃSTWOWE GOSPODARSTWO 166  LEŚNE „LASY PAŃSTWOWE”

WOOD AND PAPER INDUSTRY

+

-

+

-

- ND ND +

+

+

-

+

167  PKN ORLEN SA

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

+

+

+

+

+

+

+

+

+

-

TRANSPORT AND LOGISTICS

+

-

+

+

- ND +

+

+

+

+

+

TRANSPORT AND LOGISTICS

+

-

-

-

- ND ND +

-

-

-

-

170  POCZTA POLSKA SA

TRANSPORT AND LOGISTICS

+

+

-

-

- ND ND +

-

+

+

+

POJAZDY SZYNOWE PESA 171  BYDGOSZCZ SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

-

-

-

-

- ND ND

-

-

-

-

-

172  POLKOMTEL SP. Z.O.O.

MEDIA, COMMUNICATION, IT

+

-

+

-

- ND ND +

-

+

-

-

173  POLNORD SA

CONSTRUCTION

-

-

-

-

- ND

-

-

-

-

-

174  POLSKIBUS

TRANSPORT AND LOGISTICS

-

-

-

-

- ND ND

-

-

+

-

-

175  PROLOGIS POLAND

CONSTRUCTION

-

-

-

-

- ND ND

-

-

-

-

+

NO. 153 

168 

PKP SA POLSKIE KOLEJE PAŃSTWOWE

169  PLL LOT SA

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

+

+

-

-

-

Ecology

Code of ethics -

CSR in the yearly report

CSR policy -

GRI

Person responsible for CSR -

Social reporting

CSR on the webpage +

SECTOR MUNICIPAL SERVICES

COMPANY

MIEJSKIE PRZEDSIĘBIORSTWO 149  OCZYSZCZANIA W WARSZAWIE SP. Z O.O

| 121

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

-

-

-

-

-

-

-

-

-

-

-

+

-

+

-

-

+

- ND +

+

+

+

+

+

-

-

- ND ND +

-

+

-

-

-

-

-

- ND

-

-

-

-

-

-

-

-

-

- ND ND +

-

-

-

-

COMMERCIAL SECTOR

+

+

+

-

+

+

+

-

-

185  RUCH S.A.

COMMERCIAL SECTOR

-

-

-

-

- ND ND

-

-

-

-

-

186  RWE POLSKA S.A.

RAW MATERIALS, FUELS, ENERGY AND DISTRICT HEATING

+

-

+

+

+

ND +

-

+

+

+

+

+

177  PRÓCHNIK SA

FASHION AND TEXTILES

-

-

-

-

- ND

178  PRZEWOZY REGIONALNE SP. Z O.O.

TRANSPORT AND LOGISTICS

-

-

-

-

- ND ND

179  RAFAKO SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

+

-

- ND

180  RAIFFEISEN POLBANK

FINANCIAL SECTOR

+

-

-

181  RANDSTAD POLSKA SP. Z O.O

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

+

182  REDAN SA

FASHION AND TEXTILES

-

183  REMONDIS SP.Z.O.O.

MUNICIPAL SERVICES

184 

ROSSMANN SUPERMARKETY DROGERYJNE POLSKA SP. Z O.O.

CSR in the yearly report

+

GRI

+

SECTOR

+

COMPANY

FINANCIAL SECTOR

NO.

Social reporting

+

Code of ethics

+

CSR policy

+

Person responsible for CSR

+

CSR on the webpage

+ ND +

176  PROVIDENT POLSKA SA

-

-

+ ND +

-

187 

SAMSUNG ELECTRONICS POLSKA SP. HOUSEHOLD APPLIANCES Z O.O.

+

+

+

+

- ND ND +

+

+

+

+

188 

SANOCKIE ZAKŁADY PRZEMYSŁU GUMOWEGO STOMIL SANOK SA

CHEMICAL INDUSTRY

-

-

+

-

- ND

+

-

-

-

-

189  SECURITAS POLSKA SP. Z O. O.

HORECA, CLEANING, SECURITY AND JOB AGENCIES

+

-

-

+

- ND ND +

+

+

+

+

190  SFINKS POLSKA SA

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND

-

-

-

-

+

-

-

191 

SHARP ELECTRONICS (EUROPE) GMBH SPÓŁKA Z O. O

HOUSEHOLD APPLIANCES

+

-

+

+

- ND ND +

+

+

+

-

192 

SILESIA CITY CENTER W KATOWICACH

COMMERCIAL SECTOR

-

-

-

-

- ND ND

-

-

-

-

-

193  SITA POLSKA SP. Z O.O.

MUNICIPAL SERVICES

+

-

+

+

- ND ND +

+

+

+

-

194  SM MLEKPOL

FOOD INDUSTRY

-

-

-

-

- ND ND +

-

-

-

-

195  SOLARIS BUS & COACH SA

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

-

-

- ND ND +

+

-

-

+

-

-

-

-

- ND ND

-

-

-

-

-

196 

SSE KAMIENNOGÓRSKA / SSE MAŁEJ SPECIAL ECONOMIC ZONES PRZEDSIĘBIORCZOŚCI SA

197  SSE KATOWICKA SA

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

-

198  SSE KOSTRZYŃSKO-SŁUBICKA SA

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

-

SSE KRAKOWSKA / KRAKOWSKI PARK SPECIAL ECONOMIC ZONES TECHNOLOGICZNY SA

-

-

-

-

- ND ND

-

-

-

-

-

200  SSE LEGNICKA SA

SPECIAL ECONOMIC ZONES

+

-

-

-

- ND ND

-

-

-

-

-

201  SSE ŁÓDZKA SA

SPECIAL ECONOMIC ZONES

+

-

-

-

- ND ND

-

-

-

-

-

202  SSE POMORSKA SA

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

-

203  SSE SŁUPSKA SA

SPECIAL ECONOMIC ZONES

+

+

-

-

- ND ND +

-

+

-

+

204  SSE STARACHOWICKA SA

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

+

199 

122 |

-

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

CSR policy

Code of ethics

CSR in the yearly report

Ecology

Supply chain

Human rights

Corruption

ConCOMPANYtion of results

-

- ND ND

-

-

-

-

-

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

+

207  SSE WARMIŃSKO MAZURSKA SA

SPECIAL ECONOMIC ZONES

-

-

-

-

- ND ND

-

-

-

-

-

208  STARWOOD HOTELS AND RESORTS

HORECA, CLEANING, SECURITY AND JOB AGENCIES

-

-

-

-

- ND ND

-

-

-

-

+

209  STARY BROWAR W POZNANIU

COMMERCIAL SECTOR

-

-

-

-

- ND ND

-

-

-

-

+

210  STRABAG SP. Z O.O.

CONSTRUCTION

+

-

+

+

- ND ND +

+

+

+

-

211  SYNTHOS SA

CHEMICAL INDUSTRY

+

-

+

+

- ND

+

+

+

+

+

212  T-MOBILE SP. Z.O.O.

MEDIA, COMMUNICATION, IT

+

+

+

+

- ND ND +

-

+

+

+

213  TESCO W POLSCE

COMMERCIAL SECTOR

+

+

+

+

+

+ ND +

+

+

+

+

TOYOTA MOTOR MANUFACTURING 214  POLAND SP. Z O.O.

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

+

+

+

- ND ND +

+

+

+

-

215  TRAMWAJE WARSZAWSKIE SP. Z O.O. MUNICIPAL SERVICES

-

-

+

-

- ND ND +

-

+

-

-

216  UPC POLSKA SP. Z O.O.

MEDIA, COMMUNICATION, IT

+

+

-

+

- ND ND +

+

+

+

+

217  UPS POLSKA

TRANSPORT AND LOGISTICS

+

-

+

-

- ND ND +

-

+

-

-

218  VECTRA SA

MEDIA, COMMUNICATION, IT

+

-

+

-

- ND ND

-

-

+

-

-

219  VEOLIA POLAND

MUNICIPAL SERVICES

+

-

+

+

- ND ND +

-

+

+

-

220  VISTULA GROUP SA

FASHION AND TEXTILES

-

-

-

-

- ND

-

-

-

-

-

221  VOLKSWAGEN POZNAŃ SP. Z O.O.

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

+

+

+

- ND ND +

+

+

+

+

222  WAWEL SA

FOOD INDUSTRY

-

-

-

-

- ND

-

-

-

-

-

223  WHIRLPOOL POLSKA SP Z O.O.

HOUSEHOLD APPLIANCES

-

-

-

-

- ND ND

-

-

-

-

-

224  WOJAS SA

FASHION AND TEXTILES

+

-

+

-

- ND

+

-

+

-

-

ZAKŁADY FARMACEUTYCZNE 225  POLPHARMA SA

HEALTHCARE AND PHARMACY

+

+

+

+

+

+ ND +

+

+

+

+

METAL, MACHINERY AND AUTOMOTIVE INDUSTRY

+

-

-

-

- ND ND +

-

+

-

-

COMMERCIAL SECTOR

+

-

-

-

- ND ND +

-

-

-

-

NO. 206 

226 

SSE WAŁBRZYSKA „INVESTPARK” SP. Z O.O.

ZF TRW AUTOMOTIVE HOLDINGS CORP

227  ŻABKA POLSKA SP. Z O. O.

GRI

Person responsible for CSR

-

Social reporting

CSR on the webpage

-

SECTOR

-

COMPANY

SPECIAL ECONOMIC ZONES

205  SSE SUWALSKA SA

-

-

-

Table 17: Complete table

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 123

Authors of the Photographs: 1. Andrzej Bąk, Zielony Żurawlów Association  2. Anna Uciechowska, CC BY-SA 3.0 in commons.wikimedia.org  3. Stop Banking Lawlessness Social Movement  4. Grzegorz Piskalski / CentrumCSR.PL Foundation  5. Grzegorz Piskalski / CentrumCSR.PL Foundation  6. Zbynek Hrbata, zbynek.see.me  7. Grzegorz Piskalski / CentrumCSR.PL Foundation  8. Workers’ Initiative Trade Union  9. Echo Electronics CC BY-NC-SA 2.0 w HK/ flickr/gp314/  10. Tomasz Gutry, Solidarność Weekly  11. Dariush CC BY-NC-ND 2.0 in flickr.com  12. Stop Banking Lawlessness Social Movement  13. Grzegorz Piskalski / CentrumCSR.PL Foundation  14. NSZZ Solidarność Trade Union of Security profile on Facebook  15. Ema Vlckova  16. Kowal kowal CC BY-SA 3.0 in commons.wikimedia.org  17. Grzegorz Piskalski / CentrumCSR.PL Foundation  18. Grzegorz Piskalski / CentrumCSR.PL Foundation  19. Tomasz Gutry, Solidarność Weekly  20. Polish Fair Trade Association  21. Grzegorz Piskalski / CentrumCSR.PL Foundation  22. Workers’ Initiative Trade Union  23. Flickr Simon Fraser University, CC BY 2.0 (l)  24. Fotopolska.eu, CC BY-SA 2.0 in commons.wikimedia.org  25. Andrzej Bąk, Zielony Żurawlów Association  26. Grzegorz Piskalski / CentrumCSR.PL Foundation  27. Hubert Waguła CC BY-SA 3.0 in commons.wikimedia.org  28. Crusier CC BY-SA 3.0 in commons.wikimedia.org  29. Krzych.w, CC BY-SA 4.0 in commons.wikimedia.org 

2 22 25 30 32 33 37 44 46 48 50 54 55 59 66 69 71 72 75 77 81 86 90 91 94 97 102 105 108

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

| 125

Who are we? The CentrumCSR.PL Foundation exists since 2006. It aims to promote knowledge, initiate public debate and lobby in the spheres of Corporate Social Responsibility and sustainable public procurement. It specialises in monitoring activities, research, organising trainings and seminars. Each year it organises multiple events gathering hundreds of people in total.

Grzegorz Piskalski – author of the methodology of the monitoring and the report. Chair of the Board of CentrumCSR.PL Foundation, expert in Corporate Social Responsibility, author of publications and articles, project manager, NGO activist engaged in Polish and European platforms, board member of Grupa Zagranica. Initiator of multiple innovative projects – both Polish and international – promoting democratisation of economic activities. He worked as an expert for NGOs, trade unions and economic chambers. He recently conducted innovative research and educational projects with international consortia, such as “Facing Finance” on human rights in investment policies of financial institutions, “Electronics Watch” promoting ethical public procurement of electronical appliances (both financed from the EU’s EuropeAid Programme), large monitoring projects regarding usage of sustainable public procurement in Poland and the quality of Corporate Social Responsibility in the biggest companies in the country (financed from EEA funds). Master in International Relations (Mikołaj Kopernik University in Toruń), graduate of postgraduate studies regarding European Integration and human rights

Marta Czapnik – analytic in the CentrumCSR.PL Foundation conducting the monitoring of Corporate Social Responsibility of companies. Deals with analysis of public tenders from the perspective of using social and environmental clauses and monitoring of CSR of the biggest companies operating in Poland. PhD student at University of Warsaw. Sociologist interested in social inclusion of marginalised groups.

Bartłomiej Kozek – communication specialist in the CentrumCSR.PL Foundation responsible for communicating with the media, the Foundation’s webpage and social media. Graduate of Cultural Studies in the Institute of Polish Culture at the University of Warsaw. Commentator of the “Green News” (Zielone Wiadomości) magazine and Trybuna.eu portal. Polish correspondent of the Green European Journal. Interested in the XIXth century and World War I.

Tadeusz Joniewicz – coordinator of the „Enhanced Monitoring Of Sustainable Public Procurement In Poland” and the “Procure IT Fair” projects in the CentrumCSR. PL Foundation. Writes reports, cases and organises events. Graduate of the Institute of Political Affairs and the Eastern Europe Department at the University of Warsaw. Besides CSR his interests include the integration of Western Balkans to the EU. He likes to travel – he is a tourist guide for the Bieszczady and Beskid Niski Mountains.

126 |

Corporate Social Responsibility in the Polish Reality. Theory and Practice.

We encourage you to check out the webpage of the „Enhanced Monitoring Of Sustainable Public Procurement In Poland” project, realized as part of the Citizens for Democracy programme financed by EEA Grants. www.monitoringzzp.pl/kategoria/english

Report published as part of projects mentioned: “Monitoring of Social Responsibility of the Biggest Public Companies” realized as part of Citizens for Democracy programme financed by EEA Grants. “Dissemination of Corporate Social Responsibility as a Tool of Social Participation and a Standard of the Dialogue of Companies with Social Partners” realised as part of the Civic Initiatives Fund Programme. The translation and printing of the English version of the report was made possible thanks to the financial support of the Friedrich Ebert Foundation Representation in Poland. The publication expresses only the opinions of the authors and cannot be identified with the official position of the institutions financing the project. Material for free-of-charge distribution. Material printed on paper complying with the FSC Certificate requirements. ISBN: 978-83-937969-5-3