S. O. Idowu and W. L. Filho (eds.) Global Practices of Corporate Social Responsibility, Springer-Verlag Berlin Heidelberg 2009 Chapter 7 Greece: A Comparative Study of CSR Reports Nikolaos A. Panayiotou, Konstantinos G. Aravossis, and Peggy Moschou Abstract The last few decades have witnessed an increase in the awareness on the part of corporate entities in Western democracies that they are morally obliged to give something back to the society. To demonstrate that they “care” about people and the environment they operate in, organizations have taken different courses of action. The corporate social responsibility (CSR) reports which are annually published, in addition to the traditional annual financial reports, are considered as one of the vehicles used to demonstrate how caring they have been during the financial period that has just ended and how they intend to continue to be even more proactive in the future. This study examines the adoption of CSR practices and looks at the CSR reports of many companies across different industries in Greece. The CSR disclosures are further classified and the results are analysed and interpreted in order to draw conclusions and to predict the future of CSR in Greece. 7.1 Introduction The difficulties in defining precisely what corporate social responsibility (CSR) cov- ers are in part reflective of the way in which this topic has developed. For some, it has grown out of community investment or corporate philanthropy with a clear em- phasis on social improvements. For others, CSR has a much broader definition and is closely related to, perhaps a surrogate for, the sustainable development agenda launched at the UN Earth Summit in Rio de Janeiro in 1992. The definitions of CSR can be categorized into three general ones according to three related views (Hancock 2005): • The sceptic view: The sceptic view takes a cautious position and remains highly critical of CSR. According to this view, the most important purpose and social S. O. Idowu and W. L. Filho (eds.), Global Practices of Corporate Social Responsibility 149 c Springer-Verlag Berlin Heidelberg 2009 150S. O. Idowu and W. L. Filho (eds.) Nikolaos A. Panayiotou et al. Global Practices of Corporate Social Responsibility, Springer-Verlag Berlin Heidelberg 2009 responsibility of companies are to provide as much wealth as possible to their shareholders, so the notion of CSR distracts them from their purpose of wealth creation and the benefits this has brought to millions of people. • The utopian view: The utopian view of CSR reflects the idea that companies have a prior duty to anyone touched by their activity, their stakeholders rather than their shareholders, and especially the vulnerable, who may be exploited by the company’s operation. • The realistic view: The realistic view enjoys the greatest acceptance by scientists and practitioners as well. According to this view, CSR is the management of an organization’s total impact upon both its immediate stakeholders and upon the society within which it operates. According to this view, CSR is not simply about whatever funds and expertise companies choose to invest in communities to help resolve social problems, but it is about the integrity with which a company governs itself, fulfils its mission, follows its values, engages with its stakeholders, measures its impacts, and reports on its activities. In the past years, a positive move towards CSR reporting can be identified (Hancock, 2005). Following the recent revelation of corporate scandals in the US and other countries all over the world, it can be seen that there is an urgent need for ensuring a better and more ethical corporate behaviour. There are signs that the Management of companies believe that CSR can be connected with the achieve- ment of improved financial results (Aravosis et al., 2006). A global CEO survey undertaken by PriceWaterhouse Coopers/World Economic Forum found that 70% of chief executives globally agree that CSR is vital to profitability (Fifth Global CEO Survey). In Western Europe, 68% of large companies report what has been coined the triple bottom-line performance (economic, social, and environmental fac- tors) in addition to financial performance, compared with 41% in the United States (PriceWaterHouse Coopers 2002, BSI Global Research Inc. 2002). The Association of Chartered Certified Accountants has called for high-level corporate social and environmental disclosures. It seems that the large international companies were the first to put trust in CSR. According to a Harris’s (year) survey of 800 CEOs in Europe and North America, three out of four international corporations have a corporate reputation measuring system in place. Advocates of CSR reports have put forward some perceived bene- fits that an organization may derive from its provision (e.g., Crowther, 2003). Typ- ical examples include increased customer loyalty, more supportive communities, the recruitment and retention of more talented employees, improved quality and productivity, and the avoidance of potential reputational risks that may arise from environmental incidents (Idowu and Towler, 2004). However, Cooper (2003) noted that the practical experience of early adopters of CSR reports was mixed. For ex- ample, instead of enhancing companies’ reputation, CSR reports attracted adverse comments by drawing attention to divergences between the values espoused by the company and its actual behavior. The rest of the paper analyses the CSR initiatives in Greek companies. 7 Greece: A Comparative StudyS. of O. CSR Idowu Reports and W. L. Filho (eds.) 151 Global Practices of Corporate Social Responsibility, Springer-Verlag Berlin Heidelberg 2009 7.2 Research Methodology We contacted all companies involved with CSR activities that publish CSR reports. In order to identify such companies, we contacted the following CSR organizations: • Hellenic Network for Corporate Social Responsibility (CSR-Hellas): CSR- Hellas is a business-driven non-profit organization with the mission of promoting the meaning of CSR to both the business community and the social environment. CSR-Hellas has 96 members. It is one of the most active organizations promoting CSR in Greece. • Centre for Sustainability and Excellence (CSE): The CSE is an advising and leading organization and a Think Tank, with offices in Athens, Brussels, and Identification of Companies in Greece Activated in CSR Study of CSR Published Material Concerning Greece (Scientific & Commercial) Definition Selected Interviews With the Management of Selected Companies in Greece Perceived as the Best Practice in CSR E-mail & Telephone Communication With Companies Activated in CSR CSR Reports Collection Collection Study of CSR Reports Codification of CSR Reports Content Generation of Statistical Results Elaboration Interpretation of Results Research Conclusions sion u Determination of Future Perspectives Concl Fig. 7.1 CSR research approach 152S. O. Idowu and W. L. Filho (eds.) Nikolaos A. Panayiotou et al. Global Practices of Corporate Social Responsibility, Springer-Verlag Berlin Heidelberg 2009 Dubai, specialized in CSR and sustainable development. Thirty-two members are registered with this organization. • Eurocharity: Eurocharity is a non-profit company that donates 25% of its annual revenues to charity. It operates a comprehensive CSR directory in Greece. Thirty- five members are registered with Eurocharity. Moreover, the CSR practices of companies listed in the Athens Stock Exchange were analysed. Also, we contacted executives of selected companies that had participated in CSR-related conferences in Greece, in order to obtain an in-depth understanding of their CSR initiatives and obtain information concerning their latest CSR reports. As a result, we came into contact with executives from three international compa- nies. The interviews we had worked as pilots and helped us to better understand the CSR reality in Greece. One hundred and forty-eight companies with registered offices in different parts of Greece were contacted by telephone and/or e-mail in order to obtain informa- tion concerning their CSR practices, and 15 of the contacted companies were mem- bers of more than one CSR organizations. Our contacts permitted us to identify the companies disclosing CSR information by different methods. Interestingly, some of them offered to send us their organizations’ annual reports or suggested putting us through to a more senior individual in the organization who might be able to help us. In order to understand how the companies contribute positively to societal lives, the research analysis was designed to highlight the companies’ disclosures in in- dustries with insignificant impact on the environment, and we received information from 81 companies (about 55% of the organizations contacted). Figure 7.1 summarizes the research approach followed, highlighting its distinc- tive phases and its related activities. 7.3 Research Findings From the information received, it was found that 28 organizations report CSR results in Greece. These organizations have adopted two different ways of reporting CSR activities. Some organizations issue a stand-alone CSR report, while others devote a section in their corporate annual report for CSR activities. Table 7.1 summarizes the identified methods used by companies for CSR report- ing in Greece. Another classification of the contacted companies was based on the organiza- tional unit that is responsible for CSR issues. Three different practices were identi- fied in Greece: • A dedicated CSR department responsible