The Corporate Social Responsibility has become an essential factor involved in the process of customers choosing products or services. It focuses on the common place notion of “think global, act local”. While Corporate Social Responsibility research has been conducted in many industries, the food sector has been largely ignored. Especially, the agri-food sector has a strong impact on the economy, the environment and the society and in the past it has been plagued by many scandals of environmental degradation. In this context, the purpose of this paper is to analyze the largest fifty six Greek food companies in dairy and meat industries about their Corporate Social Responsibilities. The analysis provides an overview of the current status of the Corporate Social Responsibility practices of the leading companies in the aforementioned industries as well as insights in future trends in this unfolding national financial-debt crisis.
Researchers and academics perceive Corporate Social Responsibility (CSR) as a company’s involvement in activities with social applications. The notion of CSR has evolved over the last six decades going through multiple conceptualizations. Numerous researchers have contributed to the development and definition of the concept of CSR and each decade brought with it new definitions and improvements to this notion. Nowadays, more and more academics and researchers consider that the study of CSR is an urgent need. But what is CSR and how many companies use this strategy?
There is no a common definition of CSR in literature. This is due to the
multidimensionality of the CSR concept depending on the regional-cultural,
sociocultural or sectoral characteristics of each country
If a company would like to be corporate responsible should be corporate financial responsible, corporate social responsible and corporate environmental responsible. This means that, CSR incorporates the economic, social and environmental strands of sustainable development and provides a holistic approach for companies to understand the issues in sustainable development.
The purpose of this paper is to examine the CSR practices adopted in the Greek agri-food industry, especially in dairy and meat industries. In this context, a sample of the fifty six largest companies operating in Greece has been used. The website of each company related to CSR has been investigated. The structure of the paper is as follows: Section 2 discusses the involvement of consumers to CSR. Section 3 gives a brief overview of CSR in Greece. Section 4 presents the analysis results of CSR in the Greek agri-food sector, especially in dairy and meat industries. The analysis is referred to the evaluation of companies’ websites according to a number of criteria such as the adoption of social, environmental and/or cultural practices. It has taken place from February till April 2015. In the final section, some conclusions are given.
After the 1990s, several researchers have started investigating the effects of CSR
on consumers and found that consumers expect a high degree of corporate
responsibility
During the last decade, new results further clarified the factors that affect consumers’ responses in a CSR setting. Webb and Mohr (1998) looked at the effects of CRM on consumer attitudes and attributions and generated a classification based on their responses. Mohr et al. (2001) extended their previous study using a generic CSR case and classified consumers based on their purchase intention. A different study showed that in a CSR context, consumers make self and other-driven attribution, a view which has been further developed by subsequent researchers. One of the landmark studies was carried out by Ellen et al. (2006). The main thesis of their work was that consumers’ attributions are key psychological mechanisms that influence consumers’ reactions in a CSR context.
The most important properties of a CSR strategy are the CSR timing, the CSR
investment, and the CSR information source. The CSR timing property, explains
companies choice to deploy CSR initiatives either voluntarily (proactively) or as a
response to some negative event (reactively)
In Greece, CSR is considered to be in its infancy. The difficult period which faces Greece, due to the economic crisis, makes companies face major problems such as unemployment, poverty, immigration etc. A lot of companies try to adopt CSR campaigns in order to achieve their goals as social entities but several barriers like, the bureaucracy, the lack of financial and tax motives make it difficult for them to emerge fastest.
Nevertheless a number of leading Greek firms try to pioneer despite the barriers faced. A promising example is the Hellenic Network for CSR. The Hellenic Network for CSR is a non-profit organization having as members 138 companies and 7 business associations. It is run by a seven member Board. Main objectives of the Network are to promote the CSR concept and principles and disseminate them to the Greek business society and to society as a whole with the overall objective being a balance between profitability and sustainable development (www.csrhellas.gr).
In Greece, the number of companies operating is about 800,000. As we can see in
Table 1, only 810 out of 800,000 companies (0.1%) use CSR. Out of these 810
companies, only 28 are issuing CSR reports and the frequent method of this reporting
is the self annual reports. The core CSR activities of these companies are in
telecommunications, in food industry, in logistics and in the sailing businesses
Furthermore, Skouloudis et al. (2014) state that Greek companies tend to pay more attention on non-financial aspects of business operation emphasizing in the adoption of environment management systems, waste management practices and employee training and health measures along with possession responsibility procedures. 4
While a lot has been written and researched about sustainability in food
production and processing, very few papers investigate CSR activities in the food
sector. This sector is especially prone to problems in sustainability given its high
impact and dependence on natural, human and physical resources
In the following, table 2 presents data about three main financial indicators of the 200 biggest companies in Greek food industry, namely (i) sales, (ii) Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), and (iii) gross profit.
Indicators
Sales
2012 (Thousand €) 43.910 2.883 -1.104
2013 (Thousand €) 43.044 2.110 -1.430
In order to understand the application of CSR in the Greek dairy and meat
industries, a sample of the fifty six largest companies operating in Greece, based on
their annual sales of 2013 as published in their balance sheets, has been studied. The
sample includes large companies since are much more activated in CSR actions than
the small and medium enterprises in Greece
We can see that in both industries, sales have decreased significantly. But what happened in the CSR strategies in these companies? Which are the major applications?
In the following tables, data about the Greek dairy industry and meat industry are presented. Twenty seven leading companies in the dairy industry and twenty nine companies in the meat industry have been examined. The results are presented in Table 4 and Table 5 for the dairy industry and the meat industry, respectively. Table 4 illustrates that, only sixteen out of twenty seven of the biggest companies in dairy industry adopted a CSR campaign (59%). The domains of these CSR campaigns are in social, environment and culture activities. However, the main applications focus on social activities. Twelve out of sixteen companies (75%) adopted social campaigns when environmental campaigns adopted only eight to sixteen (50%), cultural campaigns only two to sixteen (13%) and only 25% of companies adopt multiple domains campaigns.
Data 27 16 59% 12/16 08/16 02/16 04/16
From 29 leading companies in the meat industry 14 of them have adopted CSR campaigns (48%) as shown in Table 5. The fields of the main applications of these CSR campaigns are in social, environment and culture activities. Although, the Food and Agriculture Organization of the United Nations (FAO) reported in 2006 that agriculture and food processing, in general, pollute the environment in significant ways (reduction of biodiversity, water usage and contamination, greenhouse gases emission, etc.), the main application are in social activities. Eleven out of twenty nine companies adopted social campaigns when environmental campaigns adopted only eight. Τwelve out of fourteen companies have adopted social campaigns (86%); eight companies of them have adopted environmental campaigns (57%) and only three companies of them have adopted cultural campaigns (21%). 50% of the meat industry companies which use CSR campaigns have adopted multiple domains campaigns.
Social, Environment, Culture
Data 29 14 48% 12/14 08/14 03/14 07/14
Nowadays, there is an increasing number of companies around the world that are involved in CSR activities. In this light, this paper provides a better understanding of the current status of the CSR activities adopted by the leading companies in the Greek agri-food sector. The study is focused on the dairy and meat industries because of CSR’s high dependence on natural and human resources. It is based on the evaluation of the website of each company related to CSR practices.
The analysis’ results show that firstly, a significant percentage of companies try to help the society in spite of the barriers of the profound debt crisis. Secondly, the Greek agri-food companies have started to pay attention in CSR strategies. Third, CSR in the dairy industry is more dynamic than in the meat industry since sixteen companies out of twenty seven in dairy industry has adopted a CSR campaign (59%) whereas fourteen companies out of twenty nine (48%) in meat industry has adopted a CSR campaign. Also, the majority of the companies have adopted social campaigns in both industries, followed by environmental and cultural campaigns.
As far as limitations of this study are concerned, the small sample size of the examined companies as well as the focus of the study only on CSR quantitative (and not qualitative) characteristics reflect only indicative findings.
Future work will focus on the willingness of online consumers to pay more for agri-food products provided by Greek online companies that are committed to positive social and environmental impact.