Social Responsabilities In Company X
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INTRODUCTION
Socially responsible companies with a high social commitment (incorporating economic, social, labour, environmental aspects and so on) improve the culture and the working climate, facilitate the reduction of the crisis’ effects while promoting equal opportunities , respect for fundamental rights and social inclusion. For this reason, organizations seek to create sustainable and lasting relationships with key groups in society, but it is not enough to perform such responsible actions; rather, they must include in their mission some responsible strategies in order to endure management.
In this respect, the present paper is divided into four chapters, each of them highlighting the importance and role of social responsibility in a company.
Chapter I starts with a general frame of corporate social responsibility, taking into consideration aspects such as theoretical aspects regarding corporate social responsibility, different actions of corporate social responsibility, legal, ethical, economic and philanthropic component of social responsibility, general principles of corporate social responsibility, the implication of stakeholders, lines of action, measures and advantages as well as corporate social responsibility as a strategic management process.
The second chapter introduce the analyzed company, respectively SC CARPATHIAN SRPINGS SA, by general information, the organizational structure and human resources, portfolio and the economic and financial situation.
In chapter III, one may observe the external marketing environment analysis of CARPHATIAN SPRING, respectively its macro-environment factors, market characteristics and SWOT Analysis.
The passing at chapter no. four will be made through CARPHATIAN SPRING strategy regarding social responsibility. In this regard, one may analyze the mission, statement and general objectives of the company, its vision on social responsibility, dimensions: depth, speed and amplitude of change, stages on the road to social responsibility, leadership: manager’s role regarding social responsibility, internal reports on sustainability management and prevailing standards, the use of Corporate Social Responsibility indicators and standards in company’s management, but also responsible practices at company’s level and development and impact.
I chose this subject because I followed a practical stage at CARPHATIAN SPRING company and I observed how the entity accentuate the role of social responisbility. I consider this theme is actual, being very important in the development process of a company in order to align at international standards.
CONTENTS
CHAPTER I. GENERAL FRAME OF CORPORATE SOCIAL RESPONSIBILITY
1.1 Theoretical aspects regarding corporate social responsibility
1.2 Different actions of corporate social responsibility.
1.3 Legal, ethical, economic and philanthropic component of social responsibility.
1.4 General principles of corporate social responsibility.
1.5 The implication of stakeholders
1.6 Lines of action, measures and advantages of corporate social responsibility
1.7 Corporate social responsibility as a strategic management process
CHAPTER II. PRESENTATION OF SC CARPATHIAN SRPINGS SA
2.1 General Information
2.2 The organizational structure and human resources
2.3 Carphatian Spring’s portfolio
2.4 The economic and financial situation
CHAPTER III. EXTERNAL MARKETING ENVIRONMENT ANALYSIS OF CARPHATIAN SPRING
3.2 Carphatian Spring macro-environment factors
3.3 Carphatian Spring market characteristics
3.4 SWOT Analysis
CHAPTER IV. CARPHATIAN SPRING STRATEGY REGARDING SOCIAL RESPONSIBILITY
4.1 Mission, statement and general objectives of the company
4.2 Company’s vision on social responsibility
4.2 Dimensions: depth, speed and amplitude of change
4.3 Stages on the road to social responsibility
4.4 Leadership: manager’s role regarding social responsibility
4.5 Internal reports on sustainability management and prevailing standards
4.6 The use of Corporate Social Responsibility indicators and standards in company’s management
4.7 Responsible practices at company’s level. Development and impact.
CONCLUSIONS
RECCOMENDATIONS
REFERENCES
ANNEXES
CHAPTER I. GENERAL FRAME OF CORPORATE SOCIAL RESPONSIBILITY
Theoretical aspects regarding corporate social responsibility
Corporate Social Responsibility or Corporate Responsibility is a topic of great importance and interest to nowadays society. In this respect, the entrepreneurs develop a set of actions related to what should be the management of the company and particularly the human resources, which are related to what is required by law and are voluntary in respect of organization’s groups of interest such as workers, customers, suppliers, shareholders, or society in general, and serve to contribute not only to the economic benefits of the company and its viability, but also to improve the reputation of the organization, aspect that may be translated into the obtaining of competitive advantages, and to favour the social and environmental sustainability of the planet. In addition, corporate social responsibility helps to eliminate social inequality and encourages the enrichment of society, among other things; in this respect, it contributes to the creation of a better society and it also has an impact on the company’s productivity. Therefore, it is an intangible resource that creates added value and not as an expense.
In this respect, socially responsible companies with a high social commitment (incorporating economic, social, labour, environmental aspects and so on) improve the culture and the working climate, facilitate the reduction of the crisis’ effects while promoting equal opportunities , respect for fundamental rights and social inclusion. For this reason, organizations seek to create sustainable and lasting relationships with key groups in society, but it is not enough to perform such responsible actions; rather, they must include in their mission some responsible strategies in order to endure management. Companies need to internalize values that allow them to develop the foundations of a responsible and sustainable environment, such as: openness and sensitivity towards the environment, creating value, long term consideration, innovative capacity and sense of community in order to integrate them into their government, strategies, processes and systems. Equally, companies must incorporate transparency as the guiding principle of all their responsible actions, in order to be able to inform different interest groups and give them account, since corporate social responsibility, in the explicit sense, means the inward response towards accountability, as well as it establishes channels of communication and dialogue between different agents, aspect that increase confidence and loyalty. However, it is important to remember that corporate social responsibility can not be a substitute for legislation, such as social rights norms and government functions and obligations in labour, social, cultural and environmental matters, ”Nor does it allow us to overlook the development of appropriate new rules.”
1.2 Different actions of corporate social responsibility.
In spite of the above, there is still no consensus on the definition of corporate social responsibility, nor on its usefulness, as there are different opinions since the possible subjects that this domain can address are very broad and heterogeneous. It also happens that the demands of society in companies have changed, individuals are demanding new answers, so that they not only serve to generate wealth and produce goods and services, while trying to sublime their functions to ensure their survival ( they are not just for-profit organizations), but now they also address the concerns of their stakeholders and offer opportunities. In this respect, business visions have emerged that admit the need to adopt a more human and intelligent perspective with the people and groups that are related to it, as well as with the environment of which they are part of, multiplying the definitions of corporate social responsibility.
It is therefore a concept under construction, which different organizations have already defined, and whose definitions (some of the most relevant) we will quote below. Corporate social responsibility is understood as:
"Voluntary integration by businesses of social and environmental concerns in their business operations and relations with their partners"
"Social responsibility is also about managing changes within the company in a socially responsible way, which happens when a company tries to reconcile the interests and needs of the different parts in a manner acceptable to all of them. A socially responsible management of the changes will generate positive effects for companies at the macroeconomic level.
"Through corporate social responsibility, businesses of all sizes, in cooperation with their partners, can help to reconcile economic, social and environmental ambitions"
"Businesses should implement, in close cooperation with stakeholders, a process aimed at integrating social, environmental and ethical concerns, respect for human rights and consumer concerns into their business operations and their core strategy, in order to maximize the creation of shared value for its owners/ shareholders and for other interested parties and society in a broad sense; one has to identify, prevent and mitigate their potential adverse consequences"
"… the reflection of the way in which companies take into account the repercussions that their activities have on society, and in which they affirm the principles and values by which they are governed, both in their own internal processes as in its relation with other actors. Corporate social responsibility is a voluntary initiative that only depends on the company, and refers to activities that are considered to go beyond mere compliance with the legislation.”
For some specialists, there are: "Actions of an organization to take responsibility for the impact of its activities on society and the environment, where these actions: are consistent with the interests of society and sustainable development; are based on ethical behaviour, compliance with applicable laws and intergovernmental instruments; and are integrated into the ongoing activities of the organization."
"The commitment of companies should to contribute to a sustainable economic, social and environmental development, working with employees, their families, the local community and society at large to improve their quality of life"
"The very definition of corporate social responsibility depends on legal, cultural and economic contexts, and their meanings vary significantly from one actor to another."
"Social Responsibility of the Company is, in addition to strict compliance with current legal obligations, voluntary integration into its governance and management, in its strategy, policies and procedures of social, labour, environmental and the human rights that arise from the transparent relationship and dialogue with its stakeholders, thus taking responsibility for the consequences and the impacts that derive from their actions."
"Corporate social responsibility is the voluntary phenomenon that seeks to reconcile growth and competitiveness, while at the same time integrating the commitment to social development and environmental improvement"
"A set of commitments of different order, economic, social and environmental, adopted by companies, public and private organizations and institutions and which add value to the fulfilment of their loyal obligations, while contributing to social and economic progress in the framework of a sustainable development".
In conclusion, many more definitions could be included, but they would bring common features to the previous ones, since they all refer to corporate social responsibility as a voluntary decision, an awareness of the real effects of the environment, as well as a set of ethical and moral actions and a concern for stakeholders. It also implies the social and environmental sustainability of the planet, along with a competitive advantage for the company, among others.
1.3 Legal, ethical, economic and philanthropic component of social responsibility.
According to Archie B. Carroll (1999), the concept of corporate social responsibility has four components or responsibilities: legal, ethical, economic and philanthropic, which could be represented in a pyramid based on the economic component. In this respect, economic responsibilities imply the obligation to contribute to the production of wealth of the products and services that society needs, at the same time as the company generates a legitimate benefit. Economic responsibilities, says Carroll,” must also be based on respect for the laws”. Therefore, the legal responsibility is to comply with the laws and state regulations that affect the business organization, its economic activity and according to which business must be managed.
On the other hand, ethical responsibility means that the company has to behave in a fair and equitable way with society, so it has to perform the right thing and avoid or reduce the harm to the stakeholders with whom it is related. Finally, the philanthropic responsibilities are that the company voluntarily initiate or finance projects that aim to improve the well-being of individuals, or contribute to the repair of the environment, among others.
Later on, other authors such established that corporate social responsibility has three own directions:
1. "Economic Responsibility: which affects the pursuit of maximum profit as well as achieving the highest possible value for the shareholder; this is achieved through the improvement of efficiency and productivity."
2. "Socio-cultural Responsibility: that is concrete in the execution of works of social interest or any other type of practice that entails a social benefit. From this point of view, respect for the law as well as customs and cultural heritage are essential. "
3. "Environmental Responsibility: that establishes connection with the most ambitious approach to sustainable development. As its name indicates, it corresponds to the obligation that keeps any company from caring for and preserving both the environment and nature as a whole."
These responsibilities (economic, socio-cultural and environmental) have been united in two aspects, represented by the internal and external scope of corporate social responsibility.
1.4 General principles of corporate social responsibility.
The general principles of corporate social responsibility according to the European Strategy for Social Responsibility of Companies 2014-2020 and the Commission for Monitoring and Evaluation of Social Dialogue are the following:
1. Voluntariness: The Social Responsibility is voluntary and supposes an added value for the company, it also refers to the commitment to integrate social, labour and environmental criteria in the management of the companies, trying to involve in that management the different interest groups directly affected by their actions. Therefore, the core of obligations derived from legal rules is excluded.
2. Competitiveness: respectively carrying out actions on social responsibility that can be identified as a commitment to excellence in the management of organizations, to improve their position in the market, as well as their productivity, profitability and sustainability.
3. Social cohesion: corporate social responsibility should increase the effectiveness of enterprises in promoting equal opportunities and social inclusion. In addition, individuals must value it as an element of social cohesion in order to reduce social effects, the economic crisis and to create jobs.
4. Integration and efficiency: the various socially responsible actions must be gradually integrated into the organization's policies, so that from the core of the business activity it can be extended to different processes and management systems. In addition, corporate social responsibility seeks to ensure that the business project is efficient, as well as continuous improvement, taking into account the economic viability of the company in both the short and long term.
5. Creation of shared value: companies must create more value not only for themselves and that can affect their improvement in the medium and long term, but also for the stakeholders involved in their activity and in society in general such as: customers, consumers, shareholders, investors and workers.
6. Sustainability: corporate social responsibility is an instrument to develop companies aware of their role as a form of human, economic, and environmental development that can be sustained over time for the societies in which they are integrated. In addition, it is possible to move towards a more competitive economy that will lead to sustainable development and social progress. It is therefore a way to ensure economic and social growth and meet the needs of the present without compromising the ability of future generations to meet their own.
7. Transparency: corporate social responsibility helps to promote transparent businesses, leading to an increase in credibility and trust, as socially responsible companies dialogue with their partners and acquire commitments to stakeholders, as well as integrate into their management Economic, social, labour, environmental and good governance, among others, which favours and benefits the image of the company. The primary objective is to inform stakeholders and society at large of the business activities carried out and their impact on the different areas, as "transparency is an essential component of the corporate social responsibility debate as it contributes to improving its practices and behaviour, Time that allows companies and third parties to quantify the results obtained."
8. Adaptability and flexibility: corporate social responsibility policies can not be rigid, but must be adapted to the different needs of the environment, business and social reality in which the organization operates.
9. Dimension and social nature: corporate social responsibility aims to strengthen the social function of organizations, and for this purpose, it must voluntarily commit itself to society; in this respect, it must take into consideration different interest groups, since these are the beneficiaries of the effects derived from a socially responsible company.
10. Employee involvement and participation: Employee participation in corporate social responsibility strategies and policies to promote socially responsible practices in areas such as training, equal treatment and non-discrimination, human rights, sustainability, environment and so on has the aim of increasing the competitiveness of organizations, as well as encouraging the creation of employment, among others.
1.5 The implication of stakeholders
What are stakeholder groups?
Stakeholders are those entities or individuals that can significantly affect the activities of companies and other organizations; trade union organizations and legal representation of workers are recognized as a stakeholder group. Likewise, those who are affected by the activities of the company, such as employees, shareholders, investors, customers or suppliers, among others, must be identified as stakeholders.
Interest groups are also known as privileged interlocutors: they are people and groups that has a certain role regarding the company’s performance, being potentially affected by it, and having the power to influence their progress, regardless of their contractual links with it.
On the other hand, "Professors Post, Preston, and Sachs propose the following definition of interest groups:" The interest groups of a company are individuals and groups that contribute, voluntarily or involuntarily, to their capacity and creative activities Of wealth and that, therefore, are their potential beneficiaries and / or risk carriers.
Similarly, Freeman (2010) defines interest groups as any individual or group that has several interests in a company at the moment in which they may be directly or indirectly affected by the different actions, decisions, policies or practices of the organization, by the development of business activity.
In short, there are different meanings of the concept of interest groups or stakeholders and all coincide in that they are individuals, groups or entities, that suffer the positive or negative consequences derived from the activities or decisions of the private companies, in the attainment of their objectives, and at the same time they are essential to guarantee their survival, as social actors have a great power of influence in the organization.
Conceptual evolution of stakeholders or stakeholders
The concept of stakeholders comes to mean "the one who holds or has a stake" and phonetically resembles the term stockholder, which means "the one in possession of an aliquot of a company" such as the shareholder . This is why, between the 1960s and 1970s, the main stakeholders were thought to be shareholders, for authors such as Leavitt uttered expressions such as "business is the business" or Friedman who asserted that the company's responsibility is "to generate the maximum return to the shareholder".
Immediately afterwards, between the 1970s and 1980s, ideas such as customers, employees, and shareholders consolidated as a triangle of business survival, ie, it began to be speculated that stakeholders were all individuals or institutions without Which it was definitely impossible for the company to survive. At that time, ideas were also expressed that "customers are who pay our salary" or "the most important is our people".
Subsequently, between the 1980s and 1990s, economist Edward Freeman stated that interest groups were "any group or individual that may affect or be affected by the achievement of the company's objectives". However, Richard T. de George defined stakeholders in his book "Business Ethics" as "those to whom the company has any moral obligation." Therefore, one may believe that the stakeholders were the shareholders or owners, to consider that the successes and failures of the company depended on the participation of its stakeholders, which are really broad.
Types of stakeholder groups
Nowadays, it is conceived that there are five large interest groups, among which are customers, employees, suppliers, owners or shareholders and the community or society. However, the interest groups are very broad and cover a wide range of social actors, such as:
• Shareholders and investors, distributors, workers and their representatives, as well as customers, citizens, consumers and suppliers.
• Governments, regional, local, national and public institutions
• NGOs, associations, members and networks of social and environmental organizations and others: media, consultancies, other companies, etc.
In this respect, Friedman (2007) considers that "the interest groups are all those groups that participated, other way, in the life of the company", classifying them (the groups), while one may take into account the following:
a. "Participants": who are the workers, suppliers, creditors, customers, contractors and shareholders.
b. The "social related": including the institutions related to the company and the neighbours that are part of the communities where they work.
c. "Interlocutors": such as consumer associations, environmentalists and the media.
d. The "affected": those who, without having a direct relationship with the company, are affected or benefitted by the business, such as retirees, the elderly, the unemployed and the disabled, among others .
They can also be classified into primary and secondary groups. The primaries are those formed by social actors essential for the survival of the company, and who are affected both positively and negatively by the decisions of the organization, and in turn these influence in the achievement or not of the objectives of the company; such actors are: workers, customers, shareholders and suppliers. The secondary ones would be those groups whose relationship with the organization is not direct, but they exert influence in it and can be harmed by the actions of this one: media, educational institutions, pressure groups, ecologists. NGOs, etc.
They can also be classified into internal and external interest groups. Inmates are those who belong to the structure of the organization, who have legitimate rights such as: employees, shareholders or owners. On the other hand, external groups are those that are not part of the internal structure of the organization, but that relate to it from its organic independence and that influences the activities of the company, such as: customers, suppliers, competitors, social agents, public administrations, local communities, the environment and future generations.
1.6 Lines of action, measures and advantages of corporate social responsibility
Lines of action and measures
As stated by Baron (2001), corporate social responsibility has a series of objectives such as:
promoting it in companies, including SMEs, as well as in the rest of public and private organizations
Identify and promote corporate social responsibility as a condition of competitiveness, sustainability and social cohesion,
disseminate the values of corporate social responsibility throughout society
create a common frame of reference for the whole territory in this area, which guarantees compliance and respect of the law’s principles
allow greater coordination and synergies in this corporate social responsibility.
In addition, and in accordance with the Strategy on Corporate Social Responsibility 2014-2020, around these objectives, there are ten lines of action and sixty concrete measures, addressed both to the private sector and the public, which may be observed as following:
Promotion of corporate social responsibility as a driving force for more sustainable organizations: the purpose of expanding corporate social responsibility actions, principles and good practices to the society as a whole, as it promotes sustainability, equality of opportunity and social cohesion. Also, some of the measures are, for example, to promote communication platforms and spaces for dialogue between organizations and interest groups, or to publicize and disseminate the efforts of companies committed to corporate social responsibility, to develop tools for sending sustainability reports and create a web space specializing in corporate social responsibility, among others.
Integration of corporate social responsibility in education, training and research: through specialized training and through research, since with the integration of corporate social responsibility in education we try to change the way we think and act the society, both current and future generations, leading them to carry out socially sustainable actions. One of the measures related to this line of action is to promote the study of corporate social responsibility both in educational institutions for vocational training and in universities or in research centres.
Good governance and transparency as tools for confidence building: these practices, ethical behaviour and transparency are highly valued actions by investors, shareholders, clients and employees. In addition, the measures included in the above-mentioned line of action include: promoting good governance practices of organizations, as well as promoting responsible taxation in them, or actions aimed at combating fraud, both at work and in the workplace in terms of fiscal and shadow economy.
Responsible management of human resources and promotion of employment: in this respect, socially responsible companies should promote job creation and take into account the groups with great difficulties of labour insertion. On the other hand, they must manage and promote diversity in the templates and above all ensure the fulfilment of the human and labour rights of their workers. Some of the measures related to the responsible management of human resources and employment are: to promote actions aimed at the reconciliation of personal, family and work life, as well as to encourage the promotion of health in the workplace, the indefinite contracting and so on.
Socially responsible investment and R & D & I: socially responsible investment is an essential tool to consolidate corporate social responsibility practices and channel funds towards more sustainable activities and sectors. In addition, the development of innovative culture in our country should be promoted as a sign of identity and involve public administrations in this process. Among the measures, the most relevant are: the development of a guide to good practices in the field of socially responsible investment, promoting social entrepreneurship and so on
Relationship with suppliers: the relationship with suppliers must be a priority in the strategic plans of the company, since it is important to develop socially responsible actions in each of the components of the supply chain. Some of the measures in relation to suppliers are: to ensure compliance with corporate social responsibility principles throughout the supply chain and to encourage companies to pass on their models of responsible management, or to encourage actions to meet the commitments of organizations with their suppliers, among others.
7. Responsible consumption: it consists in performing a series of measures to raise awareness and participation in the consumer's decision-making, in order to promote a more sustainable, ecological and solidarity society. As for the measures included in this line of action, it is worth highlighting the development of a code of good practices on information to avoid misleading advertising and guarantee an adequate communication to the product offered, one may also promote responsible communication and advertising policies, etc.
8. Respect for the environment: any sustainable enterprise must reconcile environmental care with economic and social development, through measures that promote respect for the environment and responsible consumption of natural resources, which can mitigate environmental pollution, promote clean technologies, among others.
9. Development cooperation: the role of companies is important for promoting social cohesion, meeting the global sustainable development objectives and especially for the defence and protection of the human rights of communities. Measures include: promoting the establishment of public private partnerships for development, designing and implementing programs along with different cooperation and so on.
10. Coordination and participation: highlights the action of promoting the coordination and the participation of different agents, guaranteeing that the actions in corporate social responsibility are fulfilled and they participate to the largest number of interest groups. The measures included in this line of action are: to extend and promote corporate social responsibility throughout the territory, to promote the exchange of experiences with other countries and so on.
Advantages of corporate social responsibility
A corporate strategy that incorporates corporate social responsibility can contribute, among others, with the following benefits or advantages for the company:
Increase customer appeal such as improving the image of the employer and his reputation, and at the same time capture new customers and increase customer loyalty.
Leads companies in the environment in order to be more sustainable and improves the relationship with the environment, authorities, reducing the risk of litigation and sanctions, and also with trade unions and public administrations.
Increase sales, better positioning and differentiation of the brand, as well as access to new market segments. It also gives rise to an increase in productivity, efficiency and quality, which translates into satisfied consumers, all this thanks to the reduction of costs of operation and expenses, as well as of the tax deductions.
To be successful, the companies have to perform fair trade practices, transparent and open ones, which also improve the relationship with commercial partners, shareholders and investors.
Better HR policies: increasing the motivation and integration of quality employees, reducing absenteeism and improving overall the work environment. Among many other advantages implicit in corporate social responsibility, seen as a strategy that all win (companies, citizens and environment).
1.7 Corporate social responsibility as a strategic management process
Pretending to immediately apply corporate social responsibility to a company is not an easy affair. The reason is that corporate social responsibility should be seen as an integrated process that must fulfil a series of phases that should be considered as part of strategic planning and therefore must be long term. Macmillan and Tampoe (2001) include three categories: primary, secondary and tertiary. In this respect, companies must follow a sequence that ensures that they will come to the implementation of responsible actions. Primary responsibilities are part of the company's objectives, so corporate social responsibility actions can not be considered. Its importance lies in that it should be seen as the start phase to realize them. These include: providing quality products at fair prices, creating wealth in the company and in society, respecting the rights of workers and giving them decent working conditions, favoring their personal and professional development, promoting a sustainable environment, identify and mitigate or avoid negative impacts on the environment, comply with laws and regulations that apply to it and distribute in an equitable manner the generated wealth. Secondary responsibilities exceed what is compulsory and whose application requires the company's efforts. We can say that this is the threshold between corporate social responsibility and compulsory. Macmillan and Tampoe (2001) divide these responsibilities between those that contract with the workers and those that shape the relations with the community, as following:
With the workers:
Offering quality of work in balance with out-of-work life.
Promoting initiative, autonomy and creativity at work.
Providing stable jobs where possible.
Favouring the intellectual and professional growth of workers.
Facilitating health care, beyond what is required.
Providing information about the company in all aspects, if possible.
Recognizing the effort and achievements
With the community:
Giving employment to the local community.
Improving the environment beyond your own operations.
Publicizing its products values for a more humane social environment.
Facilitating the integration of people with special skills.
Helping providers improve their services.
Advising the community on matters in which the company has specialized knowledge.
Collaborating with the training of young professionals.
Tertiary responsibilities are not included in the specific activity of the company, but they are related to the social sector and cause greater impact on the outside, such as the media. These include:
• Providing help to people regarding meals outside the home
• Providing housing assistance to the population.
• Facilitating the average population for the enjoyment of cultural and recreational activities.
• Promoting programs to help the community or others.
• Collaborating with training centres, such as schools, universities, and others.
• Helping to build social infrastructure.
CHAPTER II. PRESENTATION OF SC CARPATHIAN SPRINGS SA
2.1 General Information
Exclusive mineral water market is a narrow, centered connoisseurs, transforming the mineral water consumption into an art. Specific locations are exclusive four-star restaurants, bars specializing in water, class locations, where water is treated rather like a wine and taste them is greatly appreciated. The most prestigious brands on the market are: Bling, Ogo, Voss, Ty Nant, Tau, Elsenham, Ramlosa, Apollinaris, Saint Georges, Hildon etc.
Built by Jean Valvis, creator of brands such as LaDorna and Dorna, SC Carpathian Springs was founded in 2000 based on the experience of the team behind the success of Dorna mineral water. The genesis of Aqua Carpatica mineral water starts millions of years ago and it is the result of operation in geological time in skilful underground labs in the depths of volcanic mountains.
SC Carpathian Springs SA together with Valvis Holding launched in 2010, Aqua Carpatica, a new brand of mineral water. The new product is the purest mineral water in the world, after 5 years of study attested to the reservoir of natural mineral water Păliniș from Dorna country. Aqua Carpatica represents a single global source. In 2003 the country began prospecting Dorna’s area known for its hydrographic network rich in numerous springs of mineral water with therapeutic qualities. Aqua Carpatica is a trademark for the brand of mineral water. The origin of the name comes from the Carpathian Mountains: it is a spring water that sits there. Carpathian Mountains and pine forests are a natural barrier to preserve the original purity of this mineral water’s reserves.
Studies and analyzes completed in 2010 indicates a natural mineral water, naturally carbonated, microbiologically pure, but especially rich in nitrogenous compounds and microbiological populations. All these features transform Aqua Carpatica mineral water in one of the most purest in the world. Aqua Carpatica, located in Dorna region is the only source of mineral water in the world containing zero nitrates (nitrate) (NO3 = 0 mgr / liter) being in a practical and proven analysis after 5 years, the purest mineral water in the world, according to aid Jean Valvis, Aqua Carpatica’s trademark.
Aqua Carpatica consists of Aqua Carpatica Company and its bottlers. Each component adds value to the process and contributes to its success.
Suppliers contribute with materials such as ingredients, packaging and transport.
The Aqua Carpatica Carpathian Springs realizes still and mineral concentrate water, formulates quality standards and brings marketing and strategic experience.
Bottler produces and distributes products, but also it offers clients access to consumers.
Consumers express their desire to buy their product, along with assessments of the degree to which certain products satisfy their needs or not.
A closer contact with Romanian market could be translated mainly through commercial partnerships developed in our country. Over two thirds of the raw materials needed for the production process and an important part of services (advertising, public relations, transport or distribution) are acquired from Romanian suppliers. Through one of the largest retail networks in the country, Aqua Carpatica products are currently available in over 70,000 outlets in Romania.
In the period since The Aqua Carpatica is present in Romania, the investment in the Romanian economy amounted to million euros, paying each year fees, while 70% of the raw materials necessary for production ( bottles, labels, refrigerators, etc.) and services (media agencies, public relations, transport) are purchased from Romania, from Romanian suppliers.
Romania has a major, constant tendancy over the past years to maintain and improve the Aqua Carpatica group's financial results, a fact confirmed by reports that investors made .
As part of its development policy, Aqua Carpatica promote its consistent principles and values on the national market, offering to Romanian consumer permanent business partnership, together with products and services of the highest quality, while respecting the customs and culture of the communities in which it operates . The success of Carpathian Springs in Romania is due, to a large extent, the popularity of the brand still enjoys before its officially entrance on the market and company's ability to implement after launching in our country a well placed system of bottling and distribution. After familiarizing with this drink, the Romanian people were conquered by the unique taste of water.
Nothing resembles the taste of bottled Aqua Carpatica mineral water. But taste is not everything. It matters greatly that the company creates connection between the brand and consumer. Therefore, Aqua Carpatica tried to enter in everyone's life in a pleasant way.
Carpathian Springs can be traced in the history of Romania in an original way, through promotions and advertising campaigns who scores evolution. The messages were talking about Carpathian Springs and values that match unforgettable moments in the company of the loved ones, celebrated with delicious and full of flavor drinks, which always reminds that life tastes. Aqua Carpatica is found in the adventures of youth, adults accomplishments in the memories of those who travel and whose friendships bind forever, a part of the story of all and of each one.
2.2 The organizational structure and human resources
Regarding the Carpathian Springs company, one may consider the following:
Company Name: SC CARPATHIAN SPRINGS SA
Unique identification code: RO13290801
NO. Trade Register: J33 / 358/2000
STATE SOCIETY: RECORDED DATA FROM 15 AUGUST 2000
Year Founded: 2000
CAEN code 1107
Type of business: production of soft drinks, production of mineral waters and other bottled waters
People in management positions within the Carpathian Springs entity are Romanian citizens, who occupied lower positions within the company, but they showed professionalism that has propelled him to positions with greater responsibility. Managers at the head of departments such as: sales, production, warehouse. Staff are also people who have advanced the corporate ladder because of the professionalism they showed.
The structure and organization of the company is very flexible to be effective in different situations. Each manager prepares and supports his replacements. As the structure becomes more complex and more experienced staff, more decisions taking daily activities are taken from the pyramid.
Marketing department staff has an average age of 26 years. The Marketing manager coordinates the entire department taking about all bottling centers. He also liaises with all suppliers and major customers. Trade promotions and activities coordinator follows through all the steps in organizing promotional campaigns and program implementation:
– RSP (recommended price compliance) – set prices to maximize profits customers;
– PBS (permanently sections of soft drinks);
– VIP (club of the most important clients of the Company);
– Global Score (monitoring program execution in the market)
Coordinator of the event at special sponsorships and sampling organizes and monitors the smooth running of special events and sponsorships made by Carpathian Springs enterprise, as well, sharing of sampling (offering free Aqua Carpatica products in order to increase customer confidence in these products). Coordinator monitors distribution of fixed assets in the market: refrigerators, boxes, shelves, illuminated signs, coordinating refrigeration dealing, repairing refrigeration , bright signs and equitable distribution (based on sales) of fixed assets.
Merchandisers participate in all activities organized by the department of marketing: sponsorship, samplings, training visits, survey sites (checking market activity) and products merchandising in the market.
In the analyzed unit there is a working shift of 117 employees, respectively a Regional Sales Director (Regional Sales Manager), an Area Sales Manager (Area Sales Manager), a Director of Distribution, nine managers of teams of sales, sales agents and distributors (drivers).
Human resources is ensured by the Department of Human Resources, subordinated to the Administrative Director. Regarding human resources strategy and its implementation, this department deals with predilection of some of the activities related to human resources management, the rest being independent covered in each department.
The Human Resources department is mostly involved in activities pertaining to:
1. Calculating the required workforce
2. Recruitment
3. Compliance with legislation on labor relations
4. Workloads
5. Evidence of staff
Personnel selection is made within each department without the active involvement of the Human Resources Department and closely follows the company's organizational chart.
2.3 Carphatian Spring’s portfolio
Carphatian Spring’s portfolio represents the entire range of choice made by a company for a certain market, regardless of whether it is the manufacturer or distributor. The product portfolio can be characterized by a certain width, depth and coherence.
AQUA Carpatica carbonated natural mineral water is the only perfectly pure, with a concentration of 0 mg / l nitrates and nitrites. Nitrate and nitrite, water pollution indicators, are the consequence of a natural phenomenon of affecting groundwater. Laboratory analysis revealed that Aqua Carpatica is a natural mineral water, naturally carbonated (100% natural CO2), with hydrogen-carbonate, magnesian and calcic elements , devoiding physico-chemical and microbiological contamination. Due to very good levels of macro- and microelements of Aqua Carpatica’s carbonated water mineralization, consumption of this product can shortfall minerals in the body by an intake of magnesium, calcium and potassium.
There are many variants of carbonated mineral water, as following:
Aqua Carpatica- Sparkling mineral water – 0.5l and 1.5l
Source: www.aquacarpatica.ro
AQUA Carpatica Forte mineral water – enriched with natural carbon dioxide – 0.5l and 1.5l
Source: www.aquacarpatica.ro
AQUA Carpatica still mineral water bottled in three types of recipients (bottles) – 2l, 1.5l and 0.5l
Source: www.aquacarpatica.ro
AQUA Carpatica still mineral water is an oligo-mineral (with low mineral content) type of water recommended in daily nutrition to children. In addition, due to its low sodium composition, AQUA Carpatica is an ideal water for dietary and it is recommended in sports activities that require the deposit of an effort as it contributes in a great deal to maintaining balance of athletes physical and mental health.
AQUA Carpatica – 5 liters
AQUA Carpatica version of 5 liters of water comes from the spring Haja spring and from the Bajenaru one, two sources very similar in terms of physicochemical composition.
Source: www.aquacarpatica.ro
2.4 The economic and financial situation
Below one may observe the economic and financial situation of Carphatian Spring situation during 2013-2015.
Table 2.1.
Turnover of SC CARPATHIAN SPRINGS SA during 2013-2015 (lei)
Source: Data processed according to the unit's internal situation
The turnover recorded a fluctuated trend during the analyzed period. So, from a minimum turnover of 33,589,283 lei registered in 2013 it reached a maximum turnover of 69,434,968 Lei in 2015.
The increase of the period’s last year compared to the reference year 2013 was emphasized by a percentage of 2.07%. In this respect, in the context of the current economic climate influenced by economic and financial crisis, the company is likely to meet the main goal, respectively to achieve a productive activity, together with survival on the market.
Table 2.2.
Total income of SC CARPATHIAN SPRINGS SA during 2013-2015- lei
Source: Data processed according to the unit's internal situation
Realizing financial exercise of the activity developed at level of CARPATHIAN SPRINGS group, one may observe that revenues recorded an upward trend during 2013-2015 respectively from 36465399 Lei in 2013 to 77625104 Lei in 2015. Comparing to the last year of a regular checkup 2013, considered the reference year for this study, the increase was represented by a rate of 2.13%. Thus, one may consider that the company's revenue growth model was based mostly on stimulating domestic demand but also the expansion of the food sector.
Therefore, revenues recorded at the amount of CARPATHIAN SPRINGS proceeds means in the context of processing of raw materials and culinary achievement, as these are represented by total sales.Incomes are usually represented by operating income, financial income and extraordinary income. However, the company CARPATHIAN SPRINGS had no exceptional income given that during reviewed period it has not received money from fines in compensation, donations or sponsorships. Also, the company did not recorded any revenue from development of certain scrapped fixed assets.
Table 2.3.
Total expenses of SC CARPATHIAN SPRINGS SA during 2013-2015 –lei-
Source: Data processed according to the unit's internal situation
In terms of financial results recorded by the company, its growth model is not sustainable. In this context, with increasing company revenues, there is a downward trend, with fluctuating trends of total expenditure in 2013-2015. These expenditures were made by utilities, raw materials, with goods, personnel, depreciation, and operating, However, reporting the situation of 2015 to 2013 one may observe an increase of 2.14 percentage points.
At an overview, it can be seen that the group is found where revenues are higher than expenses, economic and financial result is positive, favorable and profits generator.
Table 2.4.
Profit of SC CARPATHIAN SPRINGS SA during 2013-2015-lei-
Source: Data processed according to the unit's internal situation
The company CARPATHIAN SPRINGS carries out a profitable activity. Thus, in the first two years of 2013-2015 period, there was a trend that net profit and the gross one followed downward and in 2015 both indicators increased considerably.
The fact is that both net profit and gross profit registred slight decreases in 2015 compared to 2013, with 0.72% and 0.87%.
Table 2.5.
Profitability indicators of SC CARPATHIAN SPRINGS SA during 2013-2015 -%
Source: Data processed according to the unit's internal situation
Analyzing the profitability indicators of CARPATHIAN SPRINGS business unit, gross profit margin passed through a variable trend year by year respectively from 1.13% in 2013, it decreased to 0.15% in 2014 and then it registred an increase to 0.48% in 2015. The same trend is followed by the net profit margin.
The main objective of the company represents, among other things, maximizing the investment. Therefore, a large amount of equity’s return indicator highlights that the investment was converted to profit, considerably by the company management.
Focusing on a financial rating of 7.4 out of 10 for the year 2015, one may observe the low insolvence probability of the company, represented by a percentage of 13%. The company is in a normal financial situation compared with the industry. The level of operational profitability and solvency indicators have indicated a comfortable financial position. However, there is a possibility that in the next 6-12 months, the company will provide certain operational and financial risks. It is recommended, therefore, a more frequent monitoring of progress in the case of this company.
Table 2.6.
Indicators of risk / debt of SC CARPATHIAN SPRINGS SA during 2013-2015 -%
Source: Data processed according to the unit's internal situation
Regarding solvability, company's indebtedness is not an alarm signal even if it follows an upward trend in the first two years, from 0.85% to 0. 68%, and increasea slightly in 2015, reaching 0.91%, it remains at relatively low levels.
Table 2.7.
Activity indicators of SC CARPATHIAN SPRINGS SA during 2013- 2015
Source: Data processed according to the unit's internal situation
Rotation of assets evaluates the effectiveness of fixed assets obtained through the turnover analysis of a certain amount of fixed assets.
The Carpathian Springs’ rotation speed of current assets presents the most important influences on performance indicators of the company. Measured in a number of days, this indicator follows a downward trend in the first two years of the period, from 172 days in 2013 reaching a total of 155 days in 2014, while in 2015 the trend has slightly increased, respectively with one day in comparison with the previous year.
Accelerating the rotation of assets is a process that leads to a positive development of the company's economic and financial situation, while slowing it down is a process marked by a negative trend.
CHAPTER III. EXTERNAL MARKETING ENVIRONMENT ANALYSIS OF CARPATHIAN SPRING
The activity of the company, regardless of the industry, must respond to multiple requirements: dynamism and capacity for innovation, adaptation, flexibility, vision, etc.
Carpathian Spring Company operates in an "agitated" and dynamic environment, resulting in the need for a permanent activity of the company to adaptations or external environmental requirements. Organisation’s adapting to environmental or external conditions cannot be done in the absence of marketing.
3.2 Carphatian Spring macro-environment factors
The activity of the company, regardless of the industry, must respond to multiple requirements: dynamism, capacity for innovation, adaptation, flexibility, vision, etc. Carpathian Spring company operates in an "agitated" and dynamic environment, resulting in the need for a permanent company’s activity to adaptations or external environmental requirements.
Demographic environment represents the population and its institutions, people belonging to the area of activity of the company. A number of significant changes in demographics (emphasis aging population, the proliferation of non-traditional families, declining birth rates) is reflected in a significant way on the purchasing behavior of the population, the size and structure of demand. These attributes are used by the enterprise in determining the potential market size in developing estimates on demand for products and services, setting just the right mix for the market. Demographic attributes can provide clear indications on the structure of the product range, the price that consumers are willing to pay for these products, how best to distribute them, and the most suitable promotional activities. Among its most important aspects that need to be known and must be analyzed, gender structure of the population belonging to the Carpathian Spring company’s market, both in terms of volume and dynamics and evolution over time.
Consumer behavior is influenced to some extent by lifestyle and education in their possession, observing a prevalence of traditionalists and ambitious. Another demographic factor is the habits and behaviors of acquiring consumer goods. Thus, three out of four people who tend to shop in household purchasing only what is necessary to products. An analysis of the population structure by income and education leads to the idea that this mode of acquisition is rather specific categories of persons with low income and education lower. As one increase the level of education or income level staff, there is a significant increase in the percentage of people who used to buy products in larger quantities to reach for a longer period of time.
Purchasing behavior of a wide range of products is more pronounced in people with high income and high education. Environment demographic is one of the dominant factor of demand for products Carpathian Spring company, but the target market of the company comprises lesser legal entities, focusing on meeting the requirements that belong to individual consumers, individuals.
Natural environment
Economic activities are directly related to and influenced by the natural environment. Contact economy, natural environment directly manifests the extent that involved natural resources as inputs in the production processes controlled undertakings. The natural environment has, therefore, a role increasingly important in the current period in the design and development of economic activities. Natural conditions determine how the location, distribution in space activities of the economic entity, directly influencing the company's business objective.
The degree of accessibility is facilitated physical infrastructure, and other factors in the field are configuration of the land, hydrographic network, weather conditions, soil resources, attractions, etc.
The economic environment
Evolution of economic life is found in the purchasing power of consumers and how to spend revenue. Among the factors influencing purchasing power are: inflation, price developments, consumption patterns of the population, unemployment rate, export and import of goods. The inflation rate has a major impact on the Carpathian Spring company's marketing efforts, a rate of 1.4% (this is its current value) representing an economy that follows the path of recovery and therefore a high marketing potential. Besides inflation, other indicators with macro effects on the Company are: consumer price index, increased the number of employees, the number of unemployed and the unemployment rate.
Another feature as important in analyzing the economic environment is the structure of consumer spending.
The way people distribute and allocate revenues has an important role in analyzing and forecasting demand for certain products. In this case, Carpathian Spring tries to attach particular importance to the required products but also complementary products for leisure. Another reason for enduring nature of economic growth is the quantitative developments, especially structural exports and imports.
The technological environment
The technological environment is an expression and a consequence of the scientific research and technological development. Comprising all the elements of a technical and technological impact on the company, this category of factors has left its mark on the degree of technological endowment, the pace of modernization products and technologies and the innovation process.
Regarding the degree of development of technology, a fundamental element is the mode of allocation of resources for the purchase of tangible goods. We see a large increase in the allocation of funds in the retail and wholesale both because of the increasing number of organizations, and the effect of increased competition. Also significant investments were made in the field of environmental protection by promoting organic products, but also to protect and eliminate pollution results. Foreign capital penetration leads to filling its own financial resources, increases the possibilities of winning, helps accelerate competitive position, competitive, support private initiative, facilitate penetration on certain foreign markets.
The technology can determine how to meet certain needs of consumers and influences marketing decisions on new products and services, packaging, promotion, distribution. Technology is expensive, a solution for the company would be to achieve a maximum mass production and sales more efficient. It seems like information technology tends to occupy an important role in the market, supplying causing this type of technology getting better results in all areas.
The cultural environment
The cultural environment contributes to express the market requirement by providing that both kinds of products and their distribution manner and the content and form business communications market, the messages transmitted. The cultural impact on business activity is subject to a number of characteristics: long lasting fundamental cultural values, every culture is composed of secondary crops, cultural values while secondary turns. The main cultural values of Carphatian Spring society can be found in people's conceptions about themselves and others about their fellows and their conception about the organization, society, nature and the universe.
Many primary cultural values correspond to cultural value side. They have evolved in nature and express phenomena and processes with a strong impact on the shares of companies. These can include family reflected this decline, the number of divorces, the decline in occupancy women nonconformity in dress, demeanor, entertainment. All these are found in a certain lifestyle of the population that cannot be ignored by Carpathian Spring’s marketing specialists.
The political environment
Marketing decisions of Carpathian Spring SA are strongly influenced by developments in the environmental components of this political environment. Knowledge have an important determinant in the decision to enter a foreign market. However, politico-economic system enables wants to attract foreign institutions in Romania.
The institutional (legislative) environment
The regulatory environment encompasses all the legal rules and legal acts regulating the conduct of commercial activities of companies. Institutional legal environment includes not only domestic but commercial legislation and regulations established by competent international bodies. Major importance has Carpathian Spring’s legislation on environmental protection. The requirements imposed on products and services provided by Aqua Carpatica company pursuing sound pollution prevention, chemical and bacteriological. Legislative and economic environment of Carpathian Spring company provides:
• Protection of interests of producers and to promote fair competition
• Protecting the interests of individual consumers and society
• Protecting the environment.
3.3 Carpathian Spring market characteristics
In terms of the latest technology developments, currently, each consumer can taste the mineral water his body right. On the Romanian mineral water there is a wide assortment quite generous: carbonated or flat, low, medium or heavily mineralized – it would be a general classification as varying the concentration of different substances existing mineral waters (such as iodine, bromine, sulfur, calcium, magnesium, sodium, carbon) knows wider values.
Imports of mineral water are insignificant, they cover only 1% of consumption, due to the reason that transport has a large share of the final price. Bottled water in Romania is 2.5-3 times cheaper than similar water, brought from abroad. In Romania joined marks Perrier, Vittel, San Pelegrini and several others, with less weight, disposed particularly in restaurants and luxury hotels, where there are foreign citizens become familiar with these products. Exports are small, also transports putting in consistent price additions. Mineral water production is mainly for domestic consumption; only 2 to 3% is exported. If there are countries where the price of water is very high – such as Saudi Arabia or the US – and possible transport ships, business is good. Instead, water transport on the European continent by train or car is very expensive and not worth it. Domestic producers exporting water in Greece, Israel and the US, its main customers are Romanian communities who remained loyal to brands in the country. One of the reasons that can not be conveyed to export more to countries which already reaches Romanian mineral water is the fact that we have the necessary marketing and lobbying.
Mineral water market is addressed to all types of consumers because it is a commodity. They can be grouped according to different criteria used to obtain a clearer picture of the market strucurii.
Of those who consume mineral water, most people only consume carbonated water (66.7%), far from following those who eat only plain water (9.8%), and also there is already a small percentage of consumers just water dispenser (1.0%). It should be noted that a significant proportion of 18.9% of consumers while consuming mineral water carbonated mineral water and mineral water.
According to data from research agency Nielsen, 2015, the mineral water market reached a sales volume of 881.927 million liters, up 16% compared to 2014. Last year it sold worth 931.711 million lei, 21.2% more than the level recorded in 2007. in terms of product offerings, driven by the price / quantity, in 2015, sales have dominated large volumes (2 l, 2.5 l, 5 l and over 5 l), and in terms of the type of packaging, PET has increased at the expense returnable glass; it is among the buyers of mineral water, with a percentage of 83.5% and is followed at great distance from the glass-packaging 25.7%
Glass packaging is very common in small towns in Transylvania, and especially by the population aged 45 and 54, with a lower level of education and employees mostly as laborers. 5 liter cans are used rather people with higher education, living in Bucharest, income per family member exceeding $ 150.
Thus, according to Nielsen research, in 2008, the first position was claimed by the 2 liter bottles by 41.9% of sales volume. Second place went to packaging 5 l 15.5% of sales volume. The following positions are occupied by the packaging of 1 liter packaging by 11.5% and 0.5 l, preferably only 5.7% of shoppers.
Despite the fact that Romania holds nearly a third of the European mineral water (2500 springs representing 35% of mineral waters on the continent), Romanians annually consumes around 43 liters per capita, approximately two and a half times consumes less than other European countries, placing it on one of the last places in Europe.
Market development in 2015 compared to 2014 produced both by extensive and intensive about, but also about mixed. Extensive growth was achieved by attracting new customers among potential consumers. Mineral water market had an intensive development. This change does not intensive envisages increasing the quantity consumed, but its quality and frequency of purchase and consumption. Lately, but in the future, as producers say, will put more emphasis on quality. In recent years, consumers are more educated and more carefully choose the products they consume, especially given that they prefer not to drink tap water because of the mismanagement of bodies.
In this context, manufacturers are forced to meet consumers' demands, most of them investing lately in technological peak of production. In terms of increasing the frequency of purchase, it relies on the fact that mineral water is of a higher quality, and those who do not belong to any category of consumers by frequency will opt for choosing this type of water.
3.4 SWOT Analysis
The strengths of the company are distinctive competencies that it possesses a higher level compared to other competitors, which ensures a certain advantage to them.
One of the strengths of the company is tied to the reputation it has managed to get the company on the domestic market. Consumer perception on the products and services provided are largely influenced by the firm's reputation and its previous work. The fame and reputation of the Carpathian Spring company print customer safety and reliability, so they purchase products without holding an attitude of uncertainty.
Price and promotion policy are two other advantages of the company, which was established durable bond with customers. Pricing was attractive step towards attracting customers and their loyalty has contributed to the promotion policy.
With cash flow dynamic business activity is effective, both in terms of revenues and stock rotation. Stock rotation, the method is based on "just in time" and the products are distributed directly to the extent that the market required. These results arise as a consequence of differentiation of Carpathian Spring company competition by attracting customers, offering promotions and so on.
Weaknesses of the company are represented by its own characteristics that determine performance levels below those of competitors.
The main weakness of the company can be found at the distribution and relationship with suppliers. In some cases, providers fail to meet the conditions and delivery of products and services, and the company faces an inability to meet demand from customers. In the long term, this can lead to a loss of customers and overall inefficiency of the business.
A second deficiency of the firm refers to the large flow of employees in a short period of time (given the recent establishment of the company, its management is forced to take drastic measures regarding personnel incompetent misfit job requirements and so on) which results in insufficient and ineffective communication with customers in when choosing products
Opportunities represent positive external environmental factors for Carpathian Spring company. Being relatively new on the Romanian market, Carpathian Spring company holds a number of opportunities related to the external environment, as following:
• Analysis of the company's economic environment highlights another aspect, coupled with growth in household consumption and the trend of allocating most of the revenues food. This good situation, related to household consumption, represents an opportunity for Carpathian Spring and offer a wide range of flat mineral water and minerals is key to your success.
• use of information systems performing the internal organization of the firm, the database about customers, system of payment by card, check or bank transfer, own network phone-cordless internal computer network that manages rotation of stock, customers, payments and audio-video surveillance systems the entire activity, Carpathian Spring SA assures its efficiency internally, by connected inter- and intrapersonal communication and a satisfaction to a higher level of customer requirements.
• facilities to the investors granted by the local government on the regulation of market competition, ensure equal treatment between foreign investors and Romanian, assisting professional foreign investors in step release of the business, in order to minimize the hardships that they could encounter during the creation of companies and entering the Romanian market.
• The level of education, population sector is looking increasingly more by shopping in large stores, which offers a wide range of products including branded Aqua Carpatica.
• In general, the trend is for consumers to purchase products with the lowest prices and adequate quality, but an important role in determining who has purchased products and the degree of substitution. The products we offer Carpathian Spring SA presents a low degree of substitution, as product policy should be directed to avoid driving customers to competition.
Environmental threats are negative factors for the company, events or situations that may adversely affect the company's ability to achieve its full objectives set with a reduction in its economic and financial performance.
The first factor is the threat that although the inflation rate declined compared to the previous period, its evolution will be influenced by many factors from 1 January 2017, if not take account of this forecast.
Income population has seen an increasing trend, but this does not imply an increase in the volume of products purchased, and as prices rose.
A further increase product prices can have a negative impact on the Carpathian Spring company, leading to a decrease in both quantity and value of sales.
Another threat may be considered danger of new entrants. Study the competition, both in terms of current market presence, as well as future competitors, is another feature that should be considered. In this case, the company must be responsive to changes in the market, the emergence of competitors offering similar products of the same type of customers. Looking ahead, the company must differentiate its activity, and the main threat may come from Romaqua and soon other new companies coming to market. The main threat is linked to the position that they can handle customer preferences. Although nationally, with reference to the markets where it operates alongside Carpathian Spring company, these seats challenger, the market reaction may be positive, and locally may occupy a leading position in the future.
Prices increases not sold yields a higher profit, but the potential loss of customers. Such an increase affects in a negative way purchasing power and population trend is to distribute income in a more limited way, rational, knowing a negative demand. To avoid reducing the efficiency of stocks and must act to maintain prices which satisfy both customers and allow for profit. The company's internal environment analysis requires an assessment of own resources, the potential of the company so as to identify the strengths and weaknesses of it.
CHAPTER IV. CARPHATIAN SPRING STRATEGY REGARDING SOCIAL RESPONSIBILITY
4.1 Mission, statement and general objectives of the company
A mission, a vision, a plurality of values – all of which provides a clear picture answer questions before defining any company, regardless of its size or nature of the goods / serviciiler offered this: "Who am I?", "What is the purpose of their work?" and "How shall reach the goal?". Carphatian Spring mission represents a balance that weighs the actions and decisions taken for the proper functioning of both the company as a whole, and a staff that carry out the mission since the year the business started. It can be played through statements as may be simplistic, but Meanwhile confident, demanding: "to refresh the world in body, mind and spirit", "to inspire moments of optimism through our brands and our actions", "to create value and make a difference everywhere we engage "
The company mission is to be found in every glass of Aqua Carpatica water harmony, mineral energy, freshness and mountains history tails, of which it has its blessed water source. We combine vitality and purity to obtain a healthy product that contributes to the smooth functioning of the body.
The company intends to reach the largest manufacturing company in the industry by following a set of values and principles:
Consumers: Satisfying the needs of customers is the main activity and objective of all activities
Products: The company's success lies in providing superior quality products at competitive prices
Employees: Employees are the most important resource of the company
Nature: Aqua Carpatica water comes from the mountains, from an unpolluted area with a long tradition in water exploitation
4.2 Company’s vision on social responsibility
The vision of Carphatian Spring must be reported to the factors that influence daily activity such as staff, partners, profit, planet. Relationships with employees, distributors, customers and other individuals / interest groups are and will always be situated on margin win-win reciprocity is characteristic of any type of relationship provides durability. Carphatian Spring has a responsibility to shareholders – the priority here is to maximize their long-term income, the client – anticipating and satisfying their wants and needs through products
As compared to the planet – being a responsible member that makes a difference and helping to build "support" communities. Company values serve as a compass for the shares held by it and provides a clear picture of its behavior, the way in which it interacts with the surrounding world. Values or rather types of values encountered in the Carphatian Spring, though different by nature their area of coverage and highlights with clarity indisputable what is good, true community Carphatian Spring: "What do we do well!" "be realistic!", "the courage to shape a better future" – are just some of values that led to the years of excellence.
4.2 Dimensions: depth, speed and amplitude of change
Like any process of change in an organization, it is useful to design the process taking into account the dimensions that the company will decide to affect.
Depth
The depth dimension indicates the levels that will be affected by the change. On the surface there are statements and policies that express an intention of Carphatian Spring to act responsibly. The middle level includes the revision or updating of processes and operating systems that organize the core processes of business value creation, and at the deepest level is the culture with its values, attitudes and convictions, which become rules of "should be" actually observed by the members of the organization. Who leads a change in Carphatian Spring company must consider actions at all three levels: policies, changes in the processes of value creation and changes in the culture of the company.
Speed
The speed or pace of change goes from a "cosmetic" condition, partial adjustments or improvements, to an evolution or transition, which is understood as the period of coexistence of the past that is changed by the future that emerges. The most extreme speed is revolution or radical change, where the transition is very brief, as in the processes of "turn around" of companies in conditions of risk. Carphatian Spring has begun serious efforts towards responsible management have decided to change slowly, in processes of continuous improvement where it reduces its negative impacts over a period of time. Few time ago, Carphatian Spring may have decided to radically change its business model to position itself as the market leader. In this respect, the company decided to change its production model and develop cosmetic products based on European biodiversity. This radical change bet turned out to be extremely successful, managing to multiply its sales.
Amplitude
The amplitude refers to how many parts or areas you want to change simultaneously. A broad change involves all areas of the Carphatian Spring business, while a focal shift refers only to a particular part that can then be used as a pilot case to move forward. The type of change that is needed for social responsibility requires that the area through which the process of change is to begin, the "window of change" (the place where it is considered most effective or most promising to begin to achieve the desired goal ), to becomee a governance, or at least, the conviction of senior management. Second, change must address the core processes of Carphatian Spring value creation, which are usually the center of reference for organizational culture. Third, all other processes that contribute to value management.
One mistake in this regard is the regrettably widespread practice of considering that social responsibility begins with public relations, communications, or human resource management, which are areas that have a marginal influence on the organization's dominant culture. Depending on the business turnaround, Carphatian Spring opinion leaders are in production, finance, or business activity, which are therefore the key areas for effective transformation of the business.
4.3 Stages on the road to social responsibility
All companies are different and learn in a unique way. Simon Zadek, in his article "The Road to Corporate Responsibility" (Zadek, 2005), proposes five steps along this path: companies move from a defensive position ("not our fault") to a " we will do only what we have to do "), through management (" is a benefit to the business "), strategic (" gives us a competitive advantage "), to finally arrive at the civilian ("we must make sure that all do").
Carphatian Spring deals with social and environmental issues differently according to the stage they are in:
• Compliance company ("we will do only what we have to do"), focus on reducing risks for non-compliance with standards, external stakeholder critiques, or customer expectations. Carphatian Spring identifies itself as "decent" company that complies with the law as a responsible citizen , although it oppose greater demands regarding its social or environmental responsibility.
• In the managerial position, Carphatian Spring ("it is a benefit to the business") recognizeS the possibilities of cost savings and efficiency increase that allow the best social and environmental practices. These companies see tools such as eco-efficiency, industrial ecology (which helps the residue of one company to be the input of another), training, and others, such as investments that can be recovered in better quality, reduction of environmental and safety risks. At this stage social and environmental management is considered as a more technical and monitoring and follow-up of processes.
Strategic Advantage ("gives us a competitive advantage"), is usually distinguished by Carphatian Spring ability of innovation. A competitive advantage is not achieved by doing the same thing that was done in the past, adding actions to reduce impacts: the company is required to be able to innovate in products, services, people management and production processes, to achieve a real advantage position against its competitors. In this case, the commitment to social responsibility can be the source of a competitive advantage, that is, the opportunity to achieve a differentiation in the market that results in a decision to purchase the customer.
Companies that have achieved an advantageous market position, such as Carphatian Spring, because of their efforts to be sustainable realize the importance of improving market operating conditions ("we must make sure that everyone does it"), and strive to promote in a proactive way the change in other companies and in the structures of the market.
Carphatian Spring managers understand that there can be no sustainable companies in failed societies, and therefore consider a strategic necessity of the business the change towards more sustainable societies.
As all market advantages, this is a dynamic process and requires companies to be flexible and continually adapt to or anticipate the expectations of their internal and external audiences, in the process that Zadek calls "civil learning."
Obviously, this is not a continuous progression that all companies must go through. Carphatian Spring can go directly to the search for competitive advantages, and even others may reverse negative impact control processes, but where there is some consistency is in the relationship between the form of management and the way the company sees the issues of social responsibility.
4.4 Leadership: manager’s role regarding social responsibility
Throughout the process of change, the role of Carphatian Spring leader is to ensure the achievement of the results defined in the Board of Directors. Therefore, responsibility for social and environmental outcomes should be considered "on the line".
The most important role of the company leader and his team is to demonstrate the consistency between what is said and what is done. The consolidation of the desired culture depends, essentially, on how the trade-offs between non-financial issues and issues traditionally considered at the core of the business are resolved. This is the fundamental message that managers convey to Carphatian Spring organization.
Carphatian Spring , the company that starts the change
There are two very relevant issues at the senior management level, especially when the company starts the process of change and is in the compliance stage, where it is evident that it is important for the change agent to have the support of the leader and the need to define clear spaces of conflict management:
Conflicts of power
The need to introduce changes in management that are not led by executives, can generate conflicts because of the sense of loss of power between different hierarchies. The role of Carphatian Spring leader as a mediator is essential to ensure the delicate balance that must be achieved between making changes happen, while maintaining the vertical structures that allow the effective operation of the business.
Problems of disinformation
Carphatian Spring top management must ensure that social and environmental problems are informed at their level, but it must ensure that the information process does not cause conflicts and resentments, preventing people from hiding the facts and turning the social responsibility manager into the "problem of spy". It is very important to identify in these situations the incentives, financial or not, that act against the change.
A classic example in this sense is the conflict between the goals of occupational safety or reduction of environmental incidents in manufacturing industries, when they are opposed to production objectives. The management of these conflicts offers just the opportunity to find innovations that allow to achieve win-win and not zero-sum arrangements, which are those that will support the process of changing the company to the future, both for the definition of goals Adequately meet both objectives to introduce the appropriate incentives to promote the expected result. For example, instead of reporting historical events such as accidents or environmental incidents, the indicator may be prevention, such as the number of solutions to situations that could have caused an accident or environmental incident, with an incentive may be associated with variable compensation. In this manner, all Carphatian Spring employees, production or security, have the same motivation, which is to prevent negative occurrences.
Carphatian Spring, the company that has good control over its "compliance"
In this case, the role of Carphatian Spring executives can shift to one of promoting social and environmental issues as a source of innovation, new business pursuits and technological changes that allow important commercial positions. At this stage it is important that there is effective empowerment and authority at the horizontal level so that executives from the various areas can lead the required changes.
4.5 External reports on sustainability management and prevailing standards
From a huge profusion of potential indicators, emerging standards, country initiatives, tentative regulations, voluntary adoptions, a decantation in the case of Carphatian Spring has recently been taking place. In this section we will focus on those different measurement tools and indicators that are opening up as standards by way of facts at Carphatian Spring level.
Sustainability indicators, like the rest of the metrics used at the Carphatian Spring corporate level, vary in their complexity, in their periodicity of measurement, in the subject they deal with, in their unit of measure and even in their degree of trust or estimate. Indicators can be designed specifically by the company or, on the contrary, can be based on preset standards or best practices at a global, sectoral or even national level in the context where the company operates. On the other hand, indicators can be used for decision making or only for reporting to stakeholders. In this section, we analyze some of the models that exist to help Carphatian Spring company to present sustainability information, with emphasis on the reporting standards and practices that are commonly referenced when presenting corporate governance to groups of companies.
Global Reporting Initiative
Meeting Carphatian Spring expectations and reporting on sustainability in a clear manner required a uniform world-wide reference framework to inform reporting in a transparent manner. The Global Reporting Initiative (GRI), whose mission is to satisfy this need, provides a reliable and credible framework for the development of sustainability reports that can be used by organizations regardless of size, sector or location. Sustainability reports based on the GRI Guide (currently in its third version) must present the results obtained in the reported period, compared to the commitments assumed previously and according to the management approach adopted by the company ("Management Approach").
GRI states in its guide for the preparation of reports that in its application a series of principles must be followed and, in addition, the presentation of certain "basic contents" (including the performance indicators) is promoted.
In this respect, Carphatian Spring principles are organized, on the one hand, in those related to the determination of the issues and indicators on which the organization should inform; and, on the other hand, those focused on ensuring the quality and adequate presentation of the information disclosed.
Carphatian Spring principles in the context of social responsibility are as following:
•Transparency
• Inclusivity (St Engagement)
• Exhaustivity
• Relevance / Materiality
• Context of Sustainability
• Accuracy
• Clarity
• Balance
• Verificability
•Periodicity
For its part, Carphatian Spring proposed basic contents that are subdivided into themes of strategy and analysis, corporate governance, commitment and participation of stakeholders and management approach. The indicators themselves are grouped into categories: on economic performance, on labor matters, on environmental issues, on Human Rights, on their relationship with society and on the responsibility of the product that the company sells.
Towards the concept of integrated reporting
One next may cite three initiatives that advance in the line of integrating financial and non-financial information specific to Carphatian Spring sustainability management. Two of them refer to European experiences and the third to a project just begun in England, which can reinforce the integration trend we postulate as best business reporting practice.
Fourth financial statement
Carphatian Spring company generally reports its financial position through balance sheets, its economic results through the statements of income and the sources or sources of the cash flows and their uses or applications, always with the perspective of the shareholder. The "language" that is used is the one of generally accepted accounting principles.
Technical bulletin on demonstrative value-added status
Because of Europe’s leading role as a driving force within emerging economies, we believe that ratification of this way of looking at numbers (independently of non-substantial differences with a model developed in Italy) may be a Major driver of the integrated reporting effort. In fact, it leads to the category of financial status (one of the postulates of the fourth) the information about the management of value, or wealth, of companies, in terms of their generation – concept close to the formation of PBI or national accounts – and their distribution among different interest groups.
Thus, the pronouncement establishes that Carphatian Spring entity must prepare the DVA and present it as part of its accounting statements that are disclosed at the end of each fiscal year, at the time of recommending its elaboration by all those entities that disclose accounting demonstrations.
This was a significant evolutionary step only referred to this norm for those companies that decided to publish this information, such as Carphatian Spring. By making it compulsory for any open company and recommendable for any other type of society, the profession is adopting a leadership position that may be followed in other geographies.
Accounting for Sustainability Project
In order to ensure that sustainability is included in the organizations' DNA and to demonstrate that this has been done, the Prince of Wales created the "Accounting for Sustainability" project , which became public in 2008 in England and then, all over Europe. The objective of the group was to create a tool that helps the process of CSR information management nowadays. Thus, an innovative website, a tool for decision-making and examples of good practices of public and private companies was developed. In addition, the reporting frame called "Connected Reporting Framework" which proposes a clear, concise and comparable reporting framework, following the trend of introducing and disclosing non-financial material issues in the financial information of companies, in order to integrate both worlds.
Specific industries
To the extent that Carphatian Spring applies a process of identifying "material" issues (those relevant aspects to be reported to interested readers or stakeholders), issues of concern common to different countries, contexts or industries arise. That is why sector initiatives have undertaken projects to design particular indicators for their industry, which are incorporated into normal corporate reporting processes. These sector indicators also have the benefit of making comparable and demandable to different companies the publication of certain information that may be sensitive to the eyes of readers.
As promoted by the same GRI, there are specific working groups for the reporting purposes of CSR that study the topics to be reported in each industry. Thus, sectoral supplements for Sustainability Reports for Carphatian Spring’s industry were created.
4.6 The use of Corporate Social Responsibility indicators and standards in company’s management
In the case of Carphatian Spring company that wants to permeate its structure, processes and systems with the concepts of sustainability or CSR, the generic model is also applicable. All part of the CSR policies derive in a series of Carphatian Spring business objectives and, for this, the company must design indicators that allow to do management or, as Deming calls it, to plan, to do, to monitor, and to act accordingly. Therefore, indicators play a key role in each of these stages.
Given the sustainability of various management areas, the use of CSR indicators will also depend on sustainability plans, actions and objectives. For example, if the objectives or programs of CSR contemplate a substantial improvement in environmental matters and in particular in the reduction of emissions to the air, then it is necessary to define indicators that allow a close monitoring of such evolution.
The same thing happens with labor, product or customer aspects, issues of relationship with the community, with suppliers, etc. In each area of CSR, Carphatian Spring’ company defines its objectives and the indicators will help to monitor the progress towards them.
Guidelines or best practices can be used for the design of CSR indicators, such as those described below, or Carphatian Spring’ company can define particular indicators according to its own objectives. In any case, the same indicators are used to report to stakeholders, but they add value to the company insofar as they are used at the managerial level for internal measurement and diagnosis.
The use of CSR management indicators in everyday activities of Carphatian Spring can have many facets. In Carphatian Spring’ company that is concerned with the awareness and extension of CSR concepts and practices to its suppliers chain, indicators can be used as a "filter" when prioritizing or selecting strategic allies.
In different Carphatian Spring’ areas/ departments that have as one of the strategic focuses the continuous improvement in Human Resources or the implementation of social inclusion practices within the corporate structure, indicators can help as a "guide" for the design of processes or selection procedures of personal.
Another example of the use of indicators is the case of the results of customer satisfaction surveys, which can support timely commercial decision-making.
Self-evaluation initiatives
Based on the efforts of local business associations, in recent years, the importance of self-assessment tools that can be used by Carphatian Spring to position itself in its path toward a sustainable development.
Innovative Business Efforts
There are some companies in particular that have been pioneers in the implementation of measurement methodologies, or even in the design of their own sustainability management tools.
Such is the case of Carphatian Spring, a leading company in Romania in the production and marketing of wood panels for furniture and interior architecture. Since its inception, the company has assumed a strong commitment to sustainable development at the strategic level and this was reflected in the design and implementation of a balanced scorecard or dashboard with specific indicators related to sustainable development. The effective implementation of this tool was evidenced by the fact that success in achieving the projected indicators would be directly related to the remuneration of the company's main executives.
On the other hand, Carphatian Spring is demanding to its suppliers the fulfillment of certain standards in matter of CSR, reflecting the requirement of its own clients.
4.7 Responsible practices at company’s level. Development and impact.
Carphatian Spring company adopts responsible practices based on a series of drivers, agents of the environment that pressure or stimulate the behavior of the company. While the drivers affect all the company’s departments, they do not do so with the same intensity and the size of the company as a determining factor of the impact. Carphatian Spring, as a big company, tends to feel it more intensely. One of the main drivers is the impact these practices may have on financial results, as we will discuss in detail below. Although Carphatian Spring have responsible practices as a natural consequence of the beliefs or intuitions of its owners or managers, these practices can be deepened or extended if they can appreciate the impact on the company's results. While this impact is not critical to adoption, it can be for long-term sustainability, as the business grows and faces competitive pressures or adverse economic situations. For its sustainability it may be important for Carphatian Spring to appreciate the tangible or intangible benefits of these practices and for this it is important to know what drives them.
One of the main drivers for Carphatian Spring as a large company both in Romania and at international level is usually the protection and expansion of its reputation or brand, but for Carphatian Spring it may be the desire or need to be perceived as a good citizen in the community. Very large corporations are often heavily aware of the impact of their clients' actions, particularly those companies that sell mass consumer products, for which adverse advertising derived from irresponsible practices can have an immediate and far-reaching effect on revenue. For Carphatian Spring this may be minor or can be handled more easily since they do not usually sell mass consumption products and there is much less information about their products and services. In this, the information that the consumer has on the responsible practices of the company, which is usually very scarce, is critical, and in the case of Carphatian Spring in developing countries, it is almost nonexistent. In relatively developed markets, particularly for large companies, the existence of independent certifications, through which it is certified that the company's products or services have been produced with specified responsible practices provides information and can condition the reaction of customers. While Carphatian Spring can take advantage of the positive aspects of responsible practices, the impact will depend on the actions taken by consumers or buyers with the information they have.
Ethical behavior is more visible in the geographic area of influence and therefore tends to be more pronounced in Carphatian Spring situation than in the case of other large, distant and impersonal corporations, since very little information is still available regarding the ethical behavior of Business. Carphatian Spring relationships with customers, suppliers and competitors are more based on mutual trust than on large companies that tend to rely more on contractual relationships. Carphatian Spring is so well known in the community by its stakeholders that it is harder to be visibly irresponsible. However it is always possible to be more responsible and capture the benefits.
In addition, in many countries a new generation of SMEs is being developed with younger, more educated management, which has grown exposed to the social responsibility of the company, which will be more prone to the implementation of responsible practices. The challenge of creating a culture of ethics is increased in Carphatian Spring, since there are many people who decide and also know each other. Also the problem of agency, the divergence of objectives between shareholders / owners and management, is smaller in SMEs since they are usually the same. The management of a large company often has incentives related to short-term performance that can compromise decisions to "invest" in responsible practices, which often have tangible short-term costs and long-term, sometimes intangible benefits . In Carphatian Spring as a large company,short-term goals of managers may run counter to the long-term goals of shareholders.
This proximity of employees makes one of the main responsible practices in the management of human resources, working conditions and benefits, partly because it is natural and obvious and partly because the benefits are usually more tangible. This is obviously limited by the scarce resources and "the economiesof scale" faced by these companies. Given the relatively national character of Carphatian Spring, this company have a strong identification with the community. As a consequence, responsible behavior promoters tend to come from the community and a good part of their responsible practices will be related to giving back some of the benefits received, supporting activities such as sports, education, health and contribution to the nearby environment. Due to the nature of Carphatian Spring, these activities are of the philanthropic type or an extension of them to those that can benefit it. It is difficult to implement responsible practices outside this nucleus since the management does not usually have the knowledge, time or resources to go further. This makes the support activities fluctuate with the financial situation of the company and are occasional, rather than part of its strategy.
Another important driver is the demands of Carphatian Spring, in some cases public-sector buyers (in countries where they have responsible purchasing policies), who need to maintain their reputation as responsible companies. Carphatian Spring that particularly sells high visibility products to consumer, must adopt responsible practices to capture and maintain those customers. These responsible practices, transmitted through the value chain, tend to focus on areas of human resources and the environment, which are the most subject to observation and monitoring by stakeholders.
Even when Carphatian Spring is subject to the same social and environmental regulations, it is possible for it to not see opportunities in order to become more competitive, unlike other large companies, and the vast majority consider it a cost of business. Carphatian Spring has much less ability to influence regulations or comply with them and in developing countries can see them as an incentive to irresponsible behavior, encouraging corruption to get rid of cumbersome regulations and monitoring institutions. However, environmental regulations can be a stimulus to cost savings and provide opportunities for new business or capture new markets. It is precisely the Carphatian Spring, with its flexibility and adaptability, to become a company that can capitalize thesevopportunities if it consideres itself as such and not as obstacles, taking advantage of the greater awareness about the environmental and social aspects that is developing in society.
The media and civil society (monitoring institutions) tend to be important drivers for Carphatian Spring because it has a more coagulated and it is a highly visible business group.
Financial resource providers are also much less important drivers for Carphatian Spring. In general, these suppliers concentrate their demands on large companies, large projects or investments of great social and environmental impact. Carphatian Spring is usually financed with its other resources than its own ones. It is therefore very possible that Carphatian Spring can access cheaper or more abundant resources for being responsible.
Other drivers of responsibility in Carphatian Spring, such as internal codes of conduct, since, as we said, the objectives of employees, owners and managers tend to be more aligned and more people involved. In Carphatian Spring responsible practices are transmitted better, for example, than by verbal (oral) rules. Again, not all corporation are the same and in larger ones these codes, well disseminated and seriously implemented, can contribute to develop an ethical culture in Carphatian Spring company and promote responsible practices. But the key is the implementation, since there is little use of a document that launches with great fanfare, it spreads and then it is forgotten. The document is a necessary but not sufficient condition.
CONCLUSIONS
Even when Carphatian Spring engages in responsible practices for reasons of altruism or ethical / religious (which is how many begin), growing competitive pressures and the economic situation of markets make the impact of these practices on competitiveness is acquiring relevance, particularly in those of greater relative size and those subject to competitive pressures. In addition, the practices will be more consistent, less ephemeral, to the extent that they have any real or perceived contribution to the financial situation of the company. This section considers how Carphatian Spring can benefit by doing good.
Meeting Carphatian Spring expectations and reporting on sustainability in a clear manner required a uniform world-wide reference framework to inform reporting in a transparent manner. Sustainability indicators, like the rest of the metrics used at the Carphatian Spring corporate level, vary in their complexity, in their periodicity of measurement, in the subject they deal with, in their unit of measure and even in their degree of trust or estimate.
The need to introduce changes in management that are not led by executives, can generate conflicts because of the sense of loss of power between different hierarchies. The role of Carphatian Spring leader as a mediator is essential to ensure the delicate balance that must be achieved between making changes happen, while maintaining the vertical structures that allow the effective operation of the business
The effect that responsible practices have on the competitiveness of Carphatian Spring depends to a large extent on how they affect the drivers mentioned above so the company must begin with a careful analysis of the drivers that are relevant to it. For example, if consumers do not make purchasing decisions that are influenced by the company's responsibility, Carphatian Spring has no incentive to be accountable beyond complying with the law and for purely moral, ethical or religious reasons. If the media do not report, if civil society and employees are indifferent, if donors do not take it into account, if governments are unable to enforce laws or regulations or are easily violated, then the company lacks positive or negative incentives and their practices may have little impact on company’s competitiveness. The impact is reduced to responsible practices that also reduce operating costs, such as consumption of inputs, recycling, and so one. But it is more difficult to take advantage of the opportunities of better prices, new responsible products or new markets, if the responsibility market does not respond.
From the above, it can be deduced that corporate social responsibility can not be seen as a simple marginal and complementary action of the actions of Carphatian Spring company, such as the achievement of monetary benefits. On the contrary, one forces social responsibility to be recognized as a new paradigm that requires strategic management, which should generate a competitive advantage. Above all, social responsibility is a commitment of all the members of Carphatian Spring company, the result of a management that requires strategies designed, led and monitored by managers. This includes going beyond a momentary action, should consider the presence of programs and policies that provide security and confidence to the company, because during this process will be presented changes, adjustments and transformations in the culture and climate of the company, which obliges to include all its members on a voluntary basis, supported by ethical values and principles. This implies that the socially responsible Carphatian Spring is not only able to supply quality goods and / or services, but also includes a high value added that is reflected in the contribution it makes to its stakeholders, community and environment, that is, considers the improvement in the welfare and quality of life of society. In this case, Carphatian Spring must take into account that the result of these practices contributes to its own development.
Hence, that social responsibility can not be left to the free will of somebody, in order to be able it is necessary an adequate strategic management. The management of social responsibility must seek as a main objective that the members of the company considering it part of the day-to-day within their activities, fundamentally because it takes into account a process that involves particular policies, programs and actions, that must be registered in the strategic planning of the company, specifically in the mission and vision. The management of social responsibility can generate competitive advantages, precisely by initiating a process in which the company integrates responsible practices in its mission and vision, which demands concrete actions, especially that contributes to the solution of social and community problems. These advantages will allow the differentiation of the company from the others, because it facilitates it to be more efficient in the management of its resources and processes, which in turn achieve a greater growth due to the reduction of its costs, being especially attractive in the market where Interacts.
Looking at the international environment, it is important to emphasize that social responsibility can become an alternative for Carphatian Spring to be competitive, because companies are forced to participate with products and services that respect the environment and do not destroy the system ecological. But it is not enough to be socially responsible internally when the globalized world demands that these practices be extended to the international arena. Consequently, social responsibility must be viewed under the precept of requiring strategic management aimed at finding competitive advantages. This implies the need for a design that has as central axis to establish it in the mission of Carphatian Spring, in such a way that it is as important the economic as the social aspects, through achieving the efficiency and effectiveness of its resources.
This means that strategies are needed to facilitate the way to achieving objectives and competitive advantages. Therefore, these strategies should focus on generating added value, which includes economic value and social value. Today it is believed that these practices can only be done by large companies, but, not so, the tools proposed can be used by all companies that recognize the important role they have with society. Therefore, the challenge is: a serious and deep inclusion is required that the actions and activities of Carphatian Spring must have a strategic management of social responsibility, which guides and guides them towards the achievement of recognition before society that they it committed to the social, environmental and ecological care. According to these criteria, those who manage these social practices should consult and rely on existing specialized literature and benchmarking with those companies that are leaders in developing beneficial actions for their stakeholders. This management entails achieving efficiency and effectiveness in the use of resources in order to generate competitive advantages, which in turn in benefits for companies and for society in general. It is clear that this management must resort to a monitoring or control of the tools that are used to develop socially responsible practices, so that managers and fully committed personnel are needed, under sound ethical principles and values, with their stakeholders and society in general.
Corporate Social Responsibility is presented as an important effort to mitigate the excesses of Carphatian Spring as a big company that react sharply to the opportunities and challenges that economic globalization and the climate of de-regulation present to them, which at the same time promote a wide range of goods and services for consumers, giving rise to worrying side effects such as poverty, inequality and pollution, which reveal the need to try new ways to regulate business conduct.
RECCOMENDATIONS
Build CSR from existing activities
If Carphatian Spring embarks on the implementation of a CSR strategy, one should make sure that the safety and health performance is evaluated positively and that you are considered one of the strongholds on which to build CSR. In several macro-initiatives promoting CSR, CSR has been deliberately disengaged from the field of health and safety, since CSR is considered to be over-regulated, while CSR deserves consideration of a totally voluntary commitment. Even so, most companies have understood from the outset that occupational safety and health have their own place in the spectrum of CSR.
Learning from the experience of others
There are many companies that develop CSR activities and their experience may be of unquestionable utility. Carphatian Spring should start a debate on CSR progress within the professional networks that constitute its field of action. Carphatian Spring should make sure you understand the lessons given by other safety and health professionals. The websites of the initiatives cited in this publication may also provide information on the subject. There are many health and safety professionals who regularly resort to legal requirements for the plans to materialize. Carphatian Spring should try to address first the internal motivations of the company. Obviously, compliance with the law will always benefit the company, although this is not usually the main motivation for companies to make progress in this area.
Define strategic objectives
CSR can be perceived as a framework that allows a more strategic positioning of the position that corresponds to safety and health in the context of a company. Carphatian Spring should formulate long-term positive OSH goals and it should also include problems closely related to modern human resource management and job satisfaction. Carphatian Spring should link with other strategic objectives of the company of social character, as well as with environmental objectives or with sustainable development.
Identify and involve relevant stakeholders
Carphatian Spring should identify external partners, who are stakeholders in the external aspects of occupational safety and health. Carphatian Spring should ensure that it participates in the dialogue established by the company with its interlocutors and it also should try to build alliances with these partners: they could open the way to new prospects for progress in the area of safety and health, both in the workplace and in more general terms.
Show and develop a leadership image
Carphatian Spring should develop initiatives that contribute to promoting CSR, so that safety and health become an inherent part of corporate strategy, encouraging managers and other CSR advocates by providing them with a better understanding of the benefits that safety and health excellence brings to the company and by developing activities that help both managers and employees feel proud to work In that undertaking.
Betting on opportunities
CSR provides a broader framework for rethinking the concept of occupational safety and health. Does it really have strategic (and not just theoretical) importance? Are safety and health values really tangible in everyday practice? Can safety and health benefit from the participation of (external) partners? Do senior managers know the specific economic benefits of OSH? Is it clearly assessed how good working conditions affect, in particular, the labor market and, in general, the image of the company? Do these impacts contribute to safety and health?
Create in the company a culture of socially responsible organization
It implies a very vital pedagogical process so that the collaborators understand what the concept is, how important the company is to the subject, how this importance is reflected in the code of conduct and what are the most common practices and habits of a socially responsible employee. It is important for these habits to be led by managers. These processes imply a different communication, including spaces more playful forms. This involves preparing managers for the language of CSR
Adopt the basic principles of socially responsible communication
Recently in Stockholm it was argued that before thinking that communication is a process at the service of social responsibility, communication must be socially responsible. When is it? There are three principles. To incorporate them in the communicative strategy implies a revision of the products, channels or spaces of communication, so that they always reflect and above all, the capacity and disposition of dialogue of the organization. There should be a list of each form of communication with internal and external interest groups, so that the matrix allows to know what is the dialogical profile or interaction or feedback of each:
A. Communication brings the voice of the interest groups to the spaces where decisions are made in the company
B. Communication brings the voice of the company to spaces where interest groups make decisions
C. Communication facilitates spaces of dialogue where the two sides feel as equals, there is no imposition of views, listening, analysis, discussion and decision making.
The three principles above are permanent and they have continuity.
Build and / or deploy the language of social responsibility
Carphatian Spring must have a language that emphasizes the economic, social and environmental in its most essential processes (whenever possible and relevant). This implies that when you talk about human talent, you have to show these three edges. When talking about customer service, you must also have the social, economic and environmental approach. The triple focus should not be only part of the annual report, but a permanent component of the speech throughout the year and all the communicative products of the company.
Manage potential conflict management
Adopting a process of management of issues is important from the area of communication because through this system it is possible to identify and process the key issues that can impact the company in the medium and long term. This management of issues allows to determine the issues that may generate in the future a conflict between one or several interest groups and the company (environmental regulations, safety concerns, competitors, so that they can be managed communicatively by the company, placed on the public agenda, analyzed, debated, etc.)
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