Celia Hadjichristodoulou GrantXpert Consulting Ltd Seminar on “Corporate Social Responsibility in SMEs: Knowledge gaps and solutions” Preliminary project results for Cyprus Celia Hadjichristodoulou GrantXpert Consulting Ltd

Presentation Overview -The importance of SMEs -CSR in Cyprus -Main focus group results: A. Main problems for SMEs in Cyprus B. Strategic plans of SMEs C. CSR activities by local SMEs D. The influence of culture in Cypriot SMEs E. Promotion of CSR practices by the government

SMEs worldwide Small and medium-sized enterprises (SMEs) represent over 90% of enterprises in most countries worldwide. Based on incomplete and dated (1994-2005) data, the number of SMEs globally is estimated at 160 million. SMEs are the driving force behind a large number of innovations SMEs contribute to the growth of the national economy through employment creation, investments and exports.

SMEs in Europe In the European Union SMEs represent: 99,5% of total number of enterprises 66,4% of total employment in EU 66,5% of total turnover of companies Moreover small companies represent 51% of total employment in Europe. 2/24/2019

SMEs in Cyprus In Cyprus the vast majority of companies are classified as SMEs. According to the survey of the Statistical Service of Cyprus conducted in 2006, SMEs represent 99,9% of companies. Small companies, employing less than 10 employees, represent 94,8% of SMEs in Cyprus. As partners of the EU-funded project SOCIAL SME, we are involved in developing a training manual for SMEs across Europe for helping them integrate CSR practices into their business. 2/24/2019

CSR in Cyprus In Cyprus the concept of CSR has proliferated quite widely in the past few years Cypriot businesspeople are starting to realise the importance of CSR However, the very small size of most enterprises sets a great challenge. Small (especially micro) companies need additional help in integrating CSR activities into their business. Cypriot companies has started developing CSR programmes more intensively in the past 5-10 years CSR practices were firstly introduced and taught by multinational companies Cypriot companies follow the CSR practices used in Greece and other EU countries In Greece only 10% of Greek companies involved in CSR programmes whereas in the rest of Europe the average is 37% Improvements have been made, still a lot needs to be done to improve CSR programmes of SMEs as in other EU countries 2/24/2019

Focus Group Results in Cyprus-SOCIAL SME project Two focus groups were organised on the 23rd of January 2009 Focus Group Participants: 4 SME owners/managers 2 academics/researchers 4 consultants 2 employees’ representatives 2 managers of large firms/MNE subsidiaries In total 14 people took part in these discussions. 2/24/2019

Main issues discussed -Main problems faced by SMEs -Existence of strategic plans in SMEs -Relationship of SMEs with stakeholders -Government’s role and legal framework on CSR -Current situation in Cyprus with regard to EU regulation on CSR issues -Training/development of employees -Environmental and philanthropy issues -General remarks on SME situation in Cyprus -Cultural issues hindering the CSR adoption in Cyprus 2/24/2019

General remarks from focus groups The focus group participants showed great interest in coming to the event and sharing their experiences and thoughts on the CSR issue. Some participants were aware of the term CSR (mostly consultants and employees’ representatives) whereas the majority of SME owners/managers were unaware of the term. An important argument that came up during the discussion was whether the government should be blamed for everything in terms of SME support, CSR issues, etc. Different views were expressed on many related topics. 2/24/2019

General remarks from focus groups In order to help SMEs to understand what CSR is all about and its importance training courses should be organised for SME owners Simple language should be used so everyone can understand the meaning of CSR. These courses should emphasise how important CSR activities could be for SMEs’ survival and growth. An important finding was that the culture in Cyprus is not helpful for SMEs in adopting CSR activities, as we mainly think of our self-interest first and do not really care about the effect of our actions on the environment and the society at large. Changing the culture will take a long time: continuous training of people from an early age, offer motives to individuals and companies in adopting environmentally friendly practices and enforce serious punishments to those that do not abide by the law. 2/24/2019

General remarks from the focus groups All participants mentioned that the discussion was Interesting Even though some of them did not know much about CSR, they would be very interested in knowing more about this topic and contributing in any way they can to the project. An Advisory Council was set up for the project. Many participants expressed their willingness to be part of this team. 2/24/2019

Contact details Celia Hadjichristodoulou C.Hadjichristodoulou@euc.ac.cy Tel: 22658283 Any questions/remarks? 2/24/2019