MULTICRITERIA DECISION WITHIN THE CSR (CORPORATE SOCIAL RESPONSIBILITY) STRATEGY OF MACHINE INDUSTRIAL COMPANIES Ing. Katarína Dr ienik ová Prof. Ing. Peter Sakál, CSc. Moscow 20121

This article was supported by the Slovak Research and Development Agency under the contract No. LPP : “Koncept HCS modelu 3E vs. koncept Corporate Social Responsibility (CSR).” The paper is also a part of submitted KEGA project No. 037STU-4/2012 “Implementation of the subject “Corporate Social Responsibility Entrepreneurship” into the study programme Industrial management in the second degree at MTF STU Trnava

„If companies believe they are in business to serve people, to help solve problems, to use and employ the ingenuity of their workers to improve the lives of people around them by learning from the nature that gives us life, we have a chance.“ Paul Hawken 3

I. Theory 1 Multicriteria aspect in decision-making process -AHP method 2 Concept of Corporate social responsibility (CSR) 3 Stakeholders 4 Pilot questionnaire II. Project of the thesis 1 The main goal of the thesis 2 Partial goals of the thesis 3 Working hypotheses 4 Structure of the thesis Content 4

I.Theory 5

1.1 Multicriteria aspect in decision-making process Analytic hierarchy process (AHP) 6 To find an optimal solution of the problem that sets to more than one defined criteria is the working out of the multicriteria decision task. Analytic Hierarchy Process is the method that simplify and accelerate all process of decision making within complicated situations. It´s the method of decomposition of complicate unstructured situation to elementary components, that creates the hierarchy system. Through subjective evaluation in pairwise comparison, numerical values are given to individual components, which presents their relative importance.

1.1 Analytický hierarchický proces (AHP)  Thomas. L. Saaty (60 th -70 th of 20 th century )  Expert Choice 7 1 Hierarchy 2 Priorities 3 Constistency

1.1 Analytický hierarchický proces HIERARCHIA 8

1.1 Analytický hierarchický proces PRIORITY 9

1.2 The Concept of Corporate Social Responsibility 1 Green Paper. Promoting a European Framework for Corporate Social Responsibility „Corporate social responsibility is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis “ 1.

1.2 The Concept of Corporate Social Responsibility CSR by ISO (2010) 2 Zodpovednosť organizácie za vplyvy jej rozhodnutí a aktivít na spoločnosť a životné prostredie na základe transparentného a etického správania, ktoré:  prispieva k UR vrátane zdravia a blahobytu v spoločnosti,  zohľadňuje očakávania zúčastnených subjektov,  je v súlade s príslušnou legislatívou a medzinárodnými normami v oblasti správania,  je integrované do celej organizácie a uplatňované v jej vzťahoch. Kritika ISO ani v jednej svojej časti nerieši otázku obohacovania sa nadnárodných spoločností na úkor chudobnejších spoločenských vrstiev, resp. svojich zamestnancov. 2 STN ISO Usmernenie k spoločenskej zodpovednosti. Bratislava: SÚTN. 2011, 120 s.11

1.3 Stakeholders 12 Those groups without whose support the organization would cease to exist (Stanford Research Institute, 1963) any group or individual who can affect or is affected by the achievement of the organization objectives (Freeman, 1984) Any individual, group of individuals or an organization which can affect or be affected by company activities

1.3 Stakeholders Stakeholders engagement to CSR activities 13 PLAN vplyv podniku v ekonomickej, sociálnej a environmentálnej oblasti DO realizácia podnikových záväzkov, rozvoj poslania SZP + implementácia CHECK –monitoring, reporting podnikového výkonu, výkonnostné indikátory, feedback, ACT hodnotenie a zlepšovanie činností, návrhy pre zlepšenie SZP aktivít podniku

1.4 Pilot questionnaire 14 - In nearly 65% of companies the topic of CSR is discussed and nearly 90% of companies solves the problems of local community also. - Companies which strategy is based on SD/CSR say it's because of enhanced brand image and reputation, enhanced relations with employees and local community, effort to sustainable development. - Companies don't use any software in strategic decision making processes, the major decision criteria are following: quality, price, time, region, legislative, flexibility, level of risk, market opportunities,... - At least one third of asked companies use multicriteria optimization methods, they use mainly the method of pairwise comparison, method of decision-making matrix and proportionately index method.

1.4 Pilot questionnaire 15 - More than one half of respondents stated they identify and classify stakeholders (mainly shareholders, employees, customers, competitors and managers). - Only 5 companies have also defined stakeholders goals. - Only 36% respondents stated that the importance of interests of various stakeholders isn't the same, the most important interests due to the business activities have shareholders, managers, customers, state and its institutions and competitors. - Only shareholders and managers are engaged to decision making. - Only 10 companies agree with the statement that stakeholders representative would be glad to be engaged to strategic decision making.

II. Project of the thesis 16

The main goal of the thesis The main of my thesis on the basis of theoretical analysis and analysis and mapping of decision making processes in industrial companies to Návrh využitia metódy AHP (Analytický hierarchický proces) v stratégii SZP (spoločensky zodpovedného podnikania) priemyselných podnikov“.

2.2 Partial goals of the thesis 18 1.On the basis of studying literature and other resources is to analyze theoretical outputs and to make complex survey of the following topics: stakeholders concept, concept of corporate social responsibility, multicriteria decision making specifically AHP method. 2.To analyze current state of CSR concept, multicriteria decision methods usage (AHP method) through the research in Slovak (Czech) industrial companies.

19 3. To suggest decision criteria of key stakeholders for the need of the AHP method in context with CSR strategy. 4. To suggest usage of software Expert Choice in decision making process in a company. 5. To evaluate and to verify outputs in selected companies. 2.2 Partial goals of the thesis

Working hypotheses 1.Majority of the companies by implementing CSR principles want to help to SD. 2.Companies don't perceive stakeholders as the part of the concept of corporate social responsibility. 3.Majority of Slovak industrial companies identify stakeholders but don't engage them to decision making. 4.Majority of industrial companies believe the interests of individual stakeholders are equally important to company.

21 5.Companies that don't have effective communication with stakeholders can't engage representatives of key stakeholders to strategic decision making in effective way. 6.Companies that don't engage representatives of stakeholders to strategic decision making are not helpful in sustainable development. 7.Majority of Slovak industrial companies perceive their competitors as an important stakeholder. 2.3 Working hypotheses

Structure of the thesis 1. chapter The main goal, partial goals, working hypotheses of the thesis. 2. chapter Methods used in the thesis.

Methods used in the thesis - system approach - process approach - analysis and synthesis - comparisons - induction and deduction - AHP method - graphical methods - creative thinking methods - statistics - questionnaire

24 4. chapter Analysis of current state of the stakeolders concept in conditions of Slovaka industrial comapanies. Jadrom tejto kapitoly budú výsledky získané prostredníctvom dotazníkového prieskumu v slovenských priemyselných podnikoch, zároveň budú podporené aj výsledkami získanými na základe nepriameho výskumu prostredníctvom dostupných informačných zdrojov. Zároveň v rámci tejto kapitoly potvrdím alebo vyvrátim stanovené pracovné hypotézy. 3. chapter Analysis of the theory related to the topic of stakeholders in response to CSR and multicriteria decision. 2.4 Structure of the thesis

2.4 Tézy a štruktúra DDP kapitola Daná kapitola bude zameraná na zosumarizovanie výstupov DDP vzhľadom k stanoveným cieľom a na zhodnotenie prínosov tejto práce nielen z teoretického, ale i praktického hľadiska. 5. kapitola Návrh kritérií rozhodovania kľúčových stakeholderov pre potrebu metódy AHP v kontexte so SZP a návrh využitia softvéru Expert Choice v stratégii SZP priemyselných podnikov

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