British Chamber earns service award

Despite a bottom line that's getting harder to balance, the business community in Prague maintains a healthy interest in philanthropy, if a recent award given to the British Chamber of Commerce Czech Republic is any indication. The chamber was recognized as having the best Corporate Social Responsibility (CSR) program by the Council of British Chambers of Commerce in Europe's 2009 Chambers of the Year awards, an organization that counts 31 chambers as members. Chamber Chairman Eva Williams, who also heads the chamber's CSR committee, spoke to The Prague Post about the crucial role CSR activities play in corporate cultures.

The Prague Post: Why do you think the chamber got this award?

Eva Williams: We definitely got it for our overall approach to CSR. We've created a big tradition of CSR at the chamber, starting four years ago when we established our CSR committee. Since then, we've had a policy of trying to involve members in CSR activities, and I think this award recognizes the efforts we've put into making CSR one of our priorities.

TPP: Many of the larger, international companies have brought the idea of CSR to their offices in the Czech Republic. Have Czech companies embraced the same activities?

EW: We tend to look at it as relatively new; compared with other Western countries, it hasn't been here that long. CSR was brought here by foreign businesses investing in the Czech Republic, yes, but that's not entirely fair to say because it's a mix between Czech companies and British companies. Every year, we see more Czech businesses trying to follow the example of international companies. For Czech businesses, in the beginning, it is more of a challenge because they can't just copy and localize a mother company's CSR plan. They have to create something for themselves.

TPP: What are some of the chamber's specific charitable projects?

EW: A lot of it is education; we hold seminars for members almost twice a month that target a broad spectrum of all members from junior to senior levels. I think the biggest project, which we probably got the award for, was a project we do with the Dutch Chamber. We organize a conference for NGOs and set up a forum where they can link with the business world so they can get either direct help from businesses or just help through education, coaching programs or financial advice.

TPP: Beyond the corporate definition of CSR, what does social responsibility mean to you personally?

EW: I've been working in this area quite a lot - not just through the chamber but also at Tesco. To me, it's a very basic thing that just makes sense. It has to be part of a company's DNA. You have to have the right people in the chambers or businesses who associate themselves with CSR and make it a part of the same targets [such] as achieving a balanced budget, having the right HR policies or having the right customer approach. It should be part of the scorecard for companies, the work a company does for its community.

TPP: Obviously, CSR activities benefit the charities and organizations that are involved with the businesses. How does CSR benefit the companies?

EW: The biggest benefit is for the employees themselves. It benefits them because they have a good feeling that they're working for the right company. It helps employees be happy to identify themselves with the brand or the company they work for, and a happy employee means a successful business. On another level would be how the company is perceived externally. The reputation of businesses is becoming more and more important, even in the Czech Republic. Businesses have to protect their reputations legally, and also through marketing and the media, and CSR definitely helps build the reputation that customers are looking for more and more often.

TPP: Do businesses typically try to keep their CSR activities as local as possible, or do you try to benefit larger, global charities, as well?

EW: We work with local NGOs as well as bigger NGOs that have links to or are based in Britain. For example, the Sue Ryder foundation is not originally Czech. It's British, but its activities are local, and they help people here in the Czech Republic. I think that's another essential: You should be seen contributing back to the country or community you operate in. That doesn't mean you don't help other countries that need it, but there should definitely be an emphasis on local philanthropy.

TPP: Are you concerned that companies will cut back on CSR activities during the recession?

EW: I've been talking to some of the NGOs and companies, and, yes, I think [CSR activities] have been impacted like probably everything [else]. Unfortunately, when businesses look at budgets, the first thing that goes is training, then NGO sponsoring. It's the same really even in the state budget. I read recently the government is considering cuts in this area, so that's another hit the nonprofit sector will get. It's getting harder and harder for them to justify to companies why they should sponsor them, and they're having trouble even sustaining projects they've already started.

TPP: Many large corporations have gotten black eyes from their activities before the recession, AIG for example. Would increasing CSR activities be attractive to companies who want to re-establish reputations?

EW: If the crisis makes people escalate CSR activity, that would be a great outcome. To be honest, more and more people talk about the crisis as a good thing because it has made many businesspeople realize there was a ceiling for greed. If you hit that ceiling and have to come down before going back up, on the way, if you realize maybe more charitable or more generous activities would help you feel better about what you do or help your reputation, that would be great a outcome of the crisis.

TPP: What do you get out of CSR personally?

EW: If you work in a corporation, like I have for all my life, you kind of feel you want to balance it out and feel a little bit more human. CSR really fulfills that objective for me. By being active in philanthropy, I can get out of the corporate world and talk to people in small businesses, in NGOs, and in completely different areas than corporations. It doesn't always have to be a big project, but being in touch with people and helping out with little problems makes me happy.

Claire Compton can be reached at
ccompton@praguepost.com