The Impact of Multinational Companies from Romania on Increasing the Level of Corporate Social Responsibility Awareness

The Romanian business scene has recently borrowed the concept of corporate social responsibility (CSR), and this evolution was due to the presence of multinational companies (MNCs) that implemented new practices and activities in this area. Our paper aims to provide a presentation of social responsibility in Romania, based on public reports of multinational companies, studies and reports of several institutions involved, foreign and Romanian literature or websites and other media sources. After a short review of the literature on the CSR issue, we have described the main coordinates of CSR implementation within the Romanian business environment: authorities and institutions involved in the process, types of initiatives/actions undertaken by MNCs from Romania, and high priority domains of society that benefit from the support of MNCs. A general image of the stage of CSR development in Romania was captured by a strengths, weaknesses, opportunities and threats (SWOT) analysis on the subject. In the final section of our paper, we analysed the case of Petrom OMV Company, the top CSR player in Romania in recent years, in an attempt to prove that we can find remarkable examples of suitable practices and that these experiences must be disseminated within the overall Eastern European business environment.


Introduction
In recent years, there has been considerable interest in the process of globalization, which is fuelled worldwide by multinational companies (MNCs). These entities spread into every corner of the Globe and reshape economic activities and cultural values within the countries in which they set operations, regardless of geographical distances and boundaries (Kolk & Van Tulder, 2010).
Thus, debates encompassing the process of global-In Romania, the emergence of corporate social responsibility (CSR) concept is considered the result of two distinct, yet convergent, historical evolutions. The first is the expansion, in the late 90s, of multinational companies based in the Western world; these had the merit of introducing new practices and activities in this sphere. The second followed the moment of Romania's adherence to EU requirements in 2007, when companies were urged to adopt new business behaviour, in accordance with the requirements of the community acquis (Obrad, Petcu, Gherheş, & Suciu, 2011).
Our paper examines to what extent MNCs emerging in the Romanian business environment during the last 20 years can be considered disseminators of CSR best practices within the overall Eastern European region they operate in. The paper discusses three main research questions: (1) To what extent is the CSR concept beneficial to The paper is organized as follows. The next section is dedicated to the methodological aspects that supported the research strategy used within the paper.
Section 3 examines the general framework of the CSR concept by taking stock of the main streams from the literature; given the scale of the literature on the issue, the review is inevitably selective. Section 4 diagnoses the state of implementing the CSR concept in Romania with a special focus on the role performed by MNCs in the process. Section 5 provides a case study of CSR best practices within Petrom OMV, a highly performing MNC based in Romania and Austria. Finally, section 6 concludes.

Methodology
Our research employs both quantitative and qualitative approaches. In the first instance, we have gathered quantitative secondary data from publicly available sources: national and international reports, European research, academic research papers, on line platforms for CSR activities, websites and CSR studies of na-tional/international organizations, news websites and other on line media sources. Therefore, we performed a data mining process using an up-to-date series of documents and Internet sources, such as: (Anca, Aston, Stanciu & Rusu, 2011;Braun & Partners, 2009; Chamber of Commerce and Industry of Romania, 2007;European Commission, 2011;Iamandi, 2010;Săvoiu et al., 2010;Romanian Government, 2011).
Given our inquiries regarding the awareness and the state of completion of the CSR concept within MNCs from Romania, data extracted from the sources noted above were the basis of our desk research on the issue. Hence, we were able to build a broad image, at the macroeconomic level, of the stage of CSR adoption by the Romanian business environment. The validity of the information presented within this paper is supported by the probation of phenomena through multiple sources of information. However, every conclusion bears upon the subjectivity of the authors, as a matter of course.
Second, we have employed a qualitative approach using the case study method to explore "how" cer- terchangeably in different parts of the world to define the same concept. Nevertheless, the term corporate social responsibility is favoured among European companies in respect of previous failures, whereas in parts of the US, sustainability has anti-corporate connotations.
The term "corporate social responsibility" (CSR) was used before World War II, but in the 1950s, there were limited discussions on CSR. Thus, Abrams (1951) argued that, in a complex world, managers have responsibilities toward their employees, their customers and the general public, while Levitt (1958) warned the business world about the dangers of social responsibility. In 1953, for the first time, Bowen used the concept of "modern CSR" as the obligation for companies to "pursue certain policies, to take certain decisions or to follow those lines of action which are desirable in terms of objectives and values of our society" (Bowen, 1953 has not only economic and legal obligations but also certain responsibilities to society which extend beyond these obligations" (McGuire, 1963, p. 144).
Embracing a stakeholder approach, Harold L. Johnson argues that "a socially responsible firm is one whose managerial staff balances a multiplicity of interests; instead of striving only for larger profits for its stockholders, a responsible enterprise also takes into account employees, suppliers, dealers, local communities and the nation" (Johnson, 1971, p. 50). Manne & Wallich (1972) consider that, to exercise CSR, there are three basic activities involved: the setting of objectives, the decision regarding whether to pursue given objectives and the financing of these objectives. In 1980, Thomas M. Jones argues that CRS is "the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law and union contract".
In the 1990s, the CSR concept transitioned significantly to alternative themes such as the stakeholder theory, the business ethics theory and corporate citi-zenship. One of the major contributions to the interpretation of CSR arrived in 1991, when Donna J. Wood stated that "the basic idea of CSR is that business and society are interconnected rather than distinct entities; therefore, society has certain expectations for appropriate business behaviour and outcomes" (Wood, 1991, p. 695).
An extensive literature review on CSR definitions is provided by Carroll's (1999)  In more recent studies, corporate social responsibility, related to business ethics, is defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time" (Carroll & Buchholtz, 2003, p. 36).
With respect to profit oriented firms, there are mainly two different approaches on corporate social responsibility: the classical view (also known as the Agency Theory of CSR) and the socioeconomic view (also known as the social contract approach) (Rath & Gurtoo, 2012).
The first perspective argues that the goal of CSR is to maximize the profit for the company; it is also called the shareholder approach. This perspective was proposed for the first time by Milton Friedman (1962) and supported by other authors including (Barry, 2000;Coelho, McCLure, & Spry, 2003;Dvorak, Guth, Landers, & Zaun, 2000;Henderson, 2005;Jensen, 2001;Rappaport, 1998;Shirouzu, 2000;Sternberg, 1994;Sundaram & Inkpen, 2004 Thus, Perrini (2005) suggested that the idea of social responsibility is strongly related to the environment and community, while Steurer and Konrad (2009) argued that European companies exert efforts to improve the internal social environment to increase the potential and motivation of their employees.
In general, the methods of influence on companies' social behaviour vary from country to country. However, certain patterns can be identified that have a major impact on the evolution of the concept and the practice of CSR (Brammer, Jackson, & Matten, 2012 (Kolk & Van Tulder, 2010).
In the past decade, a number of significant studies were developed in Romania as well, highlighting specific aspects of CSR practices with specific approaches on the local environment.
There are several arguments for and against corporate social responsibility. Perhaps, the most known "economic" argument against CSR is that associated with Milton Friedman (Friedman, 1970), who has argued that the primary responsibility of business is to make a profit for its owners. The American economist and other authors have stated that "a corporation's purpose is to maximize returns to its shareholders and it does not have responsibilities towards society as a whole". The adversaries of CSR sustain that a free market economy cannot solve social problems; therefore, these issues must be addressed by governments, as they are govern-

Current state of implementing the CSR concept in Romania
In this section, we shall perform a brief analysis of the Even though few companies publish CSR reports or include in their annual reports activities regarding CSR.

Companies use CSR practices as a tactical instrument;
this is why most projects of this kind in Romania are for the short-term". (Dumitru, Ionescu, Calu, & Oancea, 2011). Therefore, as with any important concept that requires significant qualitative accumulation prior to assimilation, CSR was originally imposed in Romania as a fashion trend more than as a result of the awareness of all stakeholders (Iamandi, 2010, p. 176

For CSR Against CSR
The development of modern corporations has created many social problems. Therefore, the corporate world must assume responsibility for these problems.
Discussions related to the moral and ethical aspects of companies are not economically feasible. Companies should focus on creating profit for shareholders and leave social issues to more competent bodies in this regard.
Assuming social responsibilities benefits companies in the long run by increasing the chances of success for the business and reducing the chances of additional regulations from governments.
Those in the corporate world are not empowered to address social problems. Business executives and managers are generally not well trained in dealing with complex societal problems, and they do not have the knowledge or skills needed to address these issues. Large companies have huge financial and human resources, and they should use some of these resources to solve social problems.
Assuming social responsibilities places companies at a competitive disadvantage relative to those who choose not to assume such responsibilities. CSR is developed by the most environmentally damaging corporations to distract from corporate practices that are directed against people and the environment. Companies do "good" to compensate for what they do "wrong". CSR is another expression of capitalist domination and corporate power.  (Braun, 2009).
During the preparation of this study (April 2009), a large volume of documentary sources available in public spaces was accessed (web sites, annual reports, and documents). Using this information, an assessment of companies was possible in terms of social involvement, and a rating was determined on the basis of 7 criteria. In order, these criteria were as follows (Braun, 2009): • transparency and communication -providing information about the company, CSR reports publication; • corporate governance -transparency of CSR management; • relationship with interested parties -their identification and systematic bidirectional dialogue; • responsibility towards the environment -measurements of the materials used and of the emissions; • economic responsibility -equitable management of suppliers, transparency of the distribution of income; • society -strategic civil partnerships, donation transparency; • accountability in human resources -employees' health and safety systems, transparent system of performance evaluation.
The composite index CSR 24/7 CEE-100 calculated in the study measures the performance of regional com- 2009, which led to the conclusion that the average of the companies surveyed was only one quarter of the maximum achievable score. In particular, companies in Romania (which recorded a performance of 17%) and Bulgaria (15%) were in the initial stages of CSR performance and communication. At the opposite pole, the "top companies" were in Hungary (with a performance of 33%), followed by those from Poland (with a score of 26%) - Figure 1 (Braun, 2009  In the 2010-2012 period, the concern of researchers from the academic and business sectors and the gov-

Q.1. Who are the key actors in the field of CSR in
Romania? CSR-related activities involve a number of common responsibilities for a large number of actors, including public authorities, the private sector, society as a whole and educational institutes (Anca et al., 2011).

Strengths Weaknesses
• Aperture and the general interest of society for CSR and the relative novelty of the concept in the public space; • The existence of a transfer of know-how from the multinationals with a strengthened corporate culture towards the Romanian business environment in the sphere of implementation of CSR initiatives; • Continued growth in the number of CSR initiatives and best practices in this field at the national level; • The existence of modern communication platforms, networks, forums, blogs and websites, in the field of social responsibility as a source of information in this field and an instrument for the dissemination of the concepts and suitable practice of CSR in society; • The tendency of SMEs to switch from philanthropy work and volunteering to more advanced forms of intervention in the field of CSR, such as socially responsible corporate practices; • The orientation of CSR programs toward intervention areas "sensitive" from the perspective of Romanian society: community problem solving, environmental protection, education, etc.  tutions and public authorities continues to be reduced, and the role they assume is most often as a secondary partner and not the main promoter (Anca et al., 2011).
Representatives of employees and employers also contribute to fostering the implementation of responsible business practices. The Chamber of Commerce and industry is the actor in this category with the most visible presence on the scene of CSR initiatives; it provides the logistics required to implement related projects at the national and local levels through its regional offices. In  (Anca et al., 2011).

Q.2. What are the areas of intervention of CSR?
The website www.responsabilitatesociala.com exten- involvement is associated with a strategic approach, such as socially responsible corporate practices (Băleanu et al., 2011).

Petrom OMV -The top CSR player in Romania. A case study
Petrom is the largest Romanian oil and gas company, with activities in the following areas: Exploitation, Production, Refining, Marketing and Petrochemicals. Since    (Petrom, 2012). Hence, the

The Dimension Examples of phrases from the company's official documents
The Environ mental Dimension "To minimize the impact of our operations on the ecosystem, we are committed to sustainable resource management. These efforts include efficient use of water, proper waste treatment and disposal, sensitivity to areas of high biodiversity and prevention of harmful emissions" Sustainability Report, 2011 The Social Dimension "In 2011, Petrom has accumulated 5 years of projects dedicated to Romania -projects which are meant not only to reduce the impact the activity of the company has upon the Romanian community but also to help solve the problems of society as a whole. We started gradually -the first initiatives were focused on environmental protection and on the promotion of a responsible attitude towards natural resources. Then, we continued with important investments in the Romanian education system -from the reconstruction of schools to projects of non-formal education, which aim to open the students' horizons, as well as the teachers' horizons. There followed the support of the national health system through partnerships with the Ministry of Health and SMURD, trying to give a chance for life to as many people as possible by extending the telemedicine emergency system and rewarding doctors in Romania" Mariana Gheorghe, CEO Petrom, CSR Report Petrom 2011.

The Economic Dimension
"Looking back, 2011 was a year of exceptional operational performance and solid financial results for PETROM, although there were a number of external challenges. These achievements are the result of sustained, significant investments, of an efficient management of costs and operations as well as of favourable crude oil prices. Due to the commitment of our employees, we have continued to achieve results by capitalizing on the integrated business model of Petrom, the key element for the creation of value and one of our strategic directions. In this respect, we have successfully implemented programs to increase efficiency, and we continued to optimize our operations". Mariana Gheorghe, CEO Petrom, Annual Report Petrom 2011.

Stakeholders Dimension
"Stakeholder Engagement is an integral part of the Resourcefulness concept. Getting to know the interests and views of our stakeholder groups helps us identify future challenges and constantly improve our performance. Our stakeholders include investors, customers, employees, communities, suppliers, authorities and others. By engaging in dialog with all interested parties, our goal is to earn trust and build lasting relationships". Sustainability Report, 2011.
Volunteering Dimension "Through all the social responsibility programs, Petrom intends to promote volunteerism, both for workers and among the partners of the company. In 2011, in addition to the direct involvement of employees in specific actions organized by the company (such as planting, social campaigns, etc.), Petrom has created an internal platform through which employees can get involved in the development of the communities they live in by participating in voluntary initiatives of nongovernmental organizations, which are active in the region. Moreover, Petrom has continued to acknowledge and to reward the voluntary involvement of the staff in community projects through the "Volunteer of the Year" Award, granted to the most dedicated volunteer from Petrom at the end of the year during the Annual Meeting of the company's management. In 2011, in addition to 'The Volunteer of the Year ' , team work was also rewarded through a special award granted to the most reliable team of volunteers within the company". CSR Report Petrom 2011.  Dahlsrud, A. (2008) in Environmental Management, 15, 1-13. (1) Ţara lui Andrei.ro (Andrew's country.ro) -stimulates the direct involvement of citizens in solving the problems of the community they live in. Planting within "Ţara lui Andrei" is an activity related to the previously noted educational project that strives to provide more "green" on Romania's map by planting trees in areas affected by landslides or deforestation or in regions characterized by high levels of pollution; (2) Şcoala lui Andrei (Andrew's school) -coordinated by their teachers, students suggest solutions to solve the problems of the community; (3) tended each year, and they have greatly impacted both the education system and the protection of the environment. In the 2007-2011 period, more than 21,000 students and 1,500 teachers participated in the civic involvement lesson from the "Andrei's School" project.
Eight hundred solutions were proposed and implemented within the communities that applied for this project, and the awards for the re-equipment of the winning schools totalled 114,000 Euros; with this help, 14 other community projects were also implemented (Petrom, 2011a).
Moreover, 570,000 trees were planted on 100 acres of land under the projects "Andrei's Country", "Romania Grows Roots" and "I Drive, therefore I Plant!" In addition to stimulating civic initiative, the project

Conclusion
Currently, the CSR issue has become steadily rooted in the international business agenda. The research conducted thus far on the subject has focused mainly on MNCs from developed countries in North America and Europe; this largely overshadows the amplitude of the CSR phenomena in emerging markets (Li, Fetscherin, Alon, & Lattemann, 2010). This article attempts to fill the gap by focusing on the CSR awareness (5) From a practical perspective, it is worth noting the paradigm change from the philanthropic CSR ap-proach to the strategic CSR approach, which is obvious at the national level, and in Petrom's case, this entails a more powerful contribution of the company to the welfare of Romanian society.
A future avenue of research that we intend to explore is the possibility of developing a theoretical model to establish the thematic representation of the best CSR programs and activities, which may be followed by other companies operating in similar branches or in affiliated sectors.