The Bulgarian Business Leader’s Forum (BBLF) is a good example of how CSR and corporate giving, specifically, is evolving - and stumbling - across the Balkans. Twelve multinational companies and NGOs, inspired by the dream of business ethics, created this organisation in 1998 to spread the word about transparent profits, long-term vision and sustainability. In 2005, the BBLF produced a responsible business directory, which included a special report on CSR in Bulgaria. The directory was a big step - it provided proper credit and recognition for hundreds of businesses with well-developed policies. Indeed, BBLF found that Bulgarian businesses were very socially responsible and quite generous as well, but no one knew, because they’re often unwilling or unable to share their actions with the public.
One reason is strict media regulations - a public statement could be considered an attempt to get unpaid advertising. Too, particularly in smaller towns, if a firm is operating “in the shadows” without lawful accounting compliance, they are logically less likely to expose themselves. Finally, according to many, corporate giving lacks a true “frame of reference”. Companies aren’t sure how a donation will reflect their reputation. Did we give enough? Did we give to the right charity? What are other companies doing?
This is where Bulgarian Charity Aids Foundation (BCAF) gets involved. Along with their active philanthropic programmes for individuals, businesses and organisations, BCAF advocates for a sustainable non-profit sector and responsible corporate giving (i.e. tax effective methods, transparency and beneficiary satisfaction). To achieve this, they provide research, analysis, legal statements, media work and awareness-raising reports. For example, in 2005, BCAF worked with the Ministry of Justice and the Ministry of Finance to balance regulative measures. In addition, they created www.bgblago.com, arguably the country’s best resource for stats, facts, trends, legal updates, tax information, methods, and models on philanthropy in Bulgaria.
But according to BBLF’s directory, perhaps the biggest obstacle to public announcement was linked to moral and Christian values. Many believe that a good deed is no longer a good deed if it’s done for the wrong reasons. Therefore, Bulgarians are hesitant to “brag” about such “charitable” initiatives.
And that’s why it’s important to draw a small but significant line between charity and philanthropy. As Claire Gaudiani said in her book The Greater Good: How Philanthropy Drives the American Economy and Can Save Capitalism, charity is about easing symptoms of distress while philanthropy is about investing in solutions to the underlying problems. Hence, the latter is actually less about pity and more about practicality. And freely reported corporate giving would set a professional standard, not only helping this worldwide trend to take hold, but ensuring local NGOs a life beyond EU accession when most of the country’s aid organisations pack up their cavalry, set their sights on a less developed country and head off into the sunset.
Global Compact universal principles
HUMAN RIGHTS
Principle 1: Support and respect the protection of international human rights within their sphere of influence; and
Principle 2: Make sure their own corporations are not complicit in human rights abuses.
LABOUR STANDARDS
Principle 3: Freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labour;
Principle 5: The effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect to employment and occupation.
ENVIRONMENT
Principle 7: Support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility;
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
ANTI-CORRUPTION
Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.
