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Bulgaria

The role of CSR

Since Bulgaria joined the EU, companies have shown much greater interest in CSR. Bulgarian companies are becoming more and more involved in promoting the principles and policies of social responsibility, although only about one-third of them are currently participating.
 
In view of the current crisis, companies, NGOs and the Bulgarian government are continuing their efforts to develop and encourage corporate social responsibility, for example through the national strategy for CSR (2009–2013), which was approved by the previous government.
 
Thirty-six projects in a variety of categories have been nominated for an award given to socially responsible companies. Thus even in a climate marked by financial crisis and an economic slowdown, it is evident that companies in Bulgaria see social engagement – in such areas as education, healthcare, animal welfare and the environment – as a fundamental part of their business practices, and not merely as a temporary marketing strategy.

This topic is also covered in the Bulgarian media.

International organizations and intermediaries play a relatively important role in promoting CSR in Bulgaria. GTZ has been holding regional CSR conferences for five years. The German-Bulgarian Chamber of Industry and Commerce (DBIHK) conducts workshops where member companies can showcase their CSR activities. The German embassy is also involved in organizational aspects of CSR.

Source: German Embassy, Sofia

 

CSR understanding

Popular attitudes toward government have been shaped by 500 years of Turkish occupation (until 1878), with the resulting negative effects on the country’s development, as well as by the years of Communist rule (1944-1990). Citizens do not participate in the state, nor do they expect much from it, which places the burden of social responsibility on companies.  
The Communist regime banned any kind of grass-roots initiative as well as religious and charitable activity. This prevented the development of an environment that might have been conducive to CSR efforts. It was not until Bulgaria joined the EU that legal requirements forced entrepreneurs to take greater responsibility in social and environmental matters.
There is little expectation that religious groups will affect corporate behavior, since their socially relevant initiatives are limited.

Source: German Embassy, Sofia

Expectations towards companies

Not surprisingly, the expectations of policymakers and Bulgarian society are primarily market-oriented. German companies are known for such so-called German virtues as industriousness, punctuality, order and social commitment.

Accordingly, Bulgarian society tends to expect these companies to exert a similar influence on their business environment. Expectations focus on environmental protection, specialized training and regional structures.

Source: German Embassy, Sofia

Basic conditions

Implementation of the ILO labor standards

Since joining the EU, Bulgaria has been subject to the social standards that apply to all of Europe. The core labor standards are part of Bulgaria’s constitution and labor code. Article 49 of the constitution and Article 4 of the labor code guarantee freedom of association; Forced labor is prohibited by Article 48 (4) of the constitution; and Chapter 1, Article 8 of the Labor Code bans discrimination with respect to employment and occupation.

In 1991, Bulgaria ratified the Convention on the Rights of the Child, which was adopted by the General Assembly of the United Nations on November 20, 1989.
A National Strategy for Children (2008-2018), based on the principles of the convention, was adopted in 2008.  

Business initiatives

GLOBAL COMPACT NETWORK

Contact on site:
UNDP
Ms. Maya Nyagolova
UNDP Program Analyst
(+359 2) 96 96 167
maya.nyagolova (at) undp (dot) org

GC Office Country Coordinator
Ms. Nessa Whelan
E-mail: whelan (at) un (dot) org

Areas of activity

Poverty

Areas for action include basic vocational training and adult education for minority groups (Roma).  Companies might also provide support for children’s homes and soup kitchens for the elderly and other needy individuals.

Basic information

  • Life expectancy: Total population: 72.83 years; males: 69.22 years; females: 76.66 years (2008 est.)
  • Infant mortality: Total: 18.51 deaths/1,000 births; males: 22 deaths/1,000 births; females: 14.8 deaths/1,000 births (2008 est.)
  • Malnutrition: 8% (2002/04)
  • Access to clean water: 99% (2004)
  • Access to sanitary facilities: 99% (2004)
  • Human Poverty Index: NA
  • Gini Index: 31.6 (2005)
  • Population below the poverty line: 14.1 % (2003 est.)

Participants

Those involved in this area tend to be large companies such as Metro and Balkan Star Automotive, organizations involved in development cooperation (GTZ, CIM, etc.) as well as NGOs, chambers of commerce and foreign trade, trade associations such as the Bulgarian Business Leaders Forum, trade unions, ministries (Ministry of Labor and Social Policy) and political foundations (such as the Friedrich Ebert, Friedrich Naumann, Konrad Adenauer and Hanns Seidel Foundations).

GTZ in Bulgaria
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/652.htm

CIM Bulgaria
http://www.cimonline.de/en/worldwide/343.asp

German Bulgarian Chamber of Industry and Commerce (DBIHK)
http://bulgarien.ahk.de (German)

Bulgarian Chamber of Commerce
http://old.bia-bg.com/?lang=en

Konrad Adenauer Foundation, Bulgarian office
http://www.kas.de/proj/home/home/43/2/index.html

Company examples

Prijateli

The Bulgarian foundation Prijateli, which is funded by German organizations (Aktion Mensch, Die Johanniter, Diakonie, Kerstin Heim), is supporting efforts to establish a system of Bulgarian foster families by holding workshops, having relevant books translated into Bulgarian, etc.

Agapedia

The German foundation Agapedia opened an emergency care center for children in May 2010, and in the fall it plans to launch a two-year foster family program, financed by the state-level foundation Landesstiftung Baden-Württemberg. 

Militzer & Münch

Militzer & Münch Bulgarien EOOD provides donations for the Nikola Vaptsarov orphanage in the city of Roman/municipality of Vratsa.

Henkel

Henkel Bulgaria has donated specialized technology for hearing- and vision-impaired children.
 

Source: German Embassy, Sofia

Education

Bulgaria’s educational sector is generally well developed; the standard of most schools and universities is high.

Efforts are urgently needed to ensure that Roma children attend school as required by law. Action is also needed in the area of basic and advanced vocational training. A lack of training for skilled workers is an urgent problem for the country’s economic development.

Until the collapse of the socialist regime, non-university training was provided by vocational schools.  At present Bulgaria lacks a vocational training system that can compare to Germany’s dual system, and this, combined with an increase in job-related migration, has led to a lack of qualified workers in Bulgaria.

Basic information

  • Public spending on education (share of GDP): 4.5% (2005)
  • Compulsory school attendance: 7–16 years of age
  • Rate of school enrollment: 95% of children who are required to attend school (2004)
  • Literacy (definition: those over the age of 15 who can read and write): Total population: 98.2%; males: 98.7%; females: 97.7% (2001 census)
  • HDI Education Index: Rang 53 out of 177 (1 = max., 0 = no education)
  • Average years of education: Total population: 14; males: 13; females: 14 (2006)

Opportunities and risks
Much more could be done to remedy the lack of skilled workers if companies were more involved in vocational training; unless such efforts are made, this will be an increasingly serious obstacle to investment.

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in Bulgaria
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/652.htm

CIM Bulgaria
http://www.cimonline.de/en/worldwide/343.asp

German Bulgarian Chamber of Industry and Commerce (DBIHK)
http://bulgarien.ahk.de (German)

Bulgarian Chamber of Commerce
http://old.bia-bg.com/?lang=en

Konrad Adenauer Foundation, Bulgarian office
http://www.kas.de/proj/home/home/43/2/index.html

Company examples

GTZ

GTZ is working with two German companies and a Bulgarian company on a model project to raise the standard of vocational training throughout the country.  The companies involved are:

  • PirinTex
  • Liebherr household appliances
  • Overgas

Siemens EOOD

Siemens is providing financial support for an educational program, called Generation 21, for gifted children and young people. It is also donating its Discovery Box to preschools, with the goal of stimulating interest in science and technology at an early age.

Source: German Embassy, Sofia

Health

With only a few exceptions, conditions in Bulgaria’s healthcare facilities are deplorable. These facilities lack essential equipment for providing adequate care to patients. Physicians and other members of the medical staff are paid relatively low salaries, leading to widespread corruption, particularly among specialized physicians in public hospitals, and encouraging emigration.

There are ample opportunities for German companies to become involved in this area. They could, for example, donate hospital equipment or build care facilities or homes for the elderly.

Basic information

  • Public spending on health (share of GDP): 4.6% (2004)
  • Medical care: 365 physicians per 100,000 residents (2000-2004)
  • Maternal mortality: 6 deaths/100,000 births (1990-2004)
  • HIV/AIDS prevalence rate (>15 years of age): <0.1% (2001 est.)
  • HIV/AIDS sufferers: 346 (2001 est.)
  • HIV/AIDS deaths: 100 (2001 est.)
  • Life expectancy: Total population: 72.83 years; males: 69.22 years; females: 76.66 years (2008 est.)

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in Bulgaria
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/652.htm

CIM Bulgaria
http://www.cimonline.de/en/worldwide/343.asp

German Bulgarian Chamber of Industry and Commerce (DBIHK)
http://bulgarien.ahk.de (German)

Bulgarian Chamber of Commerce
http://old.bia-bg.com/?lang=en

Konrad Adenauer Foundation, Bulgarian office
http://www.kas.de/proj/home/home/43/2/index.html

Company examples

The fundraising campaign Balgarskata Koleda (Bulgarian Christmas) is held each year at the initiative and under the patronage of Bulgaria's president. Donations are used to finance medical treatment for critically ill children and to purchase technical equipment for hospitals.

Through the foundation Iskam Bebe, Aquachim EOOD is supporting several initiatives in the healthcare sector, as well as the Institute for Reproductive Health.

Metro Cash and Carry Bulgaria has donated an electrocardiograph to the hospital in Plovidiv.

Source: German Embassy, Sofia

Environment

In general, awareness of environmental issues is still relatively limited in Bulgaria.  Nevertheless, there are a number of active environmental organizations, focusing particularly on renewable energy sources, genetically modified foods, nuclear power, animal welfare and conservation of the shoreline and mountain regions.

Basic information

  • CO2 emissions: 0.1% of total world output (2004)
  • CO2 emissions per capita: 5.5 metric tons (2004)
  • Energy consumption: 37.4 million kWh (2006)
  • Water consumption (households/industry/agriculture): Total: 6.92 km3/year (3%/78%/19%); per capita: 895 m3/year (2000)
  • Hydropower, solar, wind, geothermal energy: 2.0 % of primary energy consumption (2005)

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in Bulgaria
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/652.htm

CIM Bulgaria
http://www.cimonline.de/en/worldwide/343.asp

German Bulgarian Chamber of Industry and Commerce (DBIHK)
http://bulgarien.ahk.de (German)

Bulgarian Chamber of Commerce
http://old.bia-bg.com/?lang=en

Konrad Adenauer Foundation, Bulgarian office
http://www.kas.de/proj/home/home/43/2/index.html

Company examples

Natural disasters (e.g. floods): EON

Source: German Embassy, Sofia

Other

  • Infrastructure development: Aquachim, Liebherr
  • Religion (support for churches and monasteries): Kraiburg Bulgaria, Aquachim, Evrokamion
  • Culture (e.g. community festivals, cultural foundations, folk dancing classes, cultural/information centers, monuments and memorials, publications, museums): Wall, Aquachim, Evrokamion, Metro
  • Sports (programs for preschoolers, soccer teams, tennis activities, donations for athletic apparel): Pirin Tex, Evrokamion, Wall
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Data & facts

Country: Republic of Bulgaria
Capital: Sofia
Area: 110,099 km²
Population: 7.7 million (2006)
Economic system: Free market economy
Polity: Parliamentary republic
Unemployment rate: 7.7% (2007 est.)
Inflation rate (CPIX): 7.6% (2007 est.)
GDP: 39.61 billion USD (2007 est.) = 31.36 billion EUR
GDP/Head: 11,300 USD (PPP, 2007 est.) = 8,936.32 EUR
Religions: Approx. 6.8 million Bulgarian Orthodox, approx. 790,000 Muslim, approx. 50,000 Catholic, approx. 20,000 Protestant, approx. 5,000 Jewish (December 2003)
HDI: 53rd of 177 (2007/2008)
CPI: 64th of 179 (2007)
BTI: Status Index: 15th of 125; Management Index: 13th of 125 (2008)

Further links

Further studies