ࡱ> _bjbj,E,E .N/N/.b  *R|<8|ad  pzziii```````$cf:`%ii%%`zza555%X zzN5%`55fKjMz)n0/L:LNa0aTLf|2f4jMfjMLi9 5;"#iii``85viiia%%%%fiiiiiiiii : Social Responsibility on the example of a family business Atlantic group d.d. Ivan Peronja, PhD, ID E7X177 University of Split, Faculty of Maritime Studies, Croatia,  HYPERLINK "mailto:iperonja@pfst.hr" iperonja@pfst.hr Senka Borovac Zekan, mag.oec., University of Split, Department of Professional Studies, Croatia, sborovac@oss.unist.hr Luka Vuki, mag.eng. University of Split, Faculty of Maritime Studies, Croatia Helena Uki,mag.eng. University of Split, Faculty of Maritime Studies,Croatia Abstract Focus of this thesis is on Corporate Social Responsibility (CSR), defining it as a subject, showing different areas and ways of conduct, and is explained more specifically through the example of a family company Atlantic grupa d.d. This way the actuality of the topic is described and brought closer, there fore this paper implies greater use and expansion of such business conduct. Keywords: social responsibility, family company, sustainable development INTRODUCTION Corporate social responsibility as a complex area of operations encompasses a wide range of definitions, depending on the method of understanding and perception of the individual authors. However, something is common to all the visions and definitions of the concept of CSR, and that is voluntariness, i.e. companies own desire to engage in something 'good' and often unprofitable. This vision of business as a way of achieving the realization of the needs of a company, but also society, has been expressed for a long time, and is a very important part of the business strategy of each company that wants to be successful and achieve long-term gain and prosperity. The concept of corporate social responsibility was covered through the example of operations of the family company Atlantic Grupa d.d. as one of the most dynamic business systems in the region, which carries out a significant portion of its business in the EU. THEORETICAL DEFINITION OF CORPORATE SOCIAL RESPONSIBILITY The idea of corporate social responsibility, in theory, appears for the first time back in 1899 in the work "Gospel of Wealth," by Andrew Carnegie. He was the first to speak of the need for enterprises to help, contribute and by their actions improve the society and environment in which they operate. Besides him, at that time more significantly stand out the doctrines and principles of 'humanity and custody' that were much more dominant. This refers to the liberalism doctrine of Adam Smith, according to which the only obligation of the company is to generate profit, while the rest will be resolved by the so-called 'invisible hand' of the free market. The modern concept of CSR appears only since 1950. It covers and analyzes key issues related to ethics and ethical behavior, and moral principles. It covers these aspects with the issues of product safety, honesty in the field of marketing, employee rights, the possibilities of progress at work, and environmental protection and similar issues. Development trends and the stabilization of the concept of CSR in entrepreneurial practice significantly contributed to various upheavals and movements such as: the movement for human rights, the activities of organizations for the protection of consumer rights, the establishment of organizations for the protection of the environment, etc., which have been intensified in the 1960s. Social responsibility, a relatively new concept in the business, to a large extent shaped in the 1960s, includes the obligation of management to decide on solutions and choices and take action that will contribute to the welfare and interests of society and the company. In other words, social responsibility means to distinguish right from wrong and doing right. Corporate social responsibility is a concept in which an entity decides to voluntarily contribute to a better society and cleaner environment, in interaction with other shares. CSR is a concept whereby companies integrate the care for society and the environment in their business and in their mutual relations on a voluntary basis. Being socially responsible means not only to fulfill legal obligations, but also beyond that, to invest in human capital, environment and relations with shares. Corporate social responsibility (CSR) is the commitment of the company to improve the well-being of the community through discretionary - voluntary - business practices and contribute at the expense of their own resources. The most important element of this definition is an expression is voluntariness. Definition of the World Business Council for Sustainable Development, in accordance with the focus of the organization on economic development, explains corporate social responsibility as the ''company's commitment to support the sustainable economic development, and that, in order to improve quality of life, it works together with employees, their families, local communities and society in general. '' Organization Business for Social Responsibility defines corporate social responsibility as ''business in line with the ethical, legal and business expectations, and also with what society expects from companies or even surpasses such expectations. Some of the key events that have influenced the development of social responsibility: 1972 - first UN Conference on Environment and Development, Stockholm. 1982 - Established BITC (Business in the Community). 1987 - Report of the UN Commission on Environment and Development - "Our Common Future", that same year Round Table in Caux was in session and Sustain Ability was founded. 1990 - established IBLF (The Prince of Wales International Business Leaders Forum). 1991 - formed a group for the economy of Amnesty International. 1992 - founded WBCSD (World Business Council for Sustainable Development) and BSR (Business for Social Responsibility). In the same year there was a UN Conference in Rio de Janeiro where AGENDA 21 was created. 1995 - CSR Europe was founded. 1996 - ISO 140010; World Economic Forum - Department of corporate citizenship. 1997. SA 8000. 1998 - appointed the first minister for CSR in the United Kingdom. 1999 - Global Sullivan Principles. 2000 - UN global agreement. 2001 - Green Paper of the EU. 2002. - World Summit on Sustainable Development in Johannesburg/South Africa. In accordance with the response of companies to specific social demands, developed are four types of strategies: A) Obstructive Strategy Companies that accept obstructive strategy deny responsibility in an effort to maintain the status quo strategy. B) Defensive Strategy This strategy uses legal means and marketing campaigns to avoid acceptance of additional responsibilities. C) Adaptive Strategy Adaptive strategy means that the company accepts (often under pressure) social responsibility for its actions, trying to meet the economic, legal and ethical responsibility D) Proactive strategy The implementation of this strategy means that the company takes the lead in social issues by defining a social responsibility program that serves as a model for others. Figure 2: Continuum of strategy  Source: Buble, M. Principles of Management, Sinergia-nakladnitvo d.o.o., Zagreb, 2006. Business for Social Responsibility, one of the leading non-profit organizations in the world, provides businesses with information, tools, training and advisory services in connection with linking social responsibility and relevant business and strategy. Based on its research and experience it can be concluded how the companies have made a variety of benefits, such as, among others: - increase of sales and market share - strengthening the position of the brand - enhancing corporate image and influence - strengthening the ability to attract, motivate and retain employees - reduce operating costs - increase the attractiveness for investors and financial analysts. INTRODUCTION OF CORPORATE SOCIAL RESPONSIBILITY IN CROATIA Socially responsible business practices in Croatia were created under the influence of a number of different factors, some of which are specific to Croatia, others have a more international character, some historically grounded, and others contemporary. The concept of environmental protection is perhaps the clearest example of how the global CSR trends have influenced the existing orientation of the Croatian environment. Transition shock has resulted in an unprecedented lowering of earnings and decreasing levels of health and well being. In Croatia, as well as in the former Yugoslavia, the transition was affected by war, destruction, the rise of nationalism among ethnic groups and forced relocation of large scale. Only since 1995 we can talk about the existence of territorial 'normalization' in Croatia. That same year, some of the businessmen, led by Pliva d.d., and encouraged by a non-governmental organization Society For Improving the Quality Of Life held a 1995 initiative meeting of interested companies for the establishment of the Croatian Business Council for Sustainable Development. While in 1997, encouraged by collaboration with the World Business Council for Sustainable Development (WBCSD), they achieve a concrete result, namely established the Croatian Business Council for Sustainable Development (CBCSD), only with the financial support from the European Commission, on 1 July 2010, started the implementation of projects for the establishment and development of the National network for the development of corporate social responsibility with the main aim of increasing awareness of the importance of corporate social responsibility (CSR) in Croatia. Social responsibility management, as one of the most complex forms of management, is tightly integrated into the business practices of those progressive companies who do not hesitate to take a leadership role in their respective markets. On the other hand, never before have companies been under such pressure from the public, which due to the development of modern technology has unlimited sources of power and knowledge. Therefore, expectations have grown significantly in recent years, and even on a relevantly small market such as the Croatian, so evermore directly there is a request for responsible behavior of business entities by different stakeholders, whose numbers are growing each day. Enterprises in Croatia have at their disposal a number of documents, tools and organizations that provide a framework for corporate social responsibility, and we will state: HR PSOR INDEX OF CSR UN Global Comapt GRI - Guidelines of the Global Reporting Initiative Guiding principles of the United Nations on entrepreneurship and human rights OECD guidelines Standard ISO26000 ILO MNE Declaration These instruments and documents are not legally binding, but provide extremely important guidance for companies. Stakeholders increasingly expect the companies to adhere to the principles given in these documents and terms. CORPORATE SOCIAL RESPONSIBILITY OF THE COMPANY ATLANTIC GRUPA D.D. Atlantic Grupa operates as a vertically integrated multinational company whose business activities include research and development, production and distribution of consumer goods in South-Eastern Europe, European markets and Russia and the CIS (Commonwealth of Independent States). Since its inception in the early 1990s, the Group carried out a development strategy based on a combination of organic growth and acquisitions culminating in the largest acquisition in the history of the group - the acquisition of Droga Kolinska in 2010. Today, Atlantic Grupa is a company with: sales revenue of 5.1 billion kuna, modern production network (in Croatia, Germany, Serbia, Bosnia and Herzegovina and Macedonia) developed regional distribution, 12 brands with sales above 120 million kuna, high market shares and recognizability. Atlantic Grupa has a balanced presence in the region in which it accomplishes 76% of its total sales, while 24% refers to the presence of the company in Europe and the CIS countries. From 2014 model of the Atlantic Grupa was organized through six strategic business units (SBU), a business area (BA), five strategic distribution areas (SDA) and two distribution units (DU), which have enabled the company a more efficient management of production and distribution activities . Today, the Atlantic Grupa stands out as one of the leading food manufacturers in the region with prominent brands in the segment of coffee - Grand Kafa and Barcaffe, with a range of brands from the beverages segment - Cockta, Donat Mg, Cedevita Cedevita GO!, Kala and Kalni ka, with a portfolio of brands from snacks segment - Smoki, Best wishes and Bananica and Argeta brand in the savory spreads segment. In addition, Atlantic Grupa has a broad product portfolio in the segment of personal care, the owner is the leading Croatian manufacturer of vitamins, minerals, dietary supplements and non-prescription drugs as well as the leading pharmacy chain in Croatia under the brand Farmacia. In addition, Atlantic Grupa produces and distributes Europe's leading brand in the sports nutrition - Multipower and has a strong presence in the market of Russia and CIS countries with a portfolio of baby food under the brand Bebi. With its own distribution network in Croatia, Slovenia, Serbia and Macedonia, the company also distributes a range of products of external partners. Figure 4: Historical development of Atlantic Grupa NATIONAL COMPANY1991 Establishment of the company Atlantic Trade d.o.o. and development of distribution of consumer goods Establishment of cooperation with the company Wrigley 1992 Opening of the Distribution Center Split 1994 Opening of the Distribution Center Osijek and Rijeka 1996 Cooperation with the company Procter & Gamble 1997 Investment in the Ataco distribution system in Bosnia and Herzegovina 1998 Launching of Montana, the first Croatian sandwich with prolonged freshness into widespread distribution 1999 Establishment of cooperation with the company Johnson & Johnson REGIONAL COMPANY2001 Establishment of a representative office in Bosnia and Herzegovina Establishment of a distribution company Atlantic Trade d.o.o. Serbia Acquisition of the company Cedevita d.o.o. Establishment of cooperation with the company Ferrero 2002 Establishment of the company Atlantic Grupa d.o.o. 2003 Acquisition of the company Neva d.o.o. Establishment of a distribution company Atlantic Trade Skopje d.o.o. 2004 Establishment of a distribution company Atlantic Trade d.o.o. Ljubljana Acquisition of the brand MelemEUROPEAN COMPANY2005 Acquisition of the German manufacturer of sports food Multipower 2006 Establishment of a representative office in Moscow Transforming Atlantic Group into Joint Stock Company 2007 Acquisition of the company Fidifarm d.o.o. Acquisition of the company Multivita d.o.o. Listing stocks of the company Atlantic Grupa d.d. on the regulated market of the Zagreb Stock Exchange 2008 Acquisition of pharmacies and forming of a pharmacy chain Farmacia 2010 Acquisition of the company Droga Kolinska d.d. Acquisition of the company Kalni ke Vode Bio Natura d.d. 2013 Establishment of cooperation with the company Unilever 2014 Signing the agreement to purchase the company Foodland d.o.o., Serbia Source: Website of Atlantic Grupa d.d., at:  HYPERLINK "http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf" http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf (02/2017) Corporate management Atlantic Grupa represents a successful business system with businesses in Southeast Europe, European West, as well as the East. In relations towards all shareholders responsibility is an integral part of the development strategy of the company, and with the growth and expansion of business expands the range of responsibilities towards the internal and external environment and awareness of the opportunities and the need for its own impact on improving general conditions around us. Special attention is paid to the construction of a unique corporate culture that respects individual differences and encourages cooperation and synergies between different segments of production, innovation, marketing and sales. The core values of corporate culture rely on the symbolism of the three basic elements of nature: sun (passion), wave (creativity) and mountain (growth). By creating a healthy and stimulating work environment for the employees we seek to enable more then just a job - many programs developed within the system are dedicated to the development of human resources and career in the company, as well as performance management and appropriate rewarding of excellent results. Since its inception, Atlantic Grupa based its business activities on the Code of Corporate Governance which has, especially since the release on the Stock Exchange in 2007, significantly improved standards of business transparency in line with EU directives and positive Croatian legislation. Atlantic Grupa is also a signatory to the Code of Business Ethics, and in 2007 it joined the UN Global Compact initiative. When we talk about caring for the environment, we can say that it has in the system consistent with EMS (Environmental Management System) expanded from the local approach to the corporate level, with the main focus on sustainability and protecting the future. The main activities in this area, originating from three dimensions - environment and energy efficiency, people and society, and governance, Atlantic Grupa made significant progress towards sustainability. The system of sustainable environmental management is based on a well thought out and efficient use of natural resources, using environmentally friendly technologies in the production, reduction of waste and lower consumption of energy and water. International certificate of environmental management ISO 14001 proves that the environmental management system is in compliance with the best practice standards, and a report issued in 2014 in accordance with the guidelines of the GRI 4 testifies that this is a continuously progressive regional company based on the criteria of transparency. Atlantic Grupa, as a part of the wider community, is aware of the importance and needs of its own impact on the improvement of social conditions in general, promoting the right values and the need to invest a part of its profits back into the community. Besides the donation projects in a wide range, also significant are sponsorship activities, primarily when it comes to the promotion of sports and healthy way of life and growing up. The largest systematic, structured and comprehensive engagement in this regard is invested in supporting projects such as the basketball club Cedevita, where in addition to being the main sponsor, through the school of basketball the company brings together more than a thousand children and young people with the aim of promoting true values among the new generations. Atlantic Grupa is also an active participant and organizer of a number of humanitarian actions and it systematically supports a whole range of organizations and associations concerned with the protection and assistance to vulnerable social groups. Owner structure Atlantic Grupa has a stable ownership structure, with 50.2% of the company owned by Emil Tedeschi, 8.5% of the company owned by the European Bank for Reconstruction and Development, 5.8% of the company owned by Lada Tedeschi Fiorio, while pension funds hold 20.3% of the Atlantic Grupa. In November 2014, the German Development Bank - DEG reduced its share in the ownership structure from 8.5% to 2.3% in the process of accelerated listing. The structure of corporate governance of the Atlantic Grupa is based on a dualist system, which consists of the Supervisory Board and the Management Board. Together with the General Assembly, in accordance with the Statute and the Companies Act, they represent the three basic bodies of the Company As a company committed to transparency and corporate social responsibility Atlantic Grupa in 2007 joined the United Nations Global Compact initiative. In addition to responding to the principles of the UN Global Compact, Atlantic used indicators of the Global Compact initiative to introduce their activities and responded to the interests of our stakeholders in the areas of work environment, environmental, health and safety and the economy. CONCLUSION Corporate social responsibility has long been present, not only as a concept but also as an important component incorporated into business enterprises around the world, while in Croatia we still do not pay enough attention to this topic. With the introduction of corporate social responsibility in its long-term strategy company takes full responsibility for its activities that go beyond purely economic interests. Therefore, what a company produces, how it thereby affects the environment, how it employs, trains and affects the development of its own people, invest in the community and respects human and labor rights - all of that together determines the overall impact of that company on society. The essence of social responsibility is to maintain good relations, not only with consumers, but with all the parties interested in the company's business. What is a key factor in all of the definitions and understanding of social business is that it is completely voluntary. The fact is that by taking on this responsibility enterprises realize a variety of benefits, such as, among others: increase in sales and market share, strengthening the position of the brand, enhancing the corporate image and influence, strengthening the ability to attract, motivate and retain employees, reducing operating costs and increasing the attractiveness for investors and financial analysts. But companies vary in their ability to choose more topical and needy areas, and to better present the "good works" that they do. Modern business requires new approaches to the management of enterprises. Social responsibility is becoming the main principle of doing business in modern societies. All companies that are successful on a global scale are generally socially responsible. The aim of preparing this paper is to report and indicate the great opportunities provided by this type of business, for the benefit of the company and the benefit of the local community and the whole society. It is also important to stress once again that the companies that apply the concept of corporate social responsibility have proven to be more successful than companies that do not apply this concept. 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Gospel of Wealth, Social Policy Magazine., year 19, no. 2, pp. 199-206, Zagreb 2012  Baleti, Z. 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Buble, M.: Principles of Management, Sinergia-nakladnitvo d.o.o., Zagreb, 2006 Kotler, P., Lee, N.: Corporate Social Responsibility, M.E.P. d.o.o., Zagreb, 2011 Website of Atlantic Grupa d.d., at:  HYPERLINK "http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf" http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf (07/2015) Website of Atlantic Grupa d.d., at: ýĽ.024JLFHJ\νsfsfsfsfsfsYsYFs%jh8oh"j/0JOJQJU^Jh|sh"j/OJQJ^Jhw_h"j/OJQJ^Jhjh"j/OJQJ^Jh"j/jh"j/0JUhihLmHnH sHtH  hihLPJmHnH sHtH hih mHnH sHtH  hih PJmHnH sHtH 5jhih(>*B*PJUmHnH phsHtH ,hih >*B*PJmHnH phsHtH 0H<W~%x$a$gd gdL$a$gdLgd@gd@~gdL\^`jl;<=KLWXfhܸܸذܸܸܸذ܆p]%jhjh"j/0JOJQJU^Jhjh"j/0JOJQJ^J hjh"j/jhjh"j/Ujh"j/0JOJQJU^JhBh"j/0JOJQJ^Jjh"j/UhBh"j/OJQJ^J%jhBh"j/0JOJQJU^Jh"j/hjh"j/OJQJ^Jh8oh"j/OJQJ^Jh"j/OJQJ^J$h~rt$%&:;wxyɵɵɵzgZG%jh gh"j/0JOJQJU^Jh &Ih"j/OJQJ^J%jh &Ih"j/0JOJQJU^JhRWh"j/OJQJ^Jh"j/OJQJ^Jhjh"j/OJQJ^J%jhRWh"j/0JOJQJU^Jh"j/&h(s/h"j/0J5CJOJQJ\aJ&hjh"j/0J5CJOJQJ\aJ+jh8oh"j/0J5OJQJU\^JhBh"j/OJQJ^J}~klȜ|mȜ|iaiaiaiaijh7YUh7Yhh"j/0JOJQJ^Jhh"j/OJQJ^J%jhh"j/0JOJQJU^Jh"j/OJQJ^JUhjh"j/OJQJ^J%jh gh"j/0JOJQJU^Jjh"j/0JOJQJU^Jh gh"j/0JOJQJ^Jh"j/jh"j/Uh gh"j/OJQJ^J% HYPERLINK "http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf" http://www.atlantic.hr/media/files/fileitem/Godisnje-izvjece-2014/Godisnje%20izvjesce%20za%202014.%20godinu.pdf (02/2017) Website of Atlantic Grupa d.d., at:  HYPERLINK "http://www.atlantic.hr/hr/drustvena-odgovornost/prema-okolisu/" http://www.atlantic.hr/hr/drustvena-odgovornost/prema-okolisu/ (02/2017)     gdLhihLmHnH sHtH ,1h. 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