Our law office is actively seeking solutions in the area of Corporate Social Responsibility (CSR) which match our Clients' needs, in order to strengthen their Corporate Social Responsibility by means of legislative as well as non-legislative activities.

Our aim is to make the area of CSR more familiar to you, therefore, what has been presented below is a set of practical information, including vast benefits of the abovementioned issue.

I. What a "good business is" (CSR)

1. Business and the workplace

2. Business and the market

3. Business and the society

4. Business and the environment

5. Why is it worth being a socially involved company?

II. Internal benefits:

1. Increased satisfaction of the employees

2. Favourable perception of the firm by its employees

3. The employees' better commitment to the firm and, therefore, their greater loyalty and involvement

III. External benefits:

1. Creating positive image of the firm

2. Better functioning in local society

3. Loyalty of present clients and attracting new ones

4. More credible mission of the firm

5. In a broader perspective - decreasing the costs and increasing sale which involves increased effectiveness

6. The firm's competitiveness in the foreign markets

7. Growing interest of the investors

8. The possibility of setting off donations for social purposes from the basic level of taxation

I. What a "good business" is (CSR)

A good business is effective business due to values that it is based on. Corporate social responsibility is no longer the latest fashion in the corporate world but rather a permanent indicator of good management as well as a standard in Poland and in the whole world. Law plays one of the key roles in shaping corporate business responsibility.

Is social responsibility treated as unobtrusive obligation or an attribute of the strategy of a modern firm? Why Corporate Social Responsibility is not a kind of trend or PR? What differentiates strategic philanthropy from casual campaigns and spontaneous help? The answers to the abovementioned questions were presented to the participants of the first debate concerning the issue of "Effective firm" organized under the slogan "Can business be good and can small and medium businesses be responsible?" which took place on 13 May 2010 in Warsaw.

The law office Budzowska Fiutowski and Partners. Legal Counsellors, being one of the law firms associated in the network Consortio Lex, was the co-organizer of the debate. The participants of the debate were primarily the representatives of small and medium companies, the clients of our law office, as well as experts from large concerns with vast experience in the area of corporate business responsibility which they willingly shared on the public forum. The group of reputable speakers included, for example, Mr Jacek Santorski, the co-owner of the Group of Consulting Companies VALUES; professor Janusz Czapiński from the Chamber of Social Psychology of the University of Warsaw; Mr Jacek Dymowski, the manager of Corporate Social Responsibility Institute; Ms Joanna Smolińska, the President of the Board of Antalis and MAP as well as Mr Przemysław Pohrybieniuk, the member of the Board of Directors of Danone company.

"Effective firm can be understood as a company which accurately interprets the needs of the market and therefore it timely reacts to pending changes. What is crucial is the awareness of the undertaken activities which allows to reach the goal whilst maintaining the highest standards of business activity, namely acting in responsible, ethical and legal manner - as noted by Mr Benedykt Fiutowski, the President of Consortio Lex, legal counsellor in Budzowska Fiutowski Law Office. Legal Counsellors. The issue of responsible business remains of utmost importance from the perspective of "effective conduct of business". Corporate Social Responsibility as a crucial element of company development strategy should be carried out on the basis of well thought-over operative solutions. It is only then that a company may expect long term and measurable effects of its activities, not only in the ethical sphere but also in the economic aspect, irrespective of whether a given company is a small, medium or large enterprise. Responsible corporate management is currently the most effective way of creating the company's competitive advantage in the market" - he stressed.

Corporate community involvement (or investment) is a more narrow notion than corporate business responsibility. It refers to various activities undertaken by the company in society. It encompasses different methods of the company's involvement, like financial support, material help, staff volunteering. Social involvement makes the firm more credible in the public eyes and it creates the company's positive image.

Corporate Social Responsibility (CSR) is understood as a strategy which assumes that the company voluntarily takes into consideration social interests when aiming at economic goals, taking decisions and undertaking activities. Corporate Social Responsibility assumes paying attention to ethical rules, employees' rights, human rights, social as well as natural environment.

According to corporate social responsibility, companies contribute to their increased profitability and permanent development, they generate benefits for society and influence the protection of natural environment. The condition of the latter is the application of open and transparent commercial practices, based on compliance with ethical rules and cooperation with employees as well as with stakeholders.

Stakeholders constitute groups or individuals that can influence or that are under the influence of an undertaking by means of its products, strategies, manufacturing processes, management systems and procedures.

Corporate social responsibility can be manifested in two dimensions in daily practice:

- internal (workplace and environment)

- external (the market and society).

1. Business and the place of work

The development of social capital attracts more attention these days, what therefore becomes most crucial are the principles of responsibility vis-a-vis employees. Such principles play important role in carrying out the policy of social responsibility and that is why they should constitute a starting point for the company's socially responsible tasks. Employees are mostly the best and the most effective information channels. They should be aware of all activities of the company in the area of Corporate Social Responsibility because only then can they have essential influence in the effectiveness of these activities.

There are many ways in which the company can take care of the relations with employees, starting from transparent procedures and pro-family policy, through the creation of programmes for individual development to ensuring medical as well as sports and recreation packages for whole families. One method of encouraging employees' involvement into social projects could for example be staff voluntary work or voluntary financial support.

2. Business and the market

The market is increasingly shaped by the changes which constitute the consequences of globalization. Social and environmental risk constitutes more important determinant of long-term strategy for many enterprises. They affect the growth of interest in strategic planning, transparency as well as skilful management of relationships with stakeholders. Risks associated with climate change have already led to strategic changes in many companies, such as product offerings or the nature of marketing campaigns.

A simple example of applying the idea of CSR in relations with trading partners, suppliers or customers may be socially involved marketing programs, environmental management systems, loyalty programs, the research of the innovation of micro-enterprises and their promotion as well as broadly understood education.

3. Business and society

Good social relationships are extremely important for each company. A dozen or so years ago, the world's corporate social responsibility was associated mainly with charity. However, CSR is a component of an efficient, modern and strategic management.

Regardless of their size, each company operates in a community and enters into relationships with certain stakeholders. Economic activity should be developed in such a way as to maximize the positive social effects and minimize negative ones.

Any company can improve these relationships pursuing a wide variety of projects in the fields of health and safety, equal opportunities for education and development for the poor, fighting with poverty and preventing exclusion, combating addictions, encouraging social integration, strengthening independence of local self-governments and social organizations or even creating the information society and a dialogue with stakeholders.

4. Business and environment

Ecological sensitivity is currently increasing. Al Gore's film "An Inconvenient Truth" on global warming has received an Academy Award and the author himself - the Nobel Peace Prize. What can be observed all over the world is not only growing interest in the topic of ecology but rather consumers' need to purchase organic products. What is of paramount importance is the fact that the Polish media joined the social discussion on environmental behaviour of consumers. The European Union supports a variety of public campaigns designed to shape the attitudes of Poles but, at the same time, it requires from Poland to increase investment in higher standards of environmental protection.

In order to help Polish consumers in their conscious choices of eco friendly companies, one can educate about sustainable development, cooperate with local governments on municipal waste management, activate local actors to work towards environmental protection and promote partnership and cooperation through competitions for small grants, compensate for carbon emissions by means of tree-planting and afforestation, introduce new production processes, management and quality control.

5. Why is it worth being socially involved company?

Social programs supported by companies generate profits both for communities and businesses. Company's social commitment creates the opportunity to obtain mutual benefits on a "win-win" basis. In practice the latter means that although the expenditure incurred by the company to support certain activities does not directly generate fast and measurable benefits, it does have an impact on improving the quality of life and sustainability of our environment.

II. Internal benefits:

1. Increased satisfaction of the employees

Social programs create the opportunity for the companies to test their employees by means of involving them directly in the activities (as in the case of employee volunteering) or, for example, in the phase of the project management and its implementation. Employees who show commitment at the social level, learn teamwork and gain new experience and skills that can be later used in their professional work.

2. Favourable perception of the firm by its employees

Employees refer with approval to the operation of the company, seeing that part of its activity is directed at solving social problems or supporting the communities that they belong to. What is the outcome of the latter is a positive image of the company and increased confidence among employees. The attractiveness of the company on the labour market increases and it allows attracting new employees and keeping the best ones.

3. The employees' better commitment to the firm and, therefore, their greater loyalty and involvement

Employees often know very little about their workplace, they merely know their responsibilities, they know in general what the company does and who owns it. The company's social commitment can change it. By means of involving workers in reaching the company's pro-social goals and by means of providing them with various tools to accomplish the tasks that exceed their duties, we cause that the company is not only a place to make money, but also a place where the employee may pursue other goals in life.

III. External benefits:

1. Creating positive image of the firm

Maintaining the reputation and its public image constitute one of the company's most crucial objectives. The company's social involvement strengthens its image, gives its identity and authenticates it in the eyes of the media and the local community. The latter is of particular importance for service-rendering companies which have been for many years working on image and trust of their customers. Good reputation, or goodwill, is one of the company's resources. Though immeasurable in the economic indicators, it constitutes a crucial attribute vis-a-vis the offer of the competition. One cannot buy or win goodwill on day to day basis, but it can only be systematically increased.

2. Better functioning in local society

Participation in community life helps in the company's effective and smooth operation. In the case of risks that could affect the activity or even the existence of the company, we can count on support from the local community in which the company has made social investments.

3. Loyalty of present clients and attracting new ones

The citizens' increased public awareness causes that as far as consumer choices are concerned, the citizens are guided by the confidence in a given company and its image. A modern customer can be perceived as an increasingly conscious consumer - in addition to good prices and quality, he or she requires that the product or service should arouse positive associations. Drawing the consumers' attention by means of skilful advertising techniques constitutes a relatively simple task, what poses a greater difficulty, however, is triggering customers' permanent loyalty to the company and its products. The companies that have won their customers' trust and loyalty to their brand by means of social involvement will find it much easier to regain their customers' favour in case of tripping (e.g. issuing a faulty batch of products) than those companies which are associated only as profit-oriented ones. When promoting social programs, we can also expand people's knowledge about our products, create demand and willingness to use them.< /p>

4. More credible mission of the firm

The company's mission includes a set of fixed aims and objectives of the company. Strengthening the company's mission by taking into account social aspects, authenticates the company in the eyes of customers.

5. In a broader perspective - decreasing the costs and increasing sale which involves increased effectiveness

The costs of the company's social involvement are in the long term reimbursed. Customer loyalty increases, the company is more stable and its market position and sales are reinforced. By means of providing goods, services and expertise needed to implement social programs, we invest in a given community and the result of the society's increased wealth is its greater consumption. In addition to the above, when acting in the community, we also influence the habits and preferences of the citizens and we are thus creating the demand for our products.

6. The firm's competitiveness in the foreign markets

Introducing the principles of responsible business to the policy of Polish companies will undoubtedly help them to become more competitive on Western markets, where standards of responsible business are already widespread. Meeting international standards for business responsibility by the Polish entrepreneurs is also crucial from the perspective of Polish accession to the European Union. Polish companies can then compete not only through quality, price or service, but also by means of the image of socially committed company.

7. Growing interest of the investors

Companies that in their philosophy of management take into account the social dimension can count on greater favour of investors. Investment funds are more likely to buy shares in those companies which carry out social investment, which build their image and good relations with the environment, than those firms that refrain from applying such practices. Investors frequently carry out ethical screening and they select companies that are most socially responsible. For many investors, the company's social credibility is just as important as its financial credibility.

8. The possibility of setting off donations for social purposes from the basic level of taxation

Social involvement documented by a contract of donation, may be subject to tax deductions. The donor is entitled to tax credit from the tax base, in accordance with the Act on Corporate Income Tax of 15 February 1992 or the Act on Personal Income Tax of 26 June 1991.