June 2013Stanton Chase Belgrade
In this issue:
The Securities Commission-
Zorica Krnjevic Miskovic
Henkel Serbia -
Executive Search in Serbia-
"Basket for diabetes"
The Second Winter Business
Stanton Chase Belgrade
Summer vacations are coming and we know that most
of you can’t wait to put their job duties on the back
burner and spend some valuable time with your family
and friends. In any case, in leisure time, a good book or
interesting news can be read. Without pretending to be
the only entertainment, we wanted to give you at least a
bit of material for fun and to read our latest news.
In fall you can expect the new edition with a new energy
and new plans for the rest of the year. In the meantime,
have a nice holidays, good weather, lots of relaxation
We talked with Phd. Zorica Krnjevic Miskovic about the Securities
Commission, its scope of authority, roles and functions.
What can you tell us about the beginings of the Securities Commission?
Who is the founder? When was it founded and with what aim?
The economic changes in Yugoslavia at the end of the eighties created after
almost 50 years the conditions for the reestablishment of the Financial market.
The decision to introduce market economy facilitated the enactment of the
Securities Law and the Law on Money and Capital Markets in 1989. In this way,
the legal preconditions for the foundation of the Securities Commission and
Stock Exchanges were laid down, as well as for regulated issue and trading of
The Securities Commission with the seat in Belgrade started running in 1990, in
the territory of the entire former Yugoslavia, giving persmission for the issuing of long-term securities, and
operational licences for Belgrade, Ljubljana, Sarajevo and Podgorica (in 1994) Stock Exchanges. The
Commission gave special contribution to the popularization of securities market in FRY through marketing
and by giving valuable information on the advantages provided by the mechanisms of securities public
offerings as an alternative source of financing. The foundation of the Belgrade Stock Exchange in 1990 was
one of the first steps towards the institutionalization of the capital markets in Yugoslavia.
What is the scope of Commission’s authority?
When defining the Commission’s authority, one should first answer the questions: What is in fact
Commission? Why was it founded as a commission? Namely, the Securities Commission must neither be a
state body nor a state administrative organization, it must not make decisions by order, but objectively and
based on facts. This is whay the Commision must be independent and possess strong control function as well
as the authorisation to responsibly secure the proteciton of investors in the field of issuing securities and
maintaining a just and regulated market on behalf of the state as a regulator in the financial market,
Simply, we took experiences from a large number of highly developed countries with market economies which
have a Commission, as well as from medium developed countries, developing countries and the countries of
former Eastern block, and that enabled our country to be in the very top of the financial world.
So, if we want the regulated capital market, if we want the security of trading, if we want to exclude frauds and
affairs, this market needs an institution with a strong control functions and executive independence, which is
obtained by self-financing principle and with a large responsibility towards the Government and the Assembly.
That is why the Commissioners and other employees must be objective experts reporting to the Government
and the Assembly and all these principles must be applied at all times in the process of making the decisions
and in executing the control.
THE SECURITIES COMMISSION– ZORICA KRNJEVIC MISKOVIC,
How does the Commission function?
The Securities Commission is an independent and autonomous organization with five Commissioners
including the President of the Commission – the Chairman. They are elected and dismissed by the National
Assembly of the Republic of Serbia at the proposal of the Assembly's Finance Committee. The Commission is
accountable to the Assembly of the Republic of Serbia for activities carried out within its competence. The
Commission adopts the By-Law which stipulates its competences and authorities and the consent to it is also
given by the National Assembly of the Republic of Serbia.
The Commission adopts decisions on sessions headed by the Chairman or a Commissioner authorized by
the Chairman. The Securities Commission safeguards orderly functioning of the securities market, enhancing
investor protection and ensuring integrity, efficiency and transparency of the market. In this regard, the
Securities Commission oversees the application of: The Law on the Capital Market, The Takeover Law, the
Law on Investment Funds and the Anti Money Laundering Law in the part of custody, brokers and dealers
Does the Commission have any role in the process of privatization?
As you could conclude from the answer to the previous question the Commissiion has no authority in the
process of privatization.
How does the Commission protects the rights of the small share-holders?
The Commission protects the rights of investors, share-holders in general and small share-holders, both in a
preventive and a repressive way. Preventive, in the sense of supervision of the operations of the participants
in the capital markets (Belgrade Stock Exchange, Central Securities Depositary and Clearing House,
investment firms and public companies) with regard to the fullfilment of their legal obligations related to
reporting and performing operations within their authority. Repressive, in terms of imposing supervisory
measures, if establishes irregularities or violations of the Law .
In case the Commission considers there are facts indicating the existence of criminal acts, commercial
violations or infractions, the Commission refers a proposal i.e. request for charges against a person to an
authorized state agency responsible for investigating and/or prosecuting a commercial violation or a criminal
Corporate financing has always been the topic in Serbia. What would you, as a Commissioner, advise
Serbian businessmen in this regard?
In Serbia, as in extremely bank-centred market, even the managers of larger companies are not familiar with
all the advantages of borrowing in capital markets as opposed to the borrowing with commercial banks.
Bearing in mind that there are no adequate eduacaional mechanisms on capital markets in Serbia, it is
necessary to observe and take over the experiences of the businessmen from the countries in the region
which have advanced in the process of developing this market.
Stanton Chase Belgrade
Henkel Company was founded in 1876 in Germany and since then
has developed the world-famous brands. Today, it is a company with leading
brands and technologies that operates in 125 countries worldwide and has
approximately 47,000 employees. Henkel has a leading position in the
consumer goods sector and in industrial products, achieving excellent results,
and is considered one of the most engaged German companies in the global
More than a decade ago, in 2002, Henkel was looking for the perfect place
for further development and expansion of its business. In Serbia, Krusevac,
Henkel recognized the potential and advantages of the market, the strength
of local brands and excellent geographical location. A clear goal was set, to
create a regional center for the production and distribution. In this way Merima Krusevac became a part of
Henkel for Central and Eastern Europe.
This was followed by numerous projects for modernizing production, improving production processes and by
introducing latest technologies for sustainable development, while paying particular attention to the education
and training of the employees. During the first ten years of doing business in Serbian market, the company
invested about $ 130 million in three locations in Serbia - Krusevac, Indjija and Belgrade.
Since 2003 production has almost doubled, and the purchase of Merima is considered one of the most suc-
cessful privatization in Serbia till today.
With the growth of the company and needs of the market, Henkel opened Ceresit factory for construction ad-
hesives in Indjija, in 2007, as the first Greenfield investment, and a year later the factory for the production of
liquid plaster. Today, those factories annually produce 120,000 tons of adhesives, supplying seven markets
with more than 23 million people. The share of export in total production reaches nearly 30 percents. Thanks
to its innovative and high quality products as well as continued work and commitment of all team members,
Ceresit became a famous brand of adhesives in Serbia and synonymous for proven quality, reliability and
professionalism in this field.
Guided by the vision that it supplies both regional and EU markets right from Krusevac, Henkel Serbia is now
in the center of the region and its brands from factories in Serbia are exported to 15 regional and European
markets. Among them are: Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Mace-
donia, Montenegro, Poland, Romania, Ukraine and others. With the construction of the new production line,
expansion of export to the countries of the European Union is expected.
In the past year, the company invested 7.5 million Euros in two new projects in Krusevac, thanks to which
new workplaces will be opened, while for 2013 new investments are planned in the city with the investment of
more than 10 million Euros. In the first place, a new production line in factory in Krusevac started to operate.
HENKEL SERBIA- FIRST 10 YEARS OF SUCCESSFUL BUSINESS IN SERBIA
By Jelena Sarenac, Head of Corporate Communication, Henkel Serbia
The opening of the new plant is a part of the Master plan project that involves moving, automatization and
increase of the capacity of the liquid assets. Bref, Somat, Pur, Pril and Clin Opti, are produced in Krusevac
and exported to the markets in Europe.
Another capital investment in the plant in Krusevac is the construction of a central warehouse space of ap-
proximately 7,000 square meters. Completion of the project, worth 3.5 million Euros is planned for the end
of the 2013. As the existing warehouse infrastructure does not meet the requirements and does not fit fully
in the standards the company strictly adheres to, company made a master plan that involves investing in a
new warehouse building that will be directly connected with the production of liquid and powder detergents
with automated flow of materials. In addition to significantly contributing to safety, the project will contribute
to a sustainable business too.
With significant financial investment in the domestic market, excellent strategic approach and excellent
team, today Henkel Serbia is an important part of the economic strength of Serbia. In this way the vision of
Henkel to be the center for the supply of 55 million consumers in the country and abroad, with such pro-
duction capacities, is completely achieved. It can be said that it has even been exceeded.
In addition, with a strong commitment to the successful balance between economic, environmental and
social goals, Henkel is one of the leading companies in the world in terms of sustainable development, and
is among the 100 most sustainable corporations in the world. New sustainability strategy "Achieve more
with less" is aimed at reducing the ecological footprint by 2030. With the desire to achieve better perform-
ances, offer greater value to customers, greater social progress and safer workplaces, Henkel aims to sus-
tainable business and reduction of water consumption, materials and energy. We are proud to say that the
global targets set for 2012 in Serbia were achieved in 2010.
But Henkel's responsibility does not end there, because only stable society can lead to a successful busi-
ness. Therefore, we support numerous social initiatives such as "Henkel Art Award", award for the Arts
and the "Henkel Smile" volunteer project of employees, which are a significant part of the business. The
social commitment of the staff is an integral part of Henkel's corporate culture and through Henkel Smile
project, the company is trying to ease the lives of their citizens. Serbian Chamber of Commerce has recog-
nized the importance of the initiative "Henkel Smile" project and awarded it with the National Award for
Corporate Social Responsibility for 2012. So far, in Serbia 35 projects were completed, worth more than
100,000 Euros and in which were involved dozens of employees.
Stanton Chase Belgrade
At the end of April this year, the Company Stanton Chase conducted a
survey among General and HR Managers employed at the biggest domestic
and foreign companies in Serbia. The survey was anonymous, in order to deter-
mine to what extent these companies cooperate with executive search compa-
nies and recruitment agencies, as well as the level of satisfaction with their co-
The largest percentage of respondents are employed in consumer goods indus-
try, followed by respondents in finance, and then in industry, technology and
professional services. 40.6% of the respondents came to the present position by a promotion, 18.7% by a
recommendation, 15.7% through ads, and 12.5% through the executive search companies. 9.4% of respon-
dents were hired through recruitment agencies and 3.1% were directly contacted by HR Sector.
The decision on hiring an Executive search company and / or Recruitment agency in selecting employees is
generally made by top management (42.4%), followed by the HR sector with 39.4%. In 21.2% of companies
this decision is made through tender, and at the same percentage this type of cooperation is realized as part
of the global / regional agreements, while company's headquarters decide in 18.2% cases and recommenda-
tions by business partners in 12.1% cases.
Among advantages of cooperation with executive search companies compared to recruitment agencies, HR
Directors and General Managers pointed out: understanding the specific needs of clients, expertise in search-
ing management staff, long professional experience of consultants and discretion. In addition, very important
reasons are high standards of communication with clients and candidates, consultant’s specialization by in-
dustry and a clearly defined standardization of process. Wide network of offices around the world is not of
great importance to respondents, as well as the fact that the quality of services is in accordance with the
On the other hand, main reasons for cooperation with Recruitment agencies are outsourcing services, fre-
quent need for non-managerial positions and the price.
When asked what would motivate them to change Executive Search Company / Recruitment agency they co-
operate with, the largest percentage of respondents named contractual commitments (62.5%) and insufficient
understanding of the project (59.4%) as main reasons. Important are also disloyalty or recruiting their employ-
ees to other companies, disregard for discretion with 56.3% and the lack of standardized procedures with
28.1%. As an additional comment some respondents indicated that they would end cooperation if inappropri-
ate candidates would be presented, and when searching for a new Executive search company / agency, a
recommendation of people who they believe is significant.
EXECUTIVE SEARCH IN SERBIA
Maja Manojlovic, Consultant, Stanton Chase Belgrade
On a scale of 1 to 5 the importance of key factors for establishment of good relations with the execu-
tive search company is ranked as follows (1 = very low, 5 = very high):
General and HR Managers believe that for their company the most important service that executive
search companies offer is finding people for senior management positions, and the second most im-
portant is the assessment of the existing management staff. They are followed by coaching for man-
agers and a proposal of strategy for human resource development.
Almost half of the respondents (48.5%) evaluated their experience of cooperation with the executive
search company extremely positive or positive. A slightly smaller percentage (30.3%) was neutral,
and 21.2% have never worked with executive search companies.
Stanton Chase Belgrade
As positive aspects of cooperation with the executive search companies respondents named: meet-
ing the needs of the client, consultants who show exceptional market knowledge and extensive man-
agement experience, meeting deadlines and good quality of proposed candidates. The objections
relate to the duration of the process, which is usually associated with a period of time necessary to
gain a clear picture of the position and needs of the client, which, according to some respondents
prolong the duration of the process.
In the end, participants were asked to suggest how Executive Search services could be improved.
We got the following answers:
"Personal contact with clients is the most important, because it is an advantage to be the closest to
the client. All Executive search companies offer a similar service, quality and based on that it is diffi-
cult to make a choice. Finally, the choice is made on the basis of personal sensibility and percep-
tions of the person with whom you cooperate. "
"It is necessary to define who is doing what on the market. Executive Search companies must be
engaged for high managerial positions. Agencies are not specialized in this kind of engagement. "
"Consulting services should be performed by a person who has experience in the field relevant for
required position. Then, it is important how a consultant approaches the head hunting process and
how he represents the company. It is also important to understand the needs of the company, rather
than finding a candidate at any cost. "
"I have never cooperated with executive search companies, but from my experience with agencies I
can say that there are those with whom I will never cooperate in the future due to the low quality of
suggested candidates. It is clear that an agency wants to close the position, but in the process, the
client sometimes "inflicted" with an inadequate candidate. A client can be disappointed only once. "
We thank everyone who participated in this study.
The basketball CHARITY TOURNAMENT "BASKET
FOR DIABETES" which was held on Saturday 22nd June
2013 in the Sport village Savski Venac, the Advance Re-
sponse International team won the first place.
The organizer of this traditional tournament was the Belgrade
Association for the Fight against Diabetes, "Blue Circle" with
the aim to raise funds for this humanitarian organization.
In the final game, with a lot of attractive and beautiful moves,
in the atmosphere of fair play, the rival Societe General Bank was defeated by a score of 22:8, thus
confirming the good form of our team throughout the competition.
The Advance Response International team was presented by Nikola Vojinović, Igor Selaković,
Stefan Sartori and Bojan Jovičić.
Stanton Chase Belgrade
CHARITY TOURNAMENT "BASKET FOR DIABETES"
After the successful realization of the first Winter Business Olympics in December last year at
Mećavnik, Advance Response International decided to organize the Second Winter Business Olym-
pics in Austria (South Tyrol, hotel Goldried) from 12th to 15th December 2013.
The Winter Business Olympics is a sport and educational event, organized for employees of compa-
nies operating in Serbia. In addition to participation in sport / ski competitions in giant slalom and
parallel giant slalom, the participants will have the opportunity to attend a motivational workshop,
with Bojan Križaj (famous Slovenian skier) as the special guest.
In addition to the central program, additional programs will be organized in the form of promotions,
presentations, exhibitions and socializing.
All information at:
Phone: +381 11 3974 345
Web site: www.advanceintl.co.rs
THE SECOND WINTER BUSINESS OLYMPICS
Advance Response International
Stanton Chase International
Blvd. oslobodjenja 75
11000 Belgrade, Serbia
Phone: +381 11 3973 676