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H&P Corporate Responsibility Report 2005/2006

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First CR report from Hauska & Partner Group. H&P was the first PR firm in Europe publishing it's own report according to GRI G3 reporting guidelines.

First CR report from Hauska & Partner Group. H&P was the first PR firm in Europe publishing it's own report according to GRI G3 reporting guidelines.

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  • 1. CORPORATE RESPONSIBILITY REPORT 2005/2006
  • 2. VISION & VALUES & CODE OF CONDUCT - CHAPTER TITLE HAUSKA & PARTNER CORPORATE RESPONSIBILITY REPORT 2005/2006 1
  • 3. HAUSKA & PARTNER CR REPORT CONTENT 4 BEING DIFFERENT, WORKING DIFFERENTLY 8 EVOLUTION OF CR IN HAUSKA & PARTNER GROUP 16 SCOPE OF THE REPORT 26 ABOUT HAUSKA & PARTNER GROUP 26 How “disorganised” are we? 29 2005 financial results 30 Hauska & Partner employees 30 How many of us there are 30 What we offer 31 General employment information 34 OUR HR PRACTICES 37 Developing our people 38 Improving our workplace Publisher: Hauska & Partner Ltd. We would appreciate your views BreπÊenskoga 4 on our report and our performance. HR-10000 Zagreb Tel. +385 1 4500 222 Please contact: Andreja PavloviÊ Fax. +385 1 4557 218 Senior Consultant Editorial Board: Daria Mateljak Bartulin, Leo Hauska, CR Director for H&P Group Srba JovanoviÊ, Annette Märk, andreja.pavlovic@hauska.com Andrea Marπáková, Andreja PavloviÊ, Katarina Rimac, Ana Smoljo, Petr Stoklasa, Ivana Tavra, Gordana VesiÊ, Bernhard Wanasek Proofreading: Apostrof Ltd. Designed&produced by: Number of copies: 500 2
  • 4. CONTENT 42 SHAPING OUR FUTURE 42 Our future in the World Café 46 Should we not strive to be better than the best? 51 Building unique workplace standards 52 Flexibility in the focus 53 Partnership with DNV 53 By-laws 54 Becoming great consultants 58 A WORD FROM AUDITOR 64 FOLLOWING G3 GUIDELINES 68 MOVING FORWARD 3
  • 5. HAUSKA & PARTNER CR REPORT BEING DIFFERENT, WORKING DIFFERENTLY In the brief time that we grew from a situations, acknowledge them and take traditional PR agency with a strategic the right side before it is too late. We twist to a more interdisciplinary consult- are still learning. ing firm, we have been confronted with several professional sins or temptations. As we grew larger and more sophisti- The first problematic area is (the more- cated in our work, and achieving better or-less justified) tarnished reputation of professional results, we encountered our profession. This field suffers open more chimeras, internal and external, or tacit accusations for being superficial material and psychological. Responsible and promotion-oriented, filtering facts behaviour cannot be demanded. Being into exclusively positive contours, hiding better does not simply mean saying valuable core information or manipulat- “No, Sir (or Ma’am)” when you disagree ing stakeholders, and the list goes on. with a client on matters of corporate Crucial in our development was the mo- reputation or stakeholder relations. ment when we decided to “do different It means taking the trouble to explain things differently”. We armed ourselves why we disagree and to demonstrate with a shield of courage, a sword of additional concern for the client’s long- persistence and a heart of belief in our term benefits. Sometimes this requires values and embarked on the high seas statements that are not written in of corporate and organizational expec- textbooks or proclaimed on the “to-do tations. In the meantime we figured out lists” of PR manuals. And this makes our that the very first prerequisite for being work difficult. To keep on the right track different and better at the same time and properly contribute to the develop- was to cease providing “ready textbook ment of the communications profession solutions” to our clients and to start de- and to be able to respond to the ever veloping situations in which we partner changing world. For example, how can with our clients in order to jointly create we explain the fact that the media are the best outcomes. The key word in this growing in power, size, influence, num- kind of work is quality. Have we been bers and shape, while at the same time successful in this? Not always. Integrity the share of media relations in consul- demands high standards and we still tancy activity portfolios is decreasing? face temptation of yielding to superficial One of the challenges is to find sound fame and short-term success due to the methods of balancing needs, initiatives ambiguous boundary limits between or simply common sense in involving communications and marketing, promo- stakeholder groups directly in the issues tion and stakeholder dialogue, benefits of an organization. In many ways, we from extensive media coverage and feel that the world of communications stakeholder trust. A giant step for us has to undergo a catharsis and address was the commitment to recognize such the ancient roots of democracy recorded 4
  • 6. BEING DIFFERENT, WORKING DIFFERENTLY in the historical works of political think- to superficial and fashionable tools in ers. PR is not the art of sorting jigsaw our professional lives, instead of explor- puzzles of words, and we should be very ing the causes to eliminate the problem? careful not to concentrate too much on words, sounds and pictures. We must The last, but not least challenge is look for ways to address and concen- how to create a consultancy which can trate on behaviour. Promotion blends respond to all of its own ambitions and well with words. Stakeholder relations external demands? It took us several require deeds. Humpty-Dumpty exercises to figure out that not only the shape, but also Modesty and good measure are addition- the material and the way you move are al challenges for successful performance. vital to prevent falling off the wall, or Unfortunately public relations (previ- surviving if it happens. Good material is ously), communications management difficult to find, grow, cultivate. There- and stakeholder relations turned into fore, we took creating conditions in our a very attractive profession for people glass house seriously. Corporate culture seeking fame and glory, media exposure, is what matters. Matching values to our extensive travel and fancy lifestyles. At environment, leading by them, cherish- Hauska & Partner we are a group of pro- ing leadership and fairness may create fessionals who know that our job is more an organization which is ready to have about “blood, sweat and tears”. Hard the right professionals. However, the work is required with a no-nonsense right professionals are not bought - they attitude, along with good common sense are earned. We are still learning. for limits and taste. Fancy is not a word Daria Mateljak Bartulin, MCIPR that places very high on our agenda. We are not allowed to take creative escapades in our behaviour or style like advertising people. Getting ourselves to this stage, and convincing our partners that communications go farther than a “glass of champagne and a smart suit”, is a difficult process. It has much to do with understanding substances. Just one allegory - if we get up in the morn- ing feeling sick and looking even worse, our natural instinct and common sense should be to call a doctor, rather than undergoing a thorough make-over at the beauty parlour. So why do we resort 5
  • 7. VISION & VALUES & CODE OF CONDUCT - CHAPTER TITLE ONLY WITH OPENNESS AND FLEXIBILITY we CAN SUCCEED 6
  • 8. VISION & VALUES & CODE OF CONDUCT - CHAPTER TITLE 1 / EVOLUTION OF CR IN HAUSKA & PARTNER GROUP 7
  • 9. 1 HAUSKA & PARTNER CR REPORT 1 / EVOLUTION OF CR IN HAUSKA & PARTNER GROUP Unlike many other companies, which two poles, we constantly challenge our start implementing CR through report- role in development of our profession ing, we came to CR through relationship and the modern world. management, the very essence of our management consulting work. In rela- Dealing with CR requires self-reliance, tionship management, it is not enough team skills and the ability to make judg- to just be a good communicator. It re- ments for courses of actions in highly quires not only openness and flexibility, complex situations with increasingly but also readiness to combine different, unpredictable outcomes. We use CR often “hybrid” skills and knowledge, in as an opportunity rather than a risk order to be able to determine new mod- management tool in order to revisit our els for collaboration with stakeholder daily business practices, and wherever groups. needed to instil new management and business practices. These new forms, or as we call them platforms for dialogue, can take many All in all, we have undergone a very different forms, but what is really impor- dynamic process in which we combined tant here is to understand that compa- different areas of expertise, our experi- nies (as well as other organizations)- ence in dealing with many different overwhelmed with a wide array of issues stakeholder groups and our understand- and a large number of stakeholders ing of their different agendas, areas of who quite often have different or even influence, organizational cultures and opposing expectations and interests- ways of doing business. need to think of stakeholder relations in strategic terms. After three years, we believe we are ready to prepare our first CR report, In the course of the last three years, we which should serve as a basis for fur- have developed a framework in which ther dialogue with our employees and we assess and analyze stakeholders, other stakeholders. We invited some of their immediate concerns and expecta- them to join us in the reporting process tions and their relevance to business itself, because we were eager to see our objectives and strategy in order to be reflection in the mirror realistically, right able to understand and prioritize issues from the beginning. that can have significant impact on our operations. On the other hand, we bring A holistic approach requires complete- immediate concerns and expectations ness. With this report we will partially in perspective by aligning them with meet this requirement, because, as we our vision and direction for reaching already underlined, we are sufficiently sustainable growth. In between these realistic about ourselves. We wanted 8
  • 10. EVOLUTION OF CR IN HAUSKA & PARTNER GROUP “We believe the real measure of success is both combination of strong profitability and accountability towards our stakeholders” Leo Hauska, President to establish a clear case that CR is not quality and that we will be able to com- possible only when it comes to huge, pare our practices with others. multinational or regional companies, but also in the case of small and medium- As GRI OS, we also hope to contribute sizes companies, regardless of industry to the ongoing debate on applicability or sector origin. of GRI indicators when it comes to small companies. In particular, we would like We also wanted to establish a strong to contribute to the development of a case for reporting on non-financial in- special sector supplement, given the dicators that are becoming increasingly unique character of our industry, that important for performance analysis, would provide additional guidance for which is not strictly financial but to a reporting. large extent “reflects the health and wealth-creating potential of a company Our experience in GRI reporting will also in an entirely different way”. be valuable in meeting the requirements of the UN Global Compact. As a signa- As consultants who contribute to value tory, we will be able to simultaneously creation that is not strictly financial - respond to both GRI and UN Global such as corporate reputation and brand Compact requirements, even before we value, good stakeholders relations, cor- are supposed to produce our first Com- porate culture, risk management, ethics munication on Progress (COP). - we consider non-financial reporting fundamental to understanding a broad Our experience with ISO 9001 and SA spectrum of issues that “can only be 8000 certification is also valuable in understood if one looks outside of the terms of engaging in management narrow confines of the financial reports practices and processes and voluntarily as they have been constructed”, as Al imposing on ourselves standards not Gore stated in his speech given at the required by national legislation. G3 Conference in Amsterdam. In our subsequent reports, we will as- sess our business practices in other, We also use the GRI framework for equally important areas: our profession- reporting, not only because it allows a al conduct on the marketplace, our com- gradual “phased in” approach, but also munity relations, environmental impact because we wanted to be able to com- - limited to our case but still important, pare our practices with those of others. as well as our approach to research and We believe our experience with G3 will development. help us make our information equally valuable both in terms of quantity and 9
  • 11. HAUSKA & PARTNER CR REPORT KEY MILESTONES: 2003 2004 2005 - First active step - Development of CR - Development of the towards public CSR Strategy for H&P Code of Conduct for dialogue: Business or- Group H&P Group ganizations talk about - Support for the first - Participation in the CSR together with the CSR Conference in work on CSR standard American Chamber of Croatia - Agenda 2004 ISO 26000 within the Commerce and IBM - Establishment of Austrian Standards and more than 50 CSR-Task force within Institute managers in Austria. Public Relations As- - Participation in the sociation of Austria work of UNDP - transla- tion and adjustment of the Business in the Community Guidebook for introducing CR in companies in Croatia - Contribution to the establishment of the Network of Social Re- sponsibility in Austria - Establishment of Vien- nese Group for Integ- rity Management and Social Responsibility in order to contribute to CSR research and development - Education on the subject CSR started at different schools and universities 10
  • 12. EVOLUTION OF CR IN HAUSKA & PARTNER GROUP 2006 2007 - Establishment of CR - H&P representative - First CR Report of H&P Working Group within became Vice-president Group published H&P and appointment of the Association of H&P Group CR for CSR within the Director Croatian Chamber of - Becoming GRI Organi- Economy zational Stakeholder - Signing of the memo- - Signing of the UN Glob- randum of understand- al Compact principles ing with Det Norske - Membership in the Veritas in the course International Business of preparations for SA Leaders Forum in the 8000 certification in Czech Republic agreed Croatia as of 1st January 2007 - Signing of the memo- - Membership in Croa- randum of understand- tian Business Council ing with UNDP in the for Sustainable Devel- course of preparing CR opment report preparations in - Membership in the Croatia CSR-Platform respACT - Signing of the memo- austria randum of understand- - Participation in the ing with SMart Kolektiv work on CSR standard in the course of CR ISO 26000 in Serbia report preparations in Serbia 11
  • 13. HAUSKA & PARTNER CR REPORT WHAT IF LEO WERE NOT SO PATIENT? A glimpse from Andreja I will never forget one particular period because we might forget what we had in my life. It started with a meeting I had discussed and decided. with Leo in September 2004. It was a long meeting, and to be honest I thought I finally drafted a comprehensive CR it would never end. Leo and I discussed program in which I analyzed the develop- the further development of our CR ments that triggered our CR journey, our program and I was trying really hard to role in these developments, our objec- understand what he expected from me. tives and strategies and project frame- The meeting ended and we agreed that I work, because back in 2004 CR was still had to prepare a working paper in which a project. I sent the paper to Leo and I would very briefly underline the steps eagerly awaited his comments. I will needed for CR program development. never forget his mail: “when you wrote ‘I hope you will be quite pleased when Easy to say, much harder to do. you see the outcome’, I still thought ‘O.K., let’s see, and don’t be too optimis- A week passed and I was still not able tic...’ but your document is “WWOOO- to deliver the paper in the requested OOOOOOOOOOOOOOO OOOOW!!!!!!!!!!!!!! format. Two more weeks passed, and !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!. Leo was still waiting. I sent him an e- Even today when I hold the position of mail apologizing for being late, explain- CR Director for Hauska & Partner Group, ing that I would like to be up to the task I sometimes wonder: what if Leo were and deliver a genuine proposal, and he not so patient with me? Would we ever replied that he was a little concerned have come so far? From: Leo Hauska [leo.hauska@hauska.net] Sent: 14. listopad 2004 17:03 To: andreja.pavlovic@hr.hauska.net Cc: Daria Mateljak Bartulin Subject: Re: CSR Dear Andreja, when you wrote “I hope you will be quite pleased when you see the outcome”, I still thought “o.k., let’s see and don’t be to optimistic...” but your document is “WW0WOOOOOOOOOOOOOOOOOOOOOO W!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!. Could you do a short presentation about that at our clausure? Daria, what do you think about that - and have you read this new bestseller? Kind regards, Leo 12
  • 14. EVOLUTION OF CR IN HAUSKA & PARTNER GROUP WHAT IF LEO WERE NOT SO PATIENT? A glimpse from Leo Patience is easy to exercise if there is a your tree has grown to a satisfying size goal you want to achieve. It is also easy to fulfil its purpose. In this case it might as soon as you realize it is more up to be better just to buy an umbrella. But if you and that it is your own task to en- you want to have nature in your garden, courage others to share your ideas. So if you want to have a green environ- maybe it’s not the patience at all. And ment, if you want to have colours and maybe it would be even wrong to just then you plant some trees and flowers be patient. Because that could mean and you do just everything what you can you already know the expected outcome to support these plants - then you do and are just waiting for your colleagues not need patience, but you will sooner achieve what you have defined before- or later enjoy something that you have hand. But that’s not the way we should never expected. You will be surprised work. because that what you see and get is unique. And then you are in the position If you want to have shade in your gar- to say “Wooow!” - and then it’s up to you den and therefore you plant a tree - you to be thankful for that. What I herewith might be impatient all the time until am doing to you, Andreja. 13
  • 15. HAUSKA & PARTNER CR REPORT THERE IS NO SUCCESS UNLESS WE PERFECTLY understand EACH OTHER 14
  • 16. CONTENT 2 / SCOPE OF THE REPORT 15
  • 17. 2 HAUSKA & PARTNER CR REPORT 2 / SCOPE OF THE REPORT We find it quite difficult to maintain a zational change built around our people, balance between the pressures of daily and not the other way around. work and our commitment to live CR in every aspect of our operations. We Our gradual “phased in” approach is were quite realistic about our capabili- slightly different than the one pre- ties when we said we can make our CR scribed in G3 reporting framework. In journey possible only if we take one step the preparation of this report, we have at the time. That is how we decided to primarily focused on profile disclosures, start with ourselves by turning our- some economic performance indica- selves inside out, to make our organi- tors, some labour practices and decent zation more sustainable and to speak work performance indicators that, in about it. Gradually, in each subsequent our view, were most relevant to report year we will report on a new area. This on in our first CR report. In addition, we time our report is dedicated to our em- have engaged some of the stakeholders ployees. With the second report, we will in the preparation of our CR report by also report on our market impact. In the providing a platform for discussion of third year we plan to tackle environmen- our work related practices, helping us tal issues, and we have reserved the two identify strengths and weakness, areas last reports for community relations and for improvement and areas of best research and development. practices. We are not reporting about our organi- In Croatia, we cooperated with the zation because we want like to produce UNDP Resident Representative Office just another stack of paper. We want in Croatia, which supports the govern- to report because we have given our ment’s efforts to join the EU by raising employees a greater say in the future awareness and building the technical of the organization they work for. We capacity of Croatian companies to are reporting because we want to show implement CR practices. In Serbia, we our clients how we become “the right worked with SMart Kolektiv, an or- people”: assertive, with exemplary com- ganisation that advocates responsible munication skills, a good understanding business practices and sustainability. of people, processes and situations, In Austria, we talked about CR man- creative, but with solid general knowl- agement with the director of respACT edge and culture, able to adapt to every Austria, an association that provides topic and ultimately, great networking support to companies on their way to skills. We also report because we would sustainability, and about flexibility with like to use the reporting framework for Irene Kernthaler-Moser, specialist in the dialogue with everyone and for organi- field of Work-Life-Balance. 16
  • 18. SCOPE OF THE REPORT We also sought external assurance for countries are included in the report the report from ethics etc., an indepen- except Latvia. The consultancy in Latvia dent sustainability and social accounting is not included in the report (although consultancy and assurance provider. the Latvian representatives participated in the World Café discussions), be- Our report provides information for cause it only recently started operating the 2005 fiscal year and other relevant under the Hauska & Partner name and information for the 2005/2006 calen- still needs to fully align with all of our dar year. All Hauska & Partner Group Group’s standards. On CR management with respACT Participants: Roman Mesicek, Managing Director of respACT Leo Hauska, Annette Märk respACT austria - an association for en- Question: In respACT’s opinion, is couraging corporate social responsibility there a minimum requirement that - is an Austrian platform that provides SMEs should accomplish in order to the information and support needed by be able to implement CR management companies on their way to sustainability. in company structures? The union is a reliable partner for all Mesicek: A minimum requirement is questions of sustainability, Corporate that SMEs should deal with the issue in a Responsibility and business ethics. strategic manner. Many SMEs operate in line with the principles of social respon- In the framework of its CR-management, sibility, without having to implement a Hauska & Partner organized an expert strategic approach. It is not necessary interview with Roman Mesicek, Manag- to implement a management system ing Director of respACT, to ascertain the designed for big companies. The point requirements small and middle-sized is to put a management system into enterprises (SMEs) should meet in their practice. However, this is a very difficult CR management. What follows are im- criteria for many companies. Presumably, portant excerpts from the interview: it is even easier to state that different projects in the fields of environment, Question: How should SMEs deal with workplace, etc. are enough to be socially the challenges of CR management? responsible, but this does not correspond Mesicek: Our first expectation is that to our understanding of CR. SMEs should be active with respect to this as they have done so far. My per- Question: Are SMEs and global sonal requirement is that SMEs should companies confronted with the same communicate more dynamically about requirements? existing activities and make it more Mesicek: For me, CR strategically means structured and process-based. a commitment in which the company demonstrates its willingness to deal with an issue in a superior fashion. However, 17
  • 19. HAUSKA & PARTNER CR REPORT corporations should not perceive it as Question: Which stakeholder groups a short-term process in which changes should SMEs integrate in any case? should be made quickly and measures According to the respACT under- should be implemented in all fields of standing, the process starting from CR over a short time. It is more a long- acquiring stakeholder information up term strategic approach, and in this to collaborating and addressing issues respect our advice is to implement it of common interest that have an im- successively. Identification of stakehold- pact on both us and stakeholders. ers and organization of the initial stake- Mesicek: With reference to involvement, holder dialogues are a very appropriate this is a question of effective dialogue. starting point. Afterwards, the corpora- Simply releasing information is not tions should begin evaluating different enough and therefore there should indicators. be an option for stakeholders to give feedback or to bring in content. Many Question: With reference to CR companies are afraid of approaching reports, what would respACT recom- stakeholder groups in this way, because mend or require for SMEs? it often leads to criticism. Mesicek: Basically, if it were up to me, I wouldn’t require a company to produce It should be mentioned that stakehold- a CR report. It takes time and effort that ers are expected to demonstrate a level is not necessary in my opinion. However, of professionalism. Therefore it is im- if such a report should be elaborated, it portant that both sides try to establish should be geared to particular standard- a constructive dialogue that should be ized guidelines. The general practice has realized again successively. shown, however, that these are designed mainly to suit the reporting needs of Question: What is the most important larger enterprises, so it is difficult to requirement concerning the recent adapt it to the needs of SMEs and their situation in Austria to professionalize reporting requirements. It is therefore CR for the future? advisable to create a shortened form Mesicek: My general requirement is to that can be easily handled. further professionalize the discussion concerning the topic of CR, involving ev- In general, I would highly recommend eryone: companies, politics, NGO’s. The the GRI guidelines. They are recently the point is to expand the issue of CR and to best orientation framework and there- enable and facilitate an active academic fore many companies refer to them. discussion in Austria. 18
  • 20. SCOPE OF THE REPORT PROFESSIONAL STANDARDS AND CSR RECOGNIZED A note from UNDP Croatia focus the first phase of its CSR program Having reviewed the relevant docu- on a clear priority area for a multi- ments submitted by Hauska & Partner national consulting company, i.e. its on the process of development and employees. Employees bring the most incorporation of the company’s CSR pro- value to H&P business operations, and gram, I would like to note the following: workplace issues are, therefore, well recognized as directly relevant to the 1. The Process company’s performance and ambitions. It is quite obvious that the process of CSR Another clear advantage of setting the program development was quite compre- workplace as a priority area for the CSR hensive, and based on extensive cutting program in this case stems from the fact edge knowledge in the CSR field. Several that it represents an area in company’s items are particularly noteworthy: immediate sphere of influence. The process included a clear definition Based on the outputs of the consultative of the business case for H&P’s engage- process, two additional sets of issues ment in CSR, with an excellent under- have been identified as relevant: standing of how CSR internal processes Issues related to the marketplace, i.e. would help accomplish the company’s to the general and sectoral business strategic goals. environment in which H&P as a com- The process was a comprehensive one, pany and its employees do their daily involving all employees. Employee en- business. H&P should certainly continue gagement in the development of strate- its present efforts in being recognized gic initiatives and policies is in fact one as the leader in professional standards of the most valuable features of H&P’s and CSR, and work with others in pro- approach to this effort, as reflected in moting the aforementioned standards the quality of both inputs and outputs. within the industry. I would not neces- Consultations were followed by the sarily suggest this as the very next area rapid establishment of implementation of intervention, as these are weighty procedures, demonstrating an earnest and difficult issues for a relatively small commitment. company to tackle on its own. Based on the information contained Based on some responses in the work- in the submitted documents, I see no place area, especially those pertain- apparent shortcomings to the process ing to the outfitting, equipment, and employed in development and incorpo- appearance of work spaces, possible ration of the CSR policy, I would com- involvement with the environmental mend it highly, and I recommend the field suggests itself. I believe this to be continuation of the consultative process relevant also from the standpoint of the initiated during the present exercise. obvious value H&P employees place on being able to be proud of the company. 2. The Focus I would, therefore, like to turn your at- Having reviewed the possible areas of tention the Green Office Initiative. This CSR engagement, H&P has decided to has an additional possible advantage of 19
  • 21. HAUSKA & PARTNER CR REPORT being fun to implement, in a way that clarify, amend, or add new items to the involves employees once more. Code, and make it more applicable and relevant to everyday practice. 3. The Substance (Materiality) The Rules of Procedure (By-laws) re- As listed above, it is quite clear that spond substantively to workplace issues employee/workplace issues were very identified by employees, and regulate well chosen as the primary focus of the rights and obligations of all relevant H&P’s CSR program. Also, I find it highly parties. The fact that an effort has commendable that the outcomes of been made to align its provisions with the consultative process were immedi- EU legislation, and with conventions ately incorporated into the company’s and recommendations given by various business processes by becoming a part international bodies, is particularly note- of newly developed corporate docu- worthy, as is the fact that a labour law ments: Rules of Procedure and Code of expert was consulted in the process. In Conduct. view of the importance the employees In my opinion, the consultative process have placed on flexible working arrange- has clearly identified three specific ments, and work/life balance, I would groups of issues affecting employees, as recommend that this issue be revisited follows: in a year’s time, to review whether the Professional education, including the Rules have brought about a substantive need for specialization and development change. of teamwork The issue of professional education, spe- Values, including the creation of a com- cialization, and teamwork arrangements mon understanding of company values will require comprehensive strategic in a multicultural setting, their incorpo- discussions, followed by adjustment of ration in business processes, and their organizational arrangements and HRM internal and external communication interventions. As the definition of a key Workplace issues, particularly flexibility set of skills and knowledge for H&P em- of work arrangements ployees is already listed in the submit- The Code of Conduct constitutes a seri- ted documents, that seems to be a fair ous attempt to deal with issues related starting point. to company values. It lays down a clear Finally, employees have noted that and transparent framework to orient the nature of the work does not give current and future employees, in both them sufficient time to spend on wider general and practical terms. In view of strategic issues, related to either their the overall consultative nature of the everyday work/industry, to social trends process so far, I would suggest that an relevant to their work, or on mid- to appropriate time slot be set aside for long-term issues. A once-a-month brain- joint discussion of any issues that may storming session could be scheduled in emerge from the implementation of the this respect in individual country offices, Code - annually at a minimum - at any where each employee would be entitled relevant forum where H&P employees to submit an issue for joint discussion, meet. This should be an informal and and all employees could possibly vote non-judgmental event, where each on which one is to be discussed. employee could discuss potential ques- tions and/or doubts with his/her peers. The results of these meetings may help 20
  • 22. SCOPE OF THE REPORT PRACTICE WHAT YOU PREACH The note from SMart Kolektiv Introduction and financial success. CSR has to be At the very beginning, it is important to perceived as a core component of doing stress the importance of the initiative business and as a method for matching taken by Hauska & Partner. H&P will be social and environmental interests with the first PR and communication agency, the business and financial interests. In particularly in the SEE region, to adopt a this context, CSR has to contribute to a systematic approach in its CSR practic- company’s sustainability and its opera- es, especially in the sphere of employee tions, and consequently it is important relations, and to issue their first CSR in to note that the concept developed by the Workplace Report. This example of H&P does contribute to business goals good practice is not only noteworthy for by integrating social concerns. Hauska & Partner, for it also represents an incentive, a role-model and eventu- Practice what you preach ally a harbinger of tendencies where The report itself, as well as the entire attitudes in CSR in this region are development of CSR standards by H&P, concerned. It is worth mentioning that puts this company in an active posi- H&P is a PR and communication agency tion of someone who not only consults offering consulting services to other “others” about the potential of incorpo- corporate clients, some of which are key rating CSR, but as a company that also players on SEE markets. In this context, has its own very high standards in this their pioneering effort certainly repre- area and elaborate programs targeting sents a significant incentive to other employees, clearly guided by the values companies and certainly makes H&P it promotes. competent to provide consulting ser- vices to their clients in this, as yet insuf- CSR as a growing part ficiently defined, area. By incorporating of a PR agency’s portfolio CSR practices into their own business The need for PR agencies, which are operations, H&P joins those institutions able to provide support to their clients and organizations that are aware of the to integrate CSR in their operations importance of sustainable development in an expert, professional and quality and corporate social responsibility and manner, is certainly growing. H&P will make a strategic contribution to devel- position themselves in this context and opment and greater implementation of become a communication company of this concept in the SEE region. the future, with the ability and capability to provide multidisciplinary and strate- The business case for CSR gic support to its clients in the sphere of - CSR as a business case sustainable development. By integrating The concept of CSR should not be CSR into the core of its own business perceived as separate from an organi- operations, H&P has assumed the status zation’s core business or as activities of a professional and desirable partner that are not integrated into its business in this area. 21
  • 23. HAUSKA & PARTNER CR REPORT Better work / employees - better certainly justified. A company that performance depends on the capabilities, training and By involving employees in the process competence of its employees recog- of planning, making and implementing nizes its workforce as a key resource key decisions about company opera- and the most important stakeholder. tions, H&P created an atmosphere in On the other hand, the company itself which employees obtain ownership over does not have a significant impact on the process of work and become more environmental pollution, is not present strongly motivated to contribute to fur- on the market among a broad range of ther development of the company. The consumers and does not have a large focus on creating optimal conditions in chain of suppliers and subcontractors, their work environment directly gener- which leaves employees as a key CSR ates greater employee productivity and category and the work environment as a fosters higher motivation and loyalty to key issue and an area to be advanced by company itself. Consequently, the com- the company. pany gives its employees a framework and an opportunity to participate and Methodology contribute to something constructive, The very methodology and approach important and meaningful. to the development of CSR practices in terms of work environment have CSR as a competitiveness tool been adequately designed and envis- The fact that H&P is the first PR agency age involvement and participation in the region to issue a CSR report gives of employees themselves in defining this company a competitive edge over the best practices, needs and future its competition, because it specializes programs on a responsible approach and presents itself as an expert in this to employees. Participation, that is, area. On the other hand, the company inclusion of employees in the process of is specializing in an ethical and noble defining and planning new approaches discipline, and thus ensuring its at- in company management, is in and of tractiveness to a motivated and quality itself a sound and responsible practice workforce. H&P is a company able to at- providing employees with the opportu- tract professional employees for whom nity to become more closely acquainted financial incentives are not necessarily with the very conception, values and always the first and foremost consider- goals of the company. Establishing a ation. This fact is particularly important dialogue among employees and open- given that H&P, as an SME, has no pos- ness of management toward their needs sibility of competing with multinational creates an atmosphere of teamwork and companies and chains in this field in gives employees greater ownership over terms of financial strength and the ben- realization of the company vision and efits it can offer to its employees. goals. Key stakeholder It is important to note that the values Taking into account the character of and goals that a company promotes and their business, the choice of employ- on which it bases its human resource ees as key stakeholders, i.e. choosing policy are an interaction and variety of to integrate CSR practices primarily employee cultures in different countries. in terms of the work environment, is The company culture defined in this way 22
  • 24. SCOPE OF THE REPORT contributes to the creation of additional Clients values for the company itself and is par- The only way for H&P to decisively and ticularly important for the SEE region positively influence its clients with re- in which H&P operates, given that a gard to corporate responsible practices large part of the region is burdened by is to establish a more active dialogue misunderstanding and conflicts among and involve clients in these processes. different national and cultural groups. In this way, clients obtain even greater assurance in the professionalism and Obstacles and shortcomings depth with which H&P develop their This series of recommendations aims to programs, give their contribution to this facilitate further development of H&P’s process and finally transmit a part of CSR activities and to present potential their experiences and knowledge to the guidelines for development of corporate way they manage their own company. responsible practices. The recommendations aim to supple- Employee projects ment already defined guidelines and In addition to establishing a dialogue programs where the latter have not and working with employees, in the been sufficiently elaborated, i.e. to forthcoming period it will be necessary present possible directions for further to consider the even more practical and development of these programs in forth- active engagement of employees on coming years. socially responsible projects. The goals set by the World Café and other pro- Media grams can be attained in an even more Company employees themselves cited proactive way by engaging employees media representatives as important on projects that make use of their stakeholders for an agency such as knowledge and skills in order to con- H&P. Our suggestion would be to involve tribute to socially beneficial initiatives. partners from media houses with which This primarily implies various forms of a company cooperates in its own CSR volunteer engagement of employees or programs. Including media representa- their involvement in a series of local ini- tives in the dialogue about CSR and tiatives. These initiatives and programs related issues sensitizes media repre- must also contain elements of building sentatives to this concept. Furthermore, and bolstering team spirit and participa- education of media representatives on tion of employees in dialogue on the the importance of the notion itself and future and values that characterize their the important role played by the media company. One of the forms of such vol- in strengthening and developing CSR is untary engagement of employees would an vital effort. In this way, H&P would be to provide consulting/PR support to establish even better cooperation with a non-profit organization dedicated to media representatives, but, more impor- a cause that employees find significant tantly, it would pave the way for initiat- and stimulating. ing the process of raising awareness about CSR in the region, which would be impossible without cooperation with the media. 23
  • 25. HAUSKA & PARTNER CR REPORT EXPANSION OF the COMPANY INTEREST IS NECESSITY, NOT COMMODITY 24
  • 26. CONTENT 3 / ABOUT HAUSKA & PARTNER GROUP 25
  • 27. 3 HAUSKA & PARTNER CR REPORT 3 / ABOUT HAUSKA & PARTNER GROUP Hauska & Partner’s history began in 1990, HOW “DISORGANISED” when Leo Hauska founded a strategic ARE WE? communications consultancy in Vienna. Rec- ognizing the potential of emerging markets Governance in Hauska & Partner Group and guided by entrepreneurial drive, very basically rests with the Management soon he started expanding business opera- Board. There are eight members of tions to the region by developing a network the Management Board, two each for of communications consultancies that form Austria, Croatia and the Czech Repub- the Hauska & Partner Group. Hauska & lic, and one each for Serbia and Latvia Partner Group today operates in five coun- respectively. The composition of the tries: Austria (where its headquarters are Management Board also reflects the located), Croatia, the Czech Republic, Serbia common practice of Hauska & Part- and Latvia. Hauska & Partner Group is also ner Group accord preference to local present in Bulgaria, Estonia, Hungary, Lithu- managers - residents of countries in ania, Poland, Romania, Russia, Slovakia and which we operate who also, with the Slovenia through partnership affiliates. exception of Serbia, share ownership in the company. The Board operates on the Hauska & Partner offers a range of services basis of regular meetings and decisions to its clients. The consultancy is primar- are reached by consensus. ily specialized in strategic consulting and stakeholder relations. Other primary In addition to the Management Board services include media relations, internal one more formal structure has emerged relations, external relations, public affairs, at the group level at the beginning crisis and change relations, and corporate of the year. We call it the CR Working responsibility - a service introduced thanks Group. It consists of senior representa- to our growing competencies. tives from all the countries and led by the CR Director. Soon after its establish- Hauska & Partner Group consults reputable ment, the CR Working Group became clients in a wide range of industries and a nucleus for establishing a consistent sectors, from corporate, over national and framework in which we will be able to local government bodies to international intertwine and embed management of organizations. We have successful record in sustainability issues into overall corpo- advising our partners in finance and bank- rate governance. The CR Working Group ing, telecommunications and ICT, FMCG meets regularly to discuss open issues sector, health and pharmaceutical industry, and current progress. energy, infrastructure and development, government organizations and ministries in several CEE countries and international organizations, such as OSCE, World Bank and some UN programs. 26
  • 28. ABOUT HAUSKA & PARTNER GROUP ORGANIZATIONAL STRUCTURE Headquarters AUSTRIA H&P H&P H&P H&P H&P Serbia Croatia Austria Czech Republic Latvia MB Member MB Member MB Member MB Member MB Member Dubravko Václav MiholiÊ Leo Hauska Pavelka Srba Märis Plüme JovanoviÊ Daria Hedi Hauska Petr M. Bartulin Stoklasa CR Working Group CR Director for H&P Group Andreja PavloviÊ 27
  • 29. HAUSKA & PARTNER CR REPORT Our organization combines both flex- our key business processes and improv- ibility and formal structure. It is a ing our performance in the plan-do- delicate balance since we are a entirely check-act cycle. (100%) client-oriented organization. We have organized our work to meet the Furthermore, following the Croatian requirements and needs of our clients Clausure, this year dedicated to process as effectively and efficiently as possible, and project management, and the regardless of the department involved. discussions we had there pointed to Thus our organizational structure fol- the necessity of organizing our work so lows keys processes, rather than the that it more strictly complies with the opposite. Yet, we have also realized principles of process and project man- that “our way of doing things” needs to agement. Therefore, we have launched a evolve into more formal structures and new project that will design H&P Group processes in order to build an overall project management guidelines with the process management approach at the objective of modifying the internal and Hauska & Partner Group level. external organization of work. For example, in Croatia we underwent We have prioritized these two areas the process of certification for two because we believe we need to organize norms, ISO 9001 and SA 8000, in which ourselves more effectively in process we developed an integrated manage- and project management in order to be ment manual alongside the key pro- able to disorganize ourselves in other cedures required by both norms. With areas. We want to give our employees this we have created single reference the means that will enable them to work point related to quality and work-related more efficiently and exercise better issues - an integrated quality and social time management, and by doing so accountability management system ‘loosen up’ our organization in order to which will institute a robust framework make it more humane and flexible. for a systematic approach in managing 28
  • 30. ABOUT HAUSKA & PARTNER GROUP 2005 FINANCIAL RESULTS are an aggregate of the respective individual amounts in the income state- The financial section in our first CR ments of the local companies. Inter-of- report gives an overview of the perfor- fice services have been deducted from mance of the Hauska & Partner Group revenues as well as costs. through its local companies in Austria, Croatia, the Czech Republic and Serbia. Operating costs account for 31.23 The effective date for all reported million, or 47% of revenues, person- economic values in this report is 31 nel costs are 31.04 million (40%), and December 2005. payments to suppliers of outside capital amount to 333,000 (1.5%). Tax liabili- As compared to the preceding year, the ties, consisting of the income tax and Group has seen an increase in revenues other special taxes and royalties, add up (+8%) from 32.42 million to 32.61 mil- to 375,000 or 2.9% of revenues for the lion for the 1 January 2005 - 31 Decem- period under consideration. ber 2005 period. All reported amounts 5 1000 Revenues (net sales plus revenues from financial investments, 2.616 sales of assets) Operating costs (payments to suppliers, non-strategic investments) 1.226 Employee wages and benefits (total monetary outlays 1.040 for the workforce) Payments to suppliers of capital 33 Payments to governments (gross taxes and royalties) 75 29
  • 31. HAUSKA & PARTNER CR REPORT HAUSKA & PARTNER Our profession often requires that we EMPLOYEES work a great deal. Nevertheless, we have well-delineated working hours that HOW MANY OF US THERE ARE vary based on the specific requirements of individual markets and client needs. That team consisted of 40 employees Generally, we start working at 9.00 am in four countries in the period from 1 and finish at 5.00 pm, with the possibil- October 2005 to 30 September 2006, 7 ity of flexibility on either side of these in Austria, 14 in Croatia, 16 in the Czech core hours to better combine profes- Republic and 3 in Serbia. Out of that sional and private needs. Also, senior number, three quarters i.e. 30 employ- employees are occasionally allowed to ees were women, which, we could say, work from their homes. serves as a proof of some opinions that public relations are predominantly a We regularly and entirely fulfil all female profession. Most of our 40 em- obligations to our employees. All our ployees are between twenty and forty employees have full-time employment years of age. Only one is between forty contracts and are registered with the and fifty, while three are older than fifty. Employment Bureau and Social and In- We consider ourselves to be quite a surance Office, which means all relevant young, vibrant company. contributions are paid for them in all situations regulated by law. WHAT WE OFFER Even though our work is rather stress- The H&P Group offers sound opportuni- ful, we have a low rate of absenteeism. ties for career development. We do it in Only 79 days in four countries, meaning different ways - more traditional ones less than two days per employee in one like internal and external training and year. There was no absenteeism due by education, and the less traditional ones occupational ailments nor job-related like constantly challenging creativity fatalities. and the competitive spirit through daily work. All of our employees are joint Hauska & Partner Group offers health (company) members of the Public Rela- and safety standards ranging from an- tions Associations in their countries, nual inspections of all the equipment which also provides various forms of used at the offices, information on training and seminars as well as good hazardous materials and safety instruc- insights into industry practices and tions, first aid kits, and supplemental trends. In the case of the Czech Re- health insurance (provided to employees public, employees are given additional in Croatia). With SA 8000 certification education possibilities provided by the in Croatia, a senior management repre- London School of Public Relations. sentative responsible for the health and safety of all employees was appointed. Likewise, we offer some more intan- gible assets like working with energetic, Annual vacation and other free days are enthusiastic and caring people in a posi- specified either in the By-laws or in oth- tive atmosphere, where all employees er internal documents. In all countries can openly speak to their superiors and we provide an equal number of vacation resolve issues together. days annually to all employees. 30
  • 32. ABOUT HAUSKA & PARTNER GROUP GENERAL EMPLOYMENT the legally prescribed minimum wage in INFORMATION each country. Over time, salaries grow according to personal performance indi- With reference to employee attri- cators, 360 degrees internal evaluation tion, during the period from 1 October and one-on-one discussions with the 2005 to 30 September 2006, eleven management. employees in four countries changed workplaces, setting the rate of employee Regular performance and career devel- turnover for the Hauska & Partner opment reviews are conducted regularly Group at 28 percent. in Croatia and Austria. Reviews have been introduced in the Czech Republic Entry level salaries in Hauska & Partner in 2006, and they will commence in Group companies, depending on the Serbia and Latvia in 2007. country, are 11 to 89 percent higher than Rate of injury per 100 employees 2.5 Days of occupational ailments per 100 employees 0.0 Lost days per 100 employees 197.5 Days of absenteeism per 100 employees 0.0 Number of job-related fatalities 0 31
  • 33. HAUSKA & PARTNER CR REPORT GROWING BUSINESS complexity IS WHAT ONE MUST EXPECT 32
  • 34. CONTENT 4 / OUR HR PRACTICES 33
  • 35. 4 HAUSKA & PARTNER CR REPORT 4 / OUR HR PRACTICES All current practices that are primar- One tool applied in all companies is ily implemented in H&P companies in Protocol, a database of daily working Austria and Croatia are listed here, activities that all employees fill in on while other companies in the Group a regular basis. Protocol is primarily implement only some of these practices. used to document the exact time we Since the process of alignment is under spend on each client and other projects way, we expect each of the remaining in order to create a base for our billing companies in the Group to implement all procedures. It is also used to monitor, HR practices by the time our next report analyze and evaluate an employee’s is issued. Austria, as the company’s time invested compared to the quality of headquarters, and Croatia, as the coun- work, needs of the company and oppor- try which joined the Group at the earli- tunities for employee development. This est stages, are closest in formulating all is also one of the tools used to measure of these HR practices, which is why they employee productivity. implement them entirely. On the other hand, over time, as the companies from other countries joined in, they unable to adopt all of these HR practices immedi- ately. This is why the alignment process is currently ongoing, to make sure all companies in the H&P Group follow the same practices with respect to HR. 34
  • 36. OUR HR PRACTICES IN SHORT 360 degrees evaluation each employee takes place once a year. During this conversation, the MB mem- An HR tool primarily used as for evalu- ber presents the employee with all of ation tools in H&P’s HR system. It is an his/her performance indicators during all-around assessment in written form the past year. They jointly discuss set in which all employees participate by objectives compared to actual achieve- equally evaluating one another. The re- ments. The details of 360 degrees and sults are presented in a plenary session client input are also discussed. The im- once a year and in a more detailed man- mediate result of the one-on-one is the ner during one-on-ones. 360 degrees is defined yearly PDP. used to make PDP’s more precise and is one of the indicators for decision-mak- Personal Development Plan (PDP) ing on promotions and salaries. The PDP is a tool we use to continually Workplace Assessment plan each employee’s development with- in the framework of company’s needs, The WA survey is conducted among all requirements and organizational devel- employees and management, cover- opment. They are written documents in ing about 50 questions based on those which employees and the MB member topics most crucial to internal develop- in charge of HR agree on set objectives ment. It is used to verify, evaluate and for the employee during a year, and revise management practices, internal the strategies and particular activities communication, education and personal needed to achieve these objectives. development, workplace conditions and overall workplace quality, and to assess Protocol the potential gap between proclaimed standards and corporate culture and ac- Protocol is a database of daily work- tual employee perceptions, understand- ing activities that H&P employees are ing and thinking. Results are presented obliged to fill in on a regular basis. Pro- in a plenary session once a year and tocol is primarily used as a tool to docu- management presents the resulting ment the time we spend on client work conclusions and measures that are in order to create a base for our billing incorporated into the business strategy procedures. It is additionally used to based on WA findings. monitor, analyze and evaluate employee time invested compared to the quality One-on-ones of work, company needs and opportuni- ties for employee development. It is one The basic one-on-one between the MB of the tools used to measure employee member in charge of HR issues and profitability. 35
  • 37. HAUSKA & PARTNER CR REPORT Academy New employee orientation system The annual plenary conference orga- New employees are introduced to the nized by the H&P Group for all employ- company by specific procedures that ees has two primary functions: strategic initiate them into the corporate culture, and educational. Over several days, processes, projects, internal develop- employees participate in theoretical ment, organizational aspects, rules and and practical sessions concentrating procedures and other parts of their on corporate culture, education in core daily work. An essential tool in this pro- business, new developments, best prac- cess is the brochure for new employees. tices, etc. The Academy is opportunity to wrap-up the year at the Group level Recruitment of new employees and work on Group harmonization. The recruitment process is prescribed Clausure by set procedures and proceeds in several selection stages. We use two Clausure is a strategic and educational methods to contact potential employees seminar geared to the specific purposes - our own internal database of poten- of each local office held once annually tial employees and publicly posted job for participants from one country team. offers. The content of the Clausure is mostly concentrated on internal development, Internal Communications strategy development and team build- ing. Internal communications are conducted in writing and verbally. Management True Professional regularly informs employees of practical decisions via e-mails and regular meet- True Professional is a system that pres- ings. Internal communications are also ents H&P philosophy through a number exchanged on the Intranet. of steps. True Professional principles are the core objectives and strategies that inform employees on what H&P deems “true professional”, and instructs them how to reach desired levels. 36
  • 38. OUR HR PRACTICES TRUE PROFESSIONAL The “total team” philosophy in practice In football, Total Football is a system Total Football depends largely on the where a player who moves out of his adaptability of each player on the team position is replaced by another from to succeed. It requires extremely tacti- his team, thus retaining their intended cally aware players, allowing them to organizational structure. In this fluid change positions at high speed - in its system, no footballer is fixed in his or simplest terms, every player is comfort- her intended outfield role; anyone can able in any other position. It also places be a striker, midfielder and defender in high technical and physical demands on succession. the players. In Hauska & Partner, the Total Football philosophy has become the Total Team Philosophy. I am my team. - We work together - We respect our strengths and overcome our weakness - We are proud of every team member - We take the best from each team member - We are open and honest in our communications - We find inspiration in our successes and learn from our mistakes DEVELOPING OUR PEOPLE The Personal Development Plan (PDP) is a tool we use to continually plan the We use three key tools for planning our career path of each employee in the employees’ careers in the H&P Group. framework of the company’s needs, At the end of each year, we conduct a requirements and organizational de- 360° evaluation, all-around checks in velopment. After submitting the PDP, written form in which all employees the employee has one final step to take participate equally by evaluating one - the one-on-one interview with the another. The results of the 360° evalua- Management Board member. During this tion are presented to all employees and conversation, the MB member presents used as the basis for two other tools the employee with all of his/her perfor- - Personal Development Plans and One- mance indicators during the past year. on-One discussions with the Managing They jointly discuss set objectives com- Board Member in charge of HR. pared to actual achievements, as well as the details of 360° and client input. The immediate result of the one-on-one is the defined yearly PDP. 37
  • 39. HAUSKA & PARTNER CR REPORT IMPROVING OUR daily practices comply with our pro- WORKPLACE claimed values and standards. With this survey we also upgraded the employee Having gone through the process of PDP system by providing another way initial assessment, we realized that we of checking the reliability of employee needed to establish framework for re- statements in the PDP. This serves as sponsible business practices and define an employee consultation tool, which is a code of conduct alongside mecha- why it does not classify as a standard nisms which would help us assess the satisfaction survey. potential gap between proclaimed stan- dards and actual employee perceptions Once all companies in the H&P Group and actions. This is how the workplace implement the WA survey, it will also assessment survey was developed and serve as a benchmarking tool among the introduced for the first time in Croatia companies. After the second WA survey within the H&P Group. This was one of is conducted in Croatia in 2007, we are the elements we used to develop our going to develop key performance indica- own platform for employee dialogue. tors (performance objectives) based on The workplace assessment survey is a the results of the survey, and weak points monitoring tool used to make sure our that need to be addressed. GRADATION 1.0 - 1.5 area of excellence 1.6 - 2.5 area of strengths 2.6 - 3.5 area of necessary improvement 3.6 - 4.5 area of obligatory improvement 4.6 - 6.0 “red alert” area - company risk - immediate action SURVEY RESULTS: Areas of excellence (1.0 - 1.5) - Stability and reliability of employment 1.4 - Reputation among stakeholders 1.5 - Trust in H&P leadership 1.5 - I enjoy and am proud to work at H&P 1.5 Areas of strengths (1.6 - 2.5) - Employees are respected and valued as persons 1 .6 - We speak positively about H&P to others 1.7 - We do important work and are generally satisfied 1.8 38
  • 40. OUR HR PRACTICES - Management provides a clear direction 1.8 - Management is interested in the well-being and professional growth of employees 1.8 - We are independent and have sense of accomplishment 1.8 - Individual visions blend with the visions of company 1.9 - Differences can be discussed openly 2.0 - Skills and abilities are well-used 2.0 - H&P improves workplace quality 2.0 - We are satisfied with career perspectives at H&P 2.0 IMPROVEMENT - We are satisfied with our status and allowed to balance life and work 2.3 - We are kept informed and consulted, our ideas are taken into account 2.4 - We enjoy good fringe benefits 2.4 - We have essential materials and are satisfied with our involvement 2.4 - We are satisfied with holidays and free days 2.4 Areas of necessary improvement (2.6 - 3.5) - Our professional development 2.6 - Formal communication with management 2.7 - Level of technology 2.8 - Workload and working hours 2.8 - Salaries 2.9 - Offering competitive opportunities and taking care of talent 2.9 - Communication with team leaders 2.9 - Our training and education 3.1 Area of obligatory improvement (3.1 - 4.5) none Red alert area - company risk - immediate action (4.6 - 6.0) none What we consider most important: 1. Team atmosphere and bonding 143 pts 2. Salary increase 136 pts 3. Possibility of professional promotion 130 pts 4. Insight into company strategy and plans 1 1 9 pts 5. Possibility of involvement in company management 1 1 7 pts Followed closely by: 6. Openness of communication 115 pts 7. Educational opportunities 1 1 3 pts 9. Opportunity to be innovative and creative 1 1 1 pts 10. Flexible working hours 9 1 pts 11. Opportunity to work on international projects 90 pts Low priority: General workplace, free days, fringe benefits, educating others, training and mentoring range: 65 - 44 pts 39
  • 41. HAUSKA & PARTNER CR REPORT THE FUTURE of OUR BUSINESS IS WORKING TOGETHER AS ONE TEAM 40
  • 42. CONTENT 5 / SHAPING OUR FUTURE 41
  • 43. 5 HAUSKA & PARTNER CR REPORT 5 / SHAPING OUR FUTURE Until 2006, the primary objective of our OUR FUTURE IN THE Academies was to provide our employ- WORLD CAFÉ ees with new knowledge in the areas we deemed necessary. This time we wanted The World Café is both a simple meth- to turn it into a platform on which the odology for creating a living network management and employees would of collaborative dialogue around issues jointly work on shaping the future of our that matter in corporate, governmental Group. and community settings and a pro- vocative metaphor. Based on a simple The CR Working Group decided to principle, the underlying idea of the provide the platform for open employee World Café is to serve as a platform for discussions by organizing the World sharing knowledge, creating collective Café, which was set in a stimulating intelligence and contributing to the café-like environment to additionally elaboration of new value-chains. The encourage our employees to share World Café at our Academy was also an their views about the Group’s future. opportunity to bring together all em- Moreover, the idea was to foster a better ployees, enabling some of them to meet understanding of our strategy, values, their colleagues from other countries CR and workplace related issues and for the first time. Namely, it was the stakeholder relations. first time employees from Latvian and Serbian companies joined our Academy This was an ambitious goal because and met the rest of the Group. we did not know how employees would react to suddenly being invited to speak The World Café at our Academy was out about the issues which were usually organized around six topics, with groups not discussed in such a wide circle. of employees sitting at small Café-style tables and background music to create the café-like ambience and add on to the informal and easy-going atmo- sphere. Each discussion table had a paper table cloth for writing the ideas and thoughts down as well, as a host who moderated the discussions. Before beginning, all participants were asked to adhere to Café-Etiquette. 42
  • 44. SHAPING OUR FUTURE We need to present CR at the Academy to all of our people, but we need to do so in a way that encourages them not only to participate in discus- sions about Hauska & Partner’s future, but also to actively shape it. Petr Stoklasa, Partner The six topics discussed were: of the direction we will take in the future 1. What is CR and how does it relate to by implementing our CR and HR policy: H&P? - raising awareness of H&P Group 2. Do our values fit into our daily work? strategy and objectives by intensi- 3. What is the link between PR, CR and fying our internal communication stakeholders relations? process and establishing a consis- 4. What is our corporate strategy? tent H&P Group CR-framework, 5. Which skills are needed to support - implementing a different kind of our strategy and growth? thinking and education based on 6. What should the ideal workplace employee and client needs, look like? - defining working values and estab- lishing a common understanding Analyzing the upshots from the dif- of key skills and issues, as well as ferent theme-discussions at the World establishing multidisciplinary and Café, we observed some of the main cross-border teams in order to trends in the way our employees see highlight the intercultural values and them. Evaluating their ideas and way of know-how transfer, thinking, we obtained a rather good idea - defining a set of H&P unique work- place standards. “World Cafe is a dynamic and witty form in order to verify the company’s current of conducting employee dialogue that status -this is an excellent tool for mea- enables employees to freely and openly suring impact and satisfaction of the express their views and opinions on key stakeholders. Thanks to the synergy the company they work for. Employees of ideas from people from somewhat are invited to share their suggestions, different countries, customs and cul- complaints, concerns, worries, hopes, tures, new ideas emerge, which makes and expectations of company. Because World Cafe a significant brain-storming of the relaxed and pleasant atmosphere, tool. In addition, World Cafe is especially all barriers and hierarchy differences suitable for defining the corporate phi- cease to exist. losophy - developing a common vision, mission statement, and values.” “I recommend that this kind of opinion sharing/viewing should also be prac- Gordana VesiÊ, ticed with other important stakeholders consultant in Hauska & Partner Serbia 43
  • 45. HAUSKA & PARTNER CR REPORT BECAUSE OF THE RELAXED AND PLEASANT ATMOSPHERE, ALL 44
  • 46. SHAPING OUR FUTURE BARRIERS AND HIERARCHY DIFFERENCES CEASE TO EXIST. 45
  • 47. HAUSKA & PARTNER CR REPORT Based on the World Café outcome we vides uniform guidelines with necessary have already managed to improve our information about our company, our workplace in two fields. First, we devel- policies and procedures. Second, since oped a detailed employee brochure that employees recognized diversity as one should help the newcomers more easily of our distinctive strengths, we have familiarize themselves with our way of also added it to our values. doing business. This brochure also pro- “The idea and concept of World Café slightly amusing atmosphere. World were excellent. Out of everything in Café was a pleasant surprise for every- the last Academy, World Café was the body and it should be repeated at the best part. I think everybody was relaxed following Academies.” and managed to talk with their senior colleagues about current topics and Miroslav Brnjak, assistant in Hauska & Partner Croatia possible open issues in an informal and SHOULD WE NOT STRIVE TO BE The list of proposed values was a BETTER THAN THE BEST? product of past values and the Hauska & Partner reality. In the same way they Hauska & Partner’s values, as we know were instrumental to Hauska & Partner’s them now, emerged as a result of the philosophy and strategy. The values Corporate Identity/Values Workshop proposed were excellence, reliability, held at the Hauska & Partner Clausure contribution, passion (dedication) and in April 2005 as a part of an overall diversity. In the process of verification project activity that was listed in the CR and selection all value were selected by strategy and program the year before. workshop participants except for one: the value of diversity. The workshop was organized with the purpose of defining one of the funda- Hauska & Partner values were again dis- mental elements of the Corporate Iden- cussed in a wider forum at the Hauska & tity - our values. Prior to the workshop, Partner Academy which was held in May all participants from Austria, Croatia 2006. In the World Café round-table and Serbia were given a brief paper in discussion, one of the topics discussed order to ensure that they all share the was whether our values fit into our daily same or similar understanding of Corpo- work. Participants underlined excellence rate Identity elements and use the same and reliability as main the pillars of the vocabulary in workshop discussions. Hauska & Partner corporate culture. The brief paper laid down the Hauska & They also placed special emphasis Partner values with their basic explana- on diversity. As a consequence, this tions and definitions. Some examples value was re-introduced as a Hauska & of practical implementation of values in Partner value that enables us to equally daily work with our clients and business appreciate our similarities and our dif- partners were also given. ferences. 46
  • 48. SHAPING OUR FUTURE Hauska & Partner values: Excellence Reliability We constantly strive to provide the best Our behaviour means we deserve to be consulting and incorporate the highest trusted and entrusted with assets and standards and best-developed skills into intangible values. We value stability and our daily actions. Excellence reflects act in a way that provides protection, constant growth in knowledge and lead- help, advice and consultancy so that we ership in action. This means that: take into the account our stakeholder rights and interests. This means that: - We employ people who constantly wish to develop professionally and - We fulfil our responsibilities to our who contribute to excellence employees, shareholders, clients, - Our team demands respect for the society and other stakeholders highest standards of quality - Our employees can rely on the - We invest in our growth, develop- company and their colleagues for ment and raise our competence stability of employment, income, daily professional growth and challenging - We provide tailor-made solutions to work our clients that best assists them in - Our clients entrust us with their achieving their business goals problems and issues and believe in - We are innovative and contribute to our capabilities to help them solve the development of our profession these issues and achieve their busi- ness goals - We have a responsible attitude to- ward our profession, our community and society 47
  • 49. HAUSKA & PARTNER CR REPORT Contribution Passion and Dedication Our purpose is to provide the best con- We believe that the best consultancy, sultancy to our clients, safe employment besides vast knowledge and skills, has to our team and a sound framework to cultivate the elements of passion and for their professional development, strong belief. It includes a dedicated prosperity to our shareholders, tan- approach to people and things and a full gible and intangible benefits to society, commitment to clients, stakeholders and constantly adding value, scope, quality issues attached. Passion and dedication and strength. To contribute means to mean additional energy invested in our give by adding quality and value. We are work, greater attention to the issues, bet- dedicated to: ter identification with clients and greater loyalty. - Contributing to our clients’ wealth, not only by providing excellent - We are passionately devoted to our service levels, but also by reaching profession, our company, our team, further and proactively coaching, our clients and the positive issues teaching and educating clients in we promote as consultants our domain of expertise - Our work goes beyond the simple - Contributing to our employees’ need to have a job and secure our ex- quality of life, by allowing them istence; we approach our philosophy to achieve their highest poten- and our actions with full dedication tial, respecting their professional - We firmly believe in our values and ambitions and providing a healthy, vigorously exercise them in our daily desirable environment for their daily business work - We approach our stakeholders with - Contributing to the quality of our the desire to understand them and profession with innovation, business to share our values with them development, fair and sound prac- - We are fully devoted to our clients tices, investments in education and and committed to their success by facilitating market development - Contributing to the values of Euro- pean society and good practices, not only by being a role-model in observing regulations and laws, but going farther and responding to the needs of society wherever communi- cations consultants may add value 48
  • 50. SHAPING OUR FUTURE Diversity We equally value our similarities and our Our vision and mission were revised differences. We recognize that we all again in 2006, when the MB members come from different cultural and social were simply asked to write down their settings and therefore we exert efforts vision and mission for Hauska & Partner. to understand each other and merge When all the vision and mission state- diverse experiences and knowledge to ments were merged, we realized that build a strong network of people who all MB members have pretty much the work together as one team. same understanding of our direction. - We cherish the qualities that help us understand, accept and cultivate dif- ferences - We believe that with a diversity of ideas, background and perspectives, our employees make it possible for us to develop a more complete picture and better adapt to the complexities and challenges of the modern word - We are fully aware that working in a diverse team can be more difficult because we confront different and often contradictory perspectives, and yet we strongly believe that working in diverse teams helps our employees be more open and develop new ap- proaches - We respect diversity in society and make every effort to understand and accept each stakeholder and group, and we are dedicated to brining dif- ferent perspectives together 49
  • 51. HAUSKA & PARTNER CR REPORT VISION: A regional leader in strategic con- clients and partners and contributing sulting and stakeholder relations to positive changes in the business respected for creating value for our community and society as a whole. By “creating values” we mean: tain and enhance sound relationships - Helping an organization, company with their stakeholders, which has or an individual not only achieve the measurable effects on success in any business and organizational goals, area of operations but also surpassing them - Helping an organization avoid and - Helping an organization, company prevent unwanted problems or issues or an individual achieve or surpass that may influence the financial or planned profits non-financial value of their operations - Helping an organization, company or - Helping an organization, company or an individual establish, develop, main- individual conceive, plan and imple- tain and enhance complex and/or not ment strategies and activities that solely financially measured values, directly reflect the long-term sustain- such as reputation, image or brand able existence of the organization, value company or individual in terms of - Helping an organization, company or relations with their crucial stakehold- an individual establish, develop, main- ers, such as employees, customers, shareholders or the community MISSION: - We work with respectable companies - By employing and developing top and by engaging in positive change professionals, we provide the high- we contribute to the development of est quality of consulting to our society. clients and help them achieve their - We help improve the business com- business and strategic goals. munity in our home countries and - We promote the highest standards advance international cooperation and responsibly contribute to the and understanding. communications and consulting - We are a stable, efficient and profitable profession, which makes us a reli- company with excellent knowledge able and preferred partner to our management providing a great work- stakeholders. place for our employees and invest- ment satisfaction to our shareholders. 50
  • 52. SHAPING OUR FUTURE BUILDING UNIQUE ing an image of a preferred employer WORKPLACE STANDARDS to more easily attract and retain quality employees. We operate in different countries with different labour standards and legisla- According to a European Commission tion. For instance, Austria has already Opinion, Croatian legislation seems been a member of the European Union to cover most of the basic principles for many years, while the Czech Repub- laid down by EU Labour Directives, lic only recently joined. On the other especially in areas such as informing hand, Croatia is a candidate country and consulting employees regarding going through number of alignment individual employment conditions. On procedures, while Serbia has yet to start the other hand, experts underline that this process. One of the major problems the Croatian economy cannot advance Serbia has been facing over the last further without major improvements in several years is the continually growing the labour market, because it will lose unemployment rate and unregistered its competitiveness and become disad- work. Moreover, few employers work vantaged in comparison to other coun- in full compliance with the law and tries. As most important, they mention breaches of employee rights are com- investments in human capital through mon among most companies. CR is still education reform and development of a an unrecognized concept in Serbia and knowledge-based economy that would is practiced only by major multinational ensure a competitive workforce and companies and very few local ones, reduce unemployment. As in the case of mostly through donations and, to a the Czech Republic, media and society certain degree, environmental protec- pay significant attention to labour is- tion initiatives. sues, out of which the most important are unemployment, overtime, unregis- Labour issues grew in importance over tered work, work-life balance, mobbing, the last several years in the Czech salary discrepancies based on gender Republic. The social peace is maintained and managerial positions. Overall, we by an institutional platform for social have witnessed profound shift in public dialogue between the government, interest from unregistered work and trade unions and employers. Labour compensation and benefits issues to law is fully aligned with EU legislation health and safety issues, gender equal- and enforced in the Czech legal system. ity and quality employer issues. Labour issues are acknowledged as important by both the media and soci- When it comes to Austria, there are ety in general. The main labour issues number of a governmental bodies include occupational safety and health, responsible for labour issues, as the unemployment, work-life balance, work- Austrian labour framework is very com- place discrimination, gender differences plex. In all decision-making processes, and equal opportunities. International partners representing the government, Business Leaders Forum Prague (IBLF) business and labour jointly resolve all conducted a survey which showed that open issues. The issues that are mostly the motivation for company CR activi- addressed by the media and society ties most frequently often entails creat- are flexible working hours, teleworking 51
  • 53. HAUSKA & PARTNER CR REPORT and work-life balance in general, equal Flexibility in the focus opportunities, childcare, and health and job security issues. In our CR Working Group discussions, one of the issues tackled was the fact Since we work in different environ- that in comparison to some of our ments, we also have different prefer- competitors or multinational companies, ences and a differing ideas of what the we are not able to provide them the ideal workplace should look like. We same level of competitive salaries and are also aware that we cannot offer benefits. We perceived this fact dually, our employees the same benefits as both as a threat as an opportunity, as on our competition or large companies. the other hand our employees indicated That is why we have opened discussion that they expect more balance between with our employees about issues that their work obligations and private lives. are of greatest interest and concern to them. At the same time, we are also In this regard, we have recognized the aware that once we initiated discussions importance of work flexibility and work- with our employees, we could also be life balance. Even though the practice of expected a certain level of disagreement creating a flexible work time company between employees and management is still at its beginnings in our Group, with respect to some issues. It is there- we plan to make a shift in this area in fore essential to make sure employees the coming period. In order to make a feel free to openly discuss workplace positive step towards flexibility, we are related issues with management. World seeking professional knowledge and Café discussions were the first step in expertise in this segment, which is why establishing a common understanding our company in Austria consulted Irene between management and employees Kernthaler-Moser, a specialist in the about what employees can reasonably field of work-life balance. expect from the company and vice versa and how to constantly improve our Irene Kernthaler-Moser underlined workplace quality. In the same manner, that before we could start develop- we will continue discussing open issues ing our flexible working model(s), we with our employees, thus setting our have to define what the notion “peak workplace standards which would make performance” means to us. She used us a first choice company. this notion in the context of results of research carried out by Fritz Riemann. According to this research, there are four different types of behaviour pres- ent in every person in different forms. These four types of personal behaviour have different result, process, person and innovation patterns. They are con- siderably more effective if management is able to combine them well in teams and recognize the quality of particular performance. Here it is also important for management to realize there is no 52
  • 54. SHAPING OUR FUTURE single person who can constantly gener- PARTNERSHIP WITH DNV ate “peak performance” and that it is management’s task to define the stages We established a partnership with Det in which every employee will be allowed Norske Veritas in order to align all of to recover and prepare for the next peak our practices with the SA8000 cer- performance. tificate and at the same time assume a leading role in the SME sector by In order to facilitate easier introduc- motivating other small and medium-size tion of the work-life balance scheme in companies to organize their business Hauska & Partner Group in the following operations in line with SA8000. Most years, we plan to organize an educa- importantly, commitment to SA8000 tional seminar and a discussion forum principles will enable further develop- for our employees with Ms. Kernthaler- ment and strengthening of our employ- Moser in 2007. ee relations and a responsible approach to the communities in which we operate. The goal is to open up discussion about The certificate will allow us to introduce this issue and thus facilitate the estab- clear procedures and a governance lishment of more flexible working models system that will guarantee quality work- which will support work arrangements ing conditions for our employees. By suiting both, the company and the introducing SA8000, we also commit employees. By initiating discussion with to obeying to ILO Conventions and UN our employees, we want to encourage Conventions on protection of children’s a partnership approach to meeting the rights and make sure any type of dis- needs of the company and employees. crimination is eliminated. BY-LAWS The By-laws are a legal document not usually required for small-sized com- panies. In drafting our By-laws, we con- sulted an outside expert, a lawyer with long trade union experience in protect- ing worker rights in Croatia, who is also very familiar with CR developments, but also with all EU labour regulations. The very first thing she said after reading the draft was that the By-laws should not be seen only as a legal document, as they should also clearly indicate our aspirations, our commitment and our sense of direction. 53
  • 55. HAUSKA & PARTNER CR REPORT BECOMING GREAT CONSULTANTS “Every worker has both the right and sense of responding to the needs of responsibility to be a professional who society.” produces work that is good, both in technical sense of being performed with Howard Gardner, professor of cognition, author of the book skill and knowledge and in the moral “Good Work: When Excellence and Ethics Meet”. Although Professor Gardner comes training module. Risk and opportunity from another area of expertise, his way management is an ongoing process that of thinking very much underlines some was conducted on a more ad hoc basis, very recent discussions in PR profession until the World Café discussions at the concerning ethics. We are witnessing Academy, which were a turning point in an increased awareness among public many aspects. relations professionals and management that ethical performance makes for long- That is why we discussed how to cope range stability. Achieving ethical perfor- with the commodification of our profes- mance is also becoming the foundation sion, which poses additional day-in and for achieving an effective relationship day-out pressures. This commodification with the public, as fellow PRSA Craig is apparent across every industry and ev- Miyamoto claims. ery country, as the interconnected world facilitates broad searches and broad We responded to these discussions by availability. It is evident that we can creating a framework for responsible create value for our clients and partners business practices. We were driven by if we are able to continuously develop two key objectives: we wanted to estab- ourselves, both professionally and per- lish a framework in which we would be sonally, and establish relationships with able to reach a collective understanding our clients based on mutual knowledge between management and employees and understanding. that our values do reflect their own personal and professional vision. Equally We also discussed other global trends important was to provide guidelines that dictate changes in our clients’ for handling situations which might or expectations: a multidisciplinary ap- already pose an ethical dilemma. proach is in demand; clients expect us to follow trends and continually improve; The framework was established in the we have to adapt to changes in technol- form of a business ethics program. It ogy and work organization, companies reflects our culture and management’s themselves are exposed to new and operating style and it is based on four challenging pressures - from strength- pillars: Code of Conduct, By-laws, Compli- ening competition to growing demand ance Program, and Risk and Opportunity for accountability and good corporate Management. So far, we have developed practices, increasing internationalization, the Code of Conduct and By-laws for our development of new media and diversity company in Croatia. The key elements of of information sources, human alienation the compliance program will be devel- (the challenge of attracting people’s at- oped next year together with the ethics tention) and workplace flexibility. 54
  • 56. SHAPING OUR FUTURE We asked ourselves how to address have a well-developed ability to express these changes in client expectations and arguments. what skills and knowledge we need in order to respond to them and support In order to become great consultants, we our vision and strategy. The answer was encourage specialization and educate that the education of great consultants ourselves in psychology, economics, man- never stops, and it requires lifelong agement, sociology, political science and learning. In addition, great consultants international relations, and in linguistics, are open minded and prejudice-free, the media and communicology. We simul- have high professional standards and taneously continue to hone our abilities objectivity, are good listeners, adapt- in stakeholder relations, management able persons, quick learners, passionate, consulting (specifically change manage- good negotiators and diplomats and ment) and CR consulting. CR Consultancy We recognized the development of core scription of CR-related services together CR competencies and discernment of the with a definition of the key elements of qualities that make a good CR consultant our own approach to CR. as core issues when it comes to enhanc- ing our capacity to successfully assist our We additionally ascertained that the fol- clients in identifying and managing sus- lowing aspects are essential to develop- tainability issues that may have an impact ing a CR mindset to build distinctive CR on their business operations and overall competencies: openness to different business strategy. In 2006, we conducted views and perspectives, readiness to research on the CR consultancy industry move from familiar ways of thinking, in the U.K. in an attempt to find which eagerness to accept and handle com- competencies were recognized as key to plexity and “build bridges”, enthusiasm developing professional CR services. about learning and combining different skills and knowledge and ability to ef- Based on the results of this research fectively communicate a business case and our own experience, we expanded for CR from the standpoint of manage- our consultancy portfolio with the de- ment rooms. KEY ELEMENTS OF OUR OWN APPROACH TO CR: Building a business case for CR Ongoing individual personal by becoming “true CR Company” and professional development Connecting CR with other Cultivation of “hybrid” skills aspects of consultancy work and building cross-border teams 55
  • 57. HAUSKA & PARTNER CR REPORT PROMOTING the HIGHEST STANDARDS MEANS BEING ACCOUNTABLE 56
  • 58. CONTENT 6 / A WORD FROM AUDITOR 57
  • 59. 6 HAUSKA & PARTNER CR REPORT 6 / A WORD FROM AUDITOR ethics etc… was established as an reports have consistently been rated independent consultancy in 1997 to among the best in the world. We have carry the principles and practices of also audited the groundbreaking Guard- stakeholder engagement and social and ian Newspaper’s Living Our Values environmental accounting learned in the Reports since the first was published in fair trade movement into mainstream 2003. business and other large organisations. We believe that people matter - and that Richard Evans, ethics etc…s founder, was the truly successful enterprises of the contracted by Hauska & Partner Group, future will be those that are systematic by agreement signed 1st November 2006 in developing their strategies around in Vienna, to: the needs and aspirations not just of - provide advice on the technical their customers and investors but all issues relating to compliance wih their stakeholders. social accounting standard: content, They will also recognise the relationship organisation and documentation between their own goals and activities of relevant management informa- and their impact and their responsibility tion, quality of evidence supporting to work for a more sustainable future performance data, definition of key for society and the planet, locally and performance indicators, analysis globally. of stakeholder consultations and surveys We provide independent assurance for - provide audit of draft report corporate and organisational social - prepare assurance provider’s state- responsibility and sustainability reports; ment. planning and advice around stakeholder engagement; consultancy in develop- The sum agreed for providing these ing CSR and sustainability management services during late 2006 and January systems and accounting; training and 2007 was £ 2,750.00. guidance in peer review processes for public bodies. In ten years ethics etc… has worked with a wide range of organisations inter- nationally in industry, commerce, the media, government and the NGO com- munity. ethics etc… was the assurance provider for six successive Co-operative Bank Partnership Reports and involved in auditing four Co-operative Financial Services Sustainability Reports. These 58
  • 60. A WORD FROM AUDITOR ethics etc… is an independent consultancy partnership, based in the UK, providing services to businesses and social enterprises to help them respond effectively and efficiently to the need for a more just and sustainable society. MY RESPONSIBILITIES AND Hauska & Partner have chosen to align THE ASSURANCE STANDARD the content of their report with The Global Reporting Initiative’s G3 Sustain- My responsibility as an independent ability Reporting Guidelines. In making auditor is to form a view, on the basis of my assessment I have also considered detailed and systematic investigation, as whether the report and the GRI G3 com- to whether the statements and claims pliance statements made are valid. made in the report are trustworthy and adequately supported by evidence. In The content of the Social Audit report doing this I am seeking to apply the is entirely the responsibility of Hauska’s three principle tests set out in Account- Directors. I have not contributed any of Ability’s AA1000AS Assurance Standard. the text or information apart from this These are: statement, neither have I designed the - Materiality - is the information systems for information and manage- relevant to stakeholders’ concerns ment control on which the content of and interests and will it help them the report is based. make informed judgments about the company’s performance? My responsibility is primarily to Hauska’s - Completeness - does the informa- stakeholders. tion provide sufficient evidence that the company understands all I have no relationship with Hauska & Part- its significant social, economic and ner Group, its employees or stakeholders environmental impacts? that might compromise my ability to act - Responsiveness - does the report independently in carrying out this audit. demonstrate the company’s re- sponses and commitment to improv- ing its performance? BASIS OF ASSURANCE AND LEVEL In order to comply with these principles This is Hauska’s first CSR Report. It’s I have to form an opinion as to whether scope is limited to describing the devel- the information in the report: perfor- opment of their CSR process, financial mance data and reporting of Hauska & performance data for the Group for Partner Group’s stakeholders concerns the year ending December 31st, 2005, and assessment of the company’s Workplace Assessments and descrip- behaviour, is accurate, consistent with tions of HR policies and performance for Hauska’s values and presented in a bal- all members of the Group, except Latvia, anced manner. and the 2005 Employee Survey for Croatia. All these limitations have been disclosed in the report. 59
  • 61. HAUSKA & PARTNER CR REPORT I have examined documentation describ- Not one PR/communications consul- ing all these processes and policies and tancy company appears in the top 100 the results of the employee survey. reporters in Tomorrow’s Value - The I have not visited any of the offices Global Reporters 2006 Survey of concerned but have conducted inter- Corporate Sustainability Reporting pub- views and sought confirmation of claims lished by UNEP, Standard & Poors and through documents supplied by letter SustainAbility, and only one, a very large post and e-mail. I have also met with company, appears on CorporateRegister. the Group’s CR Working Group and the Group President in a specially arranged For readers who did not know Hauska meeting for a day in Vienna, November & Partner before reading this report, 10th 2006. it is also worth noting that its member companies operate in some of Europe’s On the basis of this work I am able to more volatile, and vulnerable, econo- provide reasonable assurance about mies and societies. This, in our view, the extent to which the report meets makes the principled stand they are tak- with the criteria of the AccountAbility ing in their ‘reputationally challenged’ AA1000AS Assurance Standard. industry in setting standards for the way they work and in how accountable they will be for their actions especially OPINION noteworthy. On the basis of the work undertaken, If, as a reader or a stakeholder, you are and taking into consideration the limited looking for some honesty and frankness, scope of this report, nothing came to my the very first sentences of this report attention which suggests that the report give a clear taste of what is to come: does not properly describe: ….we have been challenged by several - the completeness of Hauska’s de- professional sins or temptations. The scriptions of its economic and social first problematic area is the tarnished impact on its employees reputation of our profession. The - Hauska’s material impacts on its profession suffers clear or tacit accusa- employees tions for being superficial and promo- - Hauska’s responses to employees’ tion oriented, filtering facts into only concerns. positive reflections, hiding the core valuable information or manipulating stakeholders… ADDITIONAL COMMENTARY The scope of this report is limited but I warmly welcome the ambition of this the company has set out a timetable report from a communications and PR for moving to full disclosure over the agency that on the global scale is very next four years. Given the small size small indeed, and I hope it provides an of Hauska & Partner, the evolving and incentive and model for others in the expanding nature of the Group, and the sector, large and small. limited resource it can afford to devote to reporting its CR strategy, this is ac- ceptable. 60
  • 62. A WORD FROM AUDITOR While this first report is therefore tions and responses of its clients and limited in terms of performance data, the public in the environments in which it is valuable in explaining the lengthy they operate. Materiality must remain process of developing and implementing the key criterion in Hauska’s decisions CR strategies. They provide a convincing about what they report and how they go argument for starting the process with about gathering data. the Group’s employees and I have ample documentary and observational evi- I have noted that employee surveys dence of how all employees have been will be extended to the other offices in involved from the earliest stages. the group and that performance data relevant to the issues identified by em- The Group has also sought advice and ployees will be developed and included perspectives on its approach from other in future reports. Both in the area of external organisations and from other employment and the marketplace, we stakeholders with a particular emphasis will expect to see in the next report how on the next stage of its CR strategy de- Hauska addresses the issue of respon- velopment and reporting - its profession- siveness to its findings and to improving al conduct in the marketplace. This will its performance. To quote the report: be the critical test of whether the Group Stakeholder relations require deeds. is committed to responsible behaviour to society as a whole in its core business Finally, I want to thank Hauska’s Group activities and a further step towards CR Director, its President and other staff completeness in Hauska’s reporting. for their cooperation during the course of this audit. Much work will need to be done to develop an appropriate range of per- Richard Evans, MBA, FRSA ethics etc… formance indicators and the processes 16 January 2007 necessary to understand the expecta- Newcastle Upon Tyne Richard Evans worked for twelve years accounting, stakeholder engage- in industry and then twenty years in ment and auditing methodologies and two development agencies, Intermedi- standards with AccountAbility and GRI ate Technology and Traidcraft plc. He since 1990 and has audited a range was responsible for developing the of company and NGO sustainability methodology for the UK’s first indepen- reports each year since 1995. He has dently audited social account (Traid- an MBA from Newcastle University, craft plc, 1993) and subsequently was is a Special Professor of Nottingham a founding member of AccountAbility University Business School and a Fellow and chair of its Board. He has been of the Royal Society for Arts, Manufac- involved in developing sustainability tures and Commerce (RSA). 61
  • 63. HAUSKA & PARTNER CR REPORT SUSTAINABILITY IS THE TRUE modern APPROACH TO COMPANY SUCCESS 62
  • 64. CONTENT 7 / FOLLOWING G3 GUIDELINES 63
  • 65. 7 HAUSKA & PARTNER CR REPORT 7 / FOLLOWING G3 GUIDELINES WE USED FOLLOWING G3 INDICATORS IN PREPARATION OF OUR REPORT: Profile Disclosures Chapters 1, 3, 4 1. Strategy and Analysis 2. Organisational Profile 3. Report Parameters 4. Governance, Commitments and Engage- ment ECONOMIC PERFORMANCE INDICATORS Aspect: Economic Performance Chapter 3 EC1 Direct economic value generated We were able to report on all but and distributed, including revenues, one aspect: donations and commu- operating costs, employee compen- nity investments due to the present sation, donations and other commu- monitoring system. For our next nity investments, retained earnings report, we have established new and payment to capital providers monitoring system which will enable and governments us to report on this aspect as well. Aspect: Market presence EC5 Range of ratios of standard entry Chapter 3 level wage compared to local mini- mum wage at significant locations of operations EC7 Procedures for local hiring and pro- Chapter 3 portion of senior management hired from local community at locations of significant operations 64
  • 66. FOLLOWING G3 GUIDELINES LABOUR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS Aspect: Employment LA1 Total workforce by employment Chapter 3 type, employment contract and region LA2 Total number and rate of employee Chapter 3 turnover by age group, gender and region LA3 Benefits provided to full-time Chapter 3 employees that are not provided to temporary of part-time employees Aspect: Occupational Health and Safety LA6 Percentage of total workforce repre- Chapter 3 sented in formal joint management- worker health and safety commit- tees that help monitor and advise on occupational health and safety programs LA7 Rate of injury, occupational dis- Chapter 3 eases, lost days, absenteeism and work-related fatalities by region Aspect: training and education LA12 Percentage of employees receiving Chapter 4 regular performance and career development reviews 65
  • 67. HAUSKA & PARTNER CR REPORT WE LIVE IN A world OF DIFFERENCES THAT BIND US TOGETHER 66
  • 68. CONTENT 8 / MOVING FORWARD 67
  • 69. HAUSKA & PARTNER CR REPORT 8 / MOVING FORWARD For 2007 we have stated the objectives that we plan to achieve in two main areas: the first one is dedicated to the reporting process itself, and the second to the practices and outcomes we plan to achieve in the workplace and market- place. Although we define our objectives separately, we see them as complemen- tary - only in combination they will lead to improved performance and sustain- ability of our business practices. Focus on reporting Focus on HR practices - More closely and directly integrate - Implement HR practices in all management of sustainability is- Hauska & Partner Group companies, sues raised by our stakeholders into Latvia included overall company management with the CR Working Group as a nucleus for developing a consistent Hauska & Partner Group CR Framework - Improve our internal monitoring system, so that we can better track and collect data across the Hauska & Partner Group required for robust GRI reporting. - Continue assessing and analyzing stakeholder issues and developments that can influence our operations in the workplace and marketplace. - Prioritize main stakeholders and the issues they raise; involve select stakeholders in the preparation of our second report. - Report on a minimum of 10 G3 Performance Indicators, including at least one each from the socio-eco- nomic and environmental spheres in order to qualify for C+ GRI Applica- tion Level 68
  • 70. MOVING FORWARD Focus on the workplace Focus on excellence and ethics - Define one key the element of - Finalize Hauska & Partner Group PM Hauska & Partner Group’s unique guideline and follow it in our daily workplace standards - define the practices flexibility model - Strengthen our CR competencies - Use the Workplace Assessment Sur- by updating the CR learning module vey as a tool for ongoing discussions and organize training for all Hauska with our employees & Partner Group employees - Enhance our CR competencies by developing an ethics learning module and organize training for all Hauska & Partner Group employees. 69
  • 71. HAUSKA & PARTNER CR REPORT we understand the complexity 70
  • 72. CONTENT of the modern world 71
  • 73. HAUSKA & PARTNER CR REPORT Eco labeled. Printed on chlorine free paper. FSC labeled. Product contain wood from well managed forests certified in accordance with the rules of the Forest Stewardship Council. 72

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