1 Reader, Department of Management, University “Politehnica” of Bucharest, ROMANIA 2 Professor, Department of Management, University “Politehnica” of Bucharest, ROMANIA
Gheorghe Militaru, Sorin Ionescu 106 In Romania, in the period of planned economy the social functions of the state-owned companies were extremely broad. Employees were provided with health services, kindergartens, vacations, summer camps for children, sport centers, cultural institutions, etc. The fact that the wages were paid in money that had very little buying power in the market, where the amount of goods was always insufficient, was in a sense compensated by the possibility of getting some of the needed commodities directly from the state-owned companies, and also by some workers’ privileges, such as coal allowances, exemptions from some of the payments, allowances for various goods, etc. In some regions where a large state-owned company provided jobs for most of the local residents, the company became a sort of patron. This patron- company not only provided occupation, but also shaped the way of living of particular individuals and entire communities. In the transformation period the first step towards achieving profitability of the companies was disposing of their social functions and institutions. People were being convinced that these facilities are a burden that makes it difficult for a company to exist competitively on the market. All of this makes the people who still remember the times of planned economy regard the declarations of social responsibility with distrust. The ways of promoting and implementing CSR should be adapted to particular conditions of a country. We know that CSR was formulated in the countries of stable market economy, and consequently focuses on these countries. The promotion this concept in Romania has to be thoroughly researched in terms of a specific strategy of standards from the developed countries may prove to be a serious problem, defined as asymmetry of rationality . The asymmetry of rationality means that the rational procedures and institutions that were developed for markets of different scale and different historical circumstances are imposed on the post-communist countries. The ways of promoting and implementing CSR should be adapted to particular conditions of a country. One of the reasons why Romania companies, especially small and medium business, do not involve themselves in social activities is economic situation. First of all, most companies are still in the stage of gaining their “first million”. Most of the small businesses are quite new, i.e. they were established after 1989. Companies in the formative stages of their development often have to cope with financial problems, or lack funds for current functioning and larger investments.
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