Transparenc y BUSINESS Reputatio n CLEAR WAVE SOCIETY
Transparenc y BUSINESS Reputatio n CLEAR WAVE SOCIETY Education Responsibility Ruta Skyrien Executive Director of Investors Forum Chairwoman of Clear Wave Council
April 26th, 2018 Basel Honesty Risk Management BEGINING back to 2006-2007s in Lithuania Shadow economy 18,9 % of GDP + illegal activities up to 20% salaries payed in the envelopes High tolerance towards shadow and envelopes both from society and business First steps of CSR topics with Global Compact Network in Lithuania In 2006 Global Compact network in Lithuania announced declaration
of 32 companies for the Transparent wage policy. BEGINING BEGINING Clear Wave founded in 2007, as a counterweight to a big scandal of envelope wages in particular business sector. Collective action initiative started with the collective action. Initiative group: representatives from o o o o o Association Investors Forum United Nations Development Program in Lithuania
Transparency International Lithuanian department, Civic initiative Dalios sskaita The Lithuanian Business Support Agency Main idea: social label with a purpose to help customers indicate fair businesses. Primary focus - promote companies, which maintain transparent accountability and payment to their employees. Expanded agenda lately: Company maintains transparent accountability and payment to their employees; Comply with the laws of the Republic of Lithuania and honestly pay the fees and taxes provided; Take transparent and fare participation in the Tenders (public procurement) Other business ethics issues in perspective Main Stages in Launching Clear Wave
Discussion Label and Documenta tion Finding Strategic Partners Publicity Campaign Companies Attraction & Use of
Label Promotion Key Success Drivers (I) CLEAR IDEA No envelope wages + Easy to communicate. + Understood by the public. However.. ! Low topic for advanced companies. ! Deliberate communication when agenda expanded. Key Success Drivers (II) FINDING THE KEY DRIVING PARTNERS International companies already having ethical business practice and operating in Lithuania: Lifosa
TEO LT (Telia) RIMI Lietuva Nordic Sugar Kdainiai Key Success Drivers (III) CREDIBILITY BY PARTNERSHIP WITH GOVERNMENTAL INSTITUTIONS Patroness of the Initiative Clear Wave President of the Republic of Lithuania H.E. Dalia Grybauskait Partners: Ministry of Finance of the Republic of Lithuania Tax Inspectorate of the Republic of Lithuania State Investigation Service of the Republic of Lithuania State Labor Inspectorate Credit bureau
Key Success Drivers (IV) MEDIA PARTNERS Active communication to get ether on the particular topic Getting ads & banners pro bono from media (if possible) Key Success Drivers (V) DOING IT BUSINESS WAY Having a roadmap Showing the value for the companies Credits for reputation and customers confidence More publicity Possibility to influence the market being as a role model and by active actions HOW DOES CLEAR WAVE CREATE VALUE TO YOUR COMPANY? Strengthening company reputation
(83%) Skaidraus verslo interes atstovavimas Representing transparent business Bendras mons reputacijos stiprinimas needs (83%) Creating positive change in the market (58%) Pokyio rinkoje krimas Lyderysts siekis skaidrumo ir aukt etikos standart taikymo srityje Leadership in high ethical standards (58%) Galimyb bti bendramini (moni, besivadovaujani panaiomis vertybmis) tarpe
Being among like-minded (54%) Galimyb mokytis i kit moni gerj pavyzdi Learning from good practices (42) 0 10 20 30 40 50 60 70 80 90 Key Success Drivers (VI) COMMITMENT AND EXPERIENCE FROM ADMINISTRATION AND COUNCIL MEMBERS Contribution from business association Investors Forum: knowledge, networks and credibility to start and develop the initiative. Council members representing respectful organisations. different
business sectors and MAIN CRITICS FROM The ones in the shadow market Fair market players CHALLENGES FACED 1) What to do when company enters into the scandal 2) Accelerating
Getting and motivating more members to join Finding attractive ways of communication with business and community Funding Getting members involved in promotion of Clear Wave 3) Other environmental factors CHALLENGES FACED AREAS that need to be improved in Lithuania: TRANSPARENCY 100%
2017, Q2 2017, Q4 2018, Q1 OPPORTUNITIES 1) Awareness of initiative and recognition of the label is growing In Lithuania Clear Wave label is recognized better than 2) Changes in consumer preferences 3) Businesses become more conscious Business driven initiative to promote business integrity and transparency Members recognized by social label Clear Wave
Benchmarking good business practice, trainings for business and community. education and Members from SMEs to MNEs Other tools & means provided 1. TRACK. Transparency (information disclosed on companys website) evaluation of every initiative member: In cooperation with Transparency International Lithuania.
Decision to adopt methodology by members (volunteering). Result of the 1st evaluation: positive change of 4%. Roadmap for the companies to improve anticorruption and transparency policies and to compare how they look among the others. 2. Events, seminars, workshops to raise awareness in a relevant topic. Encouraging peer-to-peer learning from the real cases and best company practices. 3. Public procurement working group. 4.
Public actions and initiatives, such as No country for shadow involving business, governmental institutions and society and encouraging direct dialogue among all three parties. NO COUNTRY FOR SHADOW One of the best example of NGO, business and public sectors cooperation for the joint action. Aim: to develop a responsible, active and conscious society as well as to invite citizens to make a change in their daily choices, which could affect the scale of shadow economy in the country. Over 1000 participants from different organisations
(Public, NGO, Business) join the initiative every year. Covered in all Lithuanian regions. 2018 Started as a transparent business labelling initiative Clear wave expands its agenda and seeks to become more as a reference point for the companies, looking for the favourable platform to exchange knowledge and best practices on how to improve their business integrity.
Unifies up to 60 companies members. Acknowledged by Lithuanian International organizations. Next task go on a massive scale. Government, Public and
www.baltojibanga.lt www.facebook.com/baltojibanga Ruta Skyriene Chairwoman of Clear Wave, Executive director of Investors Forum [email protected]
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