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13 Jun 2007 This conference is organized jointly by UNIDO and EMC, with the support of Macro-Level: Framework Conditions for CSR Development (legal



    European Management Centre Bulgarian Business Leaders Forum

United Nations Development Programme UN Global Compact Bulgaria

    Supported by the Company Tandem Ltd


    Corporate Social Responsibility

    For Small and Medium Businesses and Advisory Institutions in Bulgaria

    Sofia, 12 13 June 2007

Recently, the United Nations Industrial Development Organization (UNIDO) launched a project on the

    ―Development of Corporate Social Responsibility (CSR) in Central and Eastern Europe‖, a regional

    programme, which aims at disseminating the concept of CSR and implementation practices throughout the

    CEE Region (focusing on small and medium sized enterprises) and forging a regional network of public and

    private partner institutions that will support SMEs to adopt CSR practices. This activity forms part of a series

    of conferences conducted in the region. Similar events will take place in Bosnia and Herzegovina, Bulgaria

    and Serbia.

The aim of this conference is to establish and strength the ties to and among institutions and companies

    working towards ethical business conduct in the region, and to introduce the CSR methodology applied by

    UNIDO. At the same time we are building on the work initiated by the UN Global Compact network in

    Bulgaria in the area of CSR promotion.

The event will gather business leaders from small as well as large enterprises, business associations, public

    institutions, NGOs, business support and advisory institutions in general, and the media. The idea is to

    provide the participating companies and institutions with an overview of recent CSR developments at global,

    regional and national levels, and to provide a platform to introduce and discuss various methodologies and

    initiatives in that respect. Participants will be provided with up-to-date information on issues such as ISO

    26000, a new UNIDO CSR software tool (REAP), recent EU initiatives and the UN Global Compact’s engagement in fighting corruption to name a few.

Through its focus on small and medium sized enterprises, this event will also complement the activities

    carried out under a recently launched project on the acceleration of CSR in 8 European Countries, carried

    out by the United Nations Development Programme (UNDP) with the support of the European Commission.

    This conference is organized jointly by UNIDO and EMC, with the support of UNDP and BBLF.

    This event is supported by the company TANDEM Ltd, under the direction of Mr. Kiril Vatev,

    member of the UN Global Compact Local Network.

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    Workshop on

    Corporate Social Responsibility

    For Small and Medium Businesses and Advisory Institutions in Bulgaria

    Sofia, 12 to 13 June 2007

    Wednesday, 12 June 2007

    9:00 9:30 Registration

    Welcome Speech - Opening Remarks 9:30 10:15



    DR. MICHAEL ANGERER, Trade Commissioner,Austrian Trade Commission in Bulgaria


    Vice Minister Mr. Dimiter Dimitrov



    Vice Minister Ms. Nina Radeva


    UNDP Resident Representative to Bulgaria

    Mr. Neil Buhne



    Mr. Fernando Ponz Canto

    First Secretary of Delegation of the European Commmission in Sofia




    UNIDO Headquarters Vienna

    Mr. Kai Bethke

    Industrial Development Officer


    Bulgarian Business Leaders Forum

    Mr. Stamen Tassev, Ex. Director


    Sofia Chamber of Commerce and Industry

    Mr. Georgy Chernev, Chairman


    Company M3 Communication

    Mr. Maxim Behar, Ex. Director

Purpose and Objective of Meeting

    Mr. Malcolm Bird and Mr. Bernhard Goeller

    European Management Centre (EMC) Presentation: The Importance of CSR for SMEs (Focus on Business Case) 10:15 10:45

    Mr. Kai Bethke

    Programme Manager CSR and Business Partnerships

    UNIDO, Vienna

    10:45 11:00 Coffee Break

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    Recent Developments on a Global Level 11:00 11:45

     Global Compact Initiative (Local Network Bulgaria) Presentation:

    11:00 11:15

    Ms. Maya Nyagolova, UNDP

    Mr. Stamen Tassev, Bulgarian Business Leaders Forum

     Presentation: International Standardization towards ISO 26000

    11:15 11:30

    Mr. Mitko Vl. Mirtchev, Club 9000

     Presentation: Supply Chain Requirements

    11:30 11:45


    Recent Developments on EU Level 11:45 12:15

    EU: CSR Requirements, Recent Development and Future Plans Presentation:

    Mr. Fernando Ponz Canto, First Secretary of Delegation of the European

    Commmission in Sofia

    (EU Representative in Bulgaria) 12:15 13:00 Briefing Session for the Local Media

    13:00 13:45 Lunch

    Recent Developments on National Level 13:45 14:45

    Overview CSR Development in the Country Presentation:

    13:45 14:00 Mr. Georgi Tabakov, BULGARIA ECONOMIC FORUM

    Macro-Level: Framework Conditions for CSR Development (legal Presentation:

    requirements, incentives, initiatives, etc.) Alpha Research 14:00 14:15

    Ms. Boryana Dimitrova, Ex. Director, Alpha Research

    (market and social research)

    Meso-Level: Overview of CSR Initiatives (Institutions, NGOs, business Presentation:

    associations, etc.) 14:15 14:25

    Ms. Elitsa Barakova, Executive Director Bulgarian Charities Aid Foundation

    Micro-Level: SME Case Studies Presentation:

    14:25 14:35 Mr. Kiril Vatev, Company Tandem

    Mr. Krasimir Enimanev, Expert, University of Rousse 14:35 14:45

    The Role of the Government in Promoting CSR 14:45 15:15 Panel


    Leading by Mr. Malcolm Bird and

    Ministry of Economy and Energy Expert industrial relations

    Conclusion 15:15 15:30

15:30 End of the first meeting day

    19:00 Cocktail Party

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Thursday, 13 June 2007

    UNIDO’s Approach to CSR Completed and Ongoing Projects in the Region (UNIDO) 9:00 9:40

    Responsible Entrepreneurs Achievement Programme (REAP) Presentation:

    9:00 9:20 Mr. Kai Bethke, UNIDO, Vienna

    UNIDO CSR Project in Croatia Report:

    9:20 9:40 Mr. Goran Romac, Project Manager, CCPC

     9:45 11:00

    9:45 10:00 Presentation I. The Importance of Sustainability Reporting

    Mr. Emil Asenov, University of National and World Economy

    Presentation II. Environmental Responsibility 10:00 10:15 Mr. Carsten Germer, UNDP Consultant

     Presentation III. The SSCI members experience in the corporate social responsible business

    10:15 10:30 Mr. Georgy Chernev, Chairman, SSCI

     Presentation IV Workers Health and Safety

    Mr. Dimitar Matev, Balkan Institute for Labour and Social Policy 10:30 10:45

     Presentation V. Corruption Prevention in the Private Sector 10:45 11:00 Ms. Diana Kovacheva, Ex. Director: Transparency International Bulgaria

    and Mr. Allan Bussard, SME Anti-corruption projects of Integra Bulgaria

    Discussions 11:00 11:20

    11:20 11:45 Coffee Break

    Towards Responsible Competitiveness: The Triple Bottom Line (TBL) Approach for 11:45 12:30

    Upgrading SMEs in Bulgaria

     Presentation: Productivity 11:45 12:00 Mr. Kai Bethke, UNIDO Vienna

     Presentation: Environmental Responsibility

    12:00 12:15 Mr. Goran Romac, Project Manager, CCPC

    Issues of Social Concern Presentation:

    12:15 12:30 Ms. Manuela Boesenhofer, UNIDO, Vienna

    Questions & Answers Session on REAP and CSR in Practice 12:30 13:00 Panel

    Questions & Answers CSR Issues of Particular Relevance for Bulgaria 13:00 13:45

    Closing Conclusion 13:45 14:00

    14:00 Cocktail & Finger food

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    The United Nations Industrial Development Organization (UNIDO) has the mandate to promote sustainable industrial development and international industrial cooperation. Its vision is to reduce poverty in developing countries and countries in transition through economic development and sustainable industrial growth. By enhancing business practices based on Corporate Social Responsibility (CSR), the UNIDO has a unique role in advancing sustainable competitiveness and ultimately the sustainable industrial development.

    Recognizing the need of meeting the specific requirements of SMEs with regard to CSR, UNIDO became the fifth core UN agency in the Global Compact in 2003. It is within this context that UNIDO has formulated its approach for the promotion of CSR as a means towards increased productivity and competitiveness of developing economies. For achieving this, the Organization’s programme is built on three pillars: its participation in the UN Global Compact, the CSR Capacity-building Initiative and the Business Partnership Programme. The Organization’s association with the SME sector is a result of the recognition awarded by the UN system to the Organization’s prior operational efforts in developing partnerships through its Business Partnership Programme, Investment and Technology Promotion Network, SME Cluster Development Programme and the Subcontracting and Supply Chain Management Programme. In addition, UNIDO has a leading role within the UN system in terms of supporting environmentally and socially responsible entrepreneurship through its training capacities and support tools for enterprises and through the UNIDO/UNEP network of National Cleaner Production Centres (NCPCs).

    UNIDO has chosen Central and Eastern Europe (CEE) to be one of the focal regions for intensifying CSR promotion and development activities of the Organization. In 2004/05, UNIDO launched a first technical assistance project on the ―Development of Corporate Social Responsibility (CSR) in Croatia‖, which developed a conceptual framework for a Croatian CSR policy, and disseminated a practical methodology with supporting tools that SMEs in Croatia can use to implement CSR concepts cost effectively and efficiently. By disseminating good practices and experiences on CSR, and by making practical demonstrations, the project generated the evidence for Croatian stakeholders in CSR that the concept can have a positive impact on business, especially SMEs, as well as on society as a whole. Furthermore, it built the necessary CSR-related capacity in the country, so that industry support institutions can assist businesses to make use of practical tools that enable them to cost-effectively comply with CSR requirements of global buyers and supply chains. Apart form that UNIDO assisted in the preparation of a Croatian business agenda for CSR, and more generally the establishment of a national implementation scheme, in partnership with public and private sector institutions and enterprises. In a next step, the Croatia programme, which has proved to be successful, is now being disseminated in the Central and Eastern European (CEE) region, based on a request from the Region’s Governments and supported partly by the Government of Hungary.

In addition to the above-mentioned activities, UNIDO developed a methodology called ―Responsible

    Entrepreneurs Achievement Programme (REAP)‖, a comprehensive programme to support SMEs in implementing CSR. It is based on the ten principles of the UN Global Compact and lays a stable and solid ground for a broad implementation of responsible business practices, responsible supply chain management, and a national and local business-related policy framework, geared towards sustainable industrial development. REAP is a programme, which strongly advocates the business case for Corporate Social Responsibility among SMEs and promotes business strategies with CSR as part of the core business (CSR vs. philanthropy). The Programme is equally useful for multinational enterprises that plan to implement a responsible supply chain management system for their global suppliers and partners. REAP consists of three components: a soft ware package for companies, institutional support and policy support. The REAP software enables SMEs to implement CSR practices in a cost-effective manner through benchmarking, analyzing and improving company performance in the financial, environmental and social areas (Triple Bottom Line). It can be seen as an operative guide for businesses, for both the analysis of the baseline situation and the documentation of the changes and improvements achieved. REAP Institutional Support targets public and private institutions, which support SMEs in implementing CSR principles. UNIDO is right now in the process of developing a training manual for institutions (implementation counselling) as well as for SMEs (performance improvement). In addition, UNIDO will offer training workshops to make these institutions familiar with the programme and enhance the quality of their services. As public policy plays a key role in encouraging a greater sense of CSR, the REAP Policy Support component aims at supporting

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governments to establish an enabling framework, which ensures that businesses integrate environmental

    and social considerations.


The European Management Centre was established in 1999 in Sofia on the recommendation of the

    European Union, with the objective of providing modern management skills for Bulgarian companies and to

    assist them in finding foreign partners. It offers training to Bulgarian entrepreneurs, managers and others

    who are responsible for business and other activities to increase overall management know-how, and to

    facilitate the adaptation to the standards and conditions of work, as well as an understanding of the

    requirements and challenges as a consequence of EU accession. Furthermore, the Centre pursues the

    transfer of know-how and experience from other EU countries. Up to the year 2007 managers from around

    800 Bulgarian organisations have received training in a variety of programmes at the Centre.

    The aims of the European Management Centre include the following:

    ? To train Bulgarian entrepreneurs, managers and others who are responsible for business activities.

    ? To educate Bulgarian managers, so that they can readily adapt to the standards and conditions of

    work, and an understanding of the requirements and challenges which are consequences of joining

    the EU.

    ? To pursue the transfer of know-how and experience from existing EU countries.

    ? To develop conditions for the creation of beneficial partnerships and working arrangements between

    Bulgarian and other European enterprises.

    ? To develop an understanding of the necessity to motivate employees by means of a supportive

    environment as part of the program to maximise profit.

    ? To develop programs for training and awareness of young people to the responsibilities and

    requirements of real life and business.

    ? To identify individuals with vision, creative skills and apparent high potential and to introduce them to

    people and organisations where their abilities can be developed to a high level and profitable


    ? To encourage the understanding of culture and ethics in business, as an important part of successful

    contemporary management.

EMC activities:

    ? Training Programmes: Trainings are devised and conducted by specialists with international

    experience and know-how. These programmes can be arranged for individuals or groups and

    conducted in-house or in our training centre in Sofia. The content of the training can be tailored to

    the specific needs of the client and can include English for business communication in addition to

    management topics.

    ? Consultancy Operation: The EMC offers a full range of services including market research, corporate

    planning from setting objectives to program implementation, introduction to potential partners, and

    support during implementation and follow-up.

The EMC works in strategic partnership with leading European institutions aiming at faster and more

    effective adherence to the rules and standards required for European organisations and modern personnel


The European Management Centre endorses the initiatives of the United Nations Global Compact in

    Bulgaria. By doing so, it supports what has become a rapidly growing movement to underpin global markets

    with universal principles on human rights, labour standards, environmental sustainability and anti-corruption


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The Global Compact is an UN international initiative aimed at promoting businesses’ social responsibility. In

    Bulgaria, the UN Global Compact was officially launched under the auspices of President Parvanov in

    January 2003. The initiative unites on a voluntary basis a wide range of companies and organizations

    committed to the principles of responsible corporate citizenship. The Global Compact encourages active and

    socially responsible companies to adopt and implement in their operations ten universal principles in the

    areas of environment, labor standards, human rights, and fight against corruption. The Global Compact aims

    to engage business in the fight against major social and ecological challenges which growing globalization


Four years after its launch in Bulgaria the UN Global Compact brings together more than 120 members in a

    semiformal network. In order to strengthen and enhance the role of the Global Compact Network in Bulgaria

    governance framework consisting of Advisory Board and Secretariat has been established in 2006. The

    Bulgarian Global Compact network includes representatives of the private business, non governmental

    organizations and academia that share the principles of corporate social responsibility.

The latest initiative included the preparation of the first baseline survey on the understanding, attitudes,

    practice, problems and challenges in implementing Corporate Social Responsibility among the Bulgarian

    business: ―Corporate Social Responsibility within the Bulgarian context‖ launched in February 2007. A

    number of social and environment projects have been implemented through Global Compact members

    active participation and financial support: ‖Unleashing Entrepreneurship‖, ―Health – Shared Responsibility of

    Private Companies‖, ―Love Bridge‖, National Forum Global Compact +3 ―Business against corruption‖,

    Sharing Best Practices in Corporate Social Responsibility and others.

For more information, please visit the web site of the Global Compact Bulgaria at

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United Nations Development Programme (UNDP) launched at the beginning of 2007 the first regional

    project aiming to promote and support the integration of sustainability principles into the business

    strategies. The Project is expected to contribute to regional cohesion among old and new EU

    Member States and candidate countries.

Project description:

CSR is an important tool for private sector to actively contribute to the sustainable development, which is a

    long-term goal of EU. New EU Member States and candidate countries face a challenge to integrate

    sustainability principles on a country level in order to reach coherence with old EU countries. The Project

    aims to accelerate the implementation of CSR practices in the new EU Member States and candidate

    countries: Bulgaria, Croatia, Hungary, Lithuania, Macedonia, Poland, Slovak Republic and Turkey. Spain, UK

    and Germany will also be involved in the Project by contributing to exchange of experience and good CSR



The main objective of the Project is to accelerate the implementation of CSR practices in new EU region,

    which is seen as a vehicle for EU harmonization, improving competitiveness and social cohesion. This is

    expected to be achieved by comprehensively mapping out the CSR activities and actors, identifying capacity

    gaps and areas where support to both business and the governments is needed, exchange of experience

    and good practices, awareness raising and supporting national stakeholders.

Project activities:

The Project activities fall under three components:

     Situational analysis of CSR status in each Project country by carrying out baseline surveys, which will

    result in European synthesis report to be presented in June 2007 at a Regional conference for


     Promotion of multi-stakeholder dialogue to enhance awareness and exchange good practices by a)

    organizing national and local forums in each of the target countries; Regional conference for all Project

    countries; b) establishing peer groups to work on National CSR agendas and c) developing a Project


     Developing and strengthening capacity of existing and future CSR stakeholders by a) organizing

    training sessions for peer groups and other active participants in CSR; b) taking peer groups on study

    trips to the UK, Germany and Spain; c) creating CSR tools database; and d) organizing discussion

    tables and a study visit in the UK.

Funded by the European Union, the Project is implemented by UNDP Offices in Project countries in

    cooperation with national and regional partners.

    Project countries: Poland, Lithuania, Hungary, Slovakia, Bulgaria, Macedonia, Croatia and Turkey Project partners: Great Britain, Spain and Germany, as well as UN Global Compact Office and National CSR/Global Compact Networks in Project countries.

    Budget: 1 036 155 (775 636 Euro)

    Donors: European Commission, United Nations Development Programme

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BBLF is the leading organization in Bulgaria devoted to promoting the principles of corporate social

    responsibility and the socially responsible business practices, which benefit business and society and help

    achieve social, economic and environmentally sustainable development.

BBLF was set up by 12 companies and inaugurated by former Bulgarian President Petar Stoyanov and HRH

    The Prince of Wales in 1998. The Forum is affiliated to The Prince of Wales International Business Leaders

    Forum. Over 220 Bulgarian and international companies and non-governmental organizations are part of the

    BBLF membership community.

BBLF develops significant educational projects such as the Business Master Classes for university

    students and the Business Hours for students from professional and other high-schools. The Forum is also

    famous for its annual Responsible Business Awards, which give credit to companies with remarkable record in the field of corporate social responsibility and encourage other business leaders to start or further

    develop socially beneficial activities.

    In 2001 BBLF created the Business Ethics Standard, which has become a model for ethical conduct of the responsible business community. Currently, more than 1500 companies in Bulgaria have adopted the

    Standard and have been using it as their primary code of corporate behaviour. The Forum also strives to

    create a platform for communication between the business community and the state authorities through

    various networking events on which burning social and business issues are discussed, such as fight with

    corruption, ethical corporate behaviour, enhancement of education and etc.

BBLF has several publications among which is the newspaper Business Leader and the Responsible

    Business Directory.

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    TANDEM Ltd

    Tandem Ltd is one of the most respected Bulgarian companies in its industry. The general manager and owner, Mr. Kiril Vatev, became member of the UN Global Compact Local Network in Bulgaria and is known across the country as a socially reponsible businessmen.

How the Story of TANDEM Began

    The story of TANDEM began when the two brothers Kiril and Todor Vatevi, concluding their active sports careers, decided to start their own business. Their sole experience up to then was what active sport had taught them discipline, responsibility, a sense of belonging to the team and most importantly - their

    intolerance toward poor results.

    Their strife toward real things, logically made them consider production. In 1993 they started making sandwiches which were delivered to their customers by two Trabant cars. But they felt that something was missing. The deliveries were often delayed and they couldn't guarantee the quality of the sandwiches, because they couldn't guarantee the quality of the ingredients put into them. It was then that they came up with the idea to produce the sausages themselves and it was at that moment that the first and foremost principle of TANDEM production was set - absolutely no compromises with the quality of the meat products.

    The beginning was set with two crates of minced meat, which they delivered to the stores, with the arrangement that these would be paid to them only if the customers were satisfied. Everything was sold by the next day and that's when orders started pouring in. They began producing larger quantities, gradually diversifying the product range and packaging pork chops, steaks, frankfurters, sausages, etc. Then there was another problem the one with the meat deliveries. Despite the care and attention given to the

    production process, the brothers couldn't be certain at the quality of the raw meat ingredients put into the end product. And in a typically their style, they had set for themselves at the beginning - not to be satisfied by low standards, they decided to overcome this difficulty. They began buying livestock, bred in natural surroundings and later they bought a slaughterhouse because they believed, that their customers deserved only the best. They knew they couldn't compromise the customers` health, irrespective of the price.

    In 2000, in order to respond to the increasing demand of TANDEM products, the influx of new technologies and the increased hygienic and sanitary standards, the brothers, started the construction of a new meat processing plant, in compliance with the EU requirements and standards. In 2002 the enterprise was completed. That gave them the opportunity to diversify the production range even more, by offering tasty and nourishing food for every member of the family, for every type of meal and occasion.

    In this way the unique product TANDEM emerged on the Bulgarian market. Its name has become a symbol of an extremely high quality and has become a measure of standard for the rest of the Bulgarian meat producers. This is because TANDEM quality means pure, natural meat, contemporary technologies, tough control at all levels of production, carefully selected recipes, well-organized team work and precise care toward every single detail.

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