72% of Romanian CEOs state that the purpose of the companies they lead is to create value for all stakeholders, not just for shareholders, and 79% say that they focus more on long-term profitability rather than short-term gains, according to the latest edition of the Romania country report of the PwC Global CEO Survey. The stakeholders, as defined in the survey, include: clients, shareholders, competitors, the local community, the media, NGOs, Government organisations and authorities.
Also, the majority of local CEOs believe that highly skilled employees prefer to work for organisations that share their values (54%), while 44% of the respondents think the key talents would rather look for employers that offer competitive remuneration packages.
77% of CEOs anticipate that technological breakthroughs, as a global megatrend, will significantly transform the expectations the stakeholders have from organisations. On the other hand, companies use a wider range of digital technologies as communication and networking tools and also as means to increase the level of stakeholder engagement – 91% of CEOs argue that they are improving the way in which they use technology in order to better understand and satisfy stakeholder requirements.
„Under pressure from technological changes which enhance the speed of information sharing and expose businesses in a direct way to public pressure, companies are at a crossroads that involves changing their business model. Romanian CEOs, similar to their global counterparts, are beginning to focus on creating long-term value. Also, 88% of CEOs believe that having a successful business in the 21 century will mean more than just financial profits. Thus, the present economic system tends to reinstate business ethics at the heart of the organisation.” argues Ionuţ Simion, Country Managing Partner, PwC Romania.
In order to meet the ever higher public expectations, organisations are implementing multiple changes in the way they evaluate success and communicate. 94% of the respondents are implementing changes in the way they define and manage risks in response to the constantly-changing expectations of stakeholders, and 89% want to improve the marketing, communication and branding activities.
83% of the interviewees argue that an educated, qualified and flexible workforce should represent a priority for society overall, and 73% mention that this is one of the main areas in which the business sector should collaborate with local and national authorities. 92% of them focus on employee rights and ensuring the wellbeing of the workforce, as an organisational field that they want to improve.
Romanian CEOs say that their investors are largely interested in the ethical aspects of their investments (52%), a higher percentage than their global counterparts which believe that both shareholders and investors are more interested in revenues and capital increase (58%).
Creating value for stakeholders and profitability are interconnected elements for local respondents. Thus, 57% of local CEOs believe that creating value for all stakeholders will help organisations be more profitable, while 43% consider that profitability helps create value for all stakeholders.
38% of Romanian CEOs state that they are already investing in a CSR programme, and 43% argue that corporate social responsibility is at the foundation of all the actions that the organisation undertakes. Here we see a significant difference compared with their global counterparts, where 64% argue that CSR forms the foundation of all company activities.
Also, 74% of respondents state that in reporting they are taking into consideration both financial and non-financial aspects. On the other hand, respondents argue that, when making a decision to acquire new goods or services, clients take into account criteria such as price, ease of acquisition or functionality (72%), rather than the interests of all involved stakeholders (28%).
„In the context of continuously changing stakeholder expectations, of technological breakthroughs and fast and disruptive transformations that take place in the economic environment, organisations are faced with multiple challenges and need to adapt on the go, sometimes getting to the point of changing the purpose of the organisation and of its activity areas” concludes Ionuţ Simion.
About the report: The 19th edition of the PwC Global CEO Survey was conducted during the last quarter of 2015, and is based on the answers of 1409 CEOs from 83 countries. At regional level, 476 were conducted in the Asia-Pacific, 314 in Western Europe, 170 in Central and Eastern Europe, 169 in South America, 149 in North America, 87 in Africa and 47 in the Middle East. In Romania were conducted 82 interviews with CEOs.
The full survey report with supporting graphics can be downloaded at here.