Business Review Issue 13/2014 April 14 - 20

CORPORATE SOCIAL RESPONSIBILITY: CSR projects are getting a longer-term focus, but initiatives are not always publicized in an organized way as reporting non-financial information is not mandatory locally »page 8

ROMANIA’S PREMIER BUSINESS WEEKLY

LOCAL R&D

APRIL 14 - 20, 2014 / VOLUME 18, NUMBER 13

The government wants to roll out advance pricing agreements with multinationals doing cross-border deals, in a bid to provide taxpayers with certainty and raise the tax take, Ioana Petrescu, the minister of finance, tells BR »page 6

TACKLING TAX

ROMANIAN RESEARCHER RADU SILAGHIDUMITRESCU IS WORKING ON TWO PARALLEL PROJECTS WHICH SHOULD MAKE IT POSSIBLE TO ADMINISTER ARTIFICIAL BLOOD IN EMERGENCY SITUATIONS »PAGE 7 NEWS

Hard currency Romania must get more people into work before considering Euro zone accession, says Valentin Lazea, BNR chief economist

» page 4

www.business-review.eu Business Review | April 14 - 20, 2014

NEWS 3

NEWS in brief

WEEK AHEAD April 14 EU Foreign Affairs Council

AUTO

The European Union Foreign Affairs Council will meet in Luxembourg, with the situation in Ukraine being one of the main topics of discussion.

Poland, Sweden and the United Kingdom have proposed the deployment of an EU police mission in the former soviet country, a proposal that will receive a response from the Council.

Daimler starts EUR 300 mln local plant expansion

April 15

Agerpres

Star Transmission, the local subsidiary of German carmaker Daimler, has kicked off expansion works at its transmission assembly plant in Sebes, in a move designed to meet increased demand on the international market.

The company is set to invest EUR 300 million over the next two years in an 80,000 sqm production unit, and gradually start assembling MercedesBenz’s nine-speed automatic transmission, the 9G-Tronic.

The carmaker is aiming to use this transmission for almost all rear-wheel drive vehicles, according to Markus Schafer, a member of the divisional board of Mercedes-Benz cars, production and supply chain management. Star Transmission has accessed EUR 37.4 million in state aid for this project, which is set to create 500 new jobs in Alba County.

The new employees will take specialization courses in Germany.

From catwalk to jailhouse walk: mayor arrested over suspected bribe taking The mayor of Constanta, Radu Mazare, who is suspected of taking bribes, was released from jail last week, after spending 24 hours in custody. Investigations into his conduct will continue. A day before his arrest, Constanta’s mayor had attended the fourth edition of a Romanian tourism gala, which included a fashion parade.

INFRASTRUCTURE

ENERGY

Sibiu-Nadlac motorway to be completed in Q4 2015, says Sova

E.ON Romania 2013 consolidated sales down 10.5 pct to RON 4.65 bln

Dan Sova, the minister of transport, has told BR the motorway linking Sibiu and Nadlac will be finished in the fourth quarter of 2015, after Prime Minister Victor Ponta said the motorway would be completed sometime next year, without mentioning a clear deadline.

The road, which will be around 350 kilometers including bypasses, is part of the EU’s trans-European Transport Network (TEN-T) Priority Axis No7, which aims to link Nadlac to Constanta, via Bucharest. According to media reports, some 172 kilometers of the route have been completed over the last two years.

E.ON Romania, a subsidiary of German utility firm E.ON, saw its consolidated sales decline 10.5 percent on the year before to RON 4.65 billion (EUR 1.05 billion) in 2013, largely due to lower gas and power volumes.

Officials made the announcement last Tuesday as E.ON provided several updates on its activity in Romania.

The firm recorded gas and energy sales of 29.4 TWh last year, down 13 percent on the year before, according to general manager Frank Hajdinjak.

Profit also came in under the 2012 total, but no further details were provided.

E.ON Romania expects its business to expand in 2014, as the liberalization of the gas and energy market continues.

In spite of the poorer performance registered last year, E.ON will increase its investments in Romania in 2014.

The company is planning to spend RON 406 million (EUR 95 million) locally in the next few months.

Last year it invested RON 396 million (EUR 83 million), primarily in modernizing its networks.

IT ABC Data opens distribution hub in Oradea ABC Data Romania, the local branch of the IT product distribution firm with operations in Central and Eastern Europe, has established a distribution point in Oradea, two months after it made its direct entrance on the Romanian market.

According to the company, from now on, the distributor will be able to ensure delivery to its local partners in

Romania within 24 hours of when the goods enter the country. ABC Data intends to set up a warehouse in Romania, so the 36,000 products in its portfolio will be available more quickly.

ONLINE ECJ rules Data Retention Directive invalid The EU Court of Justice (ECJ) has thrown out the Data Retention Directive, which compelled providers of publicly available electronic communications services or public communications networks to store EU citizens’ data for up to two years, on the grounds that it violates several fundamental rights.

The directive, which imposed a retention period of between six months and two years, did not state the objective criteria on the basis of which the period must be determined in order to ensure that it is limited to what is strictly necessary, ruled the Court.

It also failed to provide sufficient safeguards to ensure the effective protection of the data against the risk of abuse and against any unlawful access and use, the ECJ added.

The Court stated that the directive did not require that the data be retained within the EU. The Data Retention Directive aimed to ensure that data were available for the purpose of the prevention, investigation, detection and prosecution of serious crime.

Business Breakfast AmCham Romania invites members to a Business Breakfast meeting with Ioana-Maria Petrescu, the new minister of finance, from 9:00-11:00 am, at JW Marriott Bucharest Grand Hotel, Constanta Ballroom. Petrescu will speak about her vision for a modern fiscal strategy for Romania, the current status of ANAF’s modernization process and the legislative projects of the ministry she is currently coordinating.

April 17 Upcoming legislation The new EU public procurement directives come into force. Member states have two years to implement them, from this date. The directives modernize the existing tools and instruments by making them simpler, more flexible and easier for companies, particularly SMEs, to bid for public procurements, according to EU officials. The rules on concessions are intended to establish a clear legal framework to give public authorities the necessary legal certainty to perform their duties. They aim to guarantee effective access to the concessions market for all European businesses.

MOST READ www.business-review.eu 1 Corneliu Birtok-Baneasa, gold medal in Geneva for device meant to cut fuel consumption

2 Radu Mazare released from custody. DNA: Elan Schwartzenberg was his accomplice

3 Austrian S+B Gruppe to build EUR 17.5 mln hotel next to Otopeni airport

4 FT: Bucharest heads for recovery quicker than its neighbours

5 In honor of Labor Day: Romanian Government grants an extra day off on May 2

www.business-review.eu Business Review | April 14 - 20, 2014

4 NEWS MONEY

3Q Frank Hajdinjak CEO, E.ON Romania

NBR: Romania ‘needs at least decade of growth before Euro zone accession’

R

Courtesy of E.ON Romania

What will happen with E.ON’s plans in the renewable sector following the changes to the incentives system?

We have stopped all our investments in renewable. We had several wind projects in our distribution area and a project portfolio of I think more than 200MW and we wanted to invest in more than 100MW but we’ve stopped all these investments. We do not plan to acquire any projects.

How does the group perceive Romania?

Romania’s reputation is generally very good in the E.ON group. Of course, as in all the other countries across Europe there are pros and cons, but generally I think it is fair to say it is a good one. Otherwise we would not have assumed this commitment of buying more shares – for example in Electrica – and continued and even increased our investment program.

This year the smart metering program will start and so we will have around RON 210 million (e.n. of investments) in electricity and RON 175 million in gas. The rest (e.n. up to RON 400 million) represents other investments in building services, etc.

Are you planning any investments in new conventional generating capacities at the moment?

At this point in time we are of course analyzing all the upcoming opportunities but I certainly cannot see any possibility of large-scale investments. The problem is not Romania but the overall development in the market Europe wide, and this also has an impact in Romania. I cannot see that there will be a huge investment project coming, at least from our side. ovidiu.posirca@business-review.ro

omania’s GDP per capita adjusted to purchasing power parity reached 50 percent of the EU average in 2012, and the local economy will have to outpace EU growth by 2 percent in the next decade to reach 60 percent, said Valentin Lazea, chief economist at the National Bank of Romania (NBR), during a risk conference organized last week by credit insurer Coface and Mediafax.

Lazea said that the poorest states to have joined the Euro zone were Estonia in 2011 with a GDP per capita (adjusted to PPP) of 66 percent of the EU average and Latvia in 2014 with 60 percent.

“It is less probable that the Euro zone will open its gates to a candidate-state that has a GDP per capita below these levels, because it would create additional problems for itself and the respective state,” said Lazea, who added that this was his personal opinion, and not that of the central bank.

Over recent years, Romania’s policymakers have commented that Romania should join the Euro zone by the end of this decade. Many prices in the local economy are already expressed in euros and around 70 percent of Romanian exports go to the 18-nation Euro zone bloc.

The economist said that monetary and fiscal policies can only “temporarily stimulate” GDP growth above potential.

“For long-lasting sustainable growth,

Valentin Lazea, chief economist of the central bank

policies in the sphere of the real economy, which can enhance the three mentioned factors (e.n. capital, labor market and productivity), are required. He said that the country’s current potential GDP growth stands at around 2 percent annually and is linked to agricultural output.

Any EU member aiming to join the Euro zone has to meet the five criteria outlined in the Treaty of Maastricht. They include a rate of inflation below 3 percent and national budget deficit and national public debt of below 60 percent of GDP.

EU funds key for growth Romania is currently doing poorly in all the fields that could help it increase its GDP per capita. Foreign direct invest-

ments, which are the main component of capital, grew by an average of EUR 2.3 billion per year over 2009-2013, from EUR 7.2 billion on average from 20042008. Lazea said that the absorption of EU funds, which should have plugged this gap, only started to pick up last year.

The country is also dealing with a shrinking labor force due to falling birth rates, while the overall efficiency of the economy remains below that in the EU. For instance, Romania has to use double the amount of energy per unit of GDP compared to the EU, despite progress in improving efficiency.

Electronic payments make up less than 10 percent of all payments against 90 percent in Poland. Furthermore, Romanian pupils fare poorly on the Pisa test, which examines 15-year olds’ math, science and reading abilities. Out of 65 countries that were analyzed in 2012, Romania came 45th in maths, 49th in science and 50th in reading, far below other states in CEE. Lazea outlined some measures that could boost growth, such as the enhanced absorption of EU funds, and increasing the participation of the elderly in the labor market. He added that more high school graduates in rural areas need to get into college and teachers’ pay should be connected to pupil performance. ∫ Ovidiu Posirca

WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity.

Get in touch at simona.bazavan@business-review.ro

Adrian Soltan has been appointed accounting manager for the local operations of business outsourcing and consultancy firm Accace. He has eight years of experience in managing corporate accounting and financing systems with local and international application. Soltan spent five years in executive positions at companies such as PwC. He graduated from the Faculty of Finance, Insurance, Banks and Stock Exchange within the Academy of Economic Studies in Bucharest.

Iulian Stefan has been appointed head of PayPoint Romania’s IT department.

He has a ten-year background in IT,

with experience of management, research, design, implementation, integration, maintenance and testing of software solutions and systems.

Most recently, he was business development manager at TotalSoft, a company he joined in 2008.

Robert Uzuna is the new corporate affairs director at Ursus Breweries starting this month.

His previous position was external relations manager, a position he had held since 2013. In 2011 he was appointed public affairs manager. Uzuna holds a PhD in eco-

nomics, a bachelor’s degree in international economic relations and master’s degree from Cambridge University in the UK. Before joining the beer industry he worked in diplomacy.

Oana Vijiala has been appointed leasing manager in the retail department of CBRE starting this month. She has over seven years of professional experience in real estate.

Vijiala previously worked as leasing manager for AFI Europe where she was responsible for the lease of AFI Palace Cotroceni and AFI Palace Ploiesti. Between 2007 and 2010 she was a consultant with JLL.

www.business-review.eu Business Review | April 14 - 20, 2014

NEWS 5

CONSTRUCTION

Lafarge and Holcim ‘must sell 43 pct of local production capacity’ Cement firms Lafarge and Holcim will have to sell 43 percent of their combined production capacity in Romania to obtain competition authority approval for a merger, according to Deutsche Bank cited by the WSJ.

Cementing their future: the two companies will have to divest European assets

French Lafarge and Swiss Holcim announced last week that they had reached an agreement to merge their global activities. Bruno Lafont, head of Lafarge and of the future LafargeHolcim giant, said in a press conference that no production facilities would be closed and there would be only a small impact on the number of employees. However, the companies will have to sell assets worth 10-15 percent of their EBITDA to obtain regulatory approval for the merger. About two thirds of the divestitures will have to take place in Europe. Deutsche Bank representatives have identified eight countries where, following the merger, LafargeHolcim would have more than 50 percent of the market, including Romania.

The Romanian cement market, which is estimated at around EUR 600-700 million, is already a concentrated one.

Each of the local subsidiaries of the two companies covers about one third of the market. Carpatcement, part of German HeidelbergCement AG, the next biggest competitor of the future LafargeHolcim, has a similar market share of about 30 percent. The merger of the local subsidiaries of Lafarge and Holcim would further hamper competition on a market which is already closely monitored because of this issue, said the head of Romania’s Competition Council, Bogdan Chiritoiu, last week, according to local media reports.

Moreover, last year proved a challenging one for the local cement market which was estimated to have dropped

CEO CORNER Ioana Enache General manager Amway Romania

Empowering young people to forge their own future In recent years, economic factors have led to an increase in people’s interest in establishing their own business as a means to generate extra income. The unemployment rate has sadly been growing, especially among young people. According to data from the end of 2013, the unemployment rate for 18- to 30-yearolds reached 25 percent in Romania.

High youth unemployment reflects the difficulties faced by young people in finding jobs, a worrying trend that is visible in Romania and at EU level.

In countries with relatively low

by between 3 and 5 percent as both resGDP per capita, entrepreneurship idential and non-residential construction stalled, said Daniel Bach, then CEO of as a second source of income becomes a main driver. According to Holcim Romania, in November.

Holcim and Lafarge operate two ce- a study carried out by Amway and ment factories each in Romania – Holcim GFK in 2013, almost two thirds (70 in Campulung and Alesd and Lafarge in percent) of respondents in Romania Medgidia and Hoghiz. In addition to the have a positive attitude towards selfcement business, the two companies employment. We can see an even also have divisions for aggregates, con- more positive attitude towards encrete and additional services. Holcim trepreneurship among respondents further supplies road binders, limestone aged between 18 and 24 years (79 filler and limestone. The two firms re- percent). But despite this enthusiported a combined local turnover of asm, Romanian respondents fear over EUR 440 million in 2012, according their enterprise failing and perceive to data from the Ministry of Finance. it as an obstacle to starting a busiLafarge Romania’s sales amounted to ness.

EUR 229 million while Holcim Romania reported EUR 213 million in sales.

This fear of failure is based The global merger between the two mainly on two factors: “financial companies is meant to reduce costs, im- burdens up to bankruptcy” and the prove access to markets and enable the “threat of the economic crisis”. resulting LafargeHolcim giant to better cope with increasing energy prices. The The current climate leads to peomove will require the approval of Holple seeking alternative sources of cim’s shareholders as well as that of the revenue with the direct selling inEuropean Commission and competition authorities in the countries where both dustry currently offering a viable players are present. It should be com- business opportunity with low startpleted in the first half of next year. At up capital and virtually no risk (no global level Holcim and Lafarge have logistics and stock burden, no rent total sales of EUR 32 billion and a EUR or other fixed costs). Despite the 6.5 billion EBITDA. The combined group economic crisis, Europe is the secwill be present in 90 countries around ond largest direct selling market in the world with a “balanced exposure to the world with USD 25.8 billion in both developed and high-growth sales revenue. markets”, according to a joint press release. ∫ The industry has developed and Simona Bazavan grown also in countries with lower

purchasing power, such as Hungary, Poland and Greece.

Young people are increasingly open to entrepreneurship, forging their own path to success, enjoying more flexibility with their time and control over their revenues. In fact, young people can start their own direct selling business and benefit from specialized training for free along with support from proven, reputable, trusted direct selling companies. As with any other businesses, it requires an investment of time and dedication.

The direct selling industry offers a unique business and income opportunity to those who aspire to a better life, as either a temporary solution for a youngster looking to earn extra money or responding to a long-term goal of supporting an entire household.

www.business-review.eu Business Review | April 14 - 20, 2014

6 INTERVIEW

Government seeks five-year agreement with multinationals over transfer prices Ioana Petrescu, the minister of finance, says the government wants to reach consensus with multinationals over transfer prices, using deals known as advance pricing agreements, to increase taxpayers’ certainty and raise the tax take. The fiscal authority ANAF is currently hiring the personnel that will be tasked with reaching agreements with multinationals on paying their taxes over the next five years.

We are also counting on concrete results from the General Directorate for Fiscal Anti-fraud, a body which, despite not yet being three months old, has been handling a constant volume of tasks.

∫ OVIDIU POSIRCA She says no new taxes will be rolled out this year and that reinvested profit is due to be exempted from taxation from July 1. Returning VAT to 19 percent would reduce budget revenues by RON 10 billion, while the potential 5 percentage point cut in social insurance contributions would deprive state coffers of another RON 1.5 billion this quarter, according to the minister.

How does the Ministry of Finance intend to increase the tax take?

We have several levers by which we wish to improve collection and produce more money for the budget with the aim of supporting fiscal easing and economic incentives, on the one hand, and ensuring the funding of social protection, on the other hand.

One of the goals embedded in my mandate as minister, which I have mentioned before, consists of introducing a set of measures to support payment compliance. Several aspects will be involved, including the clarification and simplification of the fiscal system, by means of revising the Fiscal Code and the Fiscal Procedure Code. Additionally, we are pursuing a decrease in taxpayers’ compliance costs by keeping them informed and facilitating the payment of taxes and dues using bank cards and online services.

We want to demonstrate transparency and respect for public financial resources. The public and the business community need to see that the money they return to the state is used in a transparent and sensible manner, that it is used to finance sustainable development projects or projects focused on stimulating the economy.

Last but not least, I am aware that the business environment expects predictability from us and measures to be taken based on solid substantiations, relying on impact studies and thorough analysis.

How does the Ministry of Finance intend to reduce tax evasion in Romania which, according to certain statistics, accounts for nearly one third of the country’s GDP? Have you laid out any proposals to stiffen sanctions for tax evasion?

First and foremost, I would like to note the layers in your question. There are separate estimates with regard to tax evasion, depending on the methodol-

CV Ioana Petrescu March 2014 – present minister of finance September 2013 – March 2014 economic adviser to the Romanian Prime Minister August 2010 – present (on leave) assistant professor, University of Maryland, College Park, School of Public Policy 2008 - PhD in Economics from Harvard University 2007- MA in Economics from Harvard University 2003 - BA in Mathematics and Economics from Wellesley College

ogy. This is, however, by the by.

What I mean to say is that stiffening sanctions for tax evasion could be one solution – we are taking it under advisement – but I don’t believe this is enough.

As I have previously stated, I want to use both measures to facilitate taxpayers’ co-operative compliance, as well as those aiding the fight against tax evasion.

Naturally, there are measures that can be implemented on the short or medium term (improving the predictability and clarification of the fiscal system, decreasing the number of fiscal and non-fiscal taxes and dues, the introduction of cash registers with electronic logs, tax audits and the enhancement of risk analysis methodology, the exchange of good practices with other countries, etc.), but there are also certain measures that will require implementation over a longer term – the consolidation of the Transfer Pricing de-

partment within the MPF and the crosslinking of databases within local government.

An important collection source for the budget, still being used below its capabilities but present on our radar, is the implementation and encouragement of procedures allowing us to build a bridge between the state and multinational companies as far as transfer pricing strategy is concerned: “advance pricing agreements”. So far there have not been sufficient ANAF employees to handle these procedures. What does this mean? Basically, one can come to an agreement with multinational companies regarding the way in which they are to pay their taxes and dues over the following five years. This is a co-operative compliance method, an important source for collection enhancement.

ANAF has already set in motion procedures for hiring the people to be tasked with such duties.

Will VAT be cut again to 19 percent this year or are you trying to specifically lower VAT on basic products, similar to the pattern of reducing VAT in the milling and bakery sector?

VAT reduction is a long-term objective, included in the Budgetary and Fiscal Strategy for the coming years.

On the one hand, it would cost the budget quite a lot, around RON 10 billion, against a background in which, in 2013, VAT income accounted for RON 51.8 billion (43.5 percent of fiscal income and 26 percent of global income) – budgetary resources which currently cannot be covered by other means.

On the other hand, Romania has one of the highest VAT rates in the EU after the increase in 2010, while VAT tax evasion is the highest, at almost RON 49 billion in 2012, according to the calculations of the Fiscal Council. Such data reveal the need for fiscal easing measures in this area or more stringent limitation measures in order to combat evasion.

With regard to lowering VAT on other basic products, this is a measure we are considering. However, it depends upon the data we obtain through analyzing the outcome of the reduced, 9 percent, VAT on bakery products. We need to take into account the fact that only six or seven months have passed since the VAT decrease on bakery products, and the currently visible effects are those related to price reductions (down 11 percent in January 2014 against January 2013). The impact on lowering evasion or increasing the compliance/collection rate emerges over the longer term. Therefore, performing this analysis is necessary for a longer period of time, as a foundation for our future decisions.

Will SIC (social insurance contributions) be lowered by 5 percentage points for companies? What will be the impact upon the labor market (will it diminish unemployment, or working under the table, and if so by what percentage)?

Reducing SIC would be a measure to support the business environment by alleviating the fiscal pressure on companies. The reduction of SIC by 5 per-

www.business-review.ro Business Review | April 14 - 20, 2014 centage points and exemption from the return of the reinvested tax are topics we will debate with the IMF, the European Commission and the World Bank delegation.

According to our estimates, a 5 percentage point cut in SIC could encourage employment, in the short term, leading to the creation of around 25,000 new jobs.

The cost of lowering SIC by 5 percentage points is estimated at RON 2.6 billion, which would be the income gap to emerge within the social insurance budget. However, if we look at the global picture, the cost will be offset against the background of corporate tax collections, from how the companies spend the extra funds, from the potential growth in recruitment, as well as from the decrease in government costs of social insurance contributions. In sum, we predict that the net cost of the consolidated general budget will amount to RON 1.52 billion (0.2 percent of the GDP) for the second semester of the year.

Impact studies are currently in progress, to ensure the effects on the budget are not too profound and, at the same time, such studies should be of assistance to companies that have been requesting this measure for several years. To pay for this measure, as well as the non-taxation of the reinvested profit, we are considering several options. We are counting on developments in the efforts to fight tax evasion, the collection of the special construction tax, and, once the first five months of this year have been analyzed, we’ll decide whether a decrease in budgetary expenses is necessary or not.

This field, as with the VAT issue, is subject to extensive tax evasion, calculated by the Fiscal Council at RON 19 billion, RON 10 billion higher than the tax evasion figure for 2008.

Will reinvested proďŹ t from the current year remain non-taxable?

As we have previously announced, reinvested profit will probably be made tax exempt from July 1, considering the expectations and the benefits this measures will have for the business environment. As I said earlier, this will be a topic of discussion with the IMF, the European Commission and the World Bank.

In comparison with the VAT and SIC decrease, making reinvested profit nontaxable will cost the least and will most likely be implemented this year. The estimated impact amounts to approximately RON 28 million in 2014, if the measure comes into force on July 1.

Will these new tax reductions involve new taxes and dues for the business environment, considering that the tax take will fall in the short term?

Given the current budget structure, we do not intend to introduce new taxes and dues for business players. Additionally, we intend to implement, as far as budget-related expenses are concerned,

INTERVIEW 7 a better prioritization of investments, with the help of the Public Investment Evaluation Unit. We also want to see a fall in public spending.

What arguments on the subject of tax reduction will you make to the new IMF assessment mission?

We have and can find even more economic arguments in favor of tax reduction.

We need to remember that fiscal easing measures must not be detrimental to the budget deficit targets and, respectively, the structural budget deficit targets. This is worth mentioning because, since discretionary measures are in focus, these will also be reflected in the structural budget deficit, for which Romania has a timetable it must follow.

The arguments we can bring relate to an increase in recruitment and a hike in the employment rate, boosting external competitiveness, the stimulation of more taxpayers’ contributions to the pension scheme, the limitation of tax evasion through SIC and, we hope, the enhancement of budget income collection.

Will the 7 eurocent additional excise duty diminish domestic consumption?

I do not believe that the introduction of the 7 eurocent excise duty for fuels will reduce domestic consumption to a great extent. This will depend upon the value within the excise duty reflected in the final price.

Following consultations with representatives of road carriers and given the existence of a provision on excise duties in the text of a European directive, we agreed to return 4 eurocents from this excise duty in the case of certain vehicle categories. This measure is intended to help licensed carriers whose activity is legitimately carried out on Romanian territory. Factoring in that these transportation expenses are included in the price of goods and services, we will see the public promptly benefit from this measure stipulating the reimbursement of a portion of the excise duty.

During our forthcoming meetings with representatives of road carriers we will set forth the procedure for this reimbursement.

What is the implementation status of the ordinance providing tax breaks for lowincome borrowers?

We are currently working on finalizing the draft bill on the subject, about which we will commence large-scale consultations with banks and academics, whose opinions I am certain will count a lot in the matter.

We are conducting analyses and impact studies as we want to cover all the effects that might occur both in the short term, as well as in the long term, and after 2016, when taxpayers will start benefiting from these fiscal facilities. We hope to see this measure adopted this year. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | April 14 - 20, 2014

8 FOCUS

Vein hope: Cluj team pioneers artificial blood Romanian researcher Radu Silaghi-Dumitrescu, Assoc. Prof. at the Babes-Bolyai University’s Faculty of Chemistry and Chemical Engineering, is one step closer to realizing what currently exists only in vampire series like True Blood: synthesizing artificial blood. The scientist is working on two parallel projects which should make it possible to administer artificial blood to patients in emergency situations. ∫ OTILIA HARAGA Radu Silaghi-Dumitrescu and his team are working simultaneously on two projects that, if successful, will conclude a research chapter that has been fascinating scientists for decades: synthesizing blood.

“Experiments in this area have been going on for decades. In the international scientific community, there is no doubt that eventually such a product will be successfully introduced into medical practice. The main obstacles are eliminating the side effects, but with every round of clinical tests – of which the first took place in the 80s – there are fewer and fewer negative results,” Silaghi-Dumitrescu told BR. One of the projects he and his team are working on involves hemoglobin, while the other involves hemerythrin, a rare protein prelevated from sea worms.

“We do not actually work with the worms, because we have already extracted their DNA. We inserted it into bacteria and now we are only growing the bacteria in the laboratory. The bacteria are available commercially, precisely for this type of purpose,” said Silaghi-Dumitrescu. “We are also open to the possibility of having a worm farm and have received a collaboration offer from a foreign partner for this.”

Lab tests for both projects are being conducted in parallel. The raw matter for the tests is the bacterial culture environment. “If you leave your food on the table and it goes bad, this is what happens, bacteria grow there. It is very easy to grow bacteria; you need water, salts, glucose… After that, all you need is a big receptacle in which to let the bacteria grow. It is not that complicated to apply this technique at industrial level,” explained Silaghi-Dumitrescu.

To comply with medical standards, the final product will look like a regular blood transfusion bag. However, the advantage of artificial blood is that, unlike human blood, the water can be taken out and the blood can be stored as powder. “If need be, one can add sterile water to the powder. If for instance, there is no cooler to keep the blood fresh, it can be kept at room temperature in the form of powder,” said the scientist.

In 2010, Silaghi-Dumitrescu and his team started tests on animals and cell cultures, which are expected to continue for another two years.

“I should say that we do not have a definite result yet, only a very clear working hypothesis, and the outlook is promising,” the researcher told BR. The team working under Prof.

Silaghi-Dumitrescu has very diverse competencies, with five people from the Faculty of Chemistry, some of whom have a background in biology.

However, this is only the central knot of the project, where the team produces and analyzes the substances from a physical and chemical perspective.

“We are also collaborating with a researcher at the Institute of Oncology for cultures of human cells, with the Institute of Biological Research for testing on animals, and we have carried out experiments at the University of Medicine and Pharmacy, and also with colleagues from the Faculty of Biology at the Babes-Bolyai University. We have collaborators at the Faculty of Physics and at the National Institute for Research and Development of Isotopic and Molecular Technologies in Cluj-Napoca.

The network is pretty big,” he outlined.

Apart from the team of scientists, since the start of the projects in 2006, students and graduates pursuing mas-

ter’s degrees have also contributed.

At European level, there is a network called Euro Blood Substitutes, where Silaghi- Dumitrescu used to work between 2004 and 2006. To this day, he is still collaborating with the organization.

On the hemoglobin project, SilaghiDumitrescu is working with Essex University, and on the hemerythrin project, with a university in the United States. If the invention is successful and patented, the patent will belong to the BabesBolyai University in Cluj-Napoca, but also must include the foreign partners.

A great deal has been published and patented in this field. The discovery of artificial blood has been like the quest for the Holy Grail for scientists for some time. However, Silaghi-Dumitrescu is not worried that other scientists might wake up to his ideas and patent his inventions themselves.

“First of all, hemerythrin is not that easy to get. Secondly, there are certain procedural points that are rather delicate, so it’s not like anybody can read the works and start making the blood.

Thirdly, they would also need some very advanced labs, which we have in Cluj. On the other hand, if we were exposed, what is the risk?” asked SilaghiDumitrescu, adding that the patient wins either way.

“The number of patients who stand to

gain from this will probably be higher than the Romanian population. This is one of the projects in which the patient must come first. Anyhow, Romania cannot lose the credit for this, because these things have already appeared in the press, so everyone knows where it started. As for the prizes and the money, anyone can have them as long as they are able to get the product to the patient faster,” said the scientist.

So far, approximately RON 1 million was spent on the research between 2007 and 2010, and less between 2010 and 2013, “because we worked with remains from other projects and a lot of volunteering from students.”

“I estimate that another RON 1 million will be necessary for lab tests on human cells and animals,” said Silaghi-Dumitrescu.

At the end of 2013, the Ministry of Education allocated RON 200,000 to artificial blood research. This March, during the Cluj Innovation Days, Mihnea Costoiu, minister for research, announced that an additional RON 400,000 will be granted for 2014.

“We are considering applying for European funds this year. My lab has been very well financed from competitions for national funds for other projects. It just so happened that the artificial blood project did not obtain additional financing after the first three years, but we got financing for other projects. We now plan to do this,” he said.

No precise calculations have been done regarding the price of the artificial blood. “A few years ago, the price of human blood in England was about GBP 1,000. The blood is donated free of charge, but this is the cost of collecting, storing and treating it. So, any product that you procure must be cheaper than this, and it certainly can be. We hope it will be less than half the cost,” he said.

If the artificial blood is successful, this will be a product with limited applicability, for emergencies, because after being treated with it, the patient would still need human blood. “On the long term, the most interesting thing would be to produce blood from stem cells.

Unfortunately, the technology to do that in tons and tons is not available” concluded Silaghi-Dumitrescu. otilia.haraga@business-review.ro

www.business-review.eu Business Review | April 14 - 20, 2014

CSR 9

Local CSR market makes strides towards maturity The Romanian corporate social responsibility (CSR) market has changed steadily over recent years, with companies aiming to develop long-term projects with a greater impact on the communities in which they operate. Although firms in Romania are getting more involved in CSR actions and supporting their local communities, not many of them make these initiatives public in an organized way, as reporting non-financial information is not a regulatory requirement in Romania, specialists told Business Review. ∫ ANDA SEBESI At present, leading companies, especially international ones, present in Romania are investing in building stakeholder trust and simultaneously improving their business performance. “These organizations understand that to retain the confidence of the general public they need to ‘win hearts and minds’ as well as deliver-

ing on the bottom line. They are responding to a new set of societal values based around the evolving role of companies in society,” says Geta Diaconu, director, sustainability advisory and CSR, at KPMG Romania.

Elsewhere, as part of the eighth KPMG Survey of CSR Reporting in 2013, the top 100 companies by revenue (N100) operating in Romania were analyzed from a CSR perspective, based on public information. The fig-

ures show an increase in the total number of N100 Romanian companies involved in CSR issues as well as reporting on such matters, either through a local report or providing data for the group report, compared with the survey conducted in 2011.

The previous set of results indicated a total of 53 reporting companies (CSR local reports or input for the group report). The latest data reveal that 69 of the N100 published this information.

The results of the survey also point to a difference between multinational companies operating in Romania, which are more actively involved in CSR, and local players.

Diaconu says the trends in the local CSR market continue to be set by multinationals active in Romania, which have a strategic approach and clear plans for action at group level.

Related policies, procedures and projects are implemented locally, in line

www.business-review.ro Business Review | April 14 - 20, 2014

10 CSR with the group’s strategies. “On the other hand, Romanian-owned companies tend to focus their efforts and activities mostly on social involvement, without an organizational framework,” she adds.

“A significant difference can be observed between the level of involvement in CSR activities by governments and companies in developed countries, where there is a history of several decades of such activities, and the position in Romania.

However, during the last few years, progress has been made in our country and hopefully in the near future CSR will rank high on the agenda of both public institutions and private companies,” says the KPMG representative.

Companies focus on community projects Many multinational companies focus on the community they operate in, developing long-term CSR programs with a greater impact on as many beneficiaries as possible. Heineken pentru Comunitati is one such example, developed by Heineken Romania in partnership with CSR Nest Association. The program started four years ago and is implemented in the four cities where Heineken has breweries: Craiova, Constanta, Miercurea Ciuc and Targu Mures. The company has invested over RON 1 million in 20 community projects through Heineken pentru Comunitati so far and has reached more than 280,000 beneficiaries. The program is part of the company’s Agenda of Sustainability, entitled “Brewing a Better Future”, and aims to support local communities where Heineken has breweries by investing in relevant projects for them.

The company’s approach to sustainability is characterized by an integrated vision that covers all of its areas of activity and helps it to develop its activity in Romania on the long term in an efficient and responsible manner.

A similar initiative is “Fondul Mega Image pentru Comunitate”. The project is financed by Delhaize Group and managed by Fundatia Comunitara Bucuresti, and supports initiatives that increase social cohesion in local communities in Bucharest. The fund was launched in Romania in September last year and has a maximum value of RON 100,000. The sum is split between ten winning projects that receive a grant of about RON 10,000 each.

The project targets a wide range of themes from civic spirit, ecology and healthy food, and the social integration of vulnerable groups to education and hobbies.

“The reason we decided to get involved in this project is simple: we are part of the community. We develop by our customers and we attend to their needs in all we do. The way we interact and relate to the communities we operate in represents our engagement to contribute to improving the lives of different communities and making positive changes,” say representatives of Mega Image. They add that the company’s goal is to participate actively in the making of a sustainable future, both for its customers and employees and the whole community it is part of.

“Mega Image’s involvement in CSR actions has increased steadily over the years with each project or program we have developed. We will continue to be an active participant in the community,” they say.

What can influence local CSR development and sustainability lThe need for long-term capital and favorable financing conditions will encourage the positive development of the CSR market, as a growing number of investors and financing bodies include non-financial considerations (CSR/sustainability) in their decision-making processes. lCompetitive positioning, market differentiation and reputation enhancement are essential. In response to growing awareness of the importance of CSR and sustainable development issues, the related performance attributes are increasingly being used by companies to differentiate their brand, products and/or services to consumers and competitors and enhance their reputation. lA clear demonstration that a company is involved in CSR/sustainability projects is often appealing to existing and prospective employees, so this can encourage the development of talent and enhance the company’s position as an “employer of choice.” lCSR reporting is mandatory in ten of Europe’s most significant economies and it is expected that regulatory frameworks will continue to develop. An increasing number of stock exchanges also have listings requirements that include disclosure on companies’ environmental impact and governance.

Source: KPMG

Geta Diaconu, director, sustainability advisory and CSR, KPMG Romania

“Romanian-owned companies tend to focus their efforts and activities mostly on social involvement, without an organizational framework” Geta Diaconu, KPMG Romania Last but not least, Asociatia pentru Relatii Comunitare (ARC), with the support of Raiffeisen Bank, announced recently that it is offering RON 42,500 to each of the three community foundations that will be set up nationwide. Arad, Brasov, Constanta, Craiova, Deva, Galati, Hunedoara, Pitesti, Suceava and Timisoara are the main cities targeted by this project but initiatives in other areas where there is a lack of such foundations are also expected. “Through our contribution to the setting up of three new community foundations we want to promote a model of active citizenship and contribute to the development of a capable, involved and responsible society,” says Corina Vasile, communication and PR director at Raiffeisen Bank. The lender also launched the third edition of its “Raiffeisen Comunitati” grant program last year, to finance local small and medium projects.

Social economy is the future Social entrepreneurship is increasingly seen as a real alternative to traditional business as the current economic environment becomes more and more challenging. Several companies on the Romanian market have decided to support social economy projects as they have a significant impact on local communities.

Radu Cosarca, director of external relations, Enel

“Fabricat in Tara lui Andrei”, a project developed by Petrom, is the largest competition for social businesses in Romania at present. The company announced the ten winners of the 2013 contest in November last year. In addition to a grant of up to EUR 32,000 for setting up a business, each winner got specialized consultancy for its first years of activity in fields such as financial management, legal, marketing and distribution. The ideas of the ten social entrepreneurs that won grants from Petrom came from different fields: agriculture (farms), the textile industry, wood processing, manufacturing of construction materials and furniture, food and herbs.

“Through the project ‘Fabricat in Tara lui Andrei’ we wanted to encourage the entrepreneurial spirit of Romanians and to create independent and sustainable communities. The results of this project prove that Romanians have a real entrepreneurial spirit and want to contribute to Romania’s development,” said Mariana Gheorghe, CEO of Petrom.

Elsewhere, UniCredit Business Integrated Solutions and UniCredit Foundation in partnership with NESsT selected the three winning projects of the 2013 “Your Choice, Your Project” social enterprise competition last July. The winning social enterprises got financial support of EUR 7,000.

The local market needs educational projects...

Both the private and public sectors in Romania have seen the need for educational projects for different target groups. Banking, IT&C, pharmaceuticals, energy, and oil & gas are among the industries currently involved in such projects.

Enel describes social responsibility as one of the company’s core values.

With the projects it supports or develops, the company aims to contribute to the creation of a sustainable world for future generations.

continued on page 12

www.business-review.eu Business Review | April 14 - 20, 2014

CSR 11

PARTNER CONTENT

A pioneer on the Romanian CSR scene The Vodafone Romania Foundation was set up in 1998, since when it has financed over 768 programs for children, seniors, disadvantaged groups, individuals with disabilities and victims of natural disasters. It has also invested over EUR 17 million so far in projects developed with 600 NGO partners, reaching 300,000 beneficiaries.

physically disabled and/or socially disadvantaged individuals. With an initial investment of EUR 475,000 from the Vodafone Foundation and benefiting from access to the Vodafone service network, Mobile for Good started with special programs for diabetics, seniors in need of home care and learning-disabled athletes. The number of beneficiaries increased last year when the program was extended to include three projects fiThe Vodafone Romania Foundation nanced by the Vodafone Romania Founwas also a pioneer on the local CSR dation: the 4G telemedicine solution in market, becoming the first corporate the new intensive care unit for newborns foundation in Romania. And the trail- at the Marie Curie hospital, a pediatric blazing didn’t stop there, as Vodafone call centre in Cluj county and the extenwas the first company in Romania to sion of the telemedicine solution to anlaunch a program for salary donations other 80 SMURD ambulances. back in December 1998. This allows Since 2012, the Vodafone Romania its employees to donate voluntarily a Foundation has invested over EUR 1.1 percentage of their salary every million in six projects with more than month to fund the foundation’s activi- 5,800 beneficiaries. The projects were ties. “Today 700 individuals donate developed in partnership with React Asevery month to support the projects sociation, Inima Copiilor Association, of the Vodafone Foundation,” says Flo- Caritas Association, the Foundation for rina Tanase, Director Legal & External SMURD, Special Olympics Foundation Affairs, member of the Vodafone and Parinti din Romania Foundation.

Foundation Board.

In Romania, “Voluntar de profesie” In addition, in 2006 the foundation was implemented for the first time in launched for the first time in Romania 2010, and the first three editions ina corporate volunteering program for cluded 16,000 hours of volunteering, with its employees. It now has over 3,800 47 non-profit projects and 10,000 benevolunteers who have put in more than ficiaries. Last year, the Vodafone Foun25,000 hours of volunteering. “Now dation launched the fourth edition, each employee can spend two days a through which 17 individuals had the year volunteering on the foundation’s chance to work from October 2013 to projects. We have about 1,000 volun- April 2014 for beneficiaries of an NGO in teers a year in our company. There one of the following fields: health, eduare also other employees that partic- cation, preventing family and school ipate as volunteers in their spare time. abandonment, programs for youngsters If you send an internal e-mail saying with disabilities and seniors. “We intend that you need 10 volunteers you get to extend the duration of the Voluntar de 50, while if you need 300 you get 400,” profesie program this year because it says Tanase. will provide greater support for organizations,” adds Tanase.

Two major projects: Mobile for Good and Voluntar de profesie 2013: a successful year for the VodaMobile for Good, the Vodafone Foun- fone Romania Foundation dation’s largest project in Romania, The foundation had a budget of EUR 2.5 was launched in 2012. It uses mobile million last year and, with the support technology to improve the lives of of its partners, helped 5,300 individuals

next year, worth EUR 310,000,” says Tanase. This year the Vodafone Romania Foundation will organize at least one new “call for proposals” financing program.

Florina Tanase, Director Legal & External Affairs, Vodafone Romania, member of the Vodafone Foundation Board “We truly believe in our Foundation’s mission: to improve people’s lives by supporting the NGO’s, communities and individuals who strive for the better”

Vodafone Romania – a community involvement in saving lives Vodafone has supported SMURD and the Foundation for SMURD since 2004.

This partnership has taken different forms, from fitting ambulances with equipment for data and video transmissions to the acquisition of intervention vehicles and the renovation of the National Center for Training in Medical Emergency Assistance in Targu Mures. Furthermore, the company is a traditional partner of Salvamont with which it launched a mobile application intended to help rescue teams locate stricken individuals in mountain areas.

But the CSR actions of Vodafone Romania don’t stop here. The company runs annual blood donation drives, organizes first aid training with React Association and supports the donation platform through SMS.

Vodafone Romania Foundation in through 68 projects: worked in partnership with Inima facts....

Copiilor Association to launch a new inl The first corporate foundation tensive care unit for newborns at the in Romania; Marie Curie hospital. The financing prolFirst system of salary donations vide by the foundation was EUR 1.4 milin Romania; lion, the biggest individual financing that l First corporate volunteering the Foundation had for one project. l The foundation built four houses for program for employees; l Fields of involvement: health, disadvantaged people in Cristian village, education, preventing family and Brasov County, in partnership with school abandonment, social Diaconia Ajutor International Associaservices, sport for individuals tion. l “With the Motivation Foundation we with special needs, volunteering, have many projects as it is one of our emergency help during natural traditional partners. One project involved disasters; l Beneficiaries: children and the distribution of wheelchairs all over young people, seniors, disabled the country. They select beneficiaries individuals, socially, economiwith low incomes who need such chairs, cally and physically disadvanchildren or adults,” says the Director of taged people. the Vodafone Romania Foundation. lTogether with Chance for Life Association “we developed the Bursa Vodafone ....and figures project in Bucharest and Sulina. Through lEUR 17 million invested over 16 this project, gifted, but poor children with years of activity; chaotic backgrounds or from poor famlOver 3,800 corporate volunteers ilies are helped by teachers in a day cenfor Vodafone Romania Foundater to fulfill their educational potential,” tion programs and over 25,000 adds Tanase. lLast year the Vodafone Foundation orvolunteering hours; l EUR 3.5 million invested in ganized two open calls for proposals : health programs; one for its partners and the other for orl768 programs supported by the ganizations that had not previously benVodafone Romania Foundation; efited from the foundation’s support. l600 partner NGOs; “Through this call for proposals we hope lEUR 1,350,000 – the largest into reach as many smaller organizations vestment in a single project; as possible nationwide. Some 384 aplAbout 300,000 beneficiaries plications were received in one month, out of which 222 were eligible. At the end ten projects were selected for the l It

www.business-review.ro Business Review | April 14 - 20, 2014

12 CSR continued from page 10

PARTNER CONTENT

Be Social in Social Media In today’s hectic world, an avalanche of causes arises in our newsfeed.

We are invited to fight for the poor, the sick, the diseased, the helpless, for animals and humans alike, for our rights and against fraud and illegalities. More often than not, some causes tickle our concern and curiosity, fewer make us click on a link and even fewer urge us to put on our warrior costumes and engage in the fight.

But then, we end up on an exhausting internet page, are asked to complete 3 pages of forms, sing on the page, log in, subscribe to a newsletter, meanwhile asking ourselves: Is this even legitimate?!

We have to keep in mind though that compassion is not the upper hand of those with free time to spare on endless forms. We have to keep in mind that doubt is not exclusively the palladium of those with no free time . We have the right to know that a cause is certified and we have the right to spend less than 5 minutes to make a donation.

Thankfully, begining with April 14th, our compassionate hearts and busy minds have a special place to invest their care and finances: On April 14th, we launch the first crowdfunding Avon platform across the globe! Through www.doneazacuavon.ro we can actively support the women around us, NGOs that we admire and the communities we live in, alongside their fight against domestic violence and breast cancer, either by donating or volunteering. You have our guarantee that each and every project that appears on the platform is authentic. Our 6 specialists make sure of it.

Each donation is due in 3 quick steps: first, enter the platform and pick the case closest to your heart, then order a social product from an Avon Representative or from avon.ro and, finally, enter the dona-

tion code marked on the product in the special section on the page of the case you chose. Simple as that!

Do you want to do even more?

Subscribe a case or project on our platform! If you happen to know someone diagnosed with cancer, in the process of recovery, or a battleing victim of domestic violence, subscribe her case on the platform and help her raise funds. Speak loudly of her case, post photos, give a detailed description and then be social on social media, promoting the case. Be her brand ambassador. You can do the same for a striving NGO or dedicated Foundation. Just be sure to read the legal terms before subscribing the project/case.

In our ultimate goal to make the lives of women from Romania better, we lead a fight with breast cancer for over 12 years , through our Breast Cancer Campaign (Campania pentru Sănătatea Sânilor), that brought 2,7 million dollars worth of equipment for oncology centers in Bucharest, Iaşi, Timişioara, Târgu Mureş, Alba Iulia, Galaţi and Craiova, we carried national information and education campaigns and offered free screening programs for women over forty.

4 years ago, we felt strong enough to also engage in a fight with domestic violence, through our Domestic Violence Campaign (Campania Respectului), raising awareness upon this delicate problem and striving to educate feminine public.

We invest nerve and passion in what we hope will be the biggest and most flourishing crowdfunding platform across the entire world.

We invest the belief of hundreds to help save one.

This is our call to arms: help support www.doneazacuavon.ro!

“Enel has launched various programs that encourage and educate the public about rational energy consumption in Romanian communities, with direct benefits on household budgets: campaigns in villages or areas that include replacing incandescent bulbs with energy-saving bulbs, and the City of Energy project, which includes elements of modern, urban art,” says Radu Cosarca, director of external relations at Enel. He adds that in the area of programs focusing on education and awareness of energy and energy efficiency, the company has set up the Play Energy program, which also presents useful information on the complex field of energy. Play Energy is a competition organized by Enel Group internationally, for secondary and high schools.

Many companies are now focusing more on long-term CSR projects aiming to achieve a high impact on specific target groups. “Actavis Sustine Performanta”, which was started in 1992, is one such example. Through this program, the company supports the Romanian Chemistry Olympics team and covers the expenses of participating in the International Chemistry Olympiad.

“Those who get medals are rewarded with scholarships and internships at our company. In 22 years since the launch of this project we and Romania are proud of the country’s 10 gold, 42 silver and 30 bronze medals at the International Chemistry Olympiad,” says Ana Maria Draganica, communication manager at Actavis Romania.

Educational programs can have a significant impact on local communities faced with specific problems. For example, through the project “Protejeaza-ti caminul, pregateste-ti comunitatea!” developed by Habitat for

“Corporate volunteering is growing and I think that the involvement of many companies in communities is leading gradually to an increase in corporate volunteering initiatives” Carmen Marcu, Pro Vobis, the National Centre for Volunteering Resources

Humanity Romania and Petrom in partnership with the General Inspectorate for Emergency Situations (IGSU), over 2,500 citizens from 13 vulnerable communities in Bacau, Braila, Dambovita, Gorj, Ialomita, Valcea and Prahova benefited from a program for participatory management of risks relating to disasters. The program was implemented during August 2013 and February 2014 and aimed to involve directly families, authorities, employees of Petrom and local IGSU services.

Orange Romania describes education and the professional training of young people starting their career as a big step in building a better future.

The company has developed many such activities, including internships at Orange and mentoring sessions in high schools. “We invest in training future specialists, facilitating through Orange Educational Program their access to educational resources adapted to the current technological needs and encouraging scientific research activities and experiences of alternative learning,” say representatives of Orange Romania. The Orange Educational Program (with Engineering, Business Administration and First Step sections), Orange Job Shadowing Day, Orange 4G Tour and Atelierul de Responsabilitate Sociala are among the company’s educational projects.

Public institutions are also involved in educational projects. For example, the National Bank of Romania (BNR) develops such projects as part of its strategy for external communication.

The Open Gates Days for Economics Students, Let’s Talk about Money and Banks, and “Academica” are among BNR’s educational ventures.

In addition, last year the Central Bank signed a partnership with the Ministry of National Education to initiate or implement activities supporting financial education.

... and support for humanitarian causes Fighting for a good cause is often a highly effective way to help the community in which you live, and many companies on the Romanian market are now involved in supporting humanitarian causes.

Regardless of whether they support an NGO that works for a good cause or develop their own CSR projects to support humanitarian aims, companies invest a lot in this kind of community involvement.

For example, in March Plaza Romania hosted the biggest fashion show of the year, donating EUR 10,000 to Hospice Casa Sperantei, thereby supporting efforts to raise money and promote the services provided by the hospice. Ilinca Vandici, Diana Dumitrescu, Crina Abrudan and Roxana Ciuhulescu lent their support to the cause while fashion designers Catalin

www.business-review.ro Business Review | April 14 - 20, 2014 Botezatu, Doina Levintza and Rhea Medical Emergency Assistance in Costa contributed pieces for the Targu Mures.

Last but not least, Vodafone implefashion show.

“We decided to support this noble mented the “Voluntar de profesie” cause in order to improve the quality program for the first time in Romania of life of those in need, and also en- in 2010. Under the name of World of courage others to follow this example. Difference, it was set up by the VodaWe want to be near our fellows fone Foundation worldwide in 2002. and we think we can improve things Over 2,100 volunteers from 22 coundirectly or indirectly. This attitude tries have been involved in projects very much reflects the internal developed by NGOs around the world. values of our company,” says Razvan The program is dedicated to employGaita, general manager at Anchor ees who always have wanted to work for an NGO and support a specific Group.

Elsewhere, Avon is known interna- cause directly. tionally for its fight against breast cancer and domestic abuse, running Corporate volunteering gains social campaigns in over 58 countries ground where it is present. On the local mar- Many companies active on the Roket, the company launched its cam- manian CSR market are starting to inpaign against breast cancer in 2002, volve their employees more in while in 2008 it launched Campania volunteering. The need to be closer to Respectului. their customers, create a better work “We chose these two causes be- environment and incentivize and recause they are the most frequent tain employees has made firms more problems women face around the open to volunteering programs where world. Breast cancer is the most com- employees get in touch with commumon form of cancer for women and nities. also claims the most victims,” says “Corporate volunteering is growing Denisa Mihai, CSR specialist at Avon and I think that the involvement of Cosmetics Romania. many companies in communities is She adds that the impact of the leading gradually to an increase in company’s programs is measured corporate volunteering initiatives,” through donations made (over USD 2 says Carmen Marcu, communication million invested in medical equip- director at Pro Vobis, the National ment in eight oncology centers in Ro- Centre for Volunteering Resources. mania), free screenings (the company She adds that there are also more ochas conducted 4,500 free breast casional initiatives coming from echograms/mammograms since 2012) SMEs that propose one action a and educational campaigns. Mihai year or a series of actions in which also points out that there is a huge all the employees of the firm are need for education in Romania when involved. it comes to breast cancer.

“The role of this type of volunteer“From our perspective and the ex- ing is to involve individuals with speperience of years of social campaigns cialist skills that are very useful to in Romania, we need to educate both the beneficiaries they serve and young people and family doctors. the NGOs,” adds Marcu.

These two segments are very imporRaiffeisen Bank, Orange, Vodafone tant for the success of the ’Campania and BRD-Groupe Societe Generale pentru Sanatatea Sanilor’,” she adds. are among the companies that As for the most recent program from use corporate volunteering as a CSR Campania Respectului, “Licee Albas- tool. tre” is being rolled out in ten cities in For Orange Romania, the involveRomania in partnership with Funda- ment of its employees in corporate tia Sensiblu. volunteering activities is a way to in“Together with Cornel Ilie, our crease the positive impact of the soambassador, we tell students from cial responsibility or charitable high schools about healthy relation- activities that Orange undertakes. ships in teenage couples,” adds “Through the shared know-how, time Mihai. and efforts of volunteers, communiAnother company that is very ac- ties get consistent support while voltive in community involvement is unteers offer positive examples for Vodafone Romania. It was the first their families, friends and communifirm to launch a program of salary do- ties,” say representatives of Orange. nations, back in 1998.

They add that encouraging volunteerThis allows its employees to do- ing can lead to an improved quality of nate voluntarily a percentage of their life for local communities and play a salary every month to fund the activ- significant role in educating the pubities of the Vodafone Romania Foun- lic. dation.

Vodafone also launched a corpoIn addition, the company is a long rate volunteering program in 2006. As term-partner of SMURD and the a result, the company now has over Foundation for SMURD, with projects 3,800 volunteers and more than including fitting ambulances with 25,000 volunteering hours, while equipment for data and video trans- every year about 1,000 workers volmissions, the acquisition of interven- unteer. tion vehicles and the renovation of the National Center for Training in anda.sebesi@business-review.ro

CSR 13 PARTNER CONTENT

Orange Romania: a 360 degree approach to CSR projects Orange Romania is currently one of the most active companies in Romania in the corporate social responsibility field, having been a pioneer of CSR projects on the local market.Focusing on long-term and high-impact CSR projects, Orange intends to make a significant contribution both to local communities and the whole of society.

The company’s CSR strategy has four main components: involvement in the community through education and volunteering; digital inclusion, ensuring the wide reach of its products and services, focusing on underprivileged communities; protecting the environment and reducing the company’s impact on cess to specialized know-how in ecothe environment; and the safe, respon- nomic fields through workshops prosible use of its products and services, vided by business specialists from Orfocusing on child protection on the in- ange ( Marketing,Finance, HR, Project ternet.

Management, Financial, Sales). “Or“IT&C nowadays has a great impact ange employees offer students dedion the sustainable development of our cated interactive presentations& worksociety. Therefore, at Orange, being so- shops on specific areas of economics cially responsible involves more than and we run knowledge and creativity economic performance, protecting the development competitions for them. In environment or social contributions. the past three years, over 1,000 stuWe strive to innovate, to develop re- dents have taken part in at least one of sponsible products and services and the activities Orange has organized at use technology to improve our day to ASE,” says Veronica Dogaru. day life,” says Veronica Dogaru, CorLast but not least, Orange First Step porate Communication Manager. is an internship program for students, As education is one of the most im- which gives them the opportunity to portant parts of its CSR strategy, Or- develop practical skills for their inange Romania pays great attention to tended careers. There have been nine young specialists and their potential for internship sessions since 2011 and professional development. The com- over 750 beneficiaries nationwide. pany’s main programs in education are Orange Romania’s CSR strategy is those under the Orange Education plat- guided by a strong belief that social form: Orange Education for the Poly- responsibility can be achieved only if technic University of Bucharest, Orange it is supported by each individual, from Education for ASE and Orange First consumers to a company’s employees.

Step.

“That is why we would like to have a Orange Education for the Polytech- 360 degree approach to this field. In nic University of Bucharest started in order to do so, we organized a CSR 1998 and offers students at the Faculty program for high school students, of Electronic Telecommunications and ‘Atelierul de responsabilitate sociala’.

IT training modules for IT&C with Or- Three high schools in Bucharest parange experts, specialized internships ticipated in our program and students in the company’s technical depart- learned about responsible consumpments and scholarships for excellence, tion, recycling, volunteering and safe for the top students that undergo the internet use,” adds Veronica Dogaru.

Orange training modules. “Moreover, Corporate volunteering is one of we established a Training, Research the main trends on the Romanian and Innovation Center within the faculty market that Orange Romania is proud and there has been an ongoing collab- to follow. It launched the volunteering oration between Orange Romania and program “tu pentru comunitate” back the faculty for research and innovation in 2012 as a celebration of Orange’s projects. So far, over 220 students have 10th anniversary on the Romanian benefited from this program,” adds market. On top of that, this year the Veronica Dogaru. company won first prize in the CSR In 2011 the company launched Or- Awards 2014 for the Internal CSR ange Educational program for ASE, a Campaigns category, for its program program that facilitates students’ ac- “Luna Voluntariatului”.

www.business-review.eu Business Review | April 14 - 20, 2014

14 CITY FILM REVIEW

Non-Stop

On a wing and a prayer: Liam Neeson hunts a killer at 35,000 feet in this implausible but enjoyable plane-based thriller

DEBBIE STOWE Director: Jaume Collet-Serra Starring: Liam Neeson, Julianne Moore, Michelle Dockery, Lupita Nyong'o, Scoot McNair On at: Cinema City Cotroceni, Cinema City Sun Plaza, Movieplex Cinema You wouldn’t want to be Liam Neeson’s travel insurer. In Unknown, he flew into Berlin for a conference, only to nearly drown following a car crash and have his identity stolen. In The Grey, his plane crash landed in Alaska and the survivors were hunted down by wolves.

And in the Taken franchise he flies frequently to Europe to rescue various kidnapped family members. Let’s not even go there with The A-Team movie.

So you could forgive fellow passen-

case something has clearly gone badly awry in the Department of Homeland Security’s recruitment processes? Is cabin crewmember Nancy (Michelle Dockery) asking more than “beef or chicken”? Or is it any one of about 12 angry men back in cattle class? It’s up to Bill to solve the clues before the nervous flyers get too alarmed by the inflight slayings.

A murder mystery with the potential culprits gathered in one location and the sleuth turning his attention to each in turn has strong overtones of Agatha Christie, and the solution shamelessly borrows from her 1935 Hercule Poirot novel Death in the Clouds. Non-Stop is a mile-high mashup: Christie crossed with Air Force One, Passenger 57 or Flight Plan. The decision to imperil a British airliner – in Hollywood terms more dispensable than an American jet – also recalls Die Hard

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2. Yippee-ki-yay, Liam Neeson!

It all makes for high jinks, although recent events render it impossible to watch a movie about a plane potentially crashing into the ocean as suspicion for its plight switches between crew and passengers without the sad specter of missing MH370 coming to mind.

As with Christie, the fun is mainly in the setting out of the premise and the unfolding mystery, rather than the denouement, which is ludicrous. But Liam Neeson action vehicles rest not upon their plausibility, but on the élan with which he hunts down and dispatches bad guys. So when he grandstands, “I’m not a good father! I’m not a good man! But I want to save this plane!” you know it’s time to sit back, relax and enjoy the flick.

gers on British Aqualantic Flight 10 from New York to London for being a little apprehensive as Liam (or Bill Marks as he is here) shuffles forward in the security line. Bill is not in fact a passenger but an air marshal, a troubled, alcoholic one – exactly the type of person you want to have your life in their hands at 35,000 feet.

Just as the captain has turned off the fasten seatbelt sign and the passengers are getting stuck into the drinks trolley, Bill receives an anonymous SMS from someone on the plane: unless USD 150 million is deposited in a certain bank account, a passenger is going to die every 20 minutes. And murderous mayhem is soon afoot over the Atlantic.

So whodunit? Could it be Jen (Julianne Moore), Bill’s apparently friendly neighbor from business class? Should suspicion fall on the second, sweating, air marshal (Anson Mount) – in which

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