Maximizing Profit Is Not the Only Goal of Companies

The main topic of the round table discussion was the importance of corporate social responsibility, specifically how a company’s success can no longer be measured solely by financial data, but also by the company’s reputation, corporate culture, and business ethics, as well as the company’s impact on the environment and employees.

‘Outside the Framework of Traditional Reporting’ is the title of the round table on corporate social responsibility organized by the consulting firm Hauska & Partner, featuring the UNDP’s permanent representative to Croatia, Yuri Afanasiev, the president of the Community for Corporate Social Responsibility at the Croatian Chamber of Economy, Snježana Bahtijari, independent auditor of sustainability reports Richard Evans, president of the Hauska & Partner group Leo Hauska, Dr. Ljubo Jurčić, and Dr. Đuro Njavro, dean of the Zagreb School of Economics and Management.

The moderator of the round table was the editor-in-chief of the business weekly Lider, Miodrag Šajatović. The main topic of the discussion was the importance of corporate social responsibility, specifically how a company’s success can no longer be measured solely by financial data, but also by the company’s reputation, corporate culture, and business ethics, as well as the company’s impact on the environment and employees. Miodrag Šajatović particularly emphasized that maximizing profit is no longer the only goal that companies should have. This opinion was shared by Snježana Bahtijari, who emphasized that corporate social responsibility is not sponsorships and donations, which many use at the end of each year as a sort of fig leaf for their relationship with society as a whole.

– Only a financially stable company, successful in all other key business indicators, which systematically cares for its employees, customers, partners, suppliers, the public, shareholders, and the broader community, is socially responsible – said Snježana Bahtijari. She added that companies also have a great responsibility for quality reporting, not only about financial indicators but also about their work with stakeholders.
The UNDP’s permanent representative in Croatia, Yuri Afanasiev, pointed out that the Croatian business sector faces a serious challenge in aligning with the most advanced global standards in many areas of business.

– The mentioned topic is not only a matter of individual company competitiveness but also a matter of Croatia’s progress towards national goals and aspirations: social cohesion, national competitiveness, and a knowledge-based economy – said Afanasiev.  Dean of the Zagreb School of Economics and Management, Dr. Đuro Njavro, emphasized that research on corporate governance and social responsibility, conducted for the third year at the mentioned school, indicates that large Croatian companies are increasingly aware of the importance of reporting on responsible business practices.
– This is reflected in the increasingly transparent information appearing on the websites of these companies, as well as in their annual reports.

Particularly important, and they can also serve as an example to other companies, are special annual reports on responsible business practices that highlight topics such as employee care and the company’s social policy, as well as environmental policy. It is undeniable that companies will have to include business ethics and responsibility in their strategies to remain competitive in the European and global markets – said Dr. Njavro. Participants in the round table concluded that the mentioned indicators are extremely important for analyzing a company’s business performance, which is why sustainability reporting is becoming equally important for a quality assessment of a company’s market value.  (Ana-Marija Ruždjak)