SPECIAL EDITION
World Markets and Opportunities
sweden
2014
Sweden is one of the largest countries in Europe, with great diversity in its nature and climate. Its distinctive yellow and blue flag is among the national emblems that reflect centuries of history between Sweden and its Nordic neighbours.
The Nobel Prize, considered among the world’s most prestigious awards, is the legacy of Sweden’s Alfred Nobel (1833-1896). Prizes are awarded to “those who, during the preceding year, shall have conferred the greatest benefit on mankind”.
Less than 1% of household waste in Sweden ends up in a rubbish dump. The rest is recycled in different ways, making the country a world leader in this field.
Swedish maternity and paternity leave is among the most generous in the world, allowing fathers and mothers to take a shared total of 480 days off while still earning 77.6% of their salaries.
Carl XVI Gustaf is the reigning King of Sweden. Prince Carl Philip (left), Princess Madeleine, Queen Silvia, King Carl Gustaf and Crown Princess Victoria of Sweden
Swedish industry is overwhelmingly in private control, like many other industrialised Western countries. Publicly owned enterprises have always been of minor importance to the economy.
The Swedish Education Act states that all children and young people are entitled to equal access to education, regardless of gender, where they live or social and economic factors. Attendance at school is compulsory from the age of seven, although many start a year earlier.
Sweden has the world’s eighth-highest per capita income. In 2013, it ranked second in the Democracy Index, second in the OECD Better Life Index, seventh in the UN Human Development Index and fourth in the Legatum Prosperity Index.
Swedish companies have a long history of active corporate social responsibility work and the country is viewed as a pioneer in the field. In 2013, Sweden topped the RobecoSAM Country Sustainability Ranking, which rates 59 countries based on 17 environmental, social and governance indicators.
interview
Mr. Bengt E. Johansson, CSR Ambassador, Swedish Ministry for Foreign Affairs
Thinking Globally As a leader in global CSR, Sweden often finds itself acting as a de facto guide to other countries when it comes to CSR. The environment is often considered crucial to good CSR, but labour relations, human rights and anti-corruption also play a vital role
in the UN Global Compact. While this has been more or less fulfilled, the position today has more of a responsibility to develop cooperation with other countries and with Swedish companies engaged in foreign trade.
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s befits a country that is a global leader in corporate social responsibility (CSR), it is natural that Sweden would have a dedicated CSR Ambassador. Bengt E. Johansson denies that Sweden claims to be “the best in the world” when it comes to CSR, but it cannot be denied that the country leads the way in terms of sustainability and anti-corruption. Mr. Johansson explains Sweden’s pioneering CSRcentric policies and the influence the country has globally.
• You were appointed to this position following your role as Consul General in China. How important was
It should be underlined that anti-corruption is a key to all sustainability programmes. If you buy yourself permits and licences through bribes, no sustainability programmes are meaningful
• What exactly does the role of CSR Ambassador entail? - The position of CSR Ambassador was created in 2002 to popularise CSR as a tool for companies to achieve sustainability and to promote the participation by companies World Markets and Opportunities | sweden
the experience you gained in China considering CSR’s importance in linking corporations, political structures and societies? - CSR is a priority set by China’s government and Sweden is the only country to have an intergovernmental agreement with China on CSR. Our contacts with Chinese authorities include many training seminars;
we have now arranged more than 10 large regional seminars in various parts of China. Our Swedish companies – more than 400 – are very much into CSR, as most of them, both exporters and importers, are sourcing in China. We are happy to note that Swedish-Chinese trade has attained a high level of quality. We have had no scandals of importing sub-standard goods from China, and Sweden has therefore seen no reason to ‘protect’ our market from Chinese imports. When we talk with the Chinese government, we have many similar views on CSR. We both want CSR to be integrated into the business model. At the same time, on a local level I have often noticed the influence of the American view of CSR as corporate philanthropy. Our view is that the issue is not what you do with your profit, but how you have earned your profit. • Why is Sweden the leader in CSR? - We don’t claim to be the best in the world, but we try at least. We have always been top-ranking in
anti-corruption. The forestry sector is based on policies more than 200 years old, [which state] that the forest owner must replant after cutting down. We were first to have laws on transparency and public access to documents. We are known in the EU as the initiator of legislation to increase public access to documents. Our trade unions also achieved codecision in company management several decades ago. However, much more must be done. • In terms of company size, how difficult is it for SMEs to achieve a high CSR profile in comparison with large companies? - It can be difficult for SMEs for the simple reason that they are small in staff and CSR work requires a specialist – and an interested CEO, of course. We need to point out that there are companies that can do considerable harm to the environment and people even if they have few employees. We now face a situation where the number of Swedish companies that will have to do sustainability reporting might rise, from the present level of 200 to 1,000, if the EU Commission proposal for compulsory sustainability reporting by companies with more than 500 employees is approved by the member states and the European Parliament. This would be a major development for midsize companies if we need to adjust the reporting format as well as our promotional services to also suit small companies. • Just how important is CSR to the development of countries and regions in which high-profile CSR companies operate? - We have some cities with one dominant employer and that whole city is dependent on the company’s attitude to society. Take, for example, cities in the north of Sweden having a mining company as the dominant employer. Mining companies are some of the biggest polluters in all industries. The iron ore mine at Kiruna, the world’s largest underground mine,
has now asked the city to move part of its centre when underground mining is extended. You cannot get full support from a city or its inhabitants if the company does not consult the population in an open, fair manner. • And how important is CSR to the sustainable development of a company’s business operations?
The state must guide companies in the right direction. Through its foreign service, the state can also assist companies in difficult markets. But the state should not intervene if self-regulation by the market functions well - You cannot have a sustainable business without focusing actively on the environment, labour relations, human rights and anti-corruption – and that is the definition of CSR. It should also be underlined that anti-corruption is a key to all sustainability programmes. If you buy yourself permits and licences through bribes, no sustainability programmes are meaningful. • What are the best CSR examples and CSR role models to be found among Swedish companies? - As I mentioned, the forestry admin-
istration is something rather unique. We have not had any cases of mismanagement and the forests cover a greater area than ever before. Among most modern companies I would like to highlight H&M and IKEA, which manage to provide very affordable clothes and furniture to the people thanks to good CSR work with suppliers in developing countries. H&M has this week (9 December) announced a new salary system that aims to solve the perennial problem of underpaid textile workers in Asia and has got widespread publicity in the international press. H&M was also the first company to sign up to the Accord on Fire and Building Safety in Bangladesh in May this year. In Vietnam, 250,000 people work for companies supplying to IKEA. These companies are not only providing households with affordable high-quality products, they also give a chance to developing countries to take part in international trade. • How damaging can an undeveloped and low-profile CSR agenda be to a company’s reputation and business? - The Swedish-Finnish telecom company TeliaSonera suffered a loss of confidence from shareholders, lenders and the public when acts of corruption in Uzbekistan were disclosed in 2012. In my country, the media plays an important role as a watchdog of company behaviour. • In what ways can the state promote CSR and why is it in the state’s best interest to do so (considering, for instance, that local companies can contribute to the development of local communities – and indirectly to the state – with their CSR activities)? - The state must explain its international commitments to the likes of the UN and OECD. The state must also guide companies in the right direction. Through its foreign service, the state can also assist companies in difficult markets. The state should, however, not intervene if self-regulation by the market functions well. ■
Sweden | World Markets and Opportunities
interview
H.E. Mr. Christer Asp, Swedish Ambassador to Serbia
Coming Into Focus Given its standing as one of Serbia’s most supportive partners, Sweden is guiding the country every step of the way when it comes to reform and the upcoming EU accession negotiations. Swedish Ambassador to Serbia Christer Asp tells CorD that Serbia’s good work thus far is deserving of reward
• What are the most important existing areas of cooperation between Sweden and Serbia? - I see growing interest from Swedish companies in the Serbian market. We already have a lot of Swedish companies here, more than 70. Also, we have new companies coming here, such as H&M, and IKEA is expected to come here in the course of the next year. In general, there is a growing interest in this market and that follows a pattern we have seen with other countries that were about to start accession negotiations with the EU. Culturally, we have very strong cooperation. We have had a cultural
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erbia and Sweden have had long-standing cooperation in all areas. According to H.E. Mr. Christer Asp, Ambassador of Sweden to Serbia, whether talking about bilateral relations, political or economic cooperation, relations between the two countries are excellent. “Of course,” he says, “there is nothing that cannot be improved, so our main task is to maintain and increase cooperation. One main topic right now is the start of EU accession negotiations, where we have a very active dialogue with Serbia on how to prepare for these negotiations. In the fields of economy and trade, I think our relations could improve in both directions. I talk quite regularly with the Serbian Ambassador in Stockholm on how we could do this jointly – how Sweden could export more to here and how Serbia could export more to Sweden.”
Over the years we have had a number of projects with the Ministry of the Interior covering both the administrative reform process within the ministry and technical parts of police work
World Markets and Opportunities | sweden
attaché here for almost four years and that made it possible for us to concentrate on how much we can improve the cultural exchange between our countries. • For years, the Swedish Foreign Ministry has been working actively on socially responsible behaviour on a global scale. What corporate social responsibility (CSR) components and
strategies are most important, how significant are they both globally and locally, and to what extent has Serbia been involved in this project? - CSR is a part of Swedish international development assistance and Swedish foreign policy, because that’s a part of our concept of promoting human rights around the world. It is a cornerstone of our foreign policy. We have ongoing projects in many different countries. Here in Serbia, it’s been implemented for about two years. The Swedish government expects Swedish companies to act in a responsible way, both socially and economically, when they are operating in other markets. All Swedish companies have embraced the idea of CSR, which means responsible social behaviour, responsible behaviour towards the communities where they work and responsible behaviour regarding the environment. Over the past several years we have had a number of seminars to raise awareness about CSR. In the second half of December we had many activities in Serbia. One of them was in cooperation with the Faculty of Economics in Belgrade. We discussed this issue with students, who are the next generation of professionals. We also had another seminar with representatives of the government, because CSR should not be something
for companies, but something also supported and embraced by the government. Serbia is very much in focus now when it comes to EU issues, so I think it’s a good place to promote the idea of CSR. • The most important Swedish assistance to Serbia is in development assistance. Where do you feel this is most advanced? - We see Serbia as a very important future partner, particularly from a strategic point of view. So we find it important to support Serbia financially through our development assistance programme. We have done this for more than 10 years. Very recently our government made a decision to extend this assistance for another seven years. We do this because we think it is important to assist not only verbally and through EU institutions, but also to support various projects in a more concrete way – financially. • The development assistance programme (strategy) was implemented back in 2009. What are its most important results? - Sweden is the third largest bilateral donor in Serbia. All of our projects cover four main areas: the environmental area, the rule-of-law area, administrative reform and strengthening civil society. All of the projects are long-term. It should be a project that leaves something substantial behind. Our experience is that our partners work very well with us; the projects are sustainable. • Cooperation on democratic governance and human rights (including gender equality, minority rights and security sector reform) is being implemented through six projects, all of which are supposed to be realised by 2015. Could you tell us more about these projects and their goals? - I would like to mention our very recent project: the setting of the play ‘Seven’. We launched this project on the UN’s International Day for the Elimination of Violence against Women, 25 November. We set up this
play in Novi Sad, Niš and Novi Pazar. It is about seven women who tell their stories and their struggle for fundamental rights. We got a tremendous response in all three cities. The idea is to raise this issue and make people discuss the issue in order to raise standards in this field. We have long-term projects when it comes to supporting civil society
EU negotiations have practically started already because we have started the screening process, which is the first stage of the EU accession negotiation process and NGOs that work in the field of human rights. We have a number of ongoing projects in Preševo Valley, where we focus on capacity building within municipalities and also on minority rights, especially for Roma and the Albanian population. • The assistance Sweden has provided to Serbia on security sector reform is also very important. Which areas has Sweden focused on in particular? - That is what I would call a particular success story. Over the years we have had a number of projects with the Ministry of the Interior. Also, we have very strong support from Prime Minister and Minister of the Interior Ivica Dačić. It covers both the ad-
ministrative reform process within the ministry and also technical parts of police work such as intelligence, forensics… We also had a Swedish policeman stationed in the Ministry of the Interior who is a specialist on intelligence gathering and forensics. Those projects will continue. Within the area of the rule of law, we had projects with the Ministry of Justice that were focused mainly on free legal aid programmes. • In terms of the topic that marked 2013 when it came to Serbian internal affairs – the European integration process – what are your expectations for Serbia in 2014? - I expect negotiations to start within several weeks. My government is one of those who believe that it is very important to start as soon as possible, as it is a way to acknowledge that your government made tremendous progress in 2013 when it came to dialogue between Belgrade and Priština, and that should be rewarded. Actually, negotiations have practically started already because we have started the screening process, which is the first stage of the EU accession negotiation process. And it started extremely well – we are surprised by the extent to which Serbia is prepared for these negotiations. There are some issues that still remain, such as the normalisation of relations with Kosovo, and I think that we, on the EU side, should be respectful to Serbia and the fact that it will take time for full a normalisation process and for people to accept the agreement. Nothing can be done overnight when it comes to these issues – it takes time. Also, 2014 will very much be a year of focus on economic reform. There is also the need to take a very serious look at the bureaucracy that exists, and that must be changed in order to attract investors. In that area, we have had very good signals from the Serbian government about its readiness to reform bureaucracy and when it comes to the fight against corruption. ■
Sweden | World Markets and Opportunities
interview
Dušan Stokić, Secretary of the Environmental Protection and Sustainable Development Committee at the Serbian Chamber of Commerce
Giving Back to Society Serbia has begun the process of improving its companies’ track record in CSR. Leading the way is the Chamber of Commerce’s Environmental Protection and Sustainable Development Committee. And with more than 250 companies recognised for their efforts so far, the country’s CSR movement is growing
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ocially responsible behaviour is not a new topic in Serbia. Social responsibility was first mentioned in Serbia in the 12th century by the Studenica Monastery, the oldest endowment of the Nemanjić family. “Social responsibility back then had a different format,” says Dušan Stokić, Secretary of the Environmental Protection and Sustainable Development Committee at the Serbian Chamber of Commerce. “This was mostly patronage, charity and philanthropy. Social responsibility has evolved over time, with new issues such as consumer protection, environmental protection, women’s rights, ethical business and others springing up. The expansion of social responsibility in Serbia through numerous projects and programmes promoting this concept started in 2003 at corporate, national and international level. For the last six years, the Serbian Chamber of Commerce (PKS) has been giving out the National Corporate Social Responsibility Award, with more than 250 companies and organisations already recognised for their CSR activities over four award cycles. At the same time, PKS has been contributing significantly to the development of the international social responsibility standard ISO 26000,
as well as getting engaged in promoting the ten principles of Global Response Serbia.” • How aware are national companies and the political elite of the importance of CSR to both the companies’ and the country’s reputation? - Domestic companies are becoming increasingly aware of the fact that,
It is a common misconception that only wealthy people can be socially responsible because social responsibility is likened to philanthropy and corporate donations
World Markets and Opportunities | sweden
in order to be successful at what you do and maintain a long-term market position, operating solely within the economic scope and thinking only about profit and the market are simply not enough. Nowadays, companies need to pay more attention to the local community, environmental protection, employee satisfaction and safety, as well as social issues in companies and the environment in general.
The political elite also needs to be aware of just how important this issue is because there has to be a two-way approach to social responsibility in Serbia. The first approach is bottom-up, and this is implemented by the companies and organisations themselves. The second approach is top-down, which entails incentives and support from decision makers for bolstering the social responsibility concept through strategic documents and a general environment that will serve as an incentive for all actors in society. There is plenty of room for the development of socially responsible business, primarily in SMEs, which often have the motive and desire to become better and more competitive but also sometimes disregard social responsibility aspects. • How much did these recent difficult years for the economy affect the scope of socially responsible operations among Serbian companies? - It is not easy to quantify the negative effects of the economic and financial crisis on the volume of social-
ly responsible business operations in Serbia, but they are very visible. If you have a look at how much interest has been shown in PKS’ National Corporate Social Responsibility Award, you will see that the biggest interest shown by companies and organisations was during the second and third cycles (in 2008 and 2010 respectively), when many companies competed for the award. The number of applications started to decline after that. What is quite certain is that during the crisis, investment amounts have decreased and investment priorities have been changed. • During a time of economic crisis, is CSR the first thing to be sacrificed when companies are forced to cut back their overheads? - Unfortunately, that is true, but it shouldn’t be that way. From a corporate perspective, it is quite natural during a financial crisis to push back everything that does not directly contribute to profit and successful operations. However, modern-day companies, which have long-term plans in place, are aware that without caring about their people and local community, without consistently complying with environmental protection requirements and without constant communication with all stakeholders, they will not be able to become or remain successful and competitive in today’s market. This wins trust, which again is an important psychological factor in sales. It is a common misconception that only wealthy people can be socially responsible because social responsibility is likened to philanthropy and corporate donations, which is quite a narrow point of view. It actually doesn’t take much money for companies to become socially responsible. For instance, employees volunteering to do something useful and necessary for the local community is all it takes. • At what point in their development do companies usually start thinking about the needs of society?
- Just like many other social phenomena, some companies are more receptive to influences from their environment. Social responsibility activities show what level of awareness of society’s needs a company’s senior management has. When a company is certified and starts complying with integrated quality management, environmental and work health and safety systems, it is only natural for that company to integrate social responsibility principles into its operations as a next step. Global trends are such that in a few years time companies will probably be required to report on their non-
Awareness about the needs of the local community has to be an integral part of any company’s activities. They need to communicate constantly with the most important stakeholders financial activities as well as submitting financial reports. Today, these reports are about sustainability and CSR. In April this year, the European Commission adopted the draft of a new directive stipulating reporting about social and environmental issues, which means that companies will be required to submit a mandatory integrated report. It is very important to think about social responsibility issues on time. • Do you have information about which CSR sectors Serbian companies mostly focus on? Do they focus more on environmental protection than gender equality, for instance? - According to PKS data, most CSR
activities are performed in two areas – the social community (30-40%) and the environment (15-20%). Still, it is interesting to note that innovative solutions and ideas about new social responsibility projects keep popping up in response to the needs of specific target groups. • Could you compare the treatment CSR gets among domestic companies with responses in Western Europe? - Experience has shown that, in Serbia, multinational enterprises and companies are usually the instigators of social responsibility, as their business policies already contain social responsibility principles. Awareness about the needs of the local community has to be an integral part of any company’s activities. They need to communicate constantly with the most important stakeholders, and the local community is often one of the most important stakeholders. So it is very important, particularly for companies whose production adversely affects the environment and people’s health, to get involved with the local community, local civil society and other organisations, and to communicate with them constantly. In this respect, I am confident those domestic companies that have been behaving in this way stand shoulderto-shoulder to the best practices and examples of Western Europe. • Do you have information about which companies in Serbia are more successful – those which have consistently implemented CSR or those which are only just starting to? - Exact data of this kind probably doesn’t exist, but what is certain is that companies in Serbia are increasingly starting to realise their real role in society – namely, that you have to operate as an economic entity while still being mindful of not putting other people, employees, competition, the general population and the environment in jeopardy. On top of this, you have to make sure that you are giving back to the community more than what you take from nature. ■
Sweden | World Markets and Opportunities
interview
Sasja Beslik, CSR Expert and Head of Responsible Investment and Governance at Nordea Bank
Investing in our Planet’s Future Sweden has a long tradition of investing with the longterm in mind. With the world changing rapidly and the dangers posed by issues such as climate change and water shortages, investors will need to start backing companies whose focus is not solely on the bottom line
• Aside from socially responsible operations, there is a new term: socially responsible investing. What does the latter entail? - It entails traditional financial investment aspects in combination with the material environmental, social and governance aspects. In short, it means that you as an investor invest not only in numbers, but also in a company’s ability to manage material risk, which can impact the numbers. Nowadays, the definition that is used more and more is ‘responsible investing’, without the ‘social’ connotation.
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lame for the looming danger of climate change and unsustainable practices is often thrown, if not first at governments, then at the feet of businesses and investors. Growing populations, growing demand and, as such, growing economies demand that we consume more – more materials, more energy, more fossil fuels, more resources. Given the country’s position as CSR-advocates-in-chief, it’s no surprise to learn that Sweden is also pioneering the practice of ‘responsible investing’, wherein investors are expected to consider the long-term environmental and social impacts of the businesses they back, choosing those with strategies that will yield returns, not only financially, but for the planet’s long-term future as well. Nordea Bank’s Head of Responsible Investment and Governance Sasja Beslik explains the thinking that lies behind this forward-thinking approach to investing.
• Could you tell us why and how Sweden became the pioneer and global leader in CSR? - Sweden has a long tradition of investing over the long-term horizons, and since things are changing rapidly
Sustainability is the concept of creating growth without growth, per se. It means that, for example, production needs to take place without fossil fuels or any damage to the environment
World Markets and Opportunities | sweden
in relation to climate change, demographics, water shortages etc., there is also interest in having more information at the investment level – how do companies manage their risks etc. • How important is environmental protection in the context of CSR and what does environmental protection encompass specifically? - For us as investors, companies manag-
ing environmental issues in a responsible way means a lot of money, less disruption, more efficiency etc. Energy efficiency, for example, minimises costs for a company, becoming a better investment for us – less cost, more profit. CO2 emissions will in future have a direct impact on the bottom line for companies, as we anticipate some sort of regulation will be in place. • Gender equality is another important aspect of CSR. In what ways can companies promote gender equality? - More diversity means a better ability to analyse and solve challenges. Gender diversity is key for the long-term success of a company as well as their ability to attract talent and clients. In Sweden today, it is one of the key investment parameters when investing in companies. • Respect for human rights is another important area of CSR. How are corporations from developed countries that have relocated production to emerging economies dealing with the problem of trampled human rights, issues associated with workers’ rights and similar issues? - Companies are becoming better at managing some of these issues. However, there is still a lot of lip service to HR issues in many cases. More focus from the investment community has led to greater transparency, and we can see improvements related to the management of health and safety, as well as basic community relations in developing countries.
• Combating corruption is also important within CSR. Different aspects such as the business environment, the development of economic institutions and society, and political will are intertwined with fighting corruption. Sweden has the lowest corruption rate in the world. What advice can other countries take on board in order to reduce levels of corruption? - Corruption is the worst enemy of any kind of long-term development. The rule of law in Sweden is one of the key elements to its success. Companies having issues with corruption know that it may be very costly to deal with the consequences, with a huge impact on
has a holistic approach to the planet and business, and as such business should not damage any of the planet’s limits. CSR is related to current business activities, i.e. taking responsibility for what it is today and tomorrow out of the current business model. It is a responsibility tag.
• Do you think it’s in the best interests of the state to promote CSR considering that local companies can contrib-
Energy efficiency minimises costs for a company, becoming a better investment for us – less cost, more profit. CO2 emissions will in future have a direct impact on the bottom line for companies
• Could you elaborate on the connection between CSR and sustainability? - Sustainability is the concept of creating growth without growth, per se. It means that, for example, production needs to take place without fossil fuels or any damage to the environment. It
Equality in the Military
• In your opinion, what are the best examples of CSR globally? - Swedish H&M, Danish Novo Nordisk, Brazilian Natura, Swedish SKF and Scania.
Scania’s vehicles can be tailored to run on any commercially available biofuel
their earnings and profit. Without the functioning rule of law, there cannot be functional business or a normal operating environment. Companies have a big responsibility to combat corruption even in very corrupt countries. These days, companies are cornerstones of societies and as such have an embedded responsibility to do so.
Nordic Centre for Gender in Military Operations
ute to the development of local communities – and indirectly to the development of the state – with their CSR activities? Do you find this premise to be true? - Very much so and promoting CSR leads to a more stable business environment and more robust companies, both from the community perspective and also from an employee perspective. • What role will young people play in the development of CSR in future? - Young people do not have a choice as things look today. CSR is part of the future they will enter and young people are the key driver for change. ■
The Nordic Centre for Gender in Military Operations is a groundbreaking organisation established to improve military approaches to gender perspectives
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weden has established the Nordic Centre for Gender in Military Operations (NCGM). Gender perspectives in conflict areas have too often not been handled in a good manner, so Sweden has strived to remedy the situation. The centre is a way to increase efforts to implement UNSCR 1325 and related resolutions. The centre will be a hub of knowledge and expertise when it comes to gender perspectives in military operations. Its work is done in close cooperation with all relevant organisations, including the UN, NATO, the EU, AU and nations that seek to work in the same progressive direction. A great deal of cooperation is ongoing within the Nordic framework, NATO and the UN among others, and this cooperation has only increased since the opening of the centre. Through the establishment of the NCGM, Sweden has taken an important step towards developing its military operations, ensuring the integration of gender perspectives into the planning, execution and evaluation of any operation. In February 2013, the NCGM at SWEDINT was appointed as NATO Department Head concerning gender. ■ Sweden | World Markets and Opportunities
Economic Cooperation
Our Most Important Scandinavian Partner In the last eight years, trade between Serbia and Sweden has been developing nicely, albeit more on the import side. According to Serbian Chamber of Commerce data, during the first seven months of 2013, trade between Serbia and Sweden was valued at US$138.8 million, which is a 10% increase relative to the same period last year
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ut of all Scandinavian countries, Sweden is the most important long-standing trading partner to Serbia, but economic cooperation between the two countries is still far below real needs and opportunities. Trade is low in volume, with a selective structure of traded goods and a pronounced deficit on the Serbian side due to Serbia’s imports of Swedish equipment and few exports in the opposite direction. Serbia has several treaties with Sweden. The Air Traffic Agreement between the Federal National Republic of Yugoslavia (FNRJ) and Sweden was signed in 1958. There is also the Agreement on the Mutual Protection of Investments, concluded between the governments of the Socialist Federal Republic of Yugoslavia (SFRJ) and Sweden (Official Gazette SRJ – International Agreements, No.12/79). The General Cooperation Agreement, covering the period until 31 December 31 2006, was signed in September 2001. The validity of the Double Taxation Agreement and Agreement on Promotion and Protection of Investments was extended following an exchange of diplomatic notes on 28 February 2002. In September 2002, Sweden and the Federal Republic of Yugoslavia (SRJ) signed the Re-admission Agreement in Belgrade. The Agreement on the Succession of
Bilateral Agreements came into force on 20 January 2003 and comprises seven agreements covering areas such as transportation, debt consolidation and the Social Security Convention. In November 2005, the two countries signed a Memorandum of Understanding on the energy sector. There are more than 70 companies founded with Swedish capital operating in Serbia. Most of them are engaged in road transportation. Some
Looking at the data for the first seven months of 2013, Serbia mostly exported the following products to Sweden: rubber products, miscellaneous finished products, paper, cardboard and cellulose-based products, clothing and metal products
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of the most prominent Swedish companies in Serbia are: Ericsson, Volex Truck Volvo, TetraPak, Jacobi Carbons, ABB, Scania Serbia, ABS Pumps, Frigoscandia Equipment, Oriflame Cosmetics, Lindab, Nordic Corporation and LK Armatur. SWEDFUND is a Swedish stateowned company (technically, it is represented by the Swedish Foreign Ministry) specialising in risk capital, knowhow and financial support for investments in new markets. It operates on commercial premises in support of private capital. Once the profitability
of projects is assessed, SWEDFUND will provide a portion of initial capital and the instruments needed to obtain loans, usually for projects worth up to €1 million. SWEDFUND participation counts for 30% of the project value. The company has expressed interest in supporting projects implemented by Swedish companies in Serbia. Sweden is the first country to exceed the financial aid offered at the Donors Conference (€12.83 million). The donations will be spent on development of the energy sector, private sector and state administration. From 1995 to 2005, Sweden donated close to €140 million to environmental protection, health, culture, local self-government, education, the judiciary, the development of the private sector, labour and employment, and the development of civil society projects. Between 2006 and 2012, Sida (the Swedish International Development Agency) allocated around €20 million worth of financial assistance to Serbia to be spent in the following sectors: institutional reform, human rights, SMEs, combating organised crime and corruption, environmental protection and increasing the transparency of privatisation. Sida is also implementing a project titled StartEast, which provides loans for Swedish SMEs to invest in projects in transitional countries.
Leading SITC sectors in exports to Sweden
Leading SITC sectors in imports from Sweden Plastic materials in their primary forms
Rubber products
6%
6%
Miscellaneous finished products not specified elsewhere Paper, cardboard and cellulose-based products
6% 35%
18%
7%
39%
General purpose industrial machinery Medical and pharmaceutical products
11%
Clothing
29%
Road vehicles
6%
13%
Specialised machinery for individual industrial branches
24%
Metal-based products not specified elsewhere
Other
Other
Since 2003, a total of 18 projects worth an approximate combined €2.8 million have been implemented in Serbia in this way, with the money going solely to the private sector. Following the accession of Baltic countries to the EU, more money became available for this purpose. The heightened interest of Swedish businesspeople in other markets should be utilised by Serbia even more. SEPA (the Swedish Environmental Protection Agency) was the key vehicle for cooperation with Serbia between 2005 and 2010 in the area of environmental protection. The Swedish government has set aside some €100 million for environmental protection projects. In the last eight years, until the onset of the economic crisis, trade between Serbia and Sweden was developing nicely, albeit more on the import side. According to Serbian Chamber of Commerce data, during the first seven months of 2013, trade between Serbia and Sweden was valued at US$138.8 million, which is a 10%
increase relative to the same period last year, when it stood at US$127.2 million. The value of Serbian exports amounted to US$32.7 million, which is a 20% hike in comparison with the same period last year. Serbian imports grew as well, by 6%, amounting to US$106.1 million. A trade deficit of US$73.4 million remains on the Serbian side, but has decreased from last year by 1%
Sweden is the first country to exceed the financial aid offered at the Donors Conference (€12.83 million). The donations will be spent on development of the energy sector, private sector and state administration to US$72.6 million. In terms of the export-to-import ratio in trade with Sweden, in 2008 and 2009 it grew slightly, while from 2010 to 2012 it went up considerably. But since then until July 2013, the export-to-import ratio has become stagnant. Looking at the trading data for the first seven months of 2013, we
Trade exchange between Serbia and Sweden, in million USD 400
see that Serbia mostly exported the following products to Sweden: rubber products, miscellaneous finished products, paper, cardboard and cellulose-based products, clothing and metal products. The biggest Serbian exporters to Sweden are: Tigar Gume Pirot, Sirogojno, Unimet Kać, V&B Subotica, KM Mont Petrovaradin, Montavar Belgrade, DTM Consult Čačak, Mars Petrovaradin, Davax Kać and MegaFrukt Belgrade. Serbia mostly imports the following products from Sweden: plastic materials in primary forms, road vehicles, industrial machines for general use, medical and pharmaceutical products, and specialised machinery for particular industries. The biggest Serbian importers of products from Sweden are Tetra Pak Belgrade, Tarkett Bačka Palanka, Intercel Šabac, Telekom Srbija Belgrade, Intertron Vršac, Volvo Novi Banovci, Atlas Kopko Belgrade, Phoenix Pharma Belgrade, ABB Belgrade, DTM Consult Čačak. ■
Export-to-import ratio, in %
35
29.74
30 200
22.65
25
15 -200
17.87
31.01
19.19
18.67
20
0
30.82
20.71 16.39
10 5
-400 2005
2006 2007 2008 2009 2010 2011 2012 2013-VII
Export in USD
Import in USD
Balance in USD
0 2005 2006 2007 2008 2009 2010 2011 2012 2013-VII
Sweden | World Markets and Opportunities
development cooperation
Social Responsibility Above All Else The core value of Swedish assistance is social responsibility, as embodied by development cooperation agency Sida. Only via democratic governance, human rights and environmental sustainability are modern, developed nations built
ENVIRONMENTAL INFRASTRUCTURE SUPPORT PROJECT This project is one of Sida’s projects that support Serbia with capacity and financing for environmental investment projects. Estimating garbage volumes is an important part of the feasibility studies to build new regional landfills for the disposal of solid waste.
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ida is the Swedish government’s agency for development cooperation. Its primary mission is to reduce poverty and contribute to sustainable development. Sida’s efforts are concentrated on issues prioritised by partner countries and organisations where Sweden has special knowledge and experience, areas where Swedish cooperation can make difference. Social responsibility is at the core of Swedish assistance, and two perspectives are applied to all of Sida’s work: the perspective of the poor, putting poor men and women at the centre of attention; and the human-rights perspective, building on universally accepted values and the principles of non-discrimination, participation, transparency and accountability. Throughout all Swedish development cooperation in Serbia, special attention is paid to the rights of poor and marginalised groups and equality between men and women. Sweden’s development cooperation with Serbia aims to enhance the country’s prospects of EU membership through strengthened democratic governance and human rights, as well as by promoting environmentally sustainable development. For 2013, Swedish assistance to Serbia amounts to 120 million SEK
Two perspectives are applied to all of Sida’s work: the perspective of the poor and the human-rights perspective, building on the principles of nondiscrimination, participation, transparency and accountability
(approximately €13 million). The current cooperation strategy for 2009 to 2012 has been extended to include 2013. Interventions are focused on two sectors: • Democratic governance and human rights (including issues such as gender equality, minority rights and security sector reform); and • Natural resources and the protecting the environment. Democratic Governance and Human Rights Within democratic governance, support is given to enhance democratic dialogue between the state and its citizens, increasing citizen participation in governmental administration. The aim is to support the development of a democratic, transparent and efficient public administration. The Swedish view is that enhanced dialogue between citizens and the state leads to the strengthening of institutions and contributes to their sustainable development in the future. Human rights and gender equality
National Strategy for Improving the Status of Roma in Serbia Sweden is the lead donor in international development cooperation in the areas of gender equality and Roma integration. This includes support to the Office of Human and Minority Rights of the Government of Serbia to strengthen the implementation of Roma-inclusion policies at both central and local levels.
World Markets and Opportunities | sweden
are an integral part of Swedish assistance and as such constitute a basis for all activities Sweden supports in the country. Sweden’s standpoint is that the full integration of marginalised, vulnerable groups into society today leads towards stable, sustainable development in future. Inclusiveness and tolerance are the cornerstones of sustainable societies. Security sector reform is an integrated part of all Swedish development assistance to Serbia, as it is vital for the sustainable development of the country and for its EU ambitions. Support is given to increase the oversight of the armed forces and law enforcement, and to increase the public’s access to justice. By using this support as well as others, anti-corruption and gender equality become integrated in all activities wherever possible. Sweden is a major contributor to reforms in the Ministry of Justice and the Ministry of the Interior. atural Resources N and Environment Swedish support is given to strengthen administrative capacity and for environmental infrastructure, such as solid-waste management and waste water treatment. Support is given to ministries, governmental institutions and to civil society to enhance the dialogue among these actors. Sweden is a lead donor in the environmental sector, working closely with the Serbian Ministry of Energy, Development and Environmental Protection. ■
sweden in brief
Land of Wilderness and Beauty Sweden is among Europe’s happiest, most stable countries, with a progressive history and natural scenery and wildlife that can take the breath away
an country to establish national parks, mainly in the mountainous districts of Norrland. This helped to save part of Europe’s last wilderness from exploitation. Numerous nature reserves and cultural heritage areas have also been established across the country. Under the Right of Public Access (‘Allemanweden is a sparsely populated country, srätten’), anyone is entitled to hike through characterised by its long coastline, ex- forests and fields to pick berries and mushtensive forests and numerous lakes. It is rooms without asking the landowner’s permisone of the world’s northernmost coun- sion, but this right also carries with it an oblitries. Sweden’s borders have been unchanged gation to respect the natural environment and since 1905 and the country has not been at private property. Among the Swedish national emblems are war since 1814. Sweden experiences extreme contrasts be- the blue and yellow flag, two coats of arms, tween its long summer days and equally long the Three Crowns and the national anthem. winter nights. In the summer, the sun stays in The oldest recorded images of a blue flag with the sky round the clock in the parts of Sweden a yellow cross date from the 16th century. north of the Arctic Circle. Even as far south as The yellow cross was always borne on Swedish battle standards and Stockholm (59°N) the June nights have Under the Right of Public Access, banners because the coat of arms only a few hours of anyone can hike through forests and Swedish was blue divided by semi-darkness. Along with the fields to pick berries and mushrooms, a cross of gold. The beautiful scenery, but this right also carries with it an triple-crown symbol has been used as the Sweden has rich obligation to respect the natural emblem of Sweden and varied wildlife. environment and private property at least since 1336, Sweden has everywhen it had long thing from bears and wolves in the north, to roe deer and wild boar in been a familiar symbol of the ‘Three Wise Kings’. Since 1916, 6 June has been celebrated as the south. The country also has a wealth of flora and aquatic life, which contribute to its biologi- Swedish Flag Day. This finally became Sweden’s cal diversity. The wolves are expanding their National Day in 1983 and a public holiday from habitat across northern and central Sweden. 2005. The date was chosen for two reasons: Bear, lynx and wild boar populations are also the election of Gustav Vasa as Sweden’s king increasing. Throughout the country, there are on 6 June 1523 laid the foundation of Sweden large numbers of elk (moose), foxes and hares. as an independent state; and on the same date The elk is a great prize for hunters but is also a in 1809, Sweden adopted a new constitution traffic hazard. Hunting is closely regulated and that included the establishment of civil rights many species of animal are completely protect- and liberties. Despite its small population and large area, ed. Winter bird life in Sweden is dominated by a few species, but summer brings large numbers Sweden is a technologically advanced country with good infrastructure, including an efficient of migratory birds from the south. In 1910 Sweden became the first Europe- transportation and communications system. ■
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Facts and Figures Capital Stockholm Population 9.6 million, about 0.13% of the world’s population Life expectancy Men 79.8 years, women 83.5 years Foreign-born 15% inhabitants Religion The Church of Sweden is Evangelical Lutheran. There are also many other religions and denominations Language Swedish Form of Constitutional monarchy with government parliamentary democracy Parliament The Riksdag, with 349 members in a single chamber Education Nine years of compulsory schooling, but most pupils continue to three-year uppersecondary school. Around one-third go on to higher education at universities and colleges throughout Sweden Working hours Standard work week is 40 hours, minimum paid vacation is five weeks Labour force Men 68.6%, women 63.7% participation Longest north1,574km south distance Longest east499km west distance Total area 528,447km², the third-largest country in Western Europe after France and Spain Urban and 3% industrial land Agricultural land 8% Forests 53% Marshland 9% Grasslands 7% Bare rocks and 12% mountains Lakes and rivers 9% Highest Kebnekaise (2,103m) mountain Biggest lake Vänern (5,650km²) Calling code +46 Internet code .se Time zone GMT +1 Currency 1 krona (SEK) = 100 öre GDP per capita SEK 372,800 (PPP) Population in major cities (including suburbs) Stockholm 2,123,300 Gothenburg 928,600 Malmö 656,400
Sweden | World Markets and Opportunities
Swedish investments in Serbia
Building Business Interests Apart from direct investments, Sweden has provided support to the Serbian economy through various SME programmes, startups and in many other ways…
CAPITAL In September 2004, investment company East Capital set up the Balkan Fund. Its principal interest was investing in banking and the food and agriculture sector, purchasing shares in 28 different Serbian companies (such as Efes Brewery in Zaječar, Fabrika Kože in Ruma, Sunce in Sombor) on the Belgrade Stock Exchange, spending nearly €40 million.
stipulates the implementation of various solutions, applications and the distribution of Ericsson products to businesses and users of private telecommunication networks. Later in 2006, Ericsson and Telekom Serbia signed Serbia’s first contract for the delivery and implementation of high-speed 3G with HSPA mobile internet.
650 baby cribs to furniture giant IKEA – 10% of the contracted quantity – with IKEA representatives announcing the possibility of new contracts for the delivery of cribs. Simpo and IKEA signed another contract in 2007, with IKEA planning to build a modern factory in Vranje for the production of 100,000 cribs and hiring 150 young workers. IKEA will also soon open a one of its furniture mega-markets in Belgrade.
LA FANTANA In 2006, La Fantana opened a €2 million VOLVO IKEA in Serbia Approximately €30 million has been in- water factory in Aleksandrovac, one of the As far as IKEA’s business plans for Southvested by Volvo into opening service shops in largest greenfield investments in this sector. Novi Sad and Čačak for the 700 Volvo trucks The 2,000m² factory is built to the best Eu- east Europe go, the company is focusing on opening stores in Slovenia, Croatia, Roused by the Serbian companies. Since 2006, Volvo has been in sole charge of In the last three years, IKEA has invested mania and Serbia. It is also supporting the development of domestic furniture selling Volvo trucks in Serbia, replacing more than €15 million in the running of producers through investments to exthe Volex Truck company. In 2008, the its three companies in Serbia pand production capacities and establish biggest truck centre in the Balkans, the business partnerships for the production Volvo Truck Centre, was opened in Novi ropean specifications. La Fantana distributes of IKEA goods for sale all over Europe. Banovci at a cost of €4 million. IKEA operates in Serbia through three water for water coolers and has been in Sercompanies: IKEA Serbia d.o.o., which develbia since mid-2004, amassing 7,000 clients. ERICSSON ops furniture and household items for stores In 2005, telecommunications company and has 33 employees; IKEA Trading Services IMG Ericsson signed a €30 million contract with Serbian enterprise EPS and Swedish com- d.o.o., which has 12 employees and is estabTelekom Serbia for the upgrade and expansion of the GSM grid in Serbia and provid- pany IMG have signed a €3.1 million contract lishing cooperation with local furniture maning training to Telekom Serbia staff. Then in for the implementation of a project titled ufacturers that have the potential to become IKEA suppliers; and IKEA Centre Serbia d.o.o., 2006, Belgrade-based Tele Group signed a ‘Electricity Grid Upgrade in Southern Serbia’. which has two employees and develops and contract with Ericsson, based on which Tele runs retail centres in support of IKEA stores. SIMPO AND IKEA Group became Ericsson’s authorised partner In the last three years, IKEA has invested In 2006, a children’s bed factory in Rafor providing telecommunication services in Serbia, Montenegro and Bosnia’s Repub- dovnica operating under Vranje furniture more than €15 million in the running of its lika Srpska region. This partnership contract manufacturer Simpo delivered the first lot of three companies in Serbia. ■ World Markets and Opportunities | sweden
Creative Mentoring
Investing in Leadership Through Creative Mentoring, 25 Serbian students are mentored by experts from the fields of education, culture and business, providing the experience and know-how needed to become future leaders of society
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ith the help of the Swedish Embassy in Belgrade, ETC Group has launched a project called Creative Mentoring, which brings together and provides encouragement to individuals from the education, culture and business sectors. The project has served as the platform for the testing and launch of a long-term mentoring programme in Serbia. The Creative Mentoring project is closely linked with another Swedish-Serbian project, Creative Society, which was launched in the autumn of 2011 by the Swedish Embassy in collaboration with the Belgrade Museum of Science and Technology. As well as staging an exhibition called ‘Swedish Women Inventors’ and having an education programme for children, the museum has also formed a club, which meets on Mondays, as a venue for the exchange of ideas between Serbia and Sweden. The goal of Creative Mentoring is to contribute to the development of Serbian society via a mentorship programme, investing in the leadership skills of individuals. The project is based on the premise that these young leaders-to-be, despite being future pillars of Serbian society’s development and health, have been marginalised by state policy for a long time. By aiding the development and providing professional guidance to these promising individuals, a generation of young people will emerge
with the confidence to fulfil their potential and invest it back into society. “I think it is very important to clarify the meaning of the terms mentor and mentee (programme trainee),” says Helene Larsson, a former cultural advisor at the Swedish Embassy. “At the beginning of the project, I also think that it is necessary to set goals, and, if you are a mentee, to ask yourself why you need a mentor. If this is not done, what could happen is that your mentor-mentee relationship will be reduced only to casual socialising. When you set good goals, both mentee and mentor can form a long-term mentoring relationship that might last for three or five years – or maybe
By aiding the development and providing professional guidance to these promising individuals, a generation of young people will emerge with the confidence to fulfil their potential and invest it back into society just two months, if required.” The latest one-year-long programme starts in spring next year. Twenty-five future leaders in culture, education and the creative industries will be given an opportunity to work for a year on their professional development with a chosen mentor who is also a renowned expert and leader in his or her respective field. An open invitation to participate in the programme will be posted on the programme’s website in spring, but
interested persons can already enquire about the programme with the project management team. Workshops have been set up and a mentoring guide and website is available (kreativnomentorstvo. com), which serves as a database of knowledge and advice on mentoring, with the aim of bolstering mentoring know-how and the skills of programme trainees. The Swedish Embassy has plenty of reasons to promote the mentoring concept outside of the academic curriculum, but one of the main goals of Creative Mentoring is to raise awareness about individual social responsibility. Also important is the mentors’ responsibility for relaying their professional knowledge and experience to Serbia’s younger generations as a format for life-long learning and knowledge exchange. The following mentors guided and supported trainees last year: Danish Ambassador to Serbia H.E. Ms. Mette Kjuel Nielsen; Olga Svoboda, director of a HR management company; Western Balkans Director at the British Council Tony O’Brien; former politician Vesna Pešić; Director of Ericsson Serbia Antonio Passarella; Predrag Cvetičanin, Director of the Centre for Empirical Cultural Studies of South-East Europe; Director of the Guitar Art Festival Boško Radojković; Divna Vuksanović, media theory professor at the Belgrade Faculty of Dramatic Arts; and many more. ■
Sweden | World Markets and Opportunities
csr IKEA
Supporting Disadvantaged Children
With IKEA expanding its operations into Serbia, the company is bringing its own CSR approach to the country’s youth from ethnic minorities, poor backgrounds and rural areas
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ustainability at IKEA means meeting the needs of people and society without compromising the ability of future generations to meet their needs. It is about living within the planet’s limits and protecting the environment. It is about promoting a strong, healthy, inclusive and just society where people can prosper and fulfil their potential. IKEA has identified three areas that will transform its business, making it more sustainable, driving growth, creating new business opportunities and helping to create a better everyday life for people: • Inspire and enable millions to live a more sustainable life at home. Take the lead in developing and promoting products and solutions that help customers to save or generate energy, reduce or sort waste, use less or recycle water – all at the lowest possible price. • Strive for resource and energy independence. Secure long-term access to sustainable raw materials, promote recycling and use resources within the planet’s means. Produce more renewable energy than is consumed and drive energy efficiency throughout the company’s value chain. • Create a better life for people and communities affected by the company’s business by extending IKEA’s code of conduct throughout its value chain, being a good neighbour, acting in the best interests of children and supporting human rights. Home is more than just furniture;
it’s the feeling of being at home, surrounded by the people and things you love. IKEA’s vision is to create a better everyday life for people by offering a wide range of well-designed, functional home furnishings at affordable prices. IKEA wants to help create a better life for people, something that has always been part of its approach and is even more important today as the business grows around the world. Supporting children and their families has always been one of the company’s main focuses. No matter the circumstances, IKEA believes that every child deserves a place to call home, a healthy start in life, a quality education and a sustainable family income. Although Serbia has a long tradi-
IKEA Foundation donated US$500,000 to a UNICEF project in Serbia that aimed to improve the quality and accessibility of early education and care programmes in 10 deprived localities
World Markets and Opportunities | sweden
tion of pre-school education, it has one of the lowest rates of participation in pre-school education in Europe (approximately 44%, compared with 87% among EU member states). Participation of children from ethnic minorities, children living in poverty or children from rural areas is even lower (only 8% of Roma children attend kindergartens, 22% of children from the poorest families and 29% of children from rural areas). In the last six years, the number of
pre-school facilities has increased by 30%, but this still fails to satisfy the needs of children and families. Therefore, there is a big need to expand preschool education coverage, making an impact in three areas: increasing the physical capacity for pre-school education, developing four-hour programmes (especially for children from poor families or rural areas) and working to increase parental awareness of pre-school education’s benefits. To this end, the IKEA Foundation has donated US$500,000 to a UNICEF project in Serbia: Expanding Early Learning Opportunities for Vulnerable Children. The government-supported project’s aims are to improve the quality and accessibility of early education and care programmes in 10 deprived localities, increasing coverage of pre-school education for an initial 1,500 children aged 3-5.5 and focusing on those who are most vulnerable: Roma children, the poor, families from deprived rural communities and children with disabilities. The project contributed to an increase in coverage of children aged 3-5.5 in pre-school education in the selected municipalities, from 24.5% in 2011 to 33.1% in 2013. IKEA believes that by supporting initiatives that aim for the long-term development of children and their families, a small but hopefully significant impact is made, improving their everyday life. IKEA wishes to continue supporting this kind of initiative as its business develops in Serbia. ■
CSR Ericsson
Shaping the Networked Society Communications technology giant Ericsson fulfils its CSR obligations through its commitment to carbon reduction and bringing the benefits of ICT to sub-Saharan Africa
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ricsson is a world-leading provider of communications technology and services, offering software and infrastructure within information and communications technology (ICT) for telecom operators and other industries. The company has more than 110,000 employees working in more than 180 countries. Over 40% of the world’s mobile traffic passes through Ericsson network equipment, and the networks it supports serve more than 2.5 billion subscribers. CSR has been a natural part of Ericsson’s identity and strategy since the company’s foundation. Demanding targets and long-term objectives are vital to its CSR performance. Through its CSR strategy, Ericsson demonstrates the positive role of technology and how it can shape low-carbon economies, increase access to education and support other humanitarian issues. Ericsson applies its expertise, solutions and innovation to global challenges in order to help people and society, attempting to shape a more sustainable world. One of Ericsson’s key projects is called Technology For Good. Via broadband, the cloud and mobile computing, the company addresses climate change, poverty, education, health, human rights and humanitarian issues such
as refugees, peace and disaster response. This is done through a wide range of projects, research, advocacy and initiatives, public-private partnerships, social media outreach and other forms of engagement. Technology For Good initiatives include: • The Connect To Learn programme, launched in 2010, which aims to help girls in sub-Saharan Africa to get a secondary education. As of 2012, Connect To Learn’s ICT programme had been established in six countries in Africa. • The Refugees United initiative is an online family-reconnection service to help refugees locate loved ones separated by war or natural disasters. The number of refugees registered for the service more than tripled in 2012, reaching 185,000 by the start of 2013. Ericsson is also active in reducing its environmental impact. A five-year target aiming to reduce the compa-
A five-year target aiming to reduce the company’s carbon footprint by 40% was set in 2009. In 2012, Ericsson exceeded the annual 10% reduction target, achieving the target in four years instead of five ny’s carbon footprint by 40% was set in 2009. In 2012, Ericsson exceeded the annual 10% reduction target, achieving the target in four years instead of five. During 2013, Ericsson will expand Connect To Learn’s ICT programme, and as of the end of 2012, more than 15,000 students were benefitting from its ICT programmes – over three times the number in 2011. In the terms of reducing the company’s environmental impact, a 22%
reduction in direct emission intensity was achieved in 2012, while business-travel emissions were reduced by 16% and the indirect emission intensity of Ericsson products was reduced by the same percentage. Ericsson has been enabling communications for more than 100 years. Today, more than 6 billion people worldwide have access to mobile communications. Ericsson is committed to shaping the ‘networked society’, where everyone and everything will be connected in real time, creating the freedom, empowerment and opportunity to transform society. Ericsson believes that affordable connectivity and internet access improves people’s lives and helps to create a more sustainable planet. The company has been presented with numerous challenges by different initiatives. For example, while Ericsson provided support to UNHCR’s Refugees United programme, less than 2% of the target population had access to computers and the internet, but 40% of people had access to a mobile phone. The Ericsson service included a SMS message and WAP version to suit low-bandwidth phones and specifically adapted mobile applications that took into account illiteracy, bandwidth, cost, language and trust. Technological developments are happening faster than ever and will always come with challenges. Ericsson constantly strives to improve energy efficiency in its portfolio. Through multi-stakeholder dialogue and collaboration, the company looks to secure ICT’s positive benefits and minimise any negative impacts for a shared global future. ■
Sweden | World Markets and Opportunities
Young People and CSR
Students Look to the Future At the Swedish Embassy’s ‘The State and CSR’ event for students, CorD spoke to young people about their views on the importance of CSR and its role in shaping Serbia’s future
Aleksandra Lazić, student at the Belgrade Faculty of Law “I think that this is an excellent opportunity for students in Serbia to get to know the very essence of CSR. The Swedish Embassy went out of their way to bring the biggest CSR experts here. Students were given an opportunity to apply for writing projects, and the embassy’s jury will pick the best among us to mentor. We Ms. Liselott Martynenko Agerlid Counsellor, Deputy Head of Mission, H.E. Mr. Christer Asp, Swedish Ambassador to Serbia, Mr. Sasja Beslik, CSR are also going to be offered a one-year internship. This really is an Expert and Head of Responsible Investment and Governance at Nordea Bank and Mr. excellent opportunity because students don’t know much about CSR. I Bengt E. Johansson, CSR Ambassador, Swedish Ministry for Foreign Affairs think that many of them could find employment in this field. We have n collaboration with the Society for Academic Development, the many successful companies here who could be exempt from paying Swedish Embassy organised an event called ‘The State and CSR’ some taxes if they were active in CSR. The whole point of CSR is to at the Belgrade Faculty of Economics on 18 December. The event help companies operate better by investing in social values. Sweden was a chance for young people to enquire about CSR with CSR is the world leader in this area and I think that Swedish lecturers are experts from Sweden, a country where the business community and the best to learn about CSR from.” government have been trying for years to transform the state into a Djordje Djordjević, graduate student at the Belgrade leader in the sustainable business practice sector. As future employFaculty of Political Sciences ers, employees, decision-makers, politicians and businesspeople, the “At our Faculty we don’t learn about modern-day attending students will face many CSR issues in their future careers. business. I think this is very bad given politics is This event provided them with the opportunity to have any of their closely tied to big business and it is absolutely necquestions answered. essary that we know about it. That’s my reason for The Swedish Embassy also organised a CSR competition, through coming here, to learn something about that. I think which students were given the chance to win an internship at leading that CSR is very important, particularly in making employees satisfied. Swedish companies in Serbia, Ericsson and A satisfied worker is a productive worker AstraZeneca, or become mentees of the Swed- This is an excellent opportunity for and he’ll do his job better. CSR is a concept ish Ambassador to Serbia or international CSR enables businesses to have a more hustudents in Serbia to get to know that experts. Some of the students in attendance mane note. This is especially important for the very essence of CSR shared their impressions of the conference us in Serbia, where, as many agree, we have with CorD: so-called wild capitalism where workers’ Aleksandra Tadić, master’s student of English lan- rights are not particularly honoured. People are unhappy with their jobs and that reflects on the entire economy. CSR can fix this.”. ■ guage at the Belgrade Faculty of Philology “I am a member of the Society for Academic Development. When we were given this opportunity to cooperate with the Swedish Embassy, I was very intrigued about the topic because many of us don’t know what CSR really is. We have been trying to educate people via our Facebook and Twitter profiles and have published many texts about the top 10 companies in the CSR sector. The conference and lectures we attended completely conveyed the essence of CSR, which is exceptionally important, particularly because people in Serbia don’t pay much attention to it. That’s why this event was beneficial in many ways.”
I
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