Corporate Social Responsibility in Lithuania: Fragmented Attempts to Respond to External Pressure

Abstract

The development of CSR in Lithuania is closely related to the European Union harmonisation processes and other external pressures such as those exerted by western business contractors, which demand social and environmental standards from their suppliers. The country’s CSR is dominated by large often foreign companies operating in service industries such as telecommunications and banking that bring considerable expertise and investments in CSR programmes as a part of their reputation and brand management. CSR management systems with institutionalised tools or new business models only exist in a few companies. Small and medium sized companies lack the motivation and resources to implement CSR. Barriers to CSR development exist not only due to economic factors such as low purchasing power but also socio-cultural factors. In particular, the rudiments of the Soviet past impede this development, as society has become used to imitating standards or presenting descriptions of the desired situation as reality, violating laws and regulations without any consequences to the violators, problem-solving through talking to acquaintances or friends in power or kick-backing, and CSR statements or reports still being viewed with scepticism as public relations campaigns. The civic society is fragmented and not ready to encourage responsible businesses through their purchasing decisions. Public institutions demonstrate little accountability to tax payers and high officials escape responsibility for socially detrimental decisions, providing bad examples and role models to business and society and generating scepticism about the possibility of change. Therefore, CSR remains an aspiration rather than a reality.