www.pwc.

com/mt

Corporate
Responsibility
Practices
Survey 2013

A survey about sustainability

practices of companies in Malta
carried out in Q1 2013.
June 2013

The PwC Corporate Resposibility Practices Survey 1

Introduction
Carried out for the first time
in Malta, PwCs Corporate
Responsibility Practices Survey
gauges the awareness of
sustainability issues and evaluates
the practices of companies in
Malta. Through the survey and
this report, PwC aims to spread
awareness and foster a better
understanding of the value of
corporate responsibility (CR)
practices.

This Report focuses on four different dimensions:

1. Internal awareness
The survey explores the degree of internal awareness among participants
of corporate social responsibility (CSR): their understanding of the meaning
of this term and the extent of importance given to corporate responsibility.
This section of the survey identifies whether a CSR policy is in place,
which department is responsible and why companies invest or otherwise
in CSR initiatives.
2. Current practices & external awareness
The level of external awareness assesses whether companies believe that
their stakeholders and the general public are aware of CSR and whether
companies have been faced with calls for action by their stakeholders in
relation to the impacts of their operations.
We also report on current practices in relation to water and energy
consumption, and waste management practices.
3. Social responsibility
The section on social responsibility provides an understanding of the extent
of responsibility companies feel towards society and the environment.
4. Regulation, compliance & disclosure
This section evaluates the level of regulation, compliance and adoption of
standards by local companies. It also illustrates the incidence of nonfinancial disclosures.

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Internal awareness
Understanding and awareness of CSR
Existence of CSR policies and procedures
Information and internal communications
Drivers and barriers to investment in CSR

Social responsibility
Impact on the community
Actions to mitigate environmental and
social impacts
Current and future importance of CSR

External awareness
Importance attached to CSR by
stakeholders
Stakeholders perceptions and expectations
Existing company practices

Regulation, compliance & disclosure

Environmental regulations
Certifications and standards
Non-financial reporting
Rationale for disclosures

The survey was carried out during Quarter 1 2013. The survey included
45 questions and evaluates: internal and external awareness, social
responsibility and regulation, compliance and disclosures. Participation in
this survey was open to all companies in Malta.
The survey covered a wide range of sectors. The financial and insurance
sector participated actively in this survey, followed by the manufacturing
and information and communication sectors.

The PwC Corporate Resposibility Practices Survey 3

Participants characteristics
The companies that participated in the survey are medium to large companies with the majority employing 50 persons
or more and having an annual turnover of over 5 million euros.
Company size, by number of employees

10%

12%

18%

4%

28%

6%

12%

26%

26%

10%

10%
12%
14%

12%

18%

Less than 10

28%

0-2 million

26%

Between 10 and 50

12%

2-5 million

10%

Between 50 and 100

12%

5-10 million

26%

Between 100 and 250

14%

10-20 million

6%

Between 250 and 300

10%

20-50 million

4%

Between 300 and 500

12%

50-100 million

Over 500

12%

Over 100 million

10%

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Company size, by turnover ()

Sectoral distribution
The financial services, insurance, and the information
and communication sectors participated actively in this
survey. However, over half of the responses relate to
the manufacturing sector, services, professional
activities, accommodation and other private and
public sector activities.

4%
4%

86%

invested in reducing
electricity consumption

64%

4% 4%

4%

36%

have a code of ethics in place and

monitor its compliance regularly

6%

60%

6%

monitor water consumption

8%
12%

12%

36%

Financial and insurance activities

12%

Information and Communication

12%

Manufacturing

8%

Other service activities

6%

Professional, scientific and technical activities

6%

Transportation and storage

Wholesale and retail trade, repair of motor vehicles and
motorcycles
Accomodation and food service activities
Education

4%

Public Administration and defence, compulsory social security

4%

Real Estate activities

The PwC Corporate Resposibility Practices Survey 5

Internal awareness
A review of news releases and information found in
local company websites gives the impression of a narrow
view of corporate responsibility, with most companies
associating corporate responsibility solely to charity
contributions or the investment in energy saving or
renewable energy technologies.
On the other hand, this survey shows quite a
good understanding of the term, with 64% of
respondents recognising a more holistic
understanding of corporate responsibility.
Nearly half of the participants claim to have a
department identified as responsible for corporate
responsibility. This function seems to be most commonly
vested within the Public Relations/Marketing
Department or the responsibility of a dedicated CSR
team established for this purpose.

How would you define corporate responsibility?

conducting business in an ethical and professional
manner 36%
taking initiatives to reduce the companys impact on
the environment 34%
providing a safe working environment for
employees 24%
giving donations to charity 18%

64%

Does the company have a CSR policy or programme?

38%
No

2%

Do not know

The most common internal communication channel

is email, followed by internal newsletters that keep
members of staff up to date with CSR initiatives.
Companies mentioned the lack of funds and human
resources as significant barriers to further their
CSR efforts.
Participant companies feel strongly about the impact
of corporate behaviour on their image and brand
reputation. Companies state that this is not motivated by
their stakeholders. It is clear that stakeholders are not
yet as influential as in other countries when it comes to
expectations of responsible behaviour. The drivers for
action on corporate responsibility are mostly internal
forces arising from the companys corporate values
and the belief that they should do their part for the
environment and the community.
66% of respondents feel that their customers, suppliers
and shareholders are not very aware of the importance of
environmental and social issues.
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said all of the above

60%
Yes

48%

have a department responsible for CSR

Main driving forces behind companies CSR efforts

Brand reputation
Community environmental concern
Employee interests
Regulatory compliance
Cost reduction and efficiency
Your customers environmental concern
Pressure/ interest from stakeholder
Other
0%

70%

20%

40%

60%

80%

chose Brand Reputation

Current Practices
52%

CR reporting is still in its infancy in Malta. Over the

last five years, we have seen a few CSR reports being
published and information on eco initiatives being
publicised on company websites. Some companies
have also started to include brief sections in their
annual report.

of companies have
implemented measures to
reduce water consumption

The use of internationally recognised frameworks

36%

such as the Global Reporting Initiative (GRI) is still

very low even amongst those companies that publish
separate CR reports.

of companies have invested in

some form of renewable
energy technology

96%

of companies have invested in some form of energy saving measures, with the
most popular being: new lighting fixtures, procurement of energy efficient
equipment, installation of sensors and staff awareness campaigns

Sustainability initiatives implemented

Reduction in electricity consumption
Waste recycling
Conserving water
Corporate Social Responsibility reporting
Quantifying your carbon footprint
Replacement of vehicles to reduce fuel consumption
Giving consideration to the affordability of products/
services for different social groups
Product redesign to improve eco-efficiency
None
Other
0%

20%

40%
60%
% of respondents

80%

100%

The PwC Corporate Resposibility Practices Survey 7

Social Responsibility
76% of companies believe that CSR will become very
important in five years time.
Over half of the respondents attach importance
to environmental and social issues. In particular,
companies illustrate concern over water and energy
consumption, health and safety, pollution and waste
management.
84% of companies feel strongly about their
responsibility, towards their people, to create an ethical
and safe working environment. This goes beyond
ensuring compliance with occupational health and
safety standards and deals with ethical behaviour in
their HR practices and service delivery.

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Top 3 actions to reduce the companys

environmental and social impact
1. Reducing energy consumption
2. Ensuring health & safety at the workplace
3. Conserving water

How important is CSR in your company?

Very Unimportant
At present
6%

34%

58%

2%

Neither unimportant
nor important
Very Important
Extremely Important

In 5 years time
4%
0%

20%
10%

56%
20%

30%

40%

50%

20%
60%

70%

80%

90%

100%

% of respondents

The PwC Corporate Resposibility Practices Survey 9

Regulation, compliance &

disclosure
As a result of Maltas membership in the European Union,
local operators are subject to European regulations and
have a number of obligations, particularly in terms of the
environment and social protection.
Most organisations are subject to some form of
regulation. Companies operating in the financial
and insurance sector are regulated by the MFSA.
Other companies, particularly those involved in
the manufacturing sector, may be regulated by an
environmental permitting regime, environmental
legislation, health and safety and other sector-specific
regulations.
As regulators may hold companies responsible for their
practices and the impact of their operations, companies
have an incentive to become more transparent in
reporting about their non-financial performance.
When asked about any specific environmental legislation
which affects their organisation, the main legal
instruments mentioned related to waste management
regulations, notably the Packaging and Packaging Waste
Regulations and the Waste Electrical and Electronic
Equipment (WEEE) Regulations, both of which are
based on the concept of producer responsibility. Other
legislation included food safety regulations and health
and safety.

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53%

of companies stated
that they have
been questioned by
regulators about
their impact on the
community and on
the environment

Standards and certification

16%
Strongly Agree

26%
Disagree

74%

of companies agree that holding such

certification or standards is beneficial

12%

58%
Agree

of the companies surveyed hold some form of

certification or standard. These include the ISO
14001 (Environmental Management),
EMAS (EU Eco-Management and Audit Scheme),
ISO 26000(Social Responsibility)
and eco-certification

Non-financial disclosures

24%

of companies stated that they carry out some form

of non-financial reporting. The companies that
disclose such information make it available to the
general public. Only a minor proportion of these
companies make this information available directly
to parent companies and regulators

Regulators

Other

General Public

20%

40%

60%

80%

100%

% of respondents that disclose information

The PwC Corporate Resposibility Practices Survey 11

Interesting Findings
98%

of companies believe that

Malta has a problem with
natural resources
Companies participating in the survey show a strong
acknowledgement of the problem of resource scarcity in
Malta. Over half of the companies state that they have
a CSR policy in place, a code of ethics, and that they
have invested in energy savings activities, amongst other
initiatives. In other words, companies state that they
give a lot of importance to CSR. Yet, close to 70% of the
companies do not disclose information about their CSR
efforts in their annual report.
This could be explained by the perceived lack of interest
by stakeholders, such as customers, suppliers and
shareholders. 66% of the companies claim that their
stakeholders are not aware and do not give enough
importance to environmental and social issues.
Companies that report on their non-financial
performance appear to see value in non-financial
disclosures. Those who provide non-financial

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information do so to show their internal commitment,

and use it as a marketing tool to associate their
organisation with sound environmental
management practices.
In the minds of participant companies, procurement
is one of the areas through which they impact the
environment. The recent launch of Green Public
Procurement Regulations and targets may have
increased this awareness.
Companies feel they affect the environment when
purchasing office equipment, purchasing paper and
choosing brands and suppliers.
Companies feel responsible towards their people in terms
of creating a safe and ethical working environment.
84% of the companies surveyed feel the responsibility to
create such an environment for their staff.
Over 60% of companies show awareness of their
impact on the environment and on the community.
The top three impacts are: energy consumption, waste
generation and health and safety.

Existence of a CSR policy

number of employees
Over 500

Between 300 and 500

Companies that have a

CSR policy in place mostly
belong to the medium
to large category

Between 250 and 300

CSR policy

Between 100 and 250

No CSR policy
Between 50 and 100

Between 10 and 50

Less than 10
0

10

15

number of respondents

Disclosure of non-financial information

turnover ()
Over 100m

50m - 100m

The incidence of disclosure

on environmental and social
aspects tends to be higher
across larger companies

20m - 50m
Disclose

10m - 20m

Do not disclose
5m - 10m

2m - 5m

0 - 2m
0

20%

10%

30%

% of respondents

The PwC Corporate Resposibility Practices Survey 13

Those companies that have

a CSR policy or programme
in place are more
inclined to report on their
environmental and
social performance

No CSR policy

Disclose
Do not disclose

CSR policy

5%

10%

15%

% of respondents

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20%

25%

30%

Results
PwC Corporate Responsibility Practices Malta Survey
2013 was intended to raise awareness and understanding
of corporate responsibility among local companies.
The findings show an improvement in the understanding
of these issues and an understanding of the importance
of problems such as water scarcity in Malta. It is
also evident that companies believe that corporate
responsibility will become increasingly important in
the coming years.

Consciousness about the importance of CSR and the

value that such responsibility brings to a companys
reputation, attractiveness as an employer, and its direct
benefit in terms of cost savings, is increasing.
Companies are also starting to formalise their efforts
through the development of a CSR policy / programme
and /or the allocation of responsibility to a particular
team. As one would expect, the availability of internal
resources hinders the capacity to do more and to
structure CSR efforts.
Thinking strategically about CSR can help companies
align their efforts to their core business strategy.
As stakeholder expectations towards corporate
responsibility and ethical business are growing, business
opportunities such as new products / services relating
to corporate responsibility may provide avenues for
sustainable growth.

Conclusions
1. Awareness of corporate responsibility is rising
and the understanding of the term is moving
away from just charitable donations to include
environmental matters, health and safety, ethics
and other considerations.

2. These findings show an increased sense of

responsibility by companies towards their people,
the environment and the wider community. The
main drivers are clearly the brand and an internal
commitment to corporate values.

3. The three main areas of activity in the local

scenario are energy and water consumption, followed
by waste management. As companies envisage CSR
to grow in importance, other areas of corporate
responsibility may see additional investment in the
near future.

4. Stakeholders expectations and pressures

are still low when compared to other countries.
Disclosure efforts are mainly driven by a desire to
show a companys internal commitment to CSR
and to some extent by regulatory bodies.

The PwC Corporate Resposibility Practices Survey 15

Contacts
George Sammut
Partner, Sustainability Advisory
Services
+356 2564 7608
george.sammut@mt.pwc.com

Nadia Mifsud De Marco

Consultant, Sustainability Advisory
Services
+356 2564 7801
nadia.mifsuddemarco@mt.pwc.com

Follow us on:

www.pwc.com/mt/sustainability
2013 PricewaterhouseCoopers. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
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