Dr Marinos Voukis: CSR plays a crucial role in navigating the complexities faced by the business ecosystem

Corporate Social Responsibility is constantly evolving and is no longer solely based on philanthropy and volunteering. Indeed, even its name has changed in recent years to Corporate Sustainability and Responsibility.

As CSR Cyprus Chairman Dr Marinos Voukis told GOLD magazine, through various sustainability-related initiatives, the Association promotes the improvement of businesses in the country, by creating impactful synergies between the state, collective bodies, companies and society.

Tell us about CSR Cyprus and the work being done to promote CSR policies.

CSR Cyprus was founded in November 2016 to promote, develop and implement Corporate Sustainability and Responsibility with the ultimate goal of achieving balanced development in the pillars of economy, society and environment. Over the years, we have established collaborations with public bodies responsible for the promotion of CSR in Cyprus, with which we work closely on advocating for policies that create opportunities for businesses to be sustainable and to implement socially responsible practices.

To give some examples, between September 2023 and April 2024, we co-organised a series of open, free-of-charge educational workshops throughout Cyprus with the Office of the Commissioner for the Environment, focused on upskilling and fostering green skills. We also actively participated in the campaign for the registration of responsible companies in the national CSR Registry across Cyprus, initiated by the Authority of Cooperative Societies (the government authority for the advancement of CSR in the country) as part of the EU’s Corporate Sustainability Supporting Framework project.

Also, to demonstrate the crucial role of academic institutions in shaping the future for sustainability leaders, we invited academics to take part in a panel discussion at the 16th Sustainability Conference Cyprus, which we successfully co-organised with IMH in July. In addition, in early 2024, together with 60 leading businesses and CSR networks in Europe, we addressed the shortcomings of the European Green Deal, proposing solutions that align sustainability with competitiveness, through a business manifesto entitled Action over Ambition: Delivering on a Just Industrial Transition for a Sustainable Europe 2030. This publication, with key proposals, was sent to 14 Cypriot policymakers/stakeholders for their review.

One of our main goals is to actively educate businesses on how to adopt long-term sustainable practices under the ESG framework. In this context, throughout 2024, we have carried out an enhanced educational programme, the most important part of which, in June, was a funded five-day trip to Sweden (the second most sustainable country in the world, according to the European Sustainable Development Report 2024), on which executives from various businesses gained valuable ESG experience from field visits.

Why is CSR important for today’s businesses?

Nowadays, CSR goes far beyond volunteering or philanthropic activities; it extends to compliance and risk management and, most importantly, it must be embedded in every operational and strategic aspect of a business, irrespective of its size or scope. This, of course, requires a change of mindset in how we interpret growth. CSR plays a crucial role in navigating the complexities faced by the business ecosystem, as it enhances brand reputation, guarantees resilience and access to finance, increases employee engagement, fosters customer trust, satisfaction and longevity, promotes sustainable practices and leads to long-term profitability and social impact, among others.

How does CSR Cyprus work with companies to ensure that they implement policies that meet the changing standards of corporate sustainability and responsibility?

Our association is heavily engaged in raising awareness, educating and upskilling the workforce of our own member companies and of other Cypriot enterprises. Every year we organise a number of seminars, training sessions, conferences and workshops on sustainability and ESG-related matters, as well as networking events where executives get together to exchange views and best practices. In addition, being a National Partner Organisation of CSR Europe gives us direct access to all the latest developments in Europe on sustainability, which we pass on to our members.

How does Cyprus compare with other EU countries in terms of CSR initiatives?

Cyprus is in the process of incorporating the Corporate Sustainability and Responsibility Directive (CSRD) – one of the main EU directives regulating sustainability performance and transparency – into national legislation. The regulatory landscape regarding sustainability is far more complex, however, and businesses need to understand various other directives, such as the Corporate Sustainability Due Diligence Directive (CSDDD), and the Green Claims Directive or the EU Taxonomy, as well as complying with advanced reporting requirements.

As the business landscape changes so rapidly, there is a growing need for adaptability. At CSR Cyprus, we take pride in observing the advancement of our members’ maturity level. Various impactful sustainability-related initiatives are being executed, monitored and communicated correctly. We wish to act as a vibrant platform where our members can celebrate their achievements and draw inspiration from others’ best practices. To conclude, there is, of course, so much room for improvement to how our country is performing and this can be realised through impactful synergies between the state, collective bodies, businesses and society.

Environmental impact has become an important part of CSR strategies. Are Cypriot businesses implementing specific policies relating to this issue?

It goes without saying that the calculation of environmental impact is a prerequisite of sustainability reporting. Businesses must disclose information on their carbon footprint, their energy and water consumption or waste management, how they promote biodiversity etc., using European standards (ESRS). Apart from reporting, many businesses collaborate with NGOs, co-running initiatives for the protection of the environment. They may also develop educational programmes aiming at raising awareness on sustainability and encourage their personnel to adopt environmentally friendly practices.

How has CSR changed in Cyprus over the past decade?

A few years ago, CSR was restricted to donations, philanthropy or activities such as one-off beach-cleaning initiatives. As the regulatory framework has become stricter and public awareness has risen, we have seen a massive shift – including the development of the term CSR itself (from Corporate Social Responsibility to Corporate Sustainability and Responsibility). In this context, the business model has also drastically changed.

Many companies now embed sustainability in their operations, approaching it in a strategic way and moving beyond ad-hoc actions lacking impact. CSR Cyprus, as a collective business body, has contributed significantly to this change. Over eight years, more than 1,000 professionals have attended our courses on sustainability, where we bring together experts, academics, businesses and the state to discuss and address challenges. This increased engagement has accelerated the improvement of CSR, paving the way for a better and more sustainable future.

But there is obviously some way to go.

In terms of the country’s progress towards meeting the 17 Sustainable Development Goals and the 2030 Agenda, the available data is disappointing. According to the latest Sustainable Development Report for 2023/2024, Cyprus ranks 32nd out of 34 European countries. While a lack of data in some SDG indicators may explain why we score so low, there is still a lot of room for improvement. Two voluntary reports on the country’s progress on the SDGs were published in 2017 and 2021 by the Ministry of Finance DG Growth and we are expecting another one soon.

We strongly believe that the 17th Goal, which calls for partnerships and cooperation, is vital when discussing the future of CSR in our country. Nonetheless, we remain optimistic that through various synergies between the state, the private sector, NGOs and society, as well as through the implementation of cross-sector projects, we can accelerate our progress.

(This article was first published in the October issue of GOLD magazine. To view it click here)