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Management Theory and Studies for Rural Business and Infrastructure Development
eISSN 2345-0355. 2021. Vol. 43. No. 4: 442-456
Article DOI: https://doi.org/10.15544/mts.2021.40
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CURRENT CHALLENGES OF SOCIAL RESPONSIBILITY BEST
PRACTISE IN FOODSTUFF PRODUCTION AND DISTRIBUTION CHAIN:
FOCUS ON CEE COUNTRIES
Lukáš Poláček1, Jan Vavřina2, Josef Polák3
1Research staff member, Department of Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno
Czech Republic. Phone No. +420545132625, E-mail address xpolace3@node.mendelu.cz
2Research assistant, Corresponding author, Department of Business Economics, Mendel University in Brno, Zemědělská
1, 613 00 Brno, Czech Republic, E-mail address: jan.vavrina@mendelu.cz
3 Research assistant, Department of Economics and Management, The College of Regional Development and Banking
Institute - AMBIS, a.s., E-mail address: josef.polak@ambis.cz
Received 01 10 2021; Accepted 13 10 2021
Abstract
Corporate social responsibility in the food production and distribution sector in Europe is currently mainly linked to the
activities of food banks. Food banks in the current form provide their services free of charge, however, these activities
are closely associated with support from public budgets and volunteering. Currently, there is a growing tendency to revise
the current funding scheme and the overall provision of food banks´ activities, as well as the efficiency aspects of their
operation. It is, therefore, necessary to identify the essential aspects of the social responsibility framework, in particular
from the side of participating entities as donors to food banks. The new situation calls for a revision of food banks´
operation schemes, including supportive voluntary intentions within the business environment. Specifically, the
importance of the social responsibility of business entities can be seen in their inclusive assistance in the recent global
COVID-19 crisis. This article aims at the identification of financial aspects behind voluntary donations to food banks,
using the exploratory approach, namely via identification of major differences between voluntary donors and the
respective industry benchmark in the field of financial criteria, focusing on Central and Eastern European countries (CEE).
It was employed a methodological approach for testing independent observed samples to compare selected financial
performance indicators´ mean values, using a two-sample T-test for equal and non-equal variances. Subsequently, a
dynamic decomposition of observed financial performance indicators is conducted for a revision of the existence of
mutual correlations. Differently from the main areas of interest of identified previous research on food banks´ activities,
our effort is focusing on business entities in the role of food banks´ stakeholders. Corporate micro-financial data of
foodstuff donors in Central and Eastern European countries according to their accessible annual reports and lists of donors
to foodbanks are employed. Authors thus point out, based on provided empirical evidence, a need for a more inclusive
type of attitude to food banks´ operations from the foodstuff production and distribution chain and its participants.
Keywords: corporate finance, food banks, production and distribution chain, social responsibility.
JEL Classification: Q18, D22, C55.
Introduction
The concept of food banks originated in
the 1990s in the United States and the United
Kingdom. However, the presented concept
faced many challenges and developmental
changes, such as the growing share of
consumption of unhealthy industrially
produced food, or the long-term dependence of
food bank clients on the type of social services
they provide. Wainwright, Buckingham, &
Wainwright (2018) find the identified benefits
of food banks in the United Kingdom precisely
Lukáš Poláček, Jan Vavřina, Josef Polák
Current Challenges of Social Responsibility Best Practise in Foodstuff Production and Distribution Chain: Focus
on CEE Countries
443
concerning their position outside the structure
of public social services.
The global crisis caused by the
expansion of COVID-19 affects all countries
of the world in different ways. As in any crisis,
deeper budgetary implications can be expected
for low-income groups, as well as an increase
in the number of social cases caused by the loss
of business and employment. The European
Union declares its efforts to combat the crisis,
but at the same time, each state decides on the
appropriate steps in possible international
coordination.
Given the specific approaches, the state
of food banking in the UK can be used to learn
from the pros and cons of their system, while
respecting the specificities of national systems
for the functioning of social policies in Central
and Eastern European countries (CEE).
Limitations of social responsibility side of
food bank activities in CEE countries can be
identified mainly in a diverse scope of problem
areas, including on one hand financing of this
type of activities regarding the need for
meeting hygienic standards within food
donations, and on the other hand, lack of
intentions to take part in food donations
schemes by a certain type of business entities
(e. g. Gracjasz, & Grasseni, 2020; Nikolov,
2021; Petrovici,. & Gorton, 2005).
Food banks can be seen as independent
public interest institutions by helping to reduce
food waste and also by contributing to
corporate social responsibility in relation to
tackling poverty and the related nutritional
needs of the population concerned (e.g.
Caraher & Furey, 2018; Lipinski et al., 2013;
Soon et al., 2016). Although food is provided
free of charge to these banks, their operation is
mostly dependent on subsidies from the state
budget. Specifically for example the case of
the Czech Republic, these are operating and
investment subsidies, especially from the
budget chapter of the Ministry of Agriculture
(Ministry of Agriculture of the Czech
Republic, 2019). Thus, there is a growing
tendency to revise the current scheme of
financing the activities of food banks and also
the efficiency of their operations (e.g.
González-Torre, Lozano, & Adenso-Díaz,
2017; Kuang & Chou, 2017; Ministry of
Agriculture of the Czech Republic, 2019). The
growing trend in the use of food banks is
associated with changes in the living standards
of the population and reductions in public
budgets, which, among others, provide
empirical evidence on the link between living
standards and the use of food banks (Loopstra,
& Lalor, 2017).
This article aims at an exploratory
insight into financial aspects behind voluntary
donations to food banks, via the identification
of differences between voluntary donors and
the respective industry benchmark in the field
of corporate financial indicators. It covers the
years 2009–2017, i.e. period that includes the
worldwide financial crisis, followed by the
period of economic recession and
consequently economic growth renewal. The
scientific problem copes with a possible
existence of differences between voluntary
donors and the respective industry benchmark
in the field of selected key financial
performance indicators. Authors employ the
empirical analysis approach on the accessible
micro-financial data behind business activities
of typical corporate food donor´s sample in
selected CEE countries, to reveal possible
similarities and differences in their financial
performance development within the observed
period. Consequently, the hypothesis testing of
equality of the selected financial performance
indicators is conducted to compare a sample of
business food donors with respective evidence
on the industry average values.
Differently from the main areas of
interest in the identified previous research and
studies on food banks´ activities, our
contribution is focusing on business entities in
the role of food banks´ stakeholders. Our
findings can address a possible rethink of
attitude to foodstuff donors groups such as
producers and distributors, regarding the scope
of their inclusion within food banking schemes
and systems at regional and national levels.
Methods
Authors use an explorative approach for
identifying major financial aspects behind
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Article DOI: https://doi.org/10.15544/mts.2021.40
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corporate social responsibility intentions
within voluntary donations to food banks by
business entities with a focus on CEE countries
and the United Kingdom as a traditional
country with activities of food banks.
However, due to a lack of microdata on
business activities of agri-food complex
businesses based in the United Kingdom, only
sectoral data of Eurostat could be employed for
the case of the United Kingdom. We provide
on one hand the industry overview, covering
main indicators of business activity and its
cost-efficiency side, on the other hand then a
more focused insight into business activities of
voluntary food bank donors to compare them
with an identified industry average data. The
industry overview of CEE countries is based
on accessible secondary financial data, using
the database Orbis of Bureau van Dijk (non-
availability of needed microdata on businesses
based in the United Kingdom). The sample
size for the respective observed industry and
country is provided in Table 1. Specifically,
according to accessible information of
particular national/regional food banks on their
voluntary donors it was identified a sample of
businesses within EU NACE (statistical
classification of economic activities) divisions
01, 10–11, and 46 (see the next paragraph for
more details on classification of business
activities of voluntary donors).
Table 1. Industry sample volumes regarding EU NACE classification of appropriate divisions
of observed businesses in CEE countries for the period of years 2009 and 2017
Country
Industry benchmark sample group size per EU NACE division
01
10–11
46
Bulgaria
1447
870
1048
Croatia
619
721
296
Czech Republic
1951
743
401
Estonia
889
252
251
Hungary
3627
1527
1546
Latvia
564
266
279
Lithuania
27
81
83
Poland
866
1055
717
Romania
5015
3582
2244
Slovakia
1533
558
421
Slovenia
65
145
116
The secondary corporate financial data
of voluntary donors to food banks were
retrieved from the ORBIS database of Bureau
van Dijk (Bureau van Dijk, ©2019). The
searching strategy was employed as follows.
The sample of businesses is specifically
retrieved under announcements of food banks
concerning their voluntary donors. These
announcements were prevailingly provided by
food banks based in the Czech Republic,
Hungary, Poland, and Slovakia, which are also
the member states of the Visegrad Group.
Authors assume the normality of data due to a
sampling procedure for identifying active food
producers and the samples size per se. In
addition, an expectation about the constitution
of homogenous groups of businesses in the
Visegrad 4 member countries can be supported
e.g. by findings of Ivanova & Cepel (2018),
who consider economies of the Visegrad 4
member countries as similar at a general level.
Observed businesses within relevant EU
NACE industry divisions with consolidated
financial statements were excluded from the
sample to diminish distortion in observation of
selected financial performance indicators.
EU NACE industry divisions covered:
− 01 Plant and animal production
excluding specific activities at
subdivisions 01.6 (support activities to
agriculture and post-harvest crop
activities) and 01.07 (hunting and
Lukáš Poláček, Jan Vavřina, Josef Polák
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445
trapping of wild animals and related
activities),
− 10–11 Manufacture of food products and
non-alcoholic beverages excluding
specific activities at subdivisions 10.9
(manufacture of industrial feed) and
11.01–11.06 (manufacture of alcoholic
beverages and related products),
− 46.3 Wholesale of food and non-
alcoholic beverages (further on denoted
as EU NACE division 46).
Selected financial indicators for the
respective economic performance analysis are
focusing on the efficiency aspects of placing
production on market. The efficiency of
placing production on the market for the
sample of business entities was measured by
the indicator cost of sales and its respective
dynamic decomposition of operating
expenditures and sales. The aforementioned
efficiency indicator is enumerated for
respective annual microfinance business data
as follows. Cost of sales as the proportion of
operating expenditures to volume of sales.
Operating expenditures are derived as the
margin of operating turnover and operating
profit before interests and taxation.
Dynamic decomposition of constitutes
of the cost of sales indicator, namely operating
expenditures and sales, is conducted via the
fixed base and chain index approach.
The sample volume of voluntary donors
to food banks, which constitute homogenous
groups according to the EU NACE
classification and appropriate industry
benchmarks, can be seen in Table 2.
Table 2. The Visegrad 4 member countries´ sample volumes regarding EU NACE
classification of appropriate divisions of observed businesses in years 2009 and 2017
Country
Voluntary donors sample group size
Industry benchmark sample group size
01
10–11
46
01
10–11
46
Czech Rep.
4
11
7
1951
743
401
Hungary
-
10
22
3627
1527
1546
Poland
-
10
5
866
1055
717
Slovakia
-
5
2
1533
558
421
There is employed also a statistical
verification of the significance of differences
between voluntary donors to food banks and
respective industry benchmarks to support the
results of the given research problem.
Statistical verification of partial findings is
conducted by a two-sided two-sample T-test in
the alternates for equal and unequal variances
based on a two-sample variance F-test.
Subsequently, a dynamic decomposition of
selected financial indicators is employed for
the revision of the existence of mutual
dependencies by means of correlation analysis.
There are constituted the following partial
hypotheses to be assessed:
− Hypothesis 1A: There are no significant
differences in financial measures of
efficiency in placing production on
market between voluntary donors and
industry benchmark within observed
countries regarding EU NACE division
01 Plant and animal production;
− Hypothesis 1B: There are no significant
differences in financial measures of
efficiency in placing production on
market between voluntary donors and
industry benchmark within observed
countries regarding EU NACE divisions
group 10–11 Manufacture of food
products and non-alcoholic beverages;
− Hypothesis 1C: There are no significant
differences in financial measures of
efficiency in placing production on
market between voluntary donors and
industry benchmark within observed
countries regarding EU NACE divisions
46.3 Wholesale of food and non-
alcoholic beverages;
− Hypothesis 2A: There is no dependency
between the development of operating
expenditures and sales as partial
financial efficiency measures,
considering voluntary donors and
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industry benchmarks within observed
countries in EU NACE division 01 Plant
and animal production;
− Hypothesis 2B: There is no dependency
between the development of operating
expenditures and sales as partial
financial efficiency measures,
considering voluntary donors and
industry benchmarks within observed
countries in EU NACE divisions group
10–11 Manufacture of food products and
non-alcoholic beverages;
− Hypothesis 2C: There is no dependency
between the development of operating
expenditures and sales as partial
financial efficiency measures,
considering voluntary donors and
industry benchmarks within the
Visegrad 4 member countries in EU
NACE divisions 46.3 Wholesale of food
and non-alcoholic beverages.
Software Statistica 13 was employed
for conducting the computational procedures.
Results and discussion
The development of producer prices in
the primary and secondary sectors can be
regarded as an important factor that is
influencing the need for food banks’ services
provision. Figure 1 depicts the development of
respective price levels within the agri-food
industry in CEE countries in comparison with
the EU after the year 2010. It can be stated a
two-wave growth of producer prices in both
observed sectors after the year 2010 and 2015
for the food and beverage manufacturing
industry, 2016 respectively for the primary
agricultural production. The highest increase
in producer prices in both observed sectors was
identified beside Romania in Hungary, namely
the average growth rate from the year 2010
base exceeding 16 % for the food and
manufacturing industry, 20 % for primary
agricultural production, respectively. In
Romania then the average growth rate
exceeded 17 % for the food and manufacturing
industry production and nearly 18 % average
growth rate for agricultural producers’ prices.
On the other hand, the lowest average growth
rate for the food and manufacturing industry
production was identified for the observed
period in Slovenia with a 5 % value. The
lowest average growth rate for agricultural
producers’ prices in the observed period was
then identified in Croatia with its value of 6 %.
Figure 1. Base index (2010 = 100) of producer prices development in food and beverages
manufacturing industry (left graph) and overall agricultural producer prices development in
CEE countries and the UK (right graph)
*(Own work using data of Eurostat (2021)) Data for Slovakia regarding the food and beverages manufacturing
industry is not available.
Lukáš Poláček, Jan Vavřina, Josef Polák
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447
Further analysis regarding the
development of the increasing prices trend
within the agri-food complex is conducted via
indicator cost of sales among CEE countries
and selected EU NACE sectors´ divisions,
using the identified industry samples. In detail,
the development of the indicator cost of sales
for the EU NACE division 01–agricultural
production reveals its highest level for the case
of the Czech Republic, followed by Latvia and
Estonia after the year 2012. Development that
was observed for the EU NACE division 10–
11 is distinguishing among CEE countries in
the case of Romania with the highest average
value of the indicator cost of sales during the
whole period of years 2009–2017. This finding
among the industry sample is consistent with
the aforementioned level of producer prices
development within the food and beverages
manufacturing industry in Romania. On the
other hand, the lowest level of observed cost of
sales indicator was identified within the
industry NACE division 10–11 for Bulgaria,
despite its above-average development of
producer prices in that industry. EU NACE
division 46 development then reveals a
prevailing stagnation of the observed indicator
cost of sales among all observed CEE
countries. Namely, the variation from the mean
value of the indicator cost of sales is ranging
from 0,1 % (observed in Bulgaria) to only 0,7
% (observed in Romania).
The empirical insight into the area of
food waste diminishing schemes due to
accessible information covering also
information on business voluntary donors is
focusing on the Visegrad 4 member countries,
i.e. Czech Republic, Hungary, Poland, and
Slovakia. Namely, the identified voluntary
donors to food banks as legal business entities,
which were active in EU NACE industries´
divisions 01, 10–11, and 46. Conducted
analysis reveals on an explanatory base
identifiable differences of selected financial
indicators reported by business voluntary
donors to food banks in comparison with the
industrial averages. Figure 2 depicts a
comparison of the aforementioned sample
groups of business entities´ donors to food
banks with respective industries´ benchmark of
indicator cost of sales within the Visegrad 4
member countries. Respective partial results
for the Visegrad 4 member countries are as
follows. Voluntary donors in the Czech
Republic are represented at the EU NACE
industry division 01 by businesses with on
average lower cost of sales values within the
observed period, namely values differing in
average for more than 10 PPS. Other observed
business donors to food banks within
respective EU NACE industry divisions in the
Czech Republic are not identified as
significantly varying from industry average
values. More precisely, mean values of
indicator cost of sales is exceeding 97 % for
EU NACE industry divisions 10–11, mean
values of that indicator for EU NACE industry
division 46 is then exceeding 98 % for the
sample of the group of voluntary donors.
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Figure 2. The development of cost of sales indicator, comparing voluntary donors (VD) with
industry average in the observed industries regarding EU NACE divisions within the
Visegrad 4 countries – Czechia (upper left graph), Hungary (upper right graph), Poland
(lower left graph), Slovakia (lower right graph).
*Voluntary donors to food banks were not identified for EU NACE industry division 01 in Hungary, Poland and
Slovakia.
Voluntary donors to food banks in
Hungary are represented within the EU NACE
industry divisions 10–11 by businesses, which
have also similar values of indicator cost of
sales during the observed period of years,
namely low volatility of the cost of sales
indicator in both observed industries. In
addition, it was identified a neglect lower level
of cost of sales among voluntary donors to
food banks in Hungary, specifically after the
year 2012, but with the higher volatility of this
indicator in comparison with the observed
industry average (variation from average
values of the cost of sales indicator at 2.5 % for
industry divisions EU NACE 10–11 and 1.5 %
for industry division EU NACE 46,
respectively). A similar development was
observed also among voluntary donors to food
banks in Poland and Slovakia. It was
influenced by a strong identified increase in the
cost of sales in Poland in the year 2014 and by
a fall in sales among a sample group of food
donors within EU NACE industry division 46.
That excessive decrease in sales in the year
2014 is deduced to be in direct connection with
notified food safety problems of food
production that originated in Poland.
An analytical dynamic decomposition of
the indicator cost of sales was conducted via
year-on-year indices of development of
indicators operating expenditures and sales as
a comparison of voluntary donors to food
banks with the industry average (see depiction
in Figures 3 and 4). It was identified the highest
volatility of operating expenditures among
donors to food banks within the Visegrad 4
member countries regarding EU NACE
industry division 10–11 for the observed
donors´ sample group in Poland. Namely, the
variation coefficient reaches nearly a 12 %
difference from a mean year-on-year
development of operating expenditures in
Lukáš Poláček, Jan Vavřina, Josef Polák
Current Challenges of Social Responsibility Best Practise in Foodstuff Production and Distribution Chain: Focus
on CEE Countries
449
Poland, within the period of years 2009–2017.
In addition, this sample group of food donors
based in Poland also reaches the highest
average growth of operating expenditures
among the other Visegrad 4 member countries´
sample groups within the observed period of
years 2009–2017, namely nearly 13 %. A
similar development was identified also for the
sample group of donors to food banks for the
EU NACE industry division 46. That sample
group of donors based in Poland reported both
the highest volatility within the development
of operating expenditures and its highest
average growth rate among other observed the
Visegrad 4 member countries (variation
coefficient overreaching 16 %, the average
growth rate of operating expenditures above 10
%). On the other hand, the most stable
development of operating expenditures within
sample groups of donors to food banks in the
Visegrad 4 member countries was identified
for EU NACE divisions 10–11 among donors
based in Hungary (variation coefficient lower
than 2 %, average growth rate 3.4 %). In
addition, the most stable development of
operating expenditures for sample groups of
donors to food banks active in EU NACE
division 46 was identified in Slovakia
(variation coefficient lower than 2 %, the
average growth rate of operating expenditures
up to 10 %).
Figure 3.Year-on-year index of indicator operating expenditures (OPEX), comparing
voluntary donors (VD) with industry average in the observed industries according to EU
NACE divisions within the Visegrad 4 countries – Czechia (upper left graph), Hungary
(upper right graph), Poland (lower left graph), Slovakia (lower right graph)
*Voluntary donors to food banks were not identified for EU NACE industry division 01 in Hungary, Poland, and
Slovakia
A conducted dynamic decomposition
analysis of the cost of sales with a focus on the
sales side reveals the following findings
among sample groups of donors to food banks
in the Visegrad 4 member countries. The
highest volatility of sales regarding food
donors in EU NACE divisions 10–11 was
observed within the period of years 2009–2017
among businesses based in Poland (variation
coefficient reaching nearly 10 %, average year-
on-year growth of sales above 12 %).
Development of sales regarding food donors
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active in EU NACE division 46 also points out
the highest volatility among businesses based
in Poland (variation coefficient at a height
nearly 19 %, average year-on-year growth of
sales above 10 %). In contrast to findings
regarding donors to food banks based in
Poland, it could be stated the most stable
development of sales regarding observed
sample of EU NACE division 46 sample for
the case of Slovakia (variation coefficient
lower than 2 %, average year-on-year growth
of sales at 10 %).
Figure 4. Year-on-year index of indicator sales, comparing voluntary donators (VD) with industry
average in the observed industries regarding EU NACE divisions within the Visegrad 4 countries–
Czechia (upper left graph), Hungary (upper right graph), Poland (lower left graph), Slovakia (lower
right graph)
*Voluntary donors to food banks were not identified for EU NACE industry division 01 in Hungary, Poland, and
Slovakia
Results of conducted correlation analysis
of year-on-year indices of operating
expenditures and sales development among
voluntary donors within EU NACE divisions
10–11 (see Table 3) revealed a prevailingly
strong or medium rate of positive mutual
correlation with an exemption regarding the
sample of donors based in Hungary. On
contrary, it was identified a diverse
development of operating expenditures with a
higher average increase of operating
expenditures over sales for the case of
Hungarian donors to food banks within EU
NACE division 10–11 in the period of years
2009–2013. Subsequently, it was identified a
higher average increase of operating
expenditures over sales for the sample group of
donors based in Poland in the period of years
2014–2017. Conversely, results of correlation
analysis regarding EU NACE division 46
revealed only a strong positive correlation
between the development of operating
expenditures and sales among voluntary
donors to food banks in the Visegrad 4 member
countries (Hypothesis 2C rejected for the
whole sample group of voluntary donors). This
result differs from the observed industry
average values that reports also a medium rate
correlation of operating expenditures and
sales. Finally, correlation analysis of operating
expenditures for voluntary donors within EU
NACE division 01 was conducted only for the
Lukáš Poláček, Jan Vavřina, Josef Polák
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451
Czech Republic. It is followed by the fact that
the other Visegrad 4 member countries did not
report any voluntary donors to food banks from
the aforementioned EU NACE division.
Voluntary donors from the sample group EU
NACE division 01 are identified with a
medium rate correlation of operating
expenditures and sales. A lower level of
correlation between operating expenditures
and sales was then identified for the respective
industry EU NACE division 01 average
(Hypothesis 2A not rejected). Observations
within EU NACE industry division group 10–
11 revealed only a weak positive correlation
regarding voluntary donors to food banks
based in Hungary (Hypothesis 2B not
rejected). Additionally, for the case of
Hungarian voluntary donors to food banks
active in industry division group 10–11 is
stated about 1 PP higher average growth rate of
operating expenditures in comparison with the
average growth rate of sales in the observed
period of years 2009–2017. This partial finding
is consistent with an identified high-cost
demandingness of sales in the observed
industry.
The result for EU NACE division 01
meets the economic justification regarding the
existence of agricultural subsidies in the EU. In
addition, it was also identified a strong positive
correlation for the observation of operating
expenditures and sales within the EU NACE
division 01 industry average in Poland. This
finding fulfils the economic justification of
specific national conditions for agricultural
producers in comparison with other of the
Visegrad 4 member countries (e.g. tax
conditions for labour and enterprises in the
Polish agricultural sector, mainly with
enterprises of smaller economic size).
Table 3. Correlation coefficients regarding year-on-year development of operating expenditures and
sales regarding sample groups of donors to foodbanks (VD) in the Visegrad 4 member countries and
its comparison with industry averages (IA) in years 2009–2017
EU
NACE
division
CZ
H
PL
SK
VD
IA
VD
IA
VD
IA
VD
IA
10–11
0.665
0.475
0.167
0.901
0.905
0.715
0.716
0.722
46
0.986
0.689
0.971
0.740
0.984
0.823
0.968
0.505
01
0.705
0.490
n.a.
0.689
n.a.
0.938
n.a.
0.655
The two-sided T-test was conducted in
order to statistically prove possible significant
differences in the cost of sales among observed
samples voluntary within the Visegrad 4
countries. he summary of the T-test and
related F-test statistics for variance are
provided in Table 4.
Table 4. Two-sided two-sample T-tests statistics for equal (E) and unequal (U) variances and F-test for
a variance of indicator cost of sales mean values regarding sample groups of voluntary donors and
observed industry divisions benchmarks within the Visegrad 4 member countries (significance level
alpha = 0.05, p-values denoted in brackets)
EU NACE
division
CZ
H
PL
SK
Two-
sample
T-test
F-test
Two-
sample
T-test
F-test
Two-
sample
T-test
F-test
Two-
sample
T-test
F-test
10–11
tU(9) =
- 2.206
(0.055)
F(8,8) =
15.488
(<0.01)
tU(8) =
1.634
(0.141)
F(8,8) =
51.415
(<0.01)
tU(9) =
1.126
(0.289)
F(8,8) =
21.528
(<0.01)
tU(10) =
- 5.153
(<0.01)
F(8,8) =
7.266
(<0.01)
46
tU(9) =
- 2.343
(0.044)
F(8,8) =
30.854
(<0.01)
tU(8) =
- 4.670
(<0.01)
F(8,8) =
48.789
(<0.01)
tU(8) =
0.861
(0.414)
F(8,8) =
2762.79
0
(<0.01)
tE(16) =
- 10.623
(<0.01)
F(8,8) =
0.900
(0.443)
Management Theory and Studies for Rural Business and Infrastructure Development
eISSN 2345-0355. 2021. Vol. 43. No. 4: 442-456
Article DOI: https://doi.org/10.15544/mts.2021.40
452
01
tE(16) =
- 3.329
(<0.01)
F(8,8) =
1.991
(0.350)
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Results of conducted T-tests proved at a
5 % significance level prevailing statistically
significant differences between observed
indicator cost of sales, when comparing data
samples of voluntary donors active in EU
NACE division 46 (rejection of hypothesis 1C)
with respective industry benchmarks among
the Visegrad 4 member countries. However,
there are identified different results in Poland
for both observed EU NACE industry division
group 10–11 and 46, regarding evidence of the
cost of sales (not rejected hypothesis 1B and
1C). Subsequently, it has to be added that
observed industry averages of indicator cost of
sales in Poland belong to the lowest ones
among the Visegrad 4 member countries.
Hypothesis 1B was rejected regarding the
sample of donors to food banks only in
Slovakia that is proving the fact of prevailingly
non-differing efficiency in placing goods on
market among businesses based in most of the
Visegrad 4 member countries. Additionally,
hypothesis 1A regarding evidence on
voluntary donors of plant and animal
production could be tested only for the Czech
Republic and this hypothesis was rejected.
These partial findings open up a
discussion over the intention of donors to
cooperate with food banks. These intentions
need not be a pure philanthropy way of
applying corporate social responsibility, but
rather a good identification of possible synergy
effect by managers of business entities in agri-
food industry sectors. Namely, synergy effects,
which are affecting the cost side of production
and related logistic operations of products,
specifically with a limited shelf life. In
comparison, the food insecurity regarding the
case of British households and the same
vulnerable groups is also highlighted in the
article of Loopstra et al. (2019). These authors
draw attention to the fact that the operational
characteristics are an important part of access
to food banks and are connected with the
ability of food banks to meet the needs of
people at risk of food insecurity. With a
smaller number of operating hours, the
distribution centre was associated with a lower
volume of use of food banks. From this fact it
can be deduced that the volunteering system
also contains its gaps, which lie in the
possibilities of volunteers. They are limited by
the need to ensure their livelihood and social
relationships. Financial subsidies aimed at
creating basic jobs for people, who expand the
operational capabilities of food banks and
charities, should not be a controversial topic in
this context. Charitable activity is not
enforceable and should not endanger the
existence of the providers themselves. Food
banks in the Visegrad Group countries are also
operating with a strong dependency on
volunteering and both civic and corporate
willingness to take part in donation schemes.
The unprecedented COVID-19 crisis enhanced
the aforementioned weaknesses, which are
causing a limited ability to address a more
flexible response to an increase in demand for
food banks´ services, specifically then for the
case of the Czech Republic.
Complementarily, Petrů, Kramoliš, &
Stuchlik (2020) broaden up the
aforementioned problem area to the closer
relationship of business entities with their
customers, including a complex value-based
approach that does not exclude their social
corporate responsibility inclusion. Evidence
from other European countries reveals a need
for the adequacy of social policy as
demonstrated by Loopstra et al. (2015) who
identified that more food banks were opened in
areas experiencing greater cuts in spending on
local services and central welfare benefits and
higher unemployment rates. Food parcel
distribution is higher also in areas where food
banks are more common and better
established, but in that areas, the local
authorities apply greater rates of sanctions
which leads to people looking for emergency
food assistance. Authors of the aforementioned
Lukáš Poláček, Jan Vavřina, Josef Polák
Current Challenges of Social Responsibility Best Practise in Foodstuff Production and Distribution Chain: Focus
on CEE Countries
research point out that food bank referrals are
not always easy to obtain, so the utilization of
data (e.g. the number of plots distributed) is an
imperfect measure of need. The use of food
banks across all providers even in the UK, that
is regarded as a country with developed food
banking schemes, is not closely monitored,
leading to an underestimation of the true
burden of food insecurity there. Our empirical
findings on food banks in the Visegrad Group
member countries point out misbalances in
their operations as well. It is mainly argued
within the one-way supplies of foodstuff from
the production and distribution chain without
further mutual information flow. This finding
is consistent with Thompson et al. (2018), who
draws attention to food safety, diversity and
nutritional balance in the context of food
poverty, which according to the research of
their article should be minimized in the context
of preventing the use of food banks as a cheap
outlet to reduce disposal costs, or the
obligation to transfer food to food banks in the
suitable time conditions before its
consumption.
Conversely, Garratt (2017) warns
against the increasing reliance on emergency
food, subsequent an unfolding public health
crisis, and the need for the national
surveillance system to monitor food insecurity
and food bank use for the case of Great Britain.
Additionally, it was further expanded these
findings with outputs in the corporate
management or corporate finance, as it is
argued also e.g. by Belas, Strnad, Gavurov, &
Cepel (2019) regarding a need for focus on the
complex determinants of the quality of the
business environment. Similarly, it can be
regarded the results of Chalastra, Kotapski,
Kozubíková, & Kozubík (2019) on the social
responsibility context within approaches to
valuation of business entities. Our findings in
this article are consistent with the
aforementioned findings specifically regarding
a shallow way of monitoring the financial and
non-financial effects and social impacts of
services provided by food banks in selected
CEE countries. This fact can be broadened to
cost-benefit spillovers towards participating
business entities, which are mostly overlooked
considering the role of voluntary food donors.
Conclusion
The volume of food aid distributed by
foodbanks is growing in the observed CEE
countries also thanks to the public support for
reconstructions and new constructions of food
storage facilities, including technological
equipment for food banks and other entities
with a humanitarian focus. Tax incentives for
producers and distributors to withdraw food
from the market under certain conditions in
favour of food banks and other charity types of
entities should also be mentioned. A
significant barrier to the effective operations of
food banks can be seen in the lack of support
for awareness-raising activities, resp. advisory
support for operational activities that is not
provided by government authorities. It can be
proposed in the aforementioned context to
enhance a public-private type of partnership
among food banks charities and manufacturers
and distributors on one hand and public
authorities on the other hand. Such a
partnership supported mainly by
information/knowledge sharing can help to
coordinate and fulfil national strategies on
reducing the food poverty and simultaneously
the food wastage.
Financial support of food banks by
respective government authorities is currently
indispensable for their activities, specifically
then in the observed case of the Visegrad
Group member countries, due to a need for
subsidizing the operational area of food banks
regarding the intended scope of their activities.
Food banks also cannot operate without the
participation of volunteer workers, who reduce
the need to cover their personnel cost.
Voluntary food donors can also contribute to
the stated concept of food bank activities by
active cooperation in supporting the
governance of these food banking institutions.
Thus, not only at the level of cost-free food
provision, which in the vast majority of cases
is donated by foodstuff retailers or producers
as at the respective end-of-shelf-life of the
foodstuff. Therefore, if not donated, such
Management Theory and Studies for Rural Business and Infrastructure Development
eISSN 2345-0355. 2021. Vol. 43. No. 4: 442-456
Article DOI: https://doi.org/10.15544/mts.2021.40
454
foodstuff would have to be disposed of in an
environmentally sound manner (considering
the cost side of disposals) to the detriment of
the aforementioned voluntary food donors in
the role of producers or distributors of the
foodstuff. The need for active involvement of
food producers and retailers in the operations
of food banks and charities in the role of a
relevant stakeholder can be promoted by
indirect public support. Such active
involvement of business entities and public
awareness (e.g. in the form of possible tax base
reduction) can help to diminish the
demandingness of direct public financial
support by food banks and charities in the field
of food donations. This recommendation is
consistent with our empirical findings behind
the voluntary food donations of business
entities in selected European countries as
follows.
Our empirical findings regarding
financial aspects behind voluntary donations to
food banks within selected EU NACE industry
divisions and respective donors´ samples
among selected CEE countries only partially
prove statistically significant differences in
selected financial measures, which were
hypothetically expected among voluntary
foodstuff donors and industry benchmarks.
Concretely, voluntary donors active in the EU
NACE industry division group 10–11
(manufacture of food products and non-
alcoholic beverages) in the Visegrad 4 member
countries, are identified as not differing in
efficiency indicator cost of sales from industry
average – not rejecting of hypothesis 1B – only
with the exemption of the sample of businesses
representing the observed businesses based in
Slovakia. Contrarily, we have identified the
sample of businesses based in the Visegrad
Group member countries, active in EU NACE
industry division 46 (wholesale of food and
non-alcoholic beverages), to be prevailingly
differing from the industry average. Namely,
the businesses with lover median values of the
cost of sales – rejecting of hypothesis 1C – for
the sample of voluntary donors group based in
the Czech Republic, Hungary, and Slovakia. In
addition, we have identified voluntary
foodstuff donors within the EU NACE division
01 (plant and animal production) only in the
Czech Republic, while concluding rejection of
hypothesis 1A for that case sample, proving a
statistically significant difference in indicator
cost of sales, when assessing foodstuff donors
against the industry average. These
aforementioned partial findings can be
discussed both in terms of hypotheses testing
and in terms of its results on selected financial
indicators within observed periods and their
dynamic decomposition. Our analysis revealed
prevailingly a strong or moderate positive
dependency within the development of
indicators operating expenditures and sales for
the sample group of voluntary foodstuff donors
active in EU NACE industry division group
10–11, represented by businesses based in the
Visegrad Group member countries, with the
exemption of Hungary (not rejecting
hypothesis 2B for the sample of foodstuff
donors based in Hungary) due to a weak
positive correlation of operating expenditures
and sales in the observed period of years 2009–
2017.
Subsequently, we have identified a
strong positive correlation for the samples of
voluntary foodstuff donors active in EU NACE
industrial divisions 01 and 46 (plant and
animal production, wholesale of food, and
non-alcoholic beverages) within the observed
development of their operating expenditures
and sales. Our partial findings on the dynamic
side regarding financial indicators of
efficiency in placing production on market
within the development of the sample of
foodstuff donors in the Visegrad Group
member countries point out above all at the
cost side of business activities that can be
considered as important influencing factors of
competitiveness for the aforementioned
industries. The case of the observed sample
group of donors active in plant and animal
production was then identified as the
representative of an industry with long-term
excessive dynamics of operating costs in
comparison with the dynamics of sales.
However, this finding is consistent with the
principles of the EU Common Agricultural
Lukáš Poláček, Jan Vavřina, Josef Polák
Current Challenges of Social Responsibility Best Practise in Foodstuff Production and Distribution Chain: Focus
on CEE Countries
Policy subsidy schemes for compensation on
the production cost side of respective
agricultural producers.
Our empirical findings on voluntary
donors to food banks, in comparison with other
studies in that field, provide new specific
insight on participating businesses entities and
their intentions to donate foodstuff through
corporate micro-financial data. Specifically,
we argue via the empirical findings on
foodstuff voluntary donors´ financial data that
voluntary donor activities need not to follow
only philanthropy kind of motives to donate
foodstuff in the case of business entities. On
the other hand, the authors of this article admit
the limitation of the current research outputs,
as it is mainly in the absence of a survey on
other non-financial influencing factors behind
voluntary foodstuff donors´ intentions, to
participate as stakeholders of food banks in
CEE countries.
Further research in this area is therefore
necessarily considered to focus on possible
measurement of the real societal effects on
food donations of business entities to food
banks and other charities via addressing its
dead weight with a deductible overlap into the
food security policy of the European Union.
Acknowledgments
This article was prepared as a partial output of a project financed by the Internal Grant Agency of FBE MENDELU
in Brno, grant no. PEF_TP_2021004 “Sociální odpovědnost podniků jako podpůrný nástroj změny systému financování
potravinových bank v podmínkách ČR” [in Czech].
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