Abstract
Corporate Social Responsibility (CSR) has become integral to the strategic development in the businesses sector and is gradually extending to the public sphere. This study examines CSR integration in the Greek public sector. To this end, it first provides a conceptualization of CSR as a broad concept applicable to all types of organizations, linking it to sustainable development and responsible governance, which utilizes Environment, Social and Governance (ESG) metrics. In addition, this study employs policy analysis and it reviews the national legislation in Greece relating to CSR. It also assesses the integration of CSR principles in Limited Liability Companies owned by the Greek State. This research reveals limited and inconsistent application of CSR principles in these companies. In the broader public sector in Greece, progress has been achieved in this field, however, several obstacles remain that impede its full integration, including political interference, persistent and outdated bureaucratic practices, and insufficient policy enforcement. CSR’s potential to aid in advancing sustainable development within the Greek public sector hinges on a combination of legislative initiatives, such as Green Public Procurement and strategic partnerships to foster collaborations outside the public sector. Ultimately, Greece should leverage EU support on CSR policies and encourage public corporations to lead by example in transparency, accountability, and responsible governance.
Plain Language Summary
Corporate Social Responsibility (CSR) has become a key strategy in aiding business and international organizations in pursuing sustainable development. It is slowly being adopted by the public sector as well. This study looks at how CSR is being adopted by the public sector in Greece. To do so, it defines CSR as a broad concept relating to sustainable development and responsible governance. It analyzes the laws on CSR in Greece and examines how these CSR practices are applied in Limited Liability Companies that are state owned. It finds that adoption of CSR practices is not widely spread or consistently applied in these companies. There is some progress; however, this study finds that progress faces the obstacles of political interference, outdated bureaucratic practices, and weak enforcement of these policies. There is potential in the wider adoption of CSR within the public sector in Greece with a combination of new laws, promoting Green Public Procurement, for example, and partnerships with the private sector. Ultimately, Greece should take advantage of EU support on CSR related policies and encourage state owned LLCs to become examples of key CSR principles, such as transparency, accountability, and responsible governance.
Keywords
Introduction
Corporate Social Responsibility (CSR) originated as a voluntary commitment by private organizations to enhance their social and environmental impact (Aslaksen et al., 2021; Matten & Moon, 2020). More recently, however, CSR has evolved into a broader governance concept, slowly transcending sectoral boundaries and increasingly encompassing public organizations. The public sector, is called upon not only to help the implementation of CSR in the private sector through policies and collaborations, but even incorporate CSR principles into its own governance model as part of a broader commitment to sustainability, transparency, and accountability.
This paper explores the conceptualization of CSR and its integration into Greek public policy, focusing on Greek public administration and state-owned Limited Liability Companies (LLCs) in particular. Greece presents a compelling case study of the integration of CSR into the public sector, as Greece, after the economic crisis, has adapted its public administration to a more flexible format, moving away from an over-funded public sector and transitioning to digital governance to provide value-added services (Criado & Gil-Garcia, 2019). Moreover, as a country with limited affluence, Greece faces increased social challenges, which are more likely to be addressed through collaborations among social actors, with CSR serving as a strategic enabler of public social policy. Additionally, as an EU member state, it presents an opportunity for benchmarking and comparing CSR integration with other EU members. Finally, this article offers an innovative perspective on the public sector’s relationship to CSR, presenting, an occasion for the beginning of constructive discourse on an emerging field. No previous studies addressing the Greek context have been identified in the existing literature, underscoring the need for the present research. It is noteworthy that, despite their relevance to the public sector, sustainability accounting and accountability remain under-researched and are still considered an emerging field of study (Roberto et al., 2020).
The public administration in Greece is a significant actor in CSR discourse, responsible for policy implementation (Gunawong & Gao, 2017) and alignment with EU Directives, especially in the context of Green Public Procurement (GPP) and sustainability reporting. In addition, public administration reflects societal values and institutional priorities, and maintains an evolving interaction with the private sector, positioning it as a key factor in shaping sustainable practices (OECD, 2020) aligning with the concept of CSR. Integrating CSR into public governance frameworks in Greece, despite structural challenges, including politicization, bureaucracy (Makrydemetres et al., 2016) and public distrust (OECD, 2020) in institutions, may provide a potential mechanism for institutional reform across both the public and private sectors.
In this article, our aim is to examine how CSR is conceptualized in a contemporary context and how it can be framed as a policy instrument. Our further aim is to explore if and how CSR is embedded in legislation and frameworks of public governance. In addition, we aim to evaluate the role of GPP in mainstreaming CSR principles into public sector practices. Finally, our interest lies in the manifestation of CSR in the operations of state-owned LLCs, though the presence of sustainability disclosures and CSR-related policies.
Therefore, our study is guided by the following research questions:
How can CSR be conceptualized in a contemporary context?
How does the concept of CSR get incorporated into public policy and legislation?
What is the role of GPP in promoting the concept of CSR?
How does CSR get integrated into the Greek public administration through state-owned LLCs?
Methodology
Social responsibility as a concept has traditionally been associated with the private sector, whereas research in the public sector remains relatively recent and limited (Acharyya & Agarwala, 2020). The scarcity of statistical data on the integration of CSR principles within Greek public administration has complicated the development of a precise methodology. While social responsibility is present in public administration, it has not yet been systematically examined through quantitative and qualitative measurements. Consequently, this study focuses on the Greek public sector as a whole, rather than on a specific legal entity, since an analysis at an individual organizational level could produce conclusions that are contingent on the particularities of the case, potentially leading to misleading generalizations.
To examine the integration of CSR into the Greek public administration, we initially attempt to conceptualize CSR and then present the (fundamental) role of public administration in disseminating the principles of corporate responsibility. Subsequently, a policy analysis is deemed necessary, with a focus on national legislation that facilitates the dissemination of CSR principles. The research extends beyond the letter of the law to assess the law’s effectiveness, including the adequacy of its rules and the extent to which it substantively influences the overall functioning of the state. Therefore, we are examining the integration of CSR principles across all public sector legal entities, including state-owned LLCs, since, under national law, the state can only establish and control entities that have the legal form of an LLC.
To achieve this goal, we utilize the updated official registry of public sector organizations, which is periodically compiled by the Ministry of Interior. Initially, our analysis identified 117 public LLCs within the broader public sector; however, only 60 are explicitly classified as public, meaning that the state holds a majority shareholding. For the sake of completeness, it should be noted that 6 of these 60 entities were excluded, as they were either under liquidation or had permanently ceased operations.
We conducted research on the remaining 54 state-owned LLCs, and for those with a corporate website, we examined whether they produced a CSR report and/or published policies related to corporate responsibility, to broadly assess their commitment to integrating CSR into their operations. This assessment is grounded on the premise that an organization’s public disclosure of its performance on sustainability related issues, those encompassed within the CSR framework, reflects a tangible commitment to CSR (Camilleri, 2017). The analysis of the 54 LLCs resulted in Table 1, which details each company’s main activities, the title of its CSR report (if available), various policies published on its corporate website, the availability of a publicly accessible Code of Conduct, and the company’s website.
Public Limited Liability Companies of the Greek State and Their CSR-Related Public Disclosures.
The findings allow us to draw safe conclusions about the maturity of the Greek administrative landscape regarding the integration of social responsibility principles and the corrective actions that must be taken to strengthen and safeguard sustainability.
Theoretical Background and Analysis
CSR Conceptualization
Corporate Social Responsibility (CSR) in its modern sense, namely the demonstration of voluntary responsibility in business conduct, began to take shape in the early 20th century and became fully crystallized from 1990 onward, following the widespread adoption of the free-market economy model. Consequently, CSR used to be exclusively business driven. In general terms, the concept of CSR reflects the societal expectation that modern businesses assume more responsibilities benefiting society, extending beyond their responsibilities for the long-term economic growth towards their shareholders (Paetzold, 2010). It used to be referred as the “actions that appear to further some social good, beyond the interests of the firm and that which is required by law” (McWilliams & Siegel, 2001).
To this day, CSR can vary from country to country, with significant differences in its conceptualization, its themes, and methods with which these themes are addressed (Matten & Moon, 2020). CSR can either be “explicit,” that is, voluntary and formalized in corporate policies on responsibility to promote social interests, or “implicit,” with mandatory social obligations for companies arising from social consensus, that is, prohibition of child labor (Matten & Moon, 2008). Hence, the application framework of CSR can be rather capacious. It has traditionally reflected the view that modern businesses should assume social and environmental responsibilities that go beyond their legal obligations, and it has increasingly evolved into a more comprehensive concept, which emphasizes sustainability (Aslaksen et al., 2021).
The concept of CSR was coined in the USA, but eventually it migrated and evolved in Europe and the rest of the developed world. One of the earliest ideas was that managers should accept their social responsibilities (Andriof & Waddock, 2017). From this simple starting point, much has changed, and the concept has evolved through various stages and approaches. Another key early idea is that of the multidimensional character of CSR, namely that it does not simply support local charities, but is based on a four level pyramid (Carroll, 1991). With the base level being the economic responsibilities towards profitability of a company, then three more levels are added, namely legal/regulatory compliance, ethical governance and good corporate citizenship. This core idea of the multiple levels of CSR has further evolved in the past 3 decades with scholars debating the hierarchy of its components (Baden, 2016; Carroll, 2016). In addition, in the past 2 decades two main schools of thought have emerged, particularly in Europe (Lozano et al., 2007). One perspective holds that responsibility to society begins where the law ends: companies must remain competitive, pay taxes, and comply with legal requirements, with any additional contributions to social or environmental issues falling within this broader framework. Conversely, CSR has also evolved into a managerial model that influences all aspects of a business, becoming central to corporate strategy and guiding every action and decision (Porter & Kramer, 2019).
A company can base its entire operation on CSR principles and pursue its responsibility at every stage, becoming a purpose-driven organization that actively engages with the sustainability interests of its stakeholders (Hörisch et al., 2014). In addition, there are many corporate entities confine their engagement with these principles to internal policies or externally orientated initiatives. However, as evidenced by the Siemens bribery scandal in Greece (Giosa, 2017), which profoundly affected the national political landscape, the mere presence of CSR practices does not necessarily guarantee a company’s social responsibility, leaving lasting concerns about political credibility.
Notwithstanding, today, CSR has become a global standard practice, appearing on the strategic agendas of businesses (Richter et al., 2021), large international organizations, and even the public sector. It is important to note that the current discourse surrounding business responsibility is framed in the same context as sustainable development and corporate governance. This broad concept encompasses various ideas such as Corporate Philanthropy, Stakeholder Theory, Corporate Citizenship, Cause-Related Marketing, Corporate Social Policy, Business Ethics, Sustainability, Sustainable Development, and more recently, Environmental, Social, and Governance (ESG) metrics. While these concepts have different origins and evolve in distinct ways, they all fall under the umbrella of CSR, with business responsibility at their core. Friedman’s free market approach, which holds that a business’s only ‘social responsibility’ is that of increasing profit for its shareholders (Friedman, 2007) might oppose the concepts under the CSR umbrella, however many and not always convergent conceptual demarcations of concepts within the CSR have been reflected in literature, such as sustainable business strategy (Elkington, 1997) and business ethics, and stakeholder management (Carroll, 2002).
To clarify the most popular terms—CSR, Sustainability, Sustainable Development, and ESG—we can empirically argue the following: Sustainability is taken to imply development in a sustainable manner (Hart & Milstein, 2003; Marsden, 2000) and the terms sustainability and sustainable development are for many viewed as synonymous. Sustainable development represents the desired goal, while CSR and sustainability provide the strategies to achieve it, and ESG offers the Key Performance Indicators (KPIs) or metrics that help companies measure and improve their performance.
It can therefore be argued that CSR is at the core of modern and healthy entrepreneurship. Evidence to support this statement arise from many regions of the world. Performance tends to improve in companies in China by implementing CSR initiatives (Kao et al., 2018). Small and Medium Enterprises (SMEs) can receive a boost in innovation and performance through CSR (Martinez-Conesa et al., 2017), even in developing markets (Bahta et al., 2020). CSR is not, however, an issue which exclusively involves the private sector. The modern development of public administration allows the creation of legal entities that, if not identical, at least resemble private sector businesses. Consequently, the implementation of the principles of responsibility and sustainability is not only possible but, arguably extremely relevant to such entities.
The Role of Greek Public Administration in Disseminating CSR
The concept of governance is primarily associated with the state, as public administration is fundamentally tasked to serve the public interest arising from the needs of society (Marshall, 2018). The Greek public administration is no exception. In accordance with the Constitution and the regulatory organizational framework, it focuses on the implementation of the elected government’s policies, addressing governance and policy implementation failures, and managing the organizational resources, both human and material (Gunawong & Gao, 2017). The public administration umbrella in Greece encompasses the general government, the Legal Entities under Public Law and the Public Organizations and Enterprises (LLCs).
Our research focuses on state-owned enterprises, as they are within the public sector, but at the same time they are enterprises. Therefore, there is the reasonable expectation that they might act like their brethren in the private sector and publish CSR reports and policies, available to the public for review.
Public administration can also be described as a social mirror. It embodies and expresses the virtues, concerns, expectations, but also the flaws of a given society. By transforming the needs and desires of their citizenry and elected representatives into tangible outcomes, administrative agencies enable the functioning of modern democratic republics (Goodsell, 2021). However, societal behavior continues to exceed sustainable limits, as demonstrated by the transgression of the planet’s ecological boundaries. What is required today is not mere rhetoric but coordinated action by citizens, organizations, and governments (Komiyama, 2014; Milne et al., 2009). Consequently, the implementation of sustainable policies would be both essential and advantageous for addressing the current major challenges (poverty, inequality, environmental degradation), without compromising future generations.
This approach is particularly ideal given the scale of the public sector’s untapped potential. In this scenario, the public sector entities need to take an active role and adapt their administration towards sustainable development (Ball & Bebbington, 2008; Gamage & Sciulli, 2017). Since the onset of the 21st century, public sector entities have been participating in a profound process of managerial and organizational change, (Katsikas et al., 2017) during which they begun to embrace sustainability values as fundamental for the sector as a whole (Ceulemans et al., 2015; Dumay, 2016). In this regard, the public sector has taken an active role in promoting socially responsible practices and could be a “driver” for CSR (Moon, 2004).
Moreover, public administration plays a pivotal role along two dimensions: one involves the diffusion of socially responsible initiatives and policies, while the other concerns the implementation of such policies and initiatives within its own structures. Social responsibility fosters the adaptation and evolution of public administration, aiming at delivering optimal services, managing resources efficiently, and achieving of social objectives (Hawrysz & Foltys, 2016; Xanthopoulou & Plimakis, 2023). In the international stage, some of the biggest actors, such as the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations (UN), the World Economic Forum, and the World Bank, publish reports and guidelines on how the public sector can increase their transparency, accountability and integrity, all concepts that belong in the CSR sphere (Chymis et al., 2017).
In a similar vein, over the past 2 decades, European governments have progressively fostered new forms of engagement with business and civil society stakeholders to promote responsible business practices and sustainability (Steurer et al., 2012). The public sector’s role in this context can be categorized into four broader areas (Fox et al., 2002). The first involves legislative initiatives, where governments establish standards for business activities that promote responsible practices, such as emission restrictions for industries. Another tool is encouraging the voluntary adoption of such practices, or, in the case of Greece, offering financial incentives like tax breaks for businesses that adopt responsible strategies (e.g., Greek Parliament 2007, 2013, Law 4172/2013). A third category includes strategic partnerships between the public and private sectors, and civil society, where the public sector may serve as a facilitator, advisor, or participant. Lastly, the public sector can shape corporate responsibility by providing political support, for instance, through the recognition and incentivization of responsible business practices.
The effective implementation of public policies aiming at enhancing CSR requires, first and foremost, political prioritization (Albareda et al., 2009); that is, their integration into the public policy agenda, alongside an adequate level of administrative functionality and efficiency. Although significant reforms have been implemented in Greece’s public sector in the last ten years the public sector “is frequently referred to as the country’s ‘biggest patient’ in academic circles as well as official reports of European and international bodies” (Nasios, 2024). The Greek public administration exhibits limited external differentiation from the Greek Parliament, as it remains heavily influenced by political control and party interests (Kammas et al., 2023). Furthermore, there is insufficient internal differentiation and development within the administrative subsystem in terms of structures, operational processes, and professionalism, leading to a capacity gap within the state bureaucracy (Makrydemetres et al., 2016). Structurally, the Greek administrative system is marked by persistent dysfunctions that undermine its effectiveness.
Another noteworthy issue is the problem of corruption within the administrative ecosystem (Pagoulatos, 2020), which, despite improvements in certain indicators (over the last decade, Greece has improved its position in Transparency International’s Corruption Perceptions Index [CPI] and is now among the top 30% of countries with the best results worldwide), remains a significant barrier to the design and implementation of sustainability policies (Council of Europe, 2022). Greece’s improved CPI score can be partially attributed to bureaucratic improvements in policies or processes, such as the sharing of public spending data and the digitization of services. These improvements can yield measurable outcomes without necessarily signifying a substantial change in administrative culture and are often the result of top-down reforms. CSR demands a change in direction, values, and approaches to stakeholder engagement and entails a perspective change on generating public value, addressing issues in society and the environment, and being transparent about doing more than simply abiding by the law. These kinds of things are difficult to fit into a rigid, task-oriented bureaucratic culture. Therefore, a true CSR framework requires a shift in the company’s culture, particularly in systems that have always been more concerned with formality and following the rules than with results and accountability, even though improved controls and external pressure may result in greater transparency.
Additionally, the administrative apparatus lacks the necessary culture to effectively implement social responsibility policies. It continues to adhere to the traditional management model, which focuses solely on performing narrow bureaucratic duties, neglecting the broader social impact. What is urgently needed is a cultural shift, one that would require widespread awareness and structural changes.
As evidences above, the Greek public administration suffers from structural dysfunctions. An OECD review of the Greek central administration found that Governments lacked unity and interagency coordination, and public structures were marked by fragmentation and overlapping responsibilities, opaque governance systems, corruption concerns, complex legal frameworks, lax control mechanisms, and insufficient human resource management (OECD, 2012). Considering that studies have indicated that the most impactful actions on citizens are those focusing on the human factor (Naseem, 2019), it is not surprising that the Greek population express chronic dissatisfaction with the performance of public administration. Indicative of such dissatisfaction is low percentage (32%) of Greeks having high levels of trust in public institutions (OECD, 2020).
Within this dysfunctional ecosystem, the implementation of socially responsible policies is considered an essential countermeasure to restore both the administrative mechanism’s credibility and, crucially, public trust in it (Xanthopoulou et al., 2023). Furthermore, social responsibility fosters the development of trust between citizens and public institutions, as it conveys the perception that public-sector decisions and actions are in service of the common good and support societal well-being (Thanetsunthorn, 2022). Consequently, citizen trust enhances administrative action and reinforces social cohesion.
Some limited initiatives have been undertaken, primarily focused on establishing formal rules for social responsibility; however, their practical effectiveness remains constrained. Article 3.4 of the Code of Ethics and Professional Conduct for Public Sector Employees (Greek Directorate-General for Integrity, Accountability, & General Secretariat for Human Resources in the Public Sector, 2022) states that “Employees should behave in a manner that respects the environment. In this context, they are expected to: avoid paper printouts by utilizing electronic document exchange and digital signatures, save electricity by switching off office equipment when not in use, and use the recycling facilities provided by the Service. They should promote green growth through their behavior.” The Code is considered a soft law, meaning that it is not legally binding because in essence it is a codification of recommendations on behalf of the Ministry, therefore it does not have the formal form of a legal rule. However, compliance with both the general and specific standards of ethics and conduct is an obligation arising from the existence of an administrative hierarchy within the administration. Thus, violation of the Code is considered a disciplinary offense, with penalties varying depending on the actions of the employee and the disciplinary body. Therefore, any administrative sanction is imposed due to non-compliance with orders from a superior, that is, for violation of the administrative hierarchy and not due to violation of specific social policies. This parameter is particularly important because it highlights that the implementation of CSR policies is at the administrative discretion of the head of the (respective) service and does not constitute a central and mandatory objective of public policy. Consequently, the social policies implemented in the Greek public administration are not harmonized but are practiced with relativity and a lack of strategic planning.
However, a review of current case law shows that no disciplinary action has ever been taken against an employee for violating the rules related to the implementation of social responsibility policies. Acknowledging that the economic crisis has put constraints on public organizations’ efforts (Kavoura & Sahinidis, 2015), the country has, however, moved on from this challenging period with optimism and determination into the future. Therefore, it no longer is a justifiable excuse.
The current form of the administrative system acts more as a barrier than as a tool to support reforms in the economy and society, especially in terms of implementing sustainability policies. Achieving this goal requires commitment, integrity, precision, and perseverance.
CSR is still an emerging concept within the Greek administration, which is gradually gaining traction. Traditionally, the state’s role in the context of social responsibility has focused primarily on supporting its implementation in private enterprises, rather than in public organizations. However, a broader application of these principles is emerging within the public sector. For example, the Municipality of Athens serves as a mediator between citizens and businesses through the project “AdoptAthens.” This online platform facilitates dialogue between the city, the private sector, and civil society. The main idea of the program is that communities, businesses—large or small—and any interested stakeholders can “adopt” small or large-scale projects aimed at improving the city for all its citizens. These projects cover areas such as city interventions, cleaning and recycling, social solidarity, adopting schools, parks, anti-graffiti efforts, sports facilities, and playgrounds. The initiative is designed to promote transparency, accountability, and collaboration, all concepts closely tied to responsible practices. Launched in October 2019, this project is still active (City of Athens, 2024). It is however noteworthy that a study by Xanthopoulou et al. (2023) found that the Greek public’s opinion does not significantly shift in favor of the public sector when it engages in social responsibility actions.
We therefore observe that CSR has evolved from a concern of business leaders, focused on strategic activities such as marketing, accounting, and finance, into a much broader concept that extends its influence to multiple domains, including justice and law (Crowther et al., 2019).
Legal Framework
As Elcock argues, dating back to Plato’s Republic scholars have been arguing that “state administrators must be trained to protect the public interest” (Elcock, 2006). Accordingly, public organizations operate under different imperatives that private actors: while the latter pursue profit, the former are tasked with safeguarding the public interest (Marshall & Choudhury, 1997). The private individual acts within the bounds of what is not prohibited, whereas public administration strictly operates within the limits of established law. From this fundamental distinction, social policies need to be codified in specific legal rules to enable their implementation by individual state bodies. However, when the state operates through companies, under free-market conditions, it is subject to the same operational constraints as private actors and is therefore able to pursue initiatives that both enhance profits and incorporate sustainable policies.
Public administration is responsible for formulating and implementing policies, operating in a complex environment where effectiveness and accountability are essential objectives. In the absence of clear governance rules, actors may operate without sufficient guidance, potentially giving rise to distortions and dysfunctions. In this context, CSR has been argued to serve as a mechanism for addressing accountability gaps within public administration, thereby fostering trust-based relationships with citizens, businesses, and society at large (Di Bitetto et al., 2014). While social responsibility was once seen as a concept exclusive to private companies, it is now recognized as applicable to all types of organizations, including public sector entities (Abdelmotaleb & Saha, 2019). This shift means that social responsibility is no longer solely linked to profit-making activities, prompting even non-profit organizations to demonstrate responsibility. As a result, public sector bodies are expected to exhibit ethical behavior, uphold accountability for their principles, and respect the interests and perceptions of stakeholders, with compliance with the rule of law being the minimum standard.
In Greece, in the years following the restoration of democracy after the 7-year period of military junta rule (1967–1974), state bureaucracy expanded in terms of employment and public spending. Although public administration was initially structured according to the Weberian bureaucracy model, it evolved with significant deviations from this ideal. Specifically, operating rules were undermined by complex legislation, and the accountability of public services was destabilized by the extensive politicization of the administrative system and clientelism (Lampropoulou & Oikonomou, 2018). In the years that followed, due to the economic crisis, Greece entered a fiscal adjustment program (2010–2019), and public administration became the focus of reforms based on the principles of New Public Management (NPM), which aimed to reduce costs. Additionally, reforms intended to improve citizen services were introduced, bearing some characteristics of New Public Services, though elements related to it were absent from the official reform agenda. Nonetheless, any unpopular structural changes that were advocated were never fully implemented due to the persistent issues in public administration (Lampropoulou & Oikonomou, 2018), including bureaucracy, corruption, inefficiency, and nepotism. Moreover, the administration’s response to reforms was slow, particularly during implementation; interventions by special interest groups were not eliminated, and societal participation in the reforms remained limited (Nikitas & Vasilopoulou, 2022).
Initially, the first regulatory incorporation of CSR policies is found in legislation concerning corporate cultural sponsorships (Law 3525/2007). Greece institutionally enhanced CSR in the public sector for the first time in 2014 with the ‘National Strategy for Corporate Social Responsibility’, NSCSR (2014). The primary objective was, among other things, to emphasize the role of the state in promoting CSR principles in private enterprises and to foster responsible practices within public organizations and enterprises. However, beyond this general framework, no specific actions were outlined to implement social policies. Essentially, the NSCSR assigned the public sector a supportive role in promoting sustainability practices among private enterprises. This outcome is not be surprising, given that several studies have explored how social concerns can influence investment decisions (Crowther et al., 2019; Johnson & Greening, 1999; O’Neil, 2017). In line with this approach, public bodies were expected to inform, recognize or incentivize private initiatives that adopted sustainability policies. Yet, the implementation of such policies within the public sector itself was not prioritized, despite state policy declarations emphasizing the importance of consolidating CSR practices in public enterprises for the national economy. The NSCSR also acknowledged the lack of a CSR culture and knowledge gaps that hindered progress. As a result, the public sector primarily focused on promoting CSR externally, rather than integrating its principles and actions into its own operations.
In 2017, the national strategy was updated with the “National Strategy Plan for CSR and Responsible Entrepreneurship of Businesses and Organizations” (General Secretariat of Commerce and Consumer Protection, 2017). The goal of this plan (still in action) is to promote responsible business practices across all sectors of economic activity, support productive schemes that benefit society, the environment, and the market, and foster transparency, accountability, oversight, and the dissemination of information for societal benefit. While the objectives remain the same, the role of public administration has evolved. It is no longer merely a supportive player but has taken on a more active role—though not yet a leading one. Specifically, public bodies are engaged at two levels: first, they help promote and integrate responsible practices in the private sector, and second, they are expected to implement their own social responsibility initiatives. Actions aimed at internal organizational improvement include personnel training, enhancing the work environment (e.g., creating pleasant workplaces), promoting transparency and meritocracy, improving employee satisfaction, adopting modern decision-making models, and offering continuous education and training, among others. External actions focus on visible outcomes that benefit the public, society, the environment, and the economy, such as faster services, reduced energy consumption, and the use of renewable energy sources.
Greek legislation appears hesitant to develop binding regulations for the implementation of sustainability policies by public bodies. This reluctance may stem from the economic crisis, which shifted priorities. Despite the broader trend of sustainability policies being adopted across EU member states, Greece remains focused on reducing the operational and wage costs of the administration. This focus is largely a result of memorandum obligations that require the country to achieve primary surpluses for the coming decades.
However, binding rules are imposed by the EU, which, in Greece, address the inaction of the national legislature. The EU Strategy for CSR (2011–2014) acknowledges that the dissemination of information in this area is crucial for achieving transparency and accountability. This led to the publication of Directive 2014/95/EU, on October 22, 2014 (European Union, 2014), which requires companies disclose non-financial information regarding social, environmental, and corporate governance matters. The regulatory framework of the Directive required Public Interest Entities (PIEs)—in Greece, significant stock-market-listed companies, insurance firms, and banks—to produce a non-financial report. However, the new Corporate Sustainability Reporting Directive (CSRD), which was incorporated into Greek law in December 2024, represents a paradigm shift, as it obliges all large companies—whether or not they are PIEs—to publish an annual Sustainability Statement.
The management of state affairs falls under the exclusive authority of the state, as the EU operates within a system of multilevel governance (Fossum, 2023). In this context, the EU intervenes primarily to regulate the common market through the implementation of sustainability policies. The key criterion for preparing a CSR report is the entity’s operation within free market conditions. Therefore, the regulatory scope of the Directive includes large public enterprises and organizations that are either fully controlled by the state or in which the state holds a stake.
CSR and Public Procurement Practices
In both public and private sector operations, public procurement serves as a strategic tool for promoting CSR policies, with the public sector acting as the purchaser and private enterprises typically serving as suppliers. Public procurement, also known as “government acquisition” or “government contracting,” has evolved from a traditional “process- and transaction-based approach, that is, the simple process of obtaining the needed supplies or services through contractual means (Molino, 2023), to the most recently accepted approach of using public procurement as a strategic function of government” (Lloyd & McCue, 2004). After all, the important role of public procurement as a CSR driver has been documented in prior studies (OECD, 2020). Accordingly, the public sector has several levers to influence companies towards responsible business practices. These include setting standards for contract work with the public sector (e.g., green contracts), criteria for receiving public funding (e.g., transparency in transactions), and procurement standards, such as socially and environmentally responsible sourcing (Fox et al., 2002). In the early years of responsible business practices, the discourse largely centered on environmental performance, which was also the primary focus of responsible procurement efforts. One of the earliest policies at the EU level was the introduction of GPP.
GPP is considered “a market-based environmental policy instrument, with the consumer taking a preference-based purchasing decision that contributes to the effective functioning of the market” (Koch, 2020). It represents one of the policies that nations can utilize to enhance sustainable and responsible consumption and production patterns; however, the pace of integration into public administration varies across countries (Cheng et al., 2018). A report on GPP in EU27 assessed its implementation, challenges, and impact on sustainability in public procurement practices (Centre for European Policy Studies, 2012). One out of four (26%) public contracts in EU27 included all EU core GPP criteria, while more than half (55%) of the countries included at least one criterion. The report showed significant variation in GPP acceptance across the EU’s 27 states, with four EU members applying criteria in 40% to 60% of contracts and twelve countries applying them in fewer than 2 out of 10 contracts. Greece was among the 12 countries where the level of EU GPP uptake was below 20%. The perceived difficulty of including green criteria in public procurement in Greece was rated 3.21 on a scale of 1 to 5, where 1 is very easy and 5 is very difficult. This suggests that Greek public procurement mechanisms found it relatively challenging to incorporate green criteria. Additionally, the unstable financial environment and ongoing economic crisis seem to create obstacles for GPP implementation. In times of financial crisis, doubts about the effectiveness of green procurement arise, as the public sector reduces expenditures and applies financial restrictions (Nikolaou & Loizou, 2015). However, public authorities face significant uncertainty when trying to implement GPP because of the legal complexity stemming from EU public procurement directives (Sapir et al., 2022).
In Greece, GPP falls under the General Secretariat for Trade and the Directorate-General for Public Procurement of the Ministry of Development and Investments. It relates to the procurement of items such as paper, computers and peripherals, lamps, air-conditioning units, lubricants, vehicles, and streetlamps that have an improved environmental impact through their life cycle. According to the GPP Plan, the process favors the purchase of products that minimize their impact to the environment, contribute to sustainable development and aims to be an example for the procurement models of the private sector as well. The plan of action on green procurement went into effect in 2021 (Greek Ministerial Decree No. 14900/2021, 2021) and was last updated in 2024 (Greek Ministerial Decree No. 54862/2024, 2024).
Although the legislation is in place, the key factors identified in the literature as essential for the successful implementation of green procurement in the Greek administration have not yet been. The lack of knowledge and training about GPP, the deficiency of qualified and skilled professionals and the absence of certification requirements influence negatively the expected development of GPP (Orfanidou et al., 2024).
While the Public Procurement Strategy in Greece, developed for the time period of 2016 to 2020, included provisions for “inclusive economic growth,” few of these items became actionable. This was largely due to the austerity measures imposed following the 2008 financial crisis, the delayed implementation of the strategy in 2017, and the disruptions caused by the Covid-19 pandemic during the final year of its execution in 2020. Specifically, the actions related to socially responsible public procurement were not implemented. These actions included promoting decent work, ensuring accessibility, and complying with social and labor rights, with the broader aim of fostering a commitment to CSR. The new 2021 to 2025 Public Procurement Strategy aims to reset goals for socially responsible procurement. However, no new actions had been taken by 2023 (Lamprinidis, 2023).
Ultimately, the power of public procurement and government contracts to influence corporate behavior and guide companies toward CSR has been recognized by state authorities. This is reflected in laws introduced in the 2000s that emphasized the need for a responsible public procurement strategy, followed by the development of public procurement strategies in the 2010s and 2020s.
The emphasis is placed on GPP, as it appears to have more concrete actions resulting from it than socially responsible procurement. Nevertheless, in the Greek context, the state mechanism’s pathologies—such as bureaucratic delays and nepotism—require more than just the inclusion of environmental factors in public sector procurement. In addition to environmental considerations, the incorporation of governance standards and enhanced transparency in the selection of public suppliers is crucial. Public procurement tenders would benefit from integrating environmental, social, and governance (ESG) factors, as is increasingly the norm in the private sector. An inherent double standard exists in enacting European legislation, which imposes heightened obligations on private enterprises for responsible sourcing while permitting certain public organizations to be exempt in specific cases. Furthermore, direct public contract awards, currently permitted for sums below €30,000, should include mechanisms to safeguard the ethical and social neutrality of the selected partner.
In Greece, CSR policies are primarily shaped by the regulatory role of the EU in establishing rules for the single market and secondarily by the National Strategy, which functions largely as a subsidiary to EU initiatives. The public administration does not shape social policies but serves primarily to promote them.
Results: CSR Implementation in Greek Public Limited Companies
To test the level of CSR integration into the Greek administration, we examine state-owned LLCs (according to national law the state can only create and control entities that have the legal form of a public limited company) using open data resources. Our aim is to identify any publicly disclosed information on CSR, ideally in the form of a comprehensive report, which could serve as an indicator of the company’s maturity in managing such issues.
Public administration must align with the principle of transparency and disclosure of information, in every respect. However, this objective is not always achieved in the case the state-owned LLCs in Greece. Although, according to the regulatory framework, no administrative act can be implemented if it is not previously published online (Beris & Koubarakis, 2018; Karamagioli et al., 2015), this rule does not apply to acts carried out by state-owned companies. Furthermore, the quality of accessible data is at the discretion of the administrations of state-owned companies. That is, citizens and researchers alike are not given harmonized information on the activities of state-owned companies, despite the expectation that these companies should adhere to the principles of transparency and accountability. Therefore, the research is limited to the data which is currently publicly available.
To access such data, we first accessed the most recent “Registry of Services and Agencies of the Hellenic Administration for the year 2024,” focusing exclusively on public limited liability companies clearly identified as part of the public sector. This led to a total of 60 companies. After excluding those under liquidation or permanently closed (Hellenic Center for Cinema, Audiovisual Media, and Creative Industries, Olympic Projects Construction Company, Hellenic Hydrocarbon Resources Management Company, Hellenic Horse Racing Organization S.A., Thessaloniki Urban Transport Organization, and Thermal Springs of Greece), we were left with 54 companies. We subsequently developed a database to gather information on social responsibility practices, including the publication of CSR, ESG, sustainability, or sustainable development reports; relevant governance policies; the presence of a Code of Conduct; and the company’s website details, as summarized in Table 1 below.
After reviewing publicly available information on the 54 State-owned LLCs that me the aforementioned criteria, we found that eight had published a Sustainability Report. Organizations tend to name their reports to serve their corporate branding and communication style, therefore the eight reports might have slightly different titles, such as Sustainability Report, Environmental Sustainability Report, or Sustainable Development Report, however they all fall under the umbrella of sustainability disclosure. The process of publicly disclosing evidence on how companies or organizations contribute to Sustainable Development through an annual Sustainability report indicates a commitment to CSR (Camilleri, 2017). These eight State-owned corporations are the following:
Athens Urban Transport Organization,
Central Markets and Fishery Organizations,
Corinth Canal,
Heraklion Port Authority,
Hellenic Saltworks,
Port Authority of Igoumenitsa,
Port of Volos,
Thessaloniki Main Market.
These companies span a range of sectors including urban transport, commerce and water transport (ports). However, most transport and infrastructure entities do not publish such reports. In addition to the eight entities that presented their CSR policies in their reports, another seven organizations disclosed policies related to gender equality, anti-violence and harassment at work, environmental and energy management, anti-corruption and anti-bribery, and whistleblowing. However, most companies, especially in health services, ports and infrastructure, provided no policies at all. Furthermore, six entities had a publicly accessible code of conduct.
Overall, the practices observed in these 54 public interests LLCs vary significantly and do not appear to depend strongly on the company’s main activity or sector of the economy. Some companies have developed comprehensive strategies, including publicly disclosed sustainability reports, while others focus on specific areas such as environmental management and workplace conduct. This variation suggests that social responsibility practices are still evolving within these organizations, with many in the early stages of implementation or concentrating on particular issues rather than adopting a broad, integrated approach. Although the number of public LLCs actively engaging in these practices remains a minority, the growing trend of formal policy adoption and reporting indicates that it is becoming a higher priority and may continue to expand as a central focus for these companies in the future.
Discussion
In light of the above, we might argue that Greece is dealing with the issue of implementing social responsibility practices in the public sector with a less systematic approach than what was intended by the EU call on public institutions to reform and promote sustainability and inclusivity policies. This call aims to support the implementation of the Agenda 2030 for Sustainable Development and its Sustainable Development Goals, as well as the Paris Agreement. To facilitate the achievement of these political goals the Interreg Europe (2025) program funds a wide range of regional development topics, within the framework of cohesion policy, with a budget of EUR 394.5 million for the 2021 to 2027 period. 80% of the total budget is committed to boosting the social responsibility of the administrative mechanisms of the Member States (through the policy objectives of smarter, greener, and social Europe).
In Greece, post-economic crisis reforms have made state administration more flexible and digitally oriented. Due to its limited resources, Greece’s social challenges could benefit from CSR as a strategic enabler of public social policies. As an EU member state, Greece can benchmark its practices against EU regulations and the frameworks of other countries.
The EU seems to have realized the importance of implementing sustainability policies in the public sector and Greece, as a lagging member state in this regard, should take advantage of this “wind of change momentum” for implementing structural and cultural changes. CSR is slowly gaining traction in Greek administration, though it remains underdeveloped. Traditionally, it has been associated with private enterprises, but there is a growing recognition of their relevance to the public sector.
In the area of social policy development and implementation by public institutions, there is a lack of progress, especially when compared to the more dynamic efforts seen in the private sector, particularly in the context of public procurement.
The Greek administration faces several challenges in implementing responsible business practices. The public sector remains closely tied to politics, which hampers its independence and efficiency. Corruption continues to obstruct the effective implementation of sustainability policies. Despite a shift toward a more flexible, digitally inclined public sector post-crisis, the bureaucratic approach still prevails, focusing on narrow duties and neglecting broader social responsibility.
However, the public sector holds significant potential to promote sustainable development, and public entities worldwide have undergone managerial and organizational changes to incorporate sustainability as a core value. In terms of responsible practices, the public sector plays a key role in two main areas: diffusing socially responsible initiatives and policies and implementing these within its own structures. Achieving these goals requires national policies to focus on three key areas: (a) legislative initiatives that set CSR-related standards (e.g., emission restrictions), (b) incentives that encourage voluntary CSR through financial benefits like tax breaks, and (c) strategic partnerships that foster collaboration between the public sector, private enterprises, and civil society.
The adoption of responsible practices within the Greek administration has been slow and inconsistent, influenced by deep-rooted structural issues such as bureaucracy, corruption, and economic constraints. While some progress has been made since the introduction of the National Strategy in 2014, its implementation remains sporadic and non-binding, with the public sector still primarily promoting sustainable practices in the private sector. The EU’s regulatory framework and funding initiatives could drive Greece toward a more integrated and systematic application of these principles, however, overcoming institutional inertia and resistance to change remains a significant challenge.
Additionally, the integration of GPP has faced several challenges, including a lack of skilled professionals, insufficient training, and the absence of certification requirements. These barriers, coupled with Greece’s ongoing economic instability, have made this implementation even more difficult. While legislation for green procurement has been established, such as the Ministerial Decrees of 2021 and 2024, critical factors for successful implementation are still lacking. Furthermore, the Public Procurement Strategy for 2016 to 2020 had limited success in addressing socially responsible procurement due to austerity measures and the Covid-19 pandemic.
It is worth mentioning that even though the public administration’s mission is to “serve the public interest,” due to the systemic challenges the Greek public administration faces, such as bureaucracy, politicization, lack of transparency, and corruption, its mission is hindered in practice. State-owned LLCs, while technically public and part of the public administration, often operate within market like environments and under conditions that mirror those of the private sector. Therefore, CSR can be used as a corrective framework for these public companies that operate within the market, similarly to how CSR has been implemented as a corrective framework to enhance the social and environmental responsibility of private companies. Applying CSR principles to state-owned LLCs can aid them return to the original mission of public administration, “to serve the public interest” first and foremost, not just in intent, but in practice. These companies, by incorporating CSR into their strategic planning can reestablish transparency, ethics, and social and environmental responsibility in a public facing manner. Especially, with the aid of sustainability/CSR reporting, they can present how these values are embedded in their operations and help re-establish trust with the public, as well as set the example for privately owned companies, operating within the same market.
Conclusions
While CSR is gradually being recognized in the Greek public sector, its integration remains inconsistent and underdeveloped, largely due to structural challenges such as bureaucracy, corruption, and nepotism. Despite several initiatives and legal measures, substantial obstacles persist, requiring a more systematic and integrated strategy to fully unlock CSR’s potential in advancing sustainable development and responsible governance in Greece. A more robust approach could foster socially responsible principles, contributing to a more transparent and accountable public sector that sets a strong example for responsible business practices.
In this study we first established CSR as a broad and essential concept for all types of organizations. We examined the role of public administration in promoting CSR, highlighting the ways the state can encourage its adoption. We then examined the legal context and the role of public procurement as a leverage mechanism for enhancing CSR. In addition, we explored the adoption of CSR in 54 Public Limited Companies, which revealed the cautious approach public corporate entities take when addressing CSR.
The conceptualization of modern CSR, to provide the context for this study, led to the conclusion that CSR is no longer confined to philanthropy. Indeed, it is interlinked with sustainability and responsible governance. In addition, it is supported by an increasingly formalized EU regulatory framework. CSR can now be considered both a strategic goal and a management tool, and its principles can be effective in both the private and public sectors.
In Greece, public policy has yet to fully embed CSR. The public sector is still mainly viewed as a supportive mechanism for CSR adoption in the private sector in the National Strategy for CSR. The integration of CSR into the public sector remains a relative distant reality, since current legislation, such as EU’s CSRD, is focusing on CSR implementation in the private sector.
Our study indicates that another lever of the public sector’s influence on CSR is through GPP. However, this is another area where Greece lags behind in effective policy adoption, despite the legal framework surrounding GPP, namely the Ministerial Decrees of 2021 and 2024. Barriers to effective adoption include inadequate staffing and a lack of training for that staff. The current situation renders GPP an underutilized policy tool of high potential.
The investigation of CSR related reports and policies published by 54 state-owned LLCs indicates that the number of companies operating within such parameters is still in early stages.
Ultimately, our study highlights that despite the aforementioned challenges, the Greek public administration holds a pivotal role in advancing CSR within the national and European contexts. Its institutional role affects policy implementation relating to CSR, such as GPP and CSR reporting. Through the state-owned LLCs it can and should lead by example, when implementing CSR policies in these companies. Public administration is a “mirror for society,” therefore its policies and governance models can foster a culture of transparency, stakeholder engagement, and long-term sustainability, ideas that can be found in the core of CSR.
Our article sheds light on an underexplored research area. While a few studies have focused on CSR in the public sector, none have specifically focused on the Greek case. Moreover, our approach could be replicated in other countries, offering a valuable benchmark. However, we recognize some research limitations. Firstly, state-owned corporations were not examined in depth. Additionally, conducting interviews with managers from State-owned corporations could provide deeper insights into their motivations or barriers regarding CSR integration, which could inform practical recommendations for public policymakers. Further research can focus on content analysis of CSR reports and policies or a longitudinal analysis illustrating how the companies evolve in their engagement with and adoption of CSR.
Footnotes
Acknowledgements
Not applicable.
Ethical Considerations
We confirm that all the research meets ethical guidelines and adheres to the legal requirements of the study country.
Consent to Participate
No consent was required for this study as it did not involve human participants, personal data, or identifiable information.
Consent for Publication
Not applicable.
Funding
The authors received no financial support for the research, authorship, and/or publication of this article.
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Data Availability Statement
Data sharing not applicable to this article as no datasets were generated or analyzed during the current study.