Advancing Corporate Digital Responsibility Across Central Europe: Insights from the COEUS Project

Date: 02.12.2024
By: COEUS

The Challenges of Digital Transformation for SMEs

SMEs are critical to Central Europe’s economic landscape, but their journey toward digital transformation is not without obstacles. COEUS research identified several recurring challenges:

  • Financial Constraints: Limited budgets hinder investment in advanced technologies and cybersecurity infrastructure, leaving SMEs vulnerable to cyber threats.

  • Skill Gaps: Many SMEs lack expertise in essential areas like data protection, cybersecurity, ethical AI governance, and sustainable IT practices.

  • Regulatory Compliance: Complex regulations such as GDPR, the Digital Services Act (DSA), and the Digital Markets Act (DMA) pose compliance challenges for SMEs.

  • Cybersecurity Risks: Inadequate defenses make SMEs attractive targets for cyberattacks, such as phishing and ransomware.

  • Resistance to Change: Cultural inertia and unfamiliarity with new technologies slow the adoption of innovative digital practices.

Opportunities Through CDR Adoption

Despite these challenges, adopting CDR offers SMEs significant benefits:

  1. Building Trust: Ethical and transparent practices enhance customer trust and investor confidence.

  2. Boosting Efficiency: Implementing sustainable and secure digital tools streamlines operations and improves decision-making.

  3. Ensuring Compliance: Proactive CDR strategies help SMEs align with evolving regulations, mitigating risks.

  4. Enhancing Sustainability: Green IT practices reduce environmental impact, aligning businesses with broader sustainability goals.

Insights from the COEUS Assessment Tools

As part of the project’s first phase, COEUS developed two key tools to assess SMEs’ digital needs and skill gaps:

  • Digital Corporate Responsibility Assessment (DCRA): Conducted across six Central European countries with 170 SMEs, the DCRA revealed that while awareness of CDR and GDPR is widespread, understanding of regulations like DSA and DMA remains limited. Cybersecurity preparedness also varies, with many SMEs lacking comprehensive measures.

  • Education Need Score (ENS): This tool quantitatively measures knowledge gaps, highlighting the most pressing areas for training, such as ethical AI practices and compliance with new digital regulations.

Empowering SMEs Through Targeted Training

The findings emphasize the need for tailored training programs to address these gaps. COEUS is developing a comprehensive curriculum to equip SMEs with critical skills, focusing on:

  • Cybersecurity fundamentals.

  • Ethical use of AI and data.

  • Sustainable IT practices.

  • Navigating regulatory frameworks like GDPR and DSA.

These programs aim to ensure that SMEs not only meet current digital demands but are also prepared for future challenges.

Supporting Stakeholders: The Role of PAs and BSOs

Public Authorities (PAs) and Business Support Organizations (BSOs) are key players in helping SMEs adopt CDR practices. To fulfill this role effectively, these stakeholders need specialized knowledge in:

  • Cybersecurity protocols and risk management.

  • Regulatory compliance with GDPR, DSA, and emerging AI legislation.

  • Sustainable digital governance and ESG-aligned practices.

  • Stakeholder engagement and strategic planning.

By partnering with COEUS, these entities are actively shaping a supportive ecosystem for SMEs’ responsible digital transformation.

Building a Responsible Digital Future

The COEUS project is more than just a training initiative; it is a call to action for SMEs, stakeholders, and policymakers to collaborate in creating a digitally responsible future. Through targeted training, stakeholder engagement, and alignment with evolving regulations, COEUS is paving the way for a competitive, sustainable, and ethically driven digital economy in Central Europe.