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An overview of Corporate Social Responsibility in Hungary Programme GARDE Philippe Kalfayan F.I.D.H. Secretary General.

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Presentation on theme: "An overview of Corporate Social Responsibility in Hungary Programme GARDE Philippe Kalfayan F.I.D.H. Secretary General."— Presentation transcript:

1 An overview of Corporate Social Responsibility in Hungary Programme GARDE Philippe Kalfayan F.I.D.H. Secretary General

2 Fact-Finding Mission in Hungary Time frame Charges de mission Methodology Local support Interviewees Documentary sources Report publishing

3 CSR: imposed process, approximate knowledge and confused practice A recent concept, where history is not neutral, and whose actuality is imposed Each group of players ignores the CSR globally and defends its own vision and interests The dynamic role of multinationals is verified CSR amalgamation with legal compliance and charity CSR practices are not yet adapted to local context

4 CSR Promotion and Dissemination Some targeted governmental texts –Labour and Employment –Trade ILO Office OECD – Hungarian NCP Institutional business initiatives Influence of foreign investment and companies

5 CSR practices in progress Development of codes and reporting systems (ex: Magyar Telecom) Normative but limited scope approach in social field (March 2006 resolution), ethics and good governance (Law on Trade; BSE recommendations) Influence of foreign parent companies (Tesco, Auchan, Magyar Telecom) with policy variants Very few cases of alleged violations (Suzuki, Visteon, Paks nuclear plant)

6 Limits and threats to good practices CSR remains largely driven by communication and marketing concerns Regulatory framework is weak and incomplete Self-regulation is preferred by all players, while CSR understanding by corporations is compliance with legal norms = neutralisation NGOs watch-dog mission is challenged by their current business activities Trade-unions passiveness

7 CSR: mere business logic? CSR in the hands of corporations’ communication and PR departments Limits of codes and monitoring mechanisms Business initiatives look at the competitive advantage (chambers of commerce and business forums) A new gold mine for Consultants and more arguably for NGOs

8 Conclusions and recommendations for greater efficiency CSR is defined by business players on a voluntary basis, and implemented and monitored by business. This self-regulation process is barely offset by governmental action aiming to promote the concept. CSR implementation and monitoring need to become a localised process where all the stakeholders are to be involved Government needs to set the tone by providing a unified definition and regulatory framework, incentives for good practices, and by mobilising its constitutional bodies for the protection of some basic rights NGOs and trade-unions have to play their role of watch-dog Hungarian corporations should take ownership of and adapt the CSR mechanisms and tools to the local context and turn CSR into philosophy not just a message


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