Corporate Social Responsibility - example s from the Slovak Republic

1. Priatelia Zeme Corporate Social Responsibility -examples from the Slovak Republic September 2006 Roman Havlicek Priatelia Zeme(Friends of the Earth Slovakia)

2. CSR in Slovakia • Awareness of CSR has been growing since 2000 • Very few companies inform the public about their CSR policies • CSR is often identified with charity and sponsorship • Companies use CSR as a PR tool

3. OECD Guidelines for MNEs • Government (Ministry of Economy) doesnot pay much attention to the OECD Guidelines • Very low public awareness of the OECD Guidelines • Neither trade unions nor NGOs use the OECD Guidelines • No cases have been filed with the Slovak National Contact Point (May2006)

4. NGO initiatives Only a few NGOs promote CSR • Pontis Foundation: Via Bona award, Business Leaders Forum • Carpathian Foundation: Carpathian Compact • INEKO: best annual report contest for companies

5. Mondi BP SCP RuzomberokTrade Union Case • Employees petition for higher salaries and for the designated number of employees per machine to be respected (September2004). • SCPdismissesfive of the petition organizers. • The „Papier“trade union is established (October 2004). • SCP dismisses 14 employees who founded Papier • SCP illegaly preventsPapier from accessing the factory

6. Mondi BP SCP RuzomberokTrade Union Case • Labour Ministry finds that „Papier“ has met all legal requirements and the dismissals ofthe 14 founders were illegal • The employees file suit over their dismissal and prevention of union access. • SCP files suit against the employees for defamation, asking SKK 20 million in compensation.

7. Mondi BP SCP RuzomberokTrade Union Case • Court rules the dismissals were illegal (June2005). • SCP offers to settle out of court. • Agreement reached: SCP will reverse the dismissals, all cuort actions will be withdrawn, the employees’ leader will not return to the factory, all those dismissed will be compensated for their lost wages, and the details of the agreement will not be made public.

8. Mondi BP SCP Ruzomberok “Impuls” Case • SCP long known in the municipality of Ruzomberokas a source of air pollution and bad smell there. • SCP begins reconstructing part of its plant in order to modernise and increase production (the “Impuls” project). • In 2003 a local NGO suspects the local authority issued the building permits for „Impuls“ illegally. • The NGO filessuit asking for the building permits’ validity to be postponed pending the outcome of a court review of the permit process. • Court postponesthe permits’ validity. • SCP continues to build and then operate the new construction without a proper permit. • Courts decision confirms the permits were issued illegally. • SCPoffers to settle out of court. • The NGO and SCP conclude an agreement to monitor air quality in the location. The agreement is made public.

9. Mondi BP SCP Ruzomberok - CSR • SCP has published a detailed CSR policy which covers environmental, labor, and social issues. • Anglo-American (the owner of Mondi BP) is commited to high CSR standards. • SCP is now using the “Impuls” case as a positive example of their respect forthe environment and the efectiveness of their CSR policy.

10. Priatelia Zeme Corporate Social Responsibility -examples from the Slovak Republic September 2006 Roman Havlicek havlicek@changenet.sk +421 908 96 76 33 Priatelia Zeme (Friends of the Earth Slovakia) Ponicka Huta 65, 976 33 Poniky, Slovakia foe@changenet.sk +421 48 419 33 24 http://www.priateliazeme.sk/cepa