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An overview of Corporate Social Responsibility in Hungary

An overview of Corporate Social Responsibility in Hungary. Programme GARDE Philippe Kalfayan F.I.D.H. Secretary General. Fact-Finding Mission in Hungary. Time frame Charges de mission Methodology Local support Interviewees Documentary sources Report publishing.

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An overview of Corporate Social Responsibility in Hungary

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  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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