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2007. március 8. - ethicalcorp.com

Central European business ethics – Hungary’s ‘boom year’ for corporate responsibility

Companies in Hungary are beginning to see the benefits of social responsibility, according to Kincső Adriány, from the Hungarian Business Leaders’ Forum
Corporate responsibility in Hungary is “getting there”, says Kincső Adriány, executive director of the Hungarian Business Leaders’ Forum. Levels of practice and understanding are broadly comparable to those in the Czech Republic, Poland and Slovakia, but reaching western European standards could take “ten, 20, even 25 years”.

One reason is mentality. “Companies believe CSR is charity,” says Adriány. “They give away money – this is the level. Meanwhile, most SMEs, the mainstay of the Hungarian economy, have no idea at all.”

But there also needs to be a generational change. Older people think of corporate social responsibility in terms of voluntary work, which has a negative association with Hungary’s communist past. “The modern concept is not understood among older generations,” says Adriány. “It is easier to change the minds of the younger generation.”

Nevertheless, steps are being taken in the right direction. “Initiatives have been building up,” says Adriány. In May 2005, seven companies including ING and Shell Hungary, created the Hungarian Business Council for Sustainable Development. The UK and US chambers of commerce in Hungary have established special sections for corporate social responsibility.
Organisations such as the Kurt Lewin Foundation and the think tank Demos are playing higher-profile roles. “Last year was a boom year,” Adriány says. “There were as many [CSR-related] events in 2006 as in the past 15 years combined.”

HBLF’s membership works through a series of project groups, focusing on typical concerns of responsible business, such as environmental sustainability, women business leaders and transparency. One area, equal opportunities, is especially pertinent because of the large Roma minority in Hungary, accounting for about 7% of the population, according to Adriány. “You cannot find them in companies,” she says.

A tiny minority of Roma – about 3% – go on to higher education. HBLF has established a long-term programme offering scholarships, mentoring and internships. The deadline for the project’s first call for applications falls at the end of March. IBM is the lead sponsor of the programme.
HBLF was founded by 11 companies in 1992; membership is now close to 100. Most members are not Hungarian-owned. Exceptions include state-owned companies, such as Magyar Posta (Hungarian Post), and Magyar Telekom, though this is now part of Deutsche Telekom. “A CSR coalition is emerging in Hungary,” says Adriány. “It is not integrated in companies’ decision making processes yet. They are in a learning process.”

 
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