More than charity – what is good CSR like?
According to the K&H sustainability index from the first half of 2024, both large and small companies have seen a decline in CSR engagement owing to the difficult business environment, but in the long run good CSR programmes are needed for the competitiveness of companies.
This article is available for reading in Trade magazin 2024/8-9
Executives are currently focusing on honest marketing communication and ethical business behaviour, while other social issues have taken a back seat. The main score of the sustainability index was down 1 point at 38.
![](https://trademagazin.cdn.webgarden.io/wp-content/uploads/2024/08/REF-CSR_opt-300x169.jpeg)
The difficult business environment and compliance with the new rules on environmental sustainability lead to less attention, energy and money being devoted to solving human problems
CSR issues have taken a back seat in Hungary
The biggest drop was recorded in the domain of social sustainability, where the CSR sub-index fell from 46 to 30 points in a year. Companies with sales between HUF 300m and HUF 1bn turned away from social sustainability very much, and those with sales over HUF 4bn produced a similar decline. According to Levente Suba, head of sustainability at K&H, managers aren’t less committed to social issues, but the difficult business environment and compliance with new environmental sustainability regulations entail that less attention, energy and money is being devoted to solving human problems. CSR can be viewed as a leg of the environmental, social and governance (ESG) strategy, which assists the company in meeting a large part of its environmental and social responsibility obligations.
Seven key trends in 2024
Climate action: companies aren’t only reducing their carbon footprint, but are also building new investments around renewable energy, sustainable supply chains and green technologies. In early July the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) was published, which member states have two years to transpose into their national legislation.
![](https://trademagazin.cdn.webgarden.io/wp-content/uploads/2024/08/REF_CSR-109-o_opt-PC-Kriszti-300x220.jpeg)
CSR is centred around climate actions
Social equity and inclusion: in Hungary the sustainability index shows a dramatic decline in the importance of gender equality, creating a diverse workplace and ensuring work-life balance. Elsewhere companies are recognising that a diverse and inclusive workforce isn’t just a moral obligation but also a business advantage.
Employee wellbeing: according to international research by consultancy firm Catalytic Corps, employee wellbeing will be a key CSR theme in 2024. Companies are investing in mental health programmes, flexible working arrangements and professional development opportunities.
Ethical supply chains: ethical supply chains are becoming increasingly important in CSR. Companies will soon need to ensure that their suppliers comply with ethical work practices, environmental standards and human rights principles.
It isn’t all about shareholders anymore: while companies used to focus solely on shareholders, the latest trend is to start considering the interests of all stakeholders, including employees, customers, communities and the environment.
Transparency and accountability: in 2024 transparency and accountability are more important than ever. Companies openly communicate their CSR initiatives, objectives and the progress made.
Digital responsibility: digital responsibility is a key CSR aspect in 2024. Companies are addressing issues of data privacy, cybersecurity and digital inclusion. They are using digital technologies in innovative ways to drive their CSR initiatives and engage with stakeholders. //
Sustainable Development Goals (SDGs) need to be updated
Led by Fuso Nerini, ten renowned climate scientists have called on the UN to update its 2030 Agenda for Sustainable Development, including extending the deadline to 2050 and making the targets clearer and more concrete.
![](https://trademagazin.cdn.webgarden.io/wp-content/uploads/2024/08/Takacs-Julia-CSR-Hunga_opt_c.jpg)
Guest writer:
Júlia Takács
CEO/founder
CSR Hungary
In fact halfway through the original 2030 target date, many of the 17 SDGs are on the wrong track or perhaps too slow, as COVID, adverse global economic trends and international conflicts have caused a slowdown. All this should be taken into account ahead of the UN summit in New York next September. Some goals and regions have made progress faster than others, but the majority of the world is lagging behind, particularly in the fields of climate and biodiversity. Several goals are too vague and difficult to measure. //
Related news
Sustainability of people matters the most
Zoltán Gazsi, company manager of Eisberg has shed light on the human…
Read more >Cybercrime and AI: threats and opportunities
Cybersecurity futurologist and founder of the Info/Cybespace, Trends, Buzz and…
Read more >Slowly we can make plans again
In May Trade magazin organised its BusinessMeetup&Dinner, where Szilvia Krizsó…
Read more >Related news
In August, the rate of increase in consumer prices slowed down in the euro area
In August, the rate of increase in the consumer price…
Read more >KSH: industrial producer prices in July increased by 2.5 percent compared to a year earlier and by 0.7 percent compared to the previous month
In July, industrial producer prices were on average 2.5 percent…
Read more >Baby-Mama Coupon Days at Rossmann again
For the second time this year, Rossmann organizes the popular…
Read more >