More than charity – what is good CSR like?

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.

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. //