145x Filetype PPT File size 0.61 MB Source: www.responsibility.cz
CSR in the EU 10 • Post - communist countries have no social background that would be supportive of CSR. • CSR is driven by multinationals coming to the New EU Member States. 2 CSR as a concept is driven by large foreign investors (corporations) • Every year around USD 25 billion in Foreign Direct Investment flows into the CEE region. • The share of foreign affiliates in each host-country is very high in the EU -10 (e.g., in Hungary - more than 50%, Czech Republic 40%). • FDI changes social structures, the physical landscape, and the whole economic climate (there were 1 873 greenfield FDIs during 2002 -2004 in the EU – 10). Source: UNCTAD World Investment Report 2005. 3 Investors don’t take CSR seriously Holistic approach is missing. •“CSR is not an optional "add-on" to business core activities - but about the way in which businesses are managed. • Businesses need to integrate the economic, social, and environmental impact in their operations.” Communication from the Commission, COM(2002) 347 final 4 Investors don’t take CSR seriously Business solutions come first CAUSE: • Securing investments is investors' only priority. Environmental and social aspects do not warrant sufficient importance during decision- making. EFFECTS: • Conflicts with the public interest • Frequent illegalities during approval procedures • Corruption • Irresponsible demands towards governments 5 Investors don’t take CSR seriously CSR becomes a part of corporate governance only after the investment is secured. CAUSE: Superficial implementation of companies' CSR policies. EFFECTS: • Multinationals don't inform the public about their CSR policies. • CSR used only for PR purposes. • Local management not properly trained to understand CSR: - Illegalities and breaches of companies' CSR policies. - Philanthropy only. • No open dialogue exists between multinationals and civil society or other stakeholders. 6
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