Setting an Example

A pioneering role in CSR

Recently appointed head of the press and information department of Pannon GSM Zrt, Emese Majorosi comes from the pharmaceuticals sector where she gained broad experience in sales, marketing and communications for the past 12 years. Prior to her appointment, she was PR manager for AstraZeneca Kft and vice chairman of the Swedish Chamber of Commerce in Hungary. In her new position, she is also responsible for further strengthening the company's extensive corporate responsibility activities.

Mistake CSR for charity

According to Majorosi, Pannon, as a large international company, has to take a pioneering role in CSR and CR activities. Indeed, the company has an extensive scope in such activities: In 2006 alone, Pannon spent some Ft 200 million on community affairs. The company is not only engaged in certain CSR actions such as donating life-saving equipment to hospitals and supporting flood victims, but has a long-term CSR and CR strategy integrated in everyday operations. In Majorosi's opinion, however, companies in Hungary still have a lot to learn about CSR and CR, as many of them simply mistake CSR for charity. Just after this interview with reporter Patricia Fischer at Pannon headquarters in Budaors was held, Pannon hosted its ninth Pةldakةp Foundation awards at which a school's education manager, a woman supporting homeless youth, and a volunteer doctor were honored by the company. What follows is a translated and edited version of the interview.

Responsible business attitude

Q: Pannon is known as one of the most active among those companies taking on corporate social responsibility. What are the company's principles in this area?

A: First of all, I would like to distinguish corporate responsibility from corporate social responsibility. Although the two things are well integrated, these are actually two different areas that in Hungary are usually considered synonyms. In my opinion, it is very important for companies that, besides being engaged in CSR activities, they present a responsible business attitude, which is basically the description of corporate responsibility. This responsibility covers several activities of the company: economic, financial, marketing affairs, as well as logistics and HR activities. At Pannon, the corporate responsibility appears in everyday operation. I think that a company can only be authentically and truthfully socially responsible if it acts responsibly with its employees, too.

Environment-conscious attitude among employees

Q: Can you mention examples of the company's corporate responsibility?

A: We try to exhibit our responsibility several ways. For instance, we launched a program that aims to urge our employees to a more environment-conscious attitude.
A concrete example: We use glass-bottled mineral water within the offices instead of the plastic-bottled ones - thus subtly encouraging those who come to our offices for meetings.

Another goal of ours is to create a "paper-free" office environment by the end of next year by minimizing the use of paper-based administration, thus saving lots of trees. I know that we are only a very small part of the big picture, but being a large company, we would use a great amount of paper if we did not pay attention to this. We introduced this program last August. Now, we already use both sides of the paper when printing and we use recycled paper. In addition to using recycled paper, Pannon will also reduce paper consumption by encouraging the use of electronic applications in daily work. In our shops, we use only biodegradable plastic bags and environmentally friendly paper bags.
I think these are small but very important steps that show our commitment.

CSR foundation

Q: You mentioned that your HR strategy also complies with the company's corporate responsibility.

A: Yes, Pannon pays special attention to this area. We are working on the development of a special software enabling us to offer jobs in our call centers to the visually impaired. Pannon will move into a new headquarters in the near future, and the new building will entirely be accessible for the disabled and introduce an entirely new way of getting our work done - environmentally, ergonomically, etc..
We also draw our employees into our CSR programs. For the company's Pةldakةp (or "role model") Foundation, we encourage our employees to nominate candidates for the award.

Q: How does the foundation operate, and what are its main principles?

A: Launched three years ago, the Pannon Pةldakةp Foundation distributes three Pةldakةp Awards every quarter. Awardees get a statuette, a certificate and Ft 1 million each. Award winners are selected from nominees by the foundation's board of trustees.
According to several surveys and studies, Hungary is perhaps the most pessimistic and unhappiest place in our region, Hungarians show little or no trust in each other and have no confidence in their future. We established the foundation to draw public attention to these natural born community leaders: people who defy the pessimistic trend and choose to serve others selflessly, and professionally. We believe that we can help Hungary become a more trustful and optimistic nation by allowing the public to learn about them and their efforts. Real heroes and role models live among us, but they are usually not known by many people. Pannon Pةldakةp Foundation has the mission to find and support these everyday heroes, that is, ordinary people who have the courage and strength to go beyond their own interests, share the problems of others and make daily sacrifices for them. They are willing to share what they have with others. The Foundation wants to provide them publicity and financial support, thank them for their efforts and present them to all Hungarians, and especially young people as role models to follow.

Collecting used mobile handsets

Q: Are there cases when CSR actions also serve business interest?

A: As part of the "close to nature" initiative, Pannon collected used mobile telephones, and rewarded the nature awareness of its customers. At the end of this cause related campaign Pannon handed over thousands and thousands of phones thus collected to a professional electronic waste recycling organization thereby ensuring that telephones destined for the garbage bin do not pollute the environment. During the campaign, Pannon encouraged the return of used telephones by granting a credit of Ft 5,000 to be cashed through a new subscription and by purchasing a new set. Pannon has been collecting used mobile handsets through its retail network since March 2004, even before it became a legal obligation. To promote the safe disposal of batteries, customers can now return these units directly to Pannon shops. The containers installed at these locations collected a total battery and dry cell volume of 98 kilograms and 719 kilograms in 2004 and 2005, respectively.
I think this is a very good example to show how business interests and an environmentally-conscious attitude can be integrated.

Towards a conscious and responsible business attitude

Q: It seems that Pannon takes upon a pioneering role in corporate responsibility and in corporate social responsibility alike.

A: Yes, in my opinion, a company of Pannon's size has an obligation to set a positive example. The main message of our activity is to move companies from mere charity towards a conscious and responsible business attitude.
Together with several large Hungarian enterprises, we declared June 1 to be Corporate Responsibility Day. With this initiative, we want to highlight the major role assumed by private enterprises in Hungary's social landscape alleviating social problems and supporting culture and non-governmental organizations far beyond their tax payment duties. Nevertheless, the current interpretation of the media law makes it difficult for companies to generate publicity for such efforts and even sanctions them for doing so. Those behind the initiative want to promote changes to make regulation better serve the interests of Hungary as a community. I think the positive attitude from the media's side will accelerate these changes.

Long-term CSR strategy

Q: In general, how would you describe the CSR activities of companies in Hungary?

A: Corporate social responsibility is still in its early stages. Many companies mistake CSR for charity; the latter is very important, too, but a long-term CSR strategy which is integrated into the company's everyday operation has longer-lasting results. In my opinion, although many companies have started to realize the importance of a well-considered CSR strategy, it will take at least five years before we can say that we are in the right path. Although I consider it as a positive result that by today, not only those companies who, say, have an activity that might pollute the environment are getting engaged in CSR activities but others, too. So CSR is not "compensation" from the companies any more but is becoming more and more of a strategic activity.

This article was published in Budapest Business Journal, March 19-25, 2007. Corporate Social Responsibility supplement