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. 
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        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
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        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.
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