One of the most urgent sustainability challenges today is the dramatic rise in social inequalities and polarization, which also impact companies economically. Inequality is a consequence of our systems, and the solution lies in systemic transformation. Companies play an important role in this, primarily through their impact on employees and value chains. This was the theme of BCSDH’s business lunch held on October 10, 2024, which focused on reducing social inequalities and recognizing people as economic assets.

At the event, the Sustainable Future Awards were presented in four categories, recognizing outstanding leaders, leading women, and business solutions in the field of sustainability.

Budapest, October 10, 2024 – Inequality is increasing both globally and in Hungary. The wealthiest 1% of the world’s population owns 45.6% of global wealth, while the poorest half owns less than 1%. In Hungary, the top 10% of earners take home 40% of all income and 90% of capital income.

Inequality hinders social and economic development, and without immediate action, it may worsen further. Moreover, this process could weaken the results and impact of measures taken so far to address poverty, climate change, and economic transformation.

At the business lunch of the Business Council for Sustainable Development in Hungary (BCSDH), a recommendation and its associated five-point action plan were presented to help the business community take steps to reduce inequalities.

At the event, the organization, which brings together 148 member companies responsible for producing around 40% of Hungary’s GDP, presented the Sustainable Future Award for the eighth time in the categories of Change Leader, Leading Woman, Business Solution, and Corporate Transformation.

Systemic changes are needed to address social issues as well, as income, wealth, and welfare inequalities threaten the political and economic conditions on which business operations, innovation, and growth are based. Carolien De Bruin, Senior Director of Equity Action at the World Business Council for Sustainable Development (WBCSD) and a member of the Business Commission to Tackle Inequality (BCTI), spoke about the steps that can lead companies to make these systemic changes in her presentation.

“Rising inequality and tackling the ‘S in ESG’ in an integrated manner is both a material system- and business-level risk, and increasingly a regulatory requirement following the introduction of CSRD and CSRDDD, AND an opportunity to build value chains that are more resilient and ultimately productive. Collective, bold, and decisive action is needed to make this vision a reality. Through the Business Commission to Tackle Inequality (BCTI), we are investing in the solutions of tomorrow and squarely putting equity into the boardroom. We look forward to being joined by Hungary’s corporate frontrunners as we do [this],”– said Carolien De Bruin.

Companies can take steps primarily through their own employees, but they can also have an impact on three other stakeholder groups: workers in the value chain, consumers, and communities.

In his opening remarks, Attila Chikán Jr., President of BCSDH, emphasized: “The business case for reducing inequalities revolves around mitigating risks while contributing to the long-term sustainability of the economy. Reducing inequality requires coordinated action from all stakeholders—governments, companies, civil society organizations, and employees. It is crucial that people, as valuable assets, are recognized in these value-creating processes as we initiate these changes.”

It’s Time for Action! In our Time to Transform 2030 framework program, working with more than 60 company leaders and experts this year, we have collaboratively developed the following recommendation and five associated action plan proposals on the theme of recognizing people as valuable assets:

RECOMMENDATION:
Provide a fair livelihood by creating and maintaining an inclusive, flexible, and safe work environment that proactively supports development.

 

PROPOSED ACTION PLAN:

1. Pay a wage that ensures a fair livelihood.
2. Provide a safe working environment that supports the physical and mental health of employees, along with benefits and services.
3. Establish and implement flexible and inclusive employment systems tailored to individual circumstances.
4. Proactively support employees’ lifelong development and meet changing expectations.
5. Assess and extend the implementation of the above-described actions throughout the value chain.

 

How can we embark on this journey? How is the recognition of people as valuable assets already reflected in the processes of various companies? This was the focus of the roundtable discussion among company leaders, moderated by Márta Irén, Director of BCSDH, featuring Raffaella Claudia Bondi, Managing Director of Roche Hungary Ltd., Viktória Lucenko, Managing Director of Auchan Hungary Ltd., and Zoltán Mikó, CEO of Future FM Plc.

The main sponsor of this year’s Time to Transform 2030 program is Nestlé.

The sponsor of BCSDH’s carbon-conscious events is Ayvens.