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 the Business Council for Sustainable Development in Hungary (BCSDH) 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.
A BCSDH statement issued about the business lunch says that 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.
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]," she said.
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, she added.
In his opening remarks, Attila Chikán Jr., the President of BCSDH the organization, which brings together 148 member companies responsible for producing around 40% of Hungary’s GDP, emphasized that "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."
A large number of exceptional applications were submitted for the 2024 Sustainable Future Awards. The recognitions of outstanding corporate and leadership achievements aimed at achieving the Sustainable Development Goals and driving systemic change were presented, based on the decision of the professional jury, for the eighth time in the categories of Change Leader, Leading Woman, Business Solution, and Corporate Transformation. Tesco, K&H Bank, SolServices, Saint-Gobain, and Continental Automotive were the winners of the various corporate categories. Károly Nyári (Grundfos) received the Change Leader Award, while Anikó Körmendi (Arriva Hungary) and Zsuzsa Nagy (E.ON Group) were honored with the Leading Woman Award.
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