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Corporate Social Responsibility in Companies and the Civil Sphere -with Special Focus on Denmark and Hungary Master Thesis Author: Kata Dimény, (284647) MSc. International Business Advisor: Jens Kaalhauge Nielsen Aarhus School of Business University of Aarhus Department of Management Aarhus, Denmark, 2009.

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Page 1: Corporate Social Responsibility in Companies and …pure.au.dk/portal/files/7434/master_thesis_kata_dimeny_…  · Web viewCorporate Social Responsibility in Companies and the Civil

Corporate Social Responsibility in Companies and the

Civil Sphere -with Special Focus on Denmark and

Hungary

Master Thesis

Author: Kata Dimény, (284647) MSc. International Business

Advisor: Jens Kaalhauge Nielsen

Aarhus School of Business

University of Aarhus

Department of Management

Aarhus, Denmark, 2009.

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Abstract

In my thesis, I would like reveal on topics which are related to company-civil

sector relations and corporate social responsibility. I will let insight into the notion and

current debate of civil society and civil capital. I will give examples through different

researchers’ opinion, about the different determinations, models and concepts. Emerging

importance of civil society should be considered as possibility for individuals to meet

their social needs through civil society organisations. The state and the civil society

cannot exist without each other. None of them is better, that the other. Civil society has

intermediate role between households and the state.

After civil societies I will talk about

non-governmental/non-profit-orientated/civil/third sectorial/self-help organisations. I

will show that these terms are synonyms of each other in many cases; just the approach

is different, from where we see them in different situations.

In the next part, I will show the historical and organisational development of

Danish and Hungarian civil spheres. The difference is recognisable not just in the past,

but also in the present.

After then I am going to examine company-civil organisation relationships with

special focus on corporate social responsibility (CSR). According to my research, CSR

is a managerial asset which has many direct and indirect favourable advantages on the

company and of course on the environment and other stakeholders. I will show some

critics of CSR also and the role of CSR during crisis.

In the last session I am providing data about my own research, I implemented

among Danish and Hungarian companies and civil society organisations. The

questionnaire-based research will certify my hypothesis, namely that Danish company-

civil society organisation relationships are more developed and well-operating, than

Hungarian company-civil society organisations’ relations.

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Table of content

Abstract.........................................................................................................2

List of tables..................................................................................................6

Part One

Introduction...................................................................................................7

Purpose of the Paper......................................................................................8

Problem Formulation.....................................................................................8

Structure of the Paper....................................................................................9

Part Two

NGOs as core components of Civil Society................................................10

Concept of Civil Society......................................................................10

NGOs’ role in Civil Society.................................................................14

Part Three

Definitions for Non-profit-oriented Organizations.....................................18

Economic Approach: The Non-business sphere.................................18

Scientific approach: Non-profit-orientated organizations –history and

what does the term mean and refer to.................................................19

Non-governmental Organisations (NGOs).........................................20

Organizational Approach: Non-governmental Organisations............21

Non-profit or Non-governmental? What is the difference?................26

Overview about the Danish and Hungarian Non-profit sphere..........26

The history and development of the Danish non-profit sphere. .26

The Danish Foundation Sector...................................................28

Danish NGOs.............................................................................28

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The history and development of the Hungarian non-profit sphere

.....................................................................................................................30

Part Four

Relationship between Non-profit-orientated Organizations and Companies

.....................................................................................................................32

Public Affairs......................................................................................32

Issue Management..............................................................................32

Sponsorship and Donation..................................................................32

Part Five

Corporate Social Responsibility..................................................................35

The use of CSR for the different units of the company......................35

Public Relations (PR)...................................................................35

Marketing.....................................................................................37

Relationship between Identity Salience and CSR on

Consumer behaviour............................................................37

Human Resources........................................................................39

Advantages of CSR generally......................................................40

The Effect of Financial Crisis on CSR...............................................41

Critics of the CSR as the Best Way for Companies and Firms to Be

Socially Responsible...........................................................................42

Part Six

Own research about Danish and Hungarian Company-NPO/NGO relations

.....................................................................................................................44

Danish companies’ answers’ review...................................................44

Hungarian companies’ answers review..............................................45

Danish civil organisations’ answers review........................................46

Hungarian civil organisations’ answers review..................................46

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Conclusion of the research..........................................................................47

Part Seven

Conclusion...................................................................................................48

Bibliography................................................................................................50

Appendix.....................................................................................................55

1. Questionnaire for Companies...........................................................56

2. Questionnaire for the Civil Sphere...................................................58

3. 2008 Corruption reception Index......................................................60

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List of tables

Table 1.: Organisations in Civil Society.....................................................15

Figure 1.: Five Criteria of the Non-profit Sector.........................................19

Figure 2.: Funding Flows............................................................................23

Figure 3.: Advantages of CSR.....................................................................34

Figure 4.: Conceptual Framework...............................................................37

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Part One

Introduction

The Nobel economist Milton Friedman provides us an interesting insight he had

about the “schizophrenic” tendencies of business leaders: “When is comes to their own

business, CEOs look long time ahead, thinking of what the business id going to be like

five to the years from now. But when they get into the public sphere and start going into

the problems of politics, they tend to be very short-sighted.”1

The above mentioned tendency did not stop to be exist totally, but fortunately more and

more members of the business sphere are recognising the emergent issue of global

warming, ethical-operating through they focus their concentration on corporate social

responsibility as a managerial asset in the hand of enlightened CEOs.

The company’s long-term objectives can be aimed just if managers consider the fact that

their company is the part of the environment and not a dominant unity, above it.

CSR is an asset, which helps to harmonise the company’s charity initiatives, offering,

sponsoring, the employees’ voluntary actions. All these things should be organised into

one single system, in order to be really effective for the company and for the supported

issue as well. In case of inordinate, not harmonized actions, each good-intention-guided,

socially awareness gestures can be lost. For high efficiency, a transparent and clear

CSR-strategy is needed and the communication of all these activities towards

stakeholders.

1 Friedman 2006

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Purpose of the paper

I decided to write about the topic or CSR in my thesis, not just because CSR and

NGO-company relations are emerging and relevant topics nowadays, party because of

the revival of civil society and partly because some researchers consider CSR as a

possible solution for companies to survive the period of financial crisis and not just

survive, but get out of it as winners. I also choose the topic because I have personal

interest in Public Relations and Corporate Social Responsibility activities. Soon I would

like start working in these directions, as a member of the PR department of company, or

corporate communication link between e.g. Hungary and Denmark, in a Danish

subsidiary in Hungary or the other way. I believe I have the ability to coordinate and

manage issues, related to PR and communication. Of course after school years in a

workplace people are still learning. I know my obstacles, but I know how to beat them. I

know that by writing this paper I will get a big step closer to may aim, and to understand

this field of business.

Problem Formulation

My hypothesis is:Danish company-civil society organisation relationships are more developed and well-

operating, than Hungarian company-civil society organisation’s relations, and they bring

more value both into the society and for the company.

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Structure of the paper

I aimed to follow a structure of an academic paper, which both theoretical,

methodological, and practical parts of discourses. For the civil society discussion I

found great scientifically deep essay-bouquets in the book Civil Society and

International Development. After this theoretical part, I changed the intonation of my

paper and I turned the line discussion into more stable organisational, economic and

institutional approach of those association, I mentioned in the civil society part as well

as later, in other parts. I worked from books, journal articles, reports and web pages.

Sometimes I found myself in deep water, and I stuck for sometime, and I gave time to

myself to recognise and solve my problem, e.g. by the examination of NGOs more

close.

Besides many American scientists’ work and a Spanish researcher’s article (in

English) I read Hungarian political researchers’, economists’ and sociologists’ work on

the topic CSR. I found a really nice book, called CSR, which approach the topic from a

new view and it can be considered as a handbook for companies how to be socially

responsible.

The final part of my thesis includes my research I implemented among Danish and

Hungarian companies and civil society organisations.

I built up my thesis according to this structure consciously, in order to follow

some kind of difficulty-line from the theories until the research part and to give the joy

of wide range of structural variety to the readers.

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Part Two

NGOs as core components of Civil Society2 Concept of Civil Society

There are lots of different theories and models about civil society, and about what

the term exactly covers. The boundaries are blurred and different experts of this topic

express different logical links, where we can set the line, what civil society means

exactly and what its functions, components and importance are. According to the OECD

Development Assistance Committee (DAC), “Civil society is central to discussions of

democratisation, the rule of law, human rights. While familiar in substance to aid

operators for a long time, the notion of ‘civil society’ has acquired a new dimension in

the context of governance and democratisation.”3 DAC and other sources talk about the

revival of civil society, more than invention. They claim, that for a healthy, well-

working state-private sector relationship and for development-participation-governance

linkage, a strong civil society is needed, where women play an important role, and with

the co-operation of civil society and the private sector, necessary reforms are

implementable in the political and economic system.

The theoretical debate around civil society is significant and complex. Some of

the researchers still have not accepted it, like Adam Seligman, who says, that in the

revival of civil society the concept means different things to people with different

perceptions, attitude, culture, lifestyle and in the end there is nothing else, just a big

ambiguity and confusion. Andrew Arató and Jean L. Cohen, political researchers claim

that the concept of civil society is useful both theoretically and practically. Their

problem is with the transformation of the way how modern societies perceive

themselves, and they also think, that the constant changing of political culture is the

reason of the re-emergence of civil society’s current discourse.

To give examples to the lack of consensus about the meaning of the term civil

society, now I cite some political and social researches about their concepts. According

2 Bernard et al. 19983 Bernard et al. 1998, p. 11.

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to Giovanni Agnelli, “Civil Society is the key element, the meeting of autonomous

subjects of the State and its institutions, united not only by values and cultures, but also

by the desire to act conjointly and to assume the specific responsibilities in projects of

general interest”4. In his opinion civil society includes all voluntary associations,

cultural and research institutions, local community organisations and representative

bodies of business sector and private enterprises. And here comes the confusion:

namely, the private sector is not obviously always part of the civil sector, because it can

lead to chaos about the role of civil society in trade and economic cooperation issues.

In my view two of the most reasonable definitions belong to Fredrik Uggla and Alex

Hadenius, who define civil society as “a public space between the state and individual

citizens where the latter can develop autonomous, organised and collective activities of

the most varied nature”, and to Cohen and Arató, who claims, civil society locates

between the state and the economy, and such important spheres build it up as family,

voluntary associations, social movements and public communication. They exclude

political and economic society, because these include management, conquest of power

and production. The reason why it is so difficult to indentify the term is that civil society

nowadays faces the challenge to harmonise traditions and modernisation at the same

time, and functions as

mediator,

countervailing power

vehicle for citizens’ participation

promoter of social equality and cohesion

to contribute to community

promoter of socialisation and learning

stimulatory of plurality

creator of social capacity

And now we have to mention, what civil society should not be:

old corporate system

moralist, romantic concept of communitarianism

nationalists’ and fundamentalists’ instrument to bring new demarcation lines and

cleavages in our society

system, which is not able to articulate the needs of those, who need it

4 Bernard et al. 1998, pp. 12-13.

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just a new concept

I think it is also interesting and important to mention that women play a more and

more important role in civil society, many of the activists and leaders are women from

urban renewal associations, which support poor, disabled or underprivileged children.

The number of women is rising also in the field of politics and private or international

organisations. It is because women have lateral thinking about everything, which was

ruled before men, who were following mannish ways of managing programmes and

people.

Civil society is also a key element, how to transmit tension between the social and the

individual, between the public and the private, and between private interests and public

ethics. There are three prerequisites, which create the right environment for civil society

by stable political order:

a constitutional democratic regime, which is liberal in nature: Basic

constitutional liberty covers equal liberty of conscience, separation of state and

church, and rejections of serfdom and slavery once and for all. But not all civil

society formations in constitutional democracy contribute to the regime. But

civil society can never replace the state, not the state civil society. Liberal

constitutional democracy’s shared political values must be defended by the state.

In order to create good life, which normally include lifestyle, religion, cultural

preferences and conception of good; civil society should encourage the shared

political values’ education. Education is inevitable for building the needed

preconditions for social cohesiveness, also across multi-cultural diversity. People

should know e.g. the existence of liberty of conscience.

specific socio-economic factors: The economic development level of the society

determines the organisational, cultural and social prerequisites of sustainable

democracy. Effectively operating democracies are always understood as socio-

economic, modern democracies with a market.

specific socio-cultural factors: For the viability of civil society, co-operation

must be present. Elements of the civil society -the civil capital- has to be in

possession of trust, which lubricates co-operation. “People who co-operate are

people who trust.

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And there are two main questions about civil society, modern societies are confronted

with:

1. “How can we conceive a stable political order, based on principles and values

that can be shared by all members of society and that create social unity?”

2. “How can we constitute a sense of community among social actors who are

conceived of as autonomous individuals, acknowledging pluralism as well as the

fact that men as women are motivated by two divergent and contradictory

principles: those of altruism and egoist?”5

To understand these questions better researchers assign a civil society as an

environment, which is between the state and households, or with other words private

sector and government; and which gives possibilities of social self-organisation and

concerted actions. To the civil domain traditional civic institutions belong, like schools,

foundations, churches, voluntary organisations and public-interest organisations. As to

the activities around these institutions, we should mention mosques or synagogues,

attending church, doing community service, being a member of a club or contributing to

a charity. Civil society is based on and accentuated always in some kind of pluralism: it

is the ground of differences, where civil society can exist only with a substantial degree

of tolerance. In the multi-cultural civil society there are two models, who and how much

immigrants should assimilate to the new state and culture they encounter. The first is the

assimilationist model, when integration requires complete adjustment to the norms and

adaptation of the new culture and values. Assimilation is seen as an important part for

political stability. The other model is the pluralist model. It assumes a pluralistic and

more tolerant policy, and allows immigrants to maintain different aspects of their

national, ethnic heritage, such as dress, food or religion. Civil society’s of Denmark

exists totally multi-culturally and adopts the pluralistic model with immigrants. It is the

same in Hungary, but with less tolerance from the private sphere, because it is still not

common to have immigrants as a big percentage of the population.

NGOs’ role in civil societyNGOs are seen as much more reliable and efficient sources for foreign aid,

because of the growing mistrust in inefficient developmental state, and the unequal

market. NGOs are built up by social capital, which is a collective entity, the ‘cement’ 5 Bernard et al 1998, p. 28.

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that makes individual persons part of a group, and create trust among them. In civil

society, if social trust exists, spontaneous sociability and collaboration prevail.

Economies with this treasure function better, because co-operation is easier and the cost

of transaction is lower. Besides revising political performance, social capital can also

improve economic performance. But not all types of civil society are useful and nice.

The next qualities of civil organisations must be taken into account:

autonomy

organisational upgrading

inclusion

inter-segmental affiliation

internal democratic structure

horizontal affiliation

This is the list of ideal conditions; if which, having reached a substantial degree, it

is most possible that civil society will be able to stimulate political democracy. But we

have to mention also that a history of a country or an area also influences the stimulating

impact of civil society: with an open and plural political past civil society can flourish

and operate democratically, while in those areas where predominant institutional

structure had been existing for decades/centuries, strong constraint was placed on the

democratically functioning civil sphere’s evolution. The state can also contribute to the

flourishing civil society, even with not direct support to associations. E.g. it can propose

supervision and regulation in order to avoid corruption and inadequate practices within

independent organisations. Universalistic ethic-lead legal system and bureaucracy

provide fair conditions for civil society, but unfortunately most of the states in the world

are not like this. If we examine corruption in the two countries I compare in my thesis,

according to the survey of Transparency International among 2008 (see appendix 3),

Denmark is on the first, Hungary is on the forty-seventh place from the examined 180

countries, if we start the list with the least corrupt country.6

One way of strengthening civil society is to focus on independent organisations,

but this is not the only way. Instead of direct help, providing ‘infrastructural help’ would

create more favourable conditions to horizontal, popular organisation and co-operation.

E.g. the delivery of goods is considered as short-term help, but to get the state to make

6 Transparency International 2008

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free itself from society and to strengthen its role as the independent activities’ facilitator

organisations can gain advantages. Support for civil society should not be limited to

operating with some independent organisations, but it should also consider their

organisations’ problems and prospects in a dominant institutional environment.

An important institution of civil society is the media. Pluralist media is able to

provide civil society through a channel to express grievances and demands. It can

diffuse information about good experiences and it can grant an important area for civil

society’s organisations, from which the NGOs’ and networks’ role is getting more and

more important.

Obviously NGOs are effective and efficient institutions, and they have favourable

effects on economic and social development, and nowadays they have an increasingly

big ability to stimulate democratic change and stability. Relations between the state and

NGOs are not necessarily antagonistic any more. Nowadays co-operation and mutual

recognition describe their relationship. Generally, arguments for “more state” or “more

market” are no longer obviously seen as ideological support of one of these two global

camps (socialism or capitalism). Arguments include now a positive third approach, the

strengthening of civil society. NGOs and governments cannot exist without each other;

neither of them is better or more useful, than the other, they can build equally good

governance and good life. Governments’ policies cannot be implemented successfully

without the civil society’s support and at the same time NGOs can meet their aim only if

they are able to influence governments to accept their proposals and ideas. To be an

influential factor, NGOs have to prove their proposals’ social relevance, or some kind of

interconnection between their goals and social interest. If NGOs are not able to do so,

they will be always seen as pressure groups, who try to force the government to consider

their private interests.

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On the following table, we can see the organisations in civil society, according to

their characteristics and function, and NGOs’ place in civil society:

Organisations in Civil Society Defined by Characteristics and

by function

Organisations in civil society defined by what they do

Service delivery organisations

CSOs: policy-oriented organisations

Advocacy (promote system reform)

Policy impact (advance own agendas)

Organisations in civil society defined by what they are

NGOs: professionally run organisations

Family planning agency, international relief agency

Human rights group, public policy think tank

GROs: accountable membership organisations

Water users’ associations, forestry users’ group

Mayors’ associations, environmental group

Farmers’ association, chamber of commerce

CSO = civil society organisationGRO = grassroots organisationNGO = non-governmental organisation

Table 1.: Organisations in Civil Society7

As the table shows, under the term civil society’s organisations we understand

non-governmental, non-profit, third-sectorial organisations. It is important to support

and undertake development of local institutions, which work independently in their area.

Bilateral agencies started to support Northern NGOs in the mid-1960s, and the

enthusiasm to support NGOs continued to grow during the 1980s, because the voluntary

organisations focused on development issues, and they had the advantages such as

informality, flexibility, commitment and participatory style. But then at the end of 1980s

OECD, Asian Development Bank and World Bank reports disproved that NGOs have

special ability to work effectively with the poor. In this part NGOs include membership 7 Bernard et al 1998, p. 66.

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groups, community-based organisations, self-help groups, grassroots organisations and

neighbourhood associations, and also here civil society includes NGOs, NPOs, informal

organisations and self help groups.

“NGOs are professional, non-profit, non-membership intermediary organisations

which are independent of the state and which undertake a range of activities in order to

further development objectives.

Grassroots organisations are membership organisations which are also

independent of the state. The risks, costs and benefits are shared among the members,

and the leadership and/or management are accountable to the membership. Most are

non-profit organisations, but some operate as co-operative commercial enterprises.”8

NGOs play a specific role among the state and civil society organisations, because

they wish to be supporters of civil society’s all kinds of existence and to bring civil

society and the state together in order to re-align their relationship, and they do it to get

an outcome from the re-alignment, which is the most similar to their own objectives for

development. In lots of countries, NGOs have a hard time to force the state to be more

inclusive of different groups and more accountable. NGOs are more active in those

countries, which have some emergency issues, or where people are under a hostile

authoritarian regime. In an emergency they provide relief, while in the second case

NGOs are ‘safe heavens’ for citizens, who otherwise would join political organisations.

Some civil society organisations have close or even direct relations with the

market. A strong, well-operating market sector supports organisations of civil society by

broadening the number of institutions, which are involved in civil society issues and by

providing further sources of funds. Market organisations and civil society have common

interests in assuring that government functions truly and with reasonable effectiveness.

8 Bernard et al 1998, p. 83.

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Part Three

Definitions for Non-profit-oriented OrganizationsEconomic Approach: The Non-business sphere9

If we talk about the economy, and its actors, everyone thinks at first about

business enterprises. But as to consider the size, social weight and the number of

economic actors, the non-business and non-governmental sectors play at least as

important role as the business sector to satisfy social needs.

It is obvious that the government’s role is important for the stable, permanent

development, but the science, politicians and the public were always interested in and

argued about, how big role should the government play in the non-business sector.

In the old times, before the II. World War, in the period of the economic crisis, and

during the recovery, the government had much more significant role not just in the

business life, but also to reduce social inequities. However later on it became clear, that

the labour-division between the business and non-business sector, and the degree of the

government’s role should be reconsidered.

The profit-orientated and the non-profit orientates sphere differ from each other in many

points. They have different aims, organisational structure, stakeholders. The question is

that which organisations and why we categorize to the non-business sector.

If we look at the aim of the organisation’s activity, we can differentiate three sectors:

I. sector: business sphere, where all the profit-orientated enterprises are

II. sector: public sector, which contains all the organisations, which act in the field

of civil services

III. sector: civil sphere, the self-organised units of the civil society, basically not

budget-financed organisations

The II. sector together with the III. sector create the non-business sector, but in

this case the public suppliers and churches can not be classed and it is not compatible

with the internationally accepted departmental classification system.

9 Dinya et al. 2004 pp. 21-31.

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We can consider the classification above as a starting point, but it is more

practical to examine the organizations not just according to their activities’ aim, but also

according to how the society uses the final result of their activities. In this case we can

differentiate four kinds of sectors:

I. Companies (Business sector): those organisations, who act in order to realize

profit and the goods, which they produce, will belong to the private goods’

sphere i.e. consumers will pay for them the market price.

II. Public Organizations (budget sector): those actors of the economy, who

satisfy collective needs with their services. Their aim is not to realize profit, but

to satisfy the given needs. It is a public and political decision that which services

can be classed into this sphere, because the government finance these services

from the budget, consequently Public Organizations supply public functions.

III. Public Operations (public operations sector): special actors of the economy,

because they supply collective needs with their activities, but these activities are

just party financed from the budget, because these goods are affordable goods.

Their aim is the profitable operating and possibly profit realizing.

IV. Civil Organizations (non-profit sector): those organizations, which supply

individual interests, but these interests are financed not by the consumers, but by

other actors of the society. Accordingly their activity is not for profit-realizing,

but it is for the public and the produced goods belong to the public goods.

The Public Organizations, Public Operations and the Civil Organisations

altogether frame the non-business sector. This approach gives more accurate picture

about which organizations and why they belong to the non-business sector.

Scientific approach: Non-profit-orientated organizations –history and what

does the term mean and refer to?10

The word, non-profit is spread in the West-European and American scientific

language in the 1980s. At the different nations, there are many different appellations and

contents of this sector, according to the countries’ own conditions, organizations and

legal statuses.

10 Bartal 2005 pp. 41-42.

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The civil, voluntary, non-governmental, third sector terms are the synonyms of

the same notion, because they are the different explanational variances or the same

notion, according to what is important for the notion-user. In some extends the non-

profit sector is narrower, but in other extends it is wider category than the definition of

the civil society but in the recent years this difference slurs between these two terms as

well.

The international non-profit literature defines in five points the criteria of

belonging to the non-profit sector:

Figure 1.: Five Criteria of the Non-profit Sector11

The non-profit organizations also public benefit organizations, because of their

aims and principles of activity.

According to Bartal (2005) we can define the non-profit organizations by legal,

scientific, statistical and social-economic statistical definitions, but in my thesis I deal

with economic and scientific definitions.

Non-governmental Organisations (NGOs)

The non-governmental Organisations are individual’s organisations, which

structures’ are out of the structure of governmental frames. NGOs can be formed against

11 Bartal 2005, pp. 41-42.

CRITERIAS

HARD CONDITIONS

SOFT CONDITIONS

SELF-GOVERNING

VOLUNTARITY

INDEPENDENCE FROM THE GOVERNMENT

PROFIT-NEUTRALITY

INSTITUTIONALIZATION

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the government’s rule of law or to deal with issues, what the government does not want

or can not deal with.

The main characteristics of NGOs are:

They do not have power function of public issues and they are independent from

the government

They are formed by private or mixed initiation

They can pool members with different citizenships

They are formed through self-organising, voluntarily

They operate mainly on humanitarian, social, cultural, development,

environmental, and human rights fields

Usually non-profit orientated

For some of their activities, they can get governmental support

Organizational Approach: Non-governmental Organisations12

The word “non-governmental organisation” came into existence in 1945, when the

United Nations (UN) wanted to make differentiation in the participation rights between

international private organizations and intergovernmental specialized agencies. In the

first draft, when the UN was formed, there was no agreement about co-operation with

private bodies. In 1945 at the San Francisco conference different groups and

associations wanted to change this situation and they asked for rectify the issue. As a

result, the UN strengthened and formalised the relation with the private organizations

and enhanced it’s own role in social and economic issues and last but not least they

heightened the status of the Economic and Social Council (ECOSOC) to the UN’s

principal organ. To make some matters clear, they introduced new terminologies to

cover the relationship between the ECOSOC and the two types of international

organizations. Under Article 70 „The Economic and Social Council may make

arrangements for representatives of the specialized agencies to participate, without vote,

in its deliberations and in those of the commissions established by it, and for its

representatives to participate in the deliberations of the specialized agencies.”13 And

under Article 71 “The Economic and Social Council may make suitable arrangements

for consultation with non-governmental organizations which are concerned with matters

12 Willetts, P. 200213 Charter of the United Nations, Chapter X: The Economic and Social Council, Article 70

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within its competence. Such arrangements may be made with international organizations

and, where appropriate, with national organizations after consultation with the Member

of the United Nations concerned.”14 Although the word NGO became a UN jargon, it

also went into the public usage, mainly from the 1970s. Now all type of private bodies

can use the name NGO, which independent from the direct governmental control, not be

formed as a political party, non-profit-making, non-criminal and wish to challenge the

government either by a narrow focus on human rights or as a political party. Sometimes

the borders are blurred because it is possible that some NGOs can be identified with

political parties, some NGOs may realize profit from commercial or other activities and

few NGOs can be related with violent political protest. There is no generally assumed

definition for NGOs and it is also the question of the different connotations in given

circumstances but the UN tried to create a list -called Major Groups- of the nine main

categories of NGOs according to the interest, what is taken up by the single groups.

Major Groups listed in Agenda 21:

Global action for women towards sustainable and equitable development

Children and youth in sustainable development

Recognising and strengthening the role of indigenous people and their

communities

Strengthening the role of non-governmental organizations: partners for

sustainable development

Local authorities’ initiatives in support of Agenda 21

Strengthening the role of workers and their trade unions

Strengthening the role of business and industry

Scientific and technological community

Strengthening the role of farmers

It is very obvious that these nine groups are incoherently chosen and exclude lots

of topics, which are as important as the listed ones and they have been left out without

14 Charter of the United Nations, Chapter X: The Economic and Social Council, Article 71

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any scientific reason. To account for this arbitrary grouping is that during the

negotiations at United Nations Conference on Environment and Development (UNCED)

in June 1992, in Rio de Janeiro, the decisions were influenced by the lobbying NGOs,

who were there at the conference, and also by Maurice Strong’s personal concerns. It is

not fair to pick out women but not men, young people but not elder people, indigenous

communities but not other minorities, unions but not more professional associations,

industry and business but not commerce, natural scientists but not other scientists an

finally farmers but not fishermen. So finally everyone declared the 9 Major Groups

inadequate, and this categorisation has been only used by the UN Commission and

Sustainable Development (CSD) and in other programs what have been organized by

UNCED.

Observers established one other kind of classification of NGOs, according to their

activities. According to them there are operational and campaigning NGOs. Operational

NGOs achieve small-scale change directly through projects, they have to mobilize

resources, material support, financial donations, volunteer labour to run their programs.

Campaigning NGOs act approximately in the same way as operational NGO, but their

action for fund rising is not that important. They rather focus on to attract favourable

publicity by their major events. Actually for both type of NGOs fund-rising is important

just with different measure, but they both need volunteers and supporters, cultivate the

media and organize special events.

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On the next figure we can see directions of the funding flows, from where the

NGOs obtain donations.

Figure 2.: Funding flows15

There are differences between NGOs not just according to the interest, taken up

the organization and how much they will to find funding, but also according to the

structure, how the organization is built up. There are two main types of NGOs in this

case. When individual, local people work in groups, the groups co-ordinate in provinces

and they have a headquarters in the capital of the country, we talk about national NGOs.

When these national NGOs combine with each other, we talk about international NGOs

(INGOs), but it has to be noted, that the term, NGO is always NGO, even if it refers to a

local, national or global body. The number of networks between international NGOs

started to increase when the communication between them became easier. The first help

in better communication was in the 1960s , when air travel became relatively cheap and

the direct transnational telephone was established. Then in 1970s satellite was

introduced to the media, so events were shared all around the world by television.

Coming of the web and e-mail decreased costs of running as much as individuals could

15 Green et al. 1997

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afford to conduct complex, prompt communication with each other. The dramatically

increased number of networks did not need formal structure any more. For the end of

the 20th century many national NGOs became international NGOs. But the number of

NGOs in one country depends on not only the level of communication infrastructure,

but also on the democratic political culture’s presence or absence, the size of the

country, religious and cultural diversity, its ethnic, level of its economy. That is why

there are lots of NGOs in third-world countries like Indian and Bangladesh, and

relatively low number of NGOs in Finland or in Iceland.

As we see NGOs are so diverse from each other and so complex, that it is not

possible to support or to be against to all of them in the same time. “They may claim to

be the voice of the people and to have greater legitimacy than governments, but this can

only be a plausible claim under authoritarian governments.” When for example

companies decide that they start to support an NGO, they choice not only according to

their private opinion but they also consider the public opinion, because they would like

to attract the public interest to protect their own reputation, brand or income. Companies

who support environmental charitable activities, the might account on benefit from

green consumers or they would like to reduce their energy consumption and cut costs.

NGOs are taken up by companies more intensively since 1999, when Kofi Annan, the

UN Secretary-General called upon the companies to enhance their social responsibility

by participating a Global Compact together with the UN.

After I took a look at the relationship between NGOs and companies, I would like

to tell a bit more about the NG part of NGOs. Actually it is always very difficult for an

NGO to be totally independent from the government. Sometimes individual

governments establish NGOs that support their politics and by these NGOs they try to

influence other NGOs. These politically established NGOs called government-

organized NGOs (GONGO). And in the other hand some NGOs find really difficult to

act without the acknowledgement of the government and other political parties, however

they act independently. They would like to know that their activity is recognised by

these political actors. There is a huge prejudice, namely that government funding drives

to government control. For example development and humanitarian NGOs needs extra

sources to run their operational projects, so most of them accept official funds. They

even would like to get guaranteed budget from the government for their general

operating, but the government usually only support projects’ costs. But I have to

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mention that it happens that NGOs may seem to be independent, during designing their

programs, and then in order to make the program more likely that government contracts

or grants will be forthcoming. In this case we can talk about government influence.

As a summation NGOs are not just uncontroversial, well-meaning, non-political

group, but there are no differences between NGOs’ role in domestic or in global politics.

However because of the diversity of values, they advocate, NGOs can oppose each other

and putting pressure on companies and governments.

Non-profit or Non-governmental? What is the difference?

We can say that all the NGOs are basically non-profit-orientated organizations,

but not all the non-profit-orientated organizations can be classified as an NGO. There is

a slight difference between them, in their activity and legal determination. Mainly

NGOs deal with some issues, what the government does not want or can not deal with,

and the non-profit-orientated organizations, which are not NGOs, can also concentrate

on issues, which are in the focus of the government as well, and these organizations

accept easily governmental help and support, while NGOs are trying to be independent

from the government as much as they can.

In my thesis, I concentrate on the relationship between companies and non-profit-

orientated organizations, so with all kind of NGOs, foundations and associations, which

main activity is not to realize profit and which are existing and working on their aims, if

they get support either from the government or from for-profit organizations.

Overview about the Danish and Hungarian Non-profit sphere

The history and development of the Danish non-profit sphere

In Denmark organising was forbidden until 1849, just the king could give

permission to set up organisations. Philanthropic and self-help organisations, such as

orphanages and guilds were founded by the king and merchants. In the 1848-1849

revolt, the liberalist trend claimed freedom of organisation and speech, and they also

granted these freedoms in the constitution. In the 1870’es Christian-philanthropic

organisations gained huge importance in charity work and they give more relief for poor

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people, that the municipal poor office could in that time. Later on a new group of

grassroots organisations gained power:

local community organisations

tenants’ associations

new women’s organisations

students’ organisations

disease-related organisations

Between 1960 and 1970, lots of already existing organisations developed

emergency help activities and support activities, using both professionals and volunteers

in the field and in fundraising as well. These organisations rely very much on

government money for their activity. And this is the reason, why it is often said, that

Denmark is the ‘society of association’, and a great percentage of the population takes

part in voluntary work, and members of associations, organisations.

In Denmark lot of welfare functions and organisations are supported by the government:

Sickness Insurance (Association): in the beginning voluntary organisation, then

compulsory membership for Danish citizens, today its functions are integrated into the

municipal administration, because of practical reasons

Unemployment Insurance: in the beginning Unemployment Insurance

Association was part of the Trade Unions, and then the association earned rights to state

contribution, because of the Law of Unemployment Insurance and Job Provision.

Religious Associations: help homeless people, alcohol and drug addicts. Most of

these associations are supported by municipal authorities.

Care for children, elderly and handicapped: For children day-care in the

beginning Peoples’ Kindergartens’ Association, since 1888 under public control, from

1918 it is allowed to yield economic support. Also the care for elderly and handicapped

is delivered by municipalities.

Education: Many organisations influenced the Danish education system. Some

sectors, like Free Schools, and People’s High Schools are owned by associations,

financed by students’ fees and governmental sources. Of course there are municipal and

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county delivered educational sectors, e.g. People’s School and grammar and high

schools.

Housing: Housing Associations are user-owned, non-profit-orientated

organisations, mainly financed by rent.

International and refugee aid: from 40-50 years Danish governmental

development aid has been granted through NGOs.

In Denmark few voluntary organisations are big, with lots of salaried personnel,

and many volunteers and they have large economic turnover. However most of the

organisations are small, mainly without salaried personnel, largely with volunteers, and

with limited economic resources. The volunteers are their resources. The number of no-

profit-orientated organisations, which do well without public support is really small.

Non-profit organisations apply and get governmental and private funding as well. And

after they got it, they obliged to give accounting how they used the granted money.

There are two aspect of funding and function of non-profit organisations, which might

give relatively new challenges. One is since 1970’es the appearance of EU sources of

funding. Organisations have to apply for it and arrange their programmes according to

get the most favourable possibilities of receive EU funding. Another challenge is to

meet the requirement of partnership, which is so emphasised by the state and the EU as

well. However newly and old established NPOs arrange activities together and in

partnership with other kind of organisations, without such partnershipping.16

The Danish Foundation Sector

There are about 14,000 private foundations in Denmark, including corporate

foundations as well. However this number is rather big, Danish literature of foundation

theory is relatively meagre. The first data about Danish foundations are from 1780, and

that time 2500 this kind of organisation existed. Their number was growing most

dynamically between 1850-1900 and 1960-1980, until it reached 14,000 for today. In

Denmark it is a tendency, that most of the foundations’ statutes emphasise the

importance of promoting and supporting Denmark, Danish culture, heritage and people

and surprisingly they have limited interest in international and European issues.

16 Jonasen 2002

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If we see the future of these organisations, most probably the influence of the

public sector will continue to decrease and more important role will be incumbent on

Danish foundations, and their donations will play crucial role for society more directly.

But on the other hand Danish foundations are losing autonomy within the state, because

it will be more difficult to separate their work from the state’s work. There are two main

type of foundations in Denmark. One is corporate foundations, with controlling position

in commercial ventures, from which they get most of their grant-making capacity. The

other type of foundations is those, whose statutes set a limit to their objectives to grant-

making for charitable purposes. The second type takes 90% of the all foundations;

however corporate foundations are the most relevant economically. To set up

foundation, Danes do not need governmental approval, and non-commercial foundations

receive legal personality at establishment and within quarter year, after establishment

the organisation gas to be registered at the tax authorities. Foundations are normally

treated as joint-stock companies for tax purposes, and they pay tax on the income

derives from economic activities. Received donations and gifts are considered as other

income, and those which purpose to build up foundation are not taxed. There are other

ways as well, how foundations can get tax deductions, e.g. they can deduct money, what

have been given out on donations for public benefit purpose. Public benefit purpose

means that a number of people can benefit for it. Corporations and individuals can also

get tax deduction, if they support foundations, but no more, than 15% from their taxable

income.17

Tax deduction can be another instinctive for Danish companies –besides the other,

non-material benefits- to support non-profit orientated organisations, because donations,

they spend on a Danish foundation, is good not just for their reputation and for their

sustainable development but nevertheless the amount is deductable until 15%of taxable

income.

Danish NGOs

In 2007 6.7 % of the total Danish development assistance (DKK 932.4 million)

was spent on bilateral NGO assistance. According to the Strategy for Danish

Development Assistance, Partnership 2000, NGOs in Denmark have to concentrate on

creating time and space to trace the Civil Society Strategy’s recommendations. The

17 European Foundation Centre 2007

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Danish government made a decision in 2005 and the Ministry of Foreign Affairs signed

frame agreements with the six major Danish NGOs, that these NGOs have to contribute

to their own financing with 5% in 2006 and with 10% till 2007, because revenues from

private funds are raising in Denmark. This decision was an incentive for NGOs to try to

attract new actors and sources in development assistance. Another reason of this

decision was strengthening the major NGOs and popular foundations and to encourage

them to be more accountable towards private contributors and their own members.

About smaller NGOs, the government did not have plans to introduce own-financing for

small NGOs. In the same time the Danish Ministry of Foreign Affair gave special status

for Danish NGOs as competent and important partners in implementation of Danish

humanitarian assistance, to what the government gave DKK 407.1 million through

Danish NGOs. This means 2.9% of total development assistance and 36% of the total

Danish humanitarian assistance.18

The history and development of the Hungarian non-profit sphere

European non-profit sector, it is needed to say the Hungarian society’s and

economy’s way of development didn’t differ from the European development till the

XVI. century.

In the middle ages, Hungary already owned those kinds of organizations, who

dealt with charity issues, as the church, private persons and the secular arm. They all

spent money on helping to poor, sick people and orphans. Other significant phenomenon

was the mutual assistance and help among the members of the guilds. From the XVI.

century the development stopped, because the economic development and the division

of labour were started to focus into the western part of Europe, and also because the

Hungary became under the Turkish subjection and then under the Habsburg regime. The

Hungarian non-profit sector resuscitated again in the XVIII. century, during the rule of

Maria Teresa and Joseph II., when the national sense became strong again. In this period

there were lots of foundations and associations in the country. During the reform-age

different associations, reader-clubs, casinos, literary clubs were set up. Near the

associations of the aristocracy, the workers’ and farmers’ unions gathered ground as

well. After the war of independence was beaten down (1849), these associations were

18 Ministry of Foreign Affairs of Denmark 2008

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censured for half a century, but for the end of the XIX. century new associations

founded, and they became the scene of the cultural and public efforts, and they were still

working between the two world wars. But then after the world war II. most of the

associations lost their members and they left of or they were abolished. The rest public

associations came under total party- and state control. From the middle 80s the crisis of

the state-socialism encouraged the associations, and then in 1987, the modification of

the Civil Code meant a huge break-through for the non-profit-orientated organizations’

legitimacy. It was again possible, after 30 years, to set up foundations. The next step

was the approval of the law II. of 1989, which created the legal guarantee of the

associational freedom.19

19 Bartal 2005 pp. 162-166.

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Part Four

Relationship between Non-profit-orientated Organizations

and Companies

Public Affairs

The for-profit organizations recognised for long time ago, that it is their interest as

well, to establish good relationship, with different stake-holder groups in their

environment, like with the civil sphere. By this the aim of the company is to protect own

social and economic interests, and to validate them and set their principles.20

Issue management

The companies’ Issue Management keeps the relation between the companies and

their stake holders. The issue is the difference between the company’s activity and the

stake holders’ expectations, which difference can be eliminated by Issue Management,

which beside solves the problem, comes from this difference; also creates value and

advantage for the company. The Issue Management involves all the relations with the

civil sphere as well, and these relations are also part of the Public Affairs.21

Sponsorship and DonationFirst of all, we have to make difference between the terms sponsorship and

donation. The donation means a special kind of support, assistance, which is essentially

unilateral relation between company and beneficiary. Financial or material support,

which is not directly part of the supporter company’s commercial aims. Charity offers or

patronizations are not aimed to gain profit and supporter does not expect return from

supported, however sponsorship helps to create and keep good reputation of the

company among other organizations, public and other stake holders. The sponsorship is

a bilateral relationship, sponsor expects return from the sponsored. 22

20 Nyárády et al. 2004b p. 183.21 Nyárádi et al. 2004b, pp. 221-225.22Fazekas et al. 1994, pp. 14-28.

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The main reason of granting is to help needy and sick people. The grant can be

financial, or other material or immaterial contribution. We have to mention that case as

well, when the company supports a foundation, because of economic, taxation aspects.

In the old times the management of the company supported in the field or its own

interest. Later on it was popular to support different arts, for example by buying

paintings and sculptures. Nowadays the fanciest thing is to support the third countries by

ensuring their citizens permanent possibility for work through work to support

themselves. Companies and private persons realized, that a material support does not

solve the problem of these people, just for short time, and also it is a moral question: the

work gives hopes and self-respect for workers. Other popular fields of support are

helping sick people, children and animals, and all those, who cannot help on themselves

fully.

Purposeful donation is a useful tool of development of corporate culture, and

image. It makes more favourable the corporate image and helps building advantageous

relations. Deliberate customers are more and more influenced about what kind of role a

company takes in order to solve society problems. For supporter companies the firm’s

good reputation plays an important part, which is part of the CSR and done by Public

Relations managers and assistants, who transmit it towards the environment and stake

holders. The well-organized donation or partnership with the third-sector organizations

are also good assets of Inside Public Relations activity, because they raises the

employees’ pride and loyalty. So we can say that sponsorship and donation are part of

public relations. During these activities supporter gives support in form of material or

immaterial help to one other organization or to organising of a program. This is an

invest into an activity, and the return is direct or indirect business success.

In Denmark and in Hungary as well, companies can write of the amount of the

donations, which have been given to public benefit organisations. That is why, for

companies donation can be more profitable, than sponsorship, and also because most of

the foundations and other non-profit-oriented organisations do mention the name of their

supporters in interviews and reports, and advertise the supporters’ logo and name on

their advertisements, even if they got the support in form of donation, not as a sponsor-

grant.

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Part Five

Corporate Social Responsibility

The Corporate Social Responsibility means an unbidden commitment towards the

development of the common weal: through the business practise, involving the

company’s resources. If a company is social- and/or environmental-concerned, it seeks

after success in the present in a special way, how it does not destroy the future’s

possibility: it considers the social, environmental and business aspects inseparable from

each other. 23

More and more company recognises that its own interest to be socially

responsible. This process as other civilisational achievements, reaches the developed

countries earlier, than the developing ones. If we talk about Europe, this means that the

western countries’ companies started to be socially responsible earlier, than the eastern

ones, so from the two countries’ companies, I compare in my thesis, Danish companies

has older traditions in the field of corporate social responsibility than Hungarian

companies.

The responsibility starts, when every organization realises mutually all the effects

of its own decisions and actions. The mutuality ensures the sustainability of the process.

Not just cooperating with the external environment is important for the sustainability,

but the company has to pass the message of its own responsibility towards its employees

to its employees. By this there is a big chance, that the employees become active and

involved partners into the decisions and their consequences. Indirectly and in a long

term, CSR can contribute for profit-realising, however its primary aim is to maximise

advantages for the whole society.24

There are many reasons for the companies to operate socially responsible. For the

potential customers, investors, market analysers and business partners, participation in

social issues affects always positively, and it also looks good in the annual report and in

the news. Besides this, CSR arouses good feelings in the employees, customers,

investors, among the members of the management, and hereby it is good for the brand,

financial statement and for the community as well.

23 Ligeti 2007, p. 18.24 Liget 2007, p. 57.

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The use of CSR for the different units of the company25

If a company socially responsible, it means, that all it’s units are also operating

responsibly. In order to sustain harmony between the CSR-strategies of the units, it is

better to develop a single CSR strategy which is company’s operating strategy as well.

3. figure: Advantages of CSR

Public Relations (PR)

To define what are the advantages of a good CSR strategy for the PR department,

at first I give a definition, what I was though about Public Relations: PR means a

managing approach. For the management it determines the relationship between the

company and its inside and outside environment. PR involves all kind of communication

25 Ligeti 2007, pp. 55-90.

LABOUR MOTIVATION

EFFICACY

RECRUITMENT

MERKETING

INVESTOR RELATIONS

HIPS

QUALITY

INNOVATION

CEO’S REPUTATION

FINANCIAL STATEMENTS

CSR

REPUTATION

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activities of the organisation. It aims a mutually favourable communicational

relationship between company and stakeholders.

It is relatively obvious, that a well-planned CSR strategy influences stakeholders,

consumers, investors etc. In these days, when there are so many similar products on the

market, e.g. customers care about much more things, than before. They consider the

danger what consumption of a product can occur, and they also care about what kind of

social effects belong to the production. There are more and more companies, who base

their images on responsibility.

PR advantages of CSR:

Consumers and investors’ trust is increasing

Good example for others

Motivate competitors for responsibility

Inside communication is developing

Possibility to start communication with some stakeholders

According to Ligeti donation, sponsorship and case promotion are the form of

CSR, which has different PR effect. E.g. corporate philanthropy means that the

company supports a concrete issue by money. This is the most traditional form of social

involvement, but it is a really ac hoc method. When people talk about corporate social

involvement, they usually think it is the sponsorship itself. The sponsorship is part of

public charity: the company gives direst support in the form of money and/or immaterial

things. There are such fields of life, like sport and culture, which need company support,

otherwise they cannot stay on foot, or just get to very few people. But we have to

mention again in this part as well, that the sponsorship is not just charity, it is business

when the company buys advertisement-place. The third type of CSR with PR-value,

when the company provides material or immaterial support or voluntary work for an

issue, and by this they increase consciousness or the society’s welfare.

It is not enough to act responsibility, in order to inform stakeholders, it is also

important to communicate duly the responsibility, what the company feels for society.

As part of inside PR activity, management has to share openly, without any fear, and

truthfully the company’s social actions with the employees. By this the company spare

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time and energy during developing and implementing projects, and it makes more

simple boss-employee and unit-unit relations.

Marketing

According to a research of Cone Incorporation and Roper Archive in 1993-94,

84% of consumers have better opinion about that brand, which s/he can link to some

kind of social involvement, and 74% of them think that s/he would prefer to buy socially

responsible product. 66% of customers would change brand, if s/he could support an

issue and 62% prefers retailers, just to support their issue.

Marketing advantages of CSR:

Brand’s position is strengthening

Corporate image is changing for the better

Relationship between Identity Salience and CSR on Consumer behaviour26

In this part, I would like to review an article I found interesting and relevant about

how consumers reward firms, if they support social programmes, and third sectorial

organisations. Consumer loyalty and positive company evolution can be encouraged by

the company’s well-communicated CSR strategies and programmes. The

communication of these issues is relevant, because it is not enough to be silently socially

responsible. CSR reports, issue-promotions (even on the company’s product), and the

whole corporate image have to spear that the company cares about social issues,

environmental-friendly production or supporting of the third world’s AIDS orphans.

CSR initiatives occur stronger loyalty because customers develop a more favourable

firm evaluation and also because they identify more strongly with the firm. CSR has

emerged in the recent decade also because of its influence on customer behaviour when

customers demand more out of companies that simply low-priced and quality products.

They also expect companies to demonstrate congruence with social values, and through

this to contribute to the community and sustainability. In the same time Beckmann

(2001) points out that consumers still buy product and services for personal reasons

more, that for social ones. To figure out what is the truth Marin made further researches

26 Marin et al. 2009

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and he set up eight hypothesises about the relation between consumer behaviour and

loyalty and the recognition of the company’s CSR programmes:

Figure 4.: Conceptual Framework27

H1: The greater the CSR association perceived by the consumer, the more positive the

evaluation of the company.

H2: The greater the CSR associations perceived by the consumer, the greater the

company’s identity attractiveness for the consumer

H3: The more positive the evaluation of the company, the greater the company’s

identity attractiveness for the consumer.

H4: The more positive the evaluation of the company, the more likely consumers are to

be loyal to the company’s existing products.

H5: The greater the CSR associations perceived by the consumer, the greater the

consumer-company identification.27 Marin et al. 2009, p. 66.

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H6: The greater the company identity attractiveness perceived by the consumer, the

greater the consumer-company identification.

H7: The greater the consumer-company identification, the more likely consumers are to

be loyal to the company’s existing products.

H8a: Identity salience moderates the relationship between CSR associations and C-C

identification, such that this relationship is stronger when identity salience is high versus

it is low.

H8b: Identity salience moderates the relationship between identity attractiveness and C-

C identification. This relationship is stronger when identity salience is high versus when

it is low.

H8c: Identity salience moderates the relationship between C-C identification and

loyalty, such that this relationship is stronger when identity salience is high versus when

it is low.

The questionnaire sample was given to 400 randomly selected clients of a

regional bank. They were all current clients of the bank and the main persons in their

family, who are responsible for money. The result is that on the three variables of the

hypotheses, namely company evaluation, identity attractiveness and company-costumer

identification, the company has direct and really positive effect by CSR initiatives.

Human Resource

It is possible, that CSR affects on the company’s employees the most. It is really

nice feeling to see the employees’ enthusiasm and feel their trust and belief in the

company. Employees are work at the company for salary, but not just because of that.

They are also searching for social relations, respect, appreciation, self-realisation and

self-respect. CSR can be an asset also to provide all these needs for the employees.

Socially responsible companies have better abilities to attract, motivate and keep the

best employees. CSR is also a good asset of group-building. Instead of sending

employees rafting for example it is cheaper, better and also efficient to send them to

collect garbage in the near forests, or to build playground.

Advantages of CSR generally

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According to the American organization, called Business for Social Responsibility

– which organization helps for companies, how to use CSR in the course of their

function- CSR has many favourable effects:

The companies’ selling and market share increase

The position of the brand strengthens

The organizational image strengthens

The organization’s ability to recruit, motivate and keep labour increases

Running costs decrease

The organization becomes more attractive for the investors and for the financial

analysers

The company’s charity, offering, sponsoring, the employees’ voluntary actions

should be organised into one single system, in order to be really effective for the

company and for the supported issue as well. In case of inordinate, not harmonized

actions, every good-intention-guided, socially awareness gestures can be lost. For high

efficiency, a transparent and clear CSR-strategy is needed. In the course of this, the

generally used strategy-making process can be used as well:

Collecting information

Planning

Implementing

Monitoring

Correcting

A company needs CSR-strategy planning really, when there are too many collateral

CSR-programs in-house. The CSR-strategy’s development unites two coherent cycles.

1. big cycle, which involves the survey of the current situation, the strategy-

planning and the program-creating.

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2. small cycle, which contains the part of the strategic plan’s development. The

small cycle is a concentric process, and it lasts, until the company gets to a

strategic plan, which is good for everyone.28

The company’s whole strategy should be placed on the funds of responsibility.

The long-term thinking of the management and the strategy-making ensure the

sustainability of the company’s business success. For the sustainability the global

sustainability is also needed, which can be achieved just if every single company

contributes to the environmental and social sustainability. So the condition of the long-

term business success’ sustainability is the sustainability of the environment and the

society, and for this the companies’ responsibility is inevitable.29

The non-profit organizations are very suitable as a CSR-partner. By their help, the

company can reach easier and more effective those groups, to who the company would

like to help, or that issue, what they would like to support. Co-operation of for-profit

and non-profit organizations can create a mutually advantageous situation, and the

company can take part in all above mentioned favourable effects, which contribute to its

long-term business success.

The Effect of Financial Crisis on CSR

Ligeti claims that nowadays in Hungary, since the financial crises was announced,

his college’s -who works on the stimulation of CSR- business relations are tend to be

disappearing, which were flourishing in the recent year. Company leaders say that CSR

is the something for what companies really do not want to spend money on at the

depressive mood of the society. In Eastern Europe CSR is usually just something

additional, something extra, and it can end up where marketing and PR ended up 10

years ago: companies usually forget about these things in emergency, danger and

recession. They got rid of marketing at first, when they were lack of sources, and cut

expenses on market-research. This was a big mistake, because the marketability of the

product is more important, than just to produce a product, what stays at the shop because

of lack of interest and promotion. Now the same thing happens with CSR. Companies

who are socially responsible just in good time, now struggle from unrecognising of their

efforts, because their activity was not promoted by the media, when they e.g. painted the 28 Ligeti 2007, pp. 125-12729 Ligeti 2007, pp. 157-159.

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fence of the local school. But those companies, who consider marketing, PR and CSR as

management issues, turn to CSR more definitely during the crisis. And these responsible

companies do not consider layoffs during crisis, because the management knows that the

crisis will end one day, and then the company will need qualified employees, who know

the company’s profile, culture and speciality, and the management does not want that,

for that time these employees would work for the competitors, because they were fired.30

Critics of the CSR as the Best Way for Companies and Firms to Be Socially

Responsible31

While most of the researchers point out that CSR is an inevitable and best choice

for companies to be socially responsible, these are some of them, who think CSR is a

false solution, and it aims just to elude regulations. Zsolt Boda, economist-political

researcher says that the pressure of growth interfaces companies to consider

environmental and social issues. The conscious customers’ civil initiations, stricter state

control and the ethic and responsibly operating firms can change the system’s logic.

Boda claims that by CSR multinational companies escape for fear of more regulations

on their activity. At mainstream CSR there is no capitalism-critic. It is more about that

companies care about some problems, and they try to show, that they are responsible

corporate citizens through contributing to environmental and social problems’ treatment.

And here is the main difference: the alternative capitalists or alternative firms try to

modify systematically their main activity. An alternative firm rejects the concept of

making the customer to consume by any means. So it seems that the modern economy’s

basic operation is wrong and the CSR is just surface treatment of problems. Companies,

who say that they are socially responsible, just care about smaller issues. They buy

incubators to hospitals, build playgrounds, which are important issues, but do not

change things substantially. A company which acts globally, cannot be alternative

capitalist, just ethical in best case, because it does not criticise the system, and it does

not have principles as to minimise environmental pollution, what they occur by transport

to long distances. Nowadays fair trade movement is popular again, but they also

transport product from far developing countries to developed ones. They transport

mostly coffee and thee. The principle of localisation should not go so far, that people

30 Ligeti 200931 Kincsei 2009

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should not drink coffee and thee, because these products come from far countries. Fair

trade tries to operate as ideal both socially and environmentally, as it is possible. But

multinational joint ventures, which are listed on stock market, cannot even become ethic

easily. They exist in global capitalism with profit-, and growth-pressure and they just do

CSR-things. Those firms can be alternative capitalist, who produce premium products,

or they operate in a sector where locality can be a principle. Boda thinks that growth of

companies should be controlled, because to expect companies not to grow is impossible

today.

According to Milton Friedman recent passing of Nobel economist and statistician,

from Chicago School of Economics, it is totally absurd to expect a company to be

responsible, because corporation is an abstract economic and legal category. In other

words corporations are attendants of the system. If the society’s mentality was different,

the system would be different and corporations as well. People buy stock because they

want to get utmost money after a year, and not because they want the company to stop

growing and keep its incomes in a specific level in order to be very ethical.

There are other ethic problems around financial capitalism as well. If someone put

his money into a Pension Fund, the Pension Fund invests it into a corporation, which

implements its production in Indonesia, and who’s product will be bought by the same

person, who put his money into a Pension Fund, and during this he has no idea where

his money is, what is happening with it and what kind of effects it will cause, till then

civil organisations and ethical consumer movements did not asked these questions.

Boda says, that to solve the huge problem of global economy and capitalism the

society and the state should take steps together for a better liveable future. Green

taxation should be announced in those countries, where it does not exist yet (in most of

the countries). Green taxation means that companies and individuals would pay taxes

after consumption, environment-pollution and fortune.

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Part Six

Own research about Danish and Hungarian Company-

NPO/NGO relations

As a part of my thesis I performed a questionnaire-based research among Danish

and Hungarian companies and civil society organisation, such as NGOs, foundations

and NPOS. The two types of questionnaires, (appendix 1 and 2) both for the business

sector and for the civil sector, were based on my own perceptions, studies and readings,

which I decided to be relevant for this research. To create a relevant questionnaire I

made previous studies about the two sectors’ approach to the topic, namely I read CSR

reports of Hungarian and Danish companies and surveyed the two countries civil sector.

In the first round I sent the questionnaires to 50-50 Danish companies and NGO, and for

the same amount of Hungarian companies and foundations. To the Hungarians ones I

sent the Hungarian translation of the original English questionnaire, as far as this is my

mother language, and they also understand the questionnaire better in their own

language. After a week I was a bit disappointed about the amount of filled-out

questionnaire from the Danish NGOs, until I realised the problem, that the term NGO in

my opinion regards to all kind of civil organisations, but according to the Danish

associations, I sent the questionnaires, it regards strictly to something totally different,

and they understood NGO as the word strictly refers to: non-governmental, self-

organised, non-profit making organisations. I realised my fault also because in the

Hungarian translation of the questionnaire I use the term organisation unconsciously and

in that case I received relevantly more questionnaire back. It was because according to

my conception, under the term NGO, in the questionnaires for the Danish NGOs, I

understood all king of civil society organisations and I sent it to all kind of associations

in the country. So I corrected my mistake and I resent the questionnaires and I dedicated

a comparatively bigger part in my thesis to the conceptual explanation of the civil

sphere.

Danish companies’ answers’ review

From 50 companies I received 23 filled out questionnaires. (46%) The criteria of

the company selection were that the company should be Danish, or a Danish subsidiary

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of a multinational company, but the main point was to operate in Denmark. All of the

companies, who replied heard about CSR before and also actively apply it in their

everyday business. Most of them (87%) claimed that they sometimes support

foundations/other non-profit orientated organisations by money or by other donations.

And also more than half of them (52 %) said that they help to their employees’ social

situation by different non-material bonuses (childcare for employees’ children,

organising meetings, performances for employees’, in topics, in which they are involved

or/and they are interested in) Some of the companies also mention near this point that

they help to their employees to work in a nice and well-functioning workplace. In this

question some of companies said that the help to third world countries, like they built a

school in Angola and they donate money for it regularly. To the question ‘What do you

think, what the difference is between your CSR politics and other companies’ CSR

politics?’ most of the replicates said ‘I don’t know.’ or ‘none’, but there were some, who

mention that they support issues, which are relevant for them because of their profile.

They also mentioned generic topics such as human rights and more specific issues such

as responsible consumption of their products. Two food producer companies wrote

food-safety issues as well. And one company wrote to this last question, that ‘We mean

it!’. But generally the companies’ policies are different from others’ policies on the

areas that are specific to their own industry.

Hungarian companies’ answers’ review

From 50 questionnaires 17 responses arrived back. (34%) This group was the less

active for sending back the questionnaire, those, who finally did, seemed really helpful

and interested in the topic. They also all heard about CSR and all of the 17 companies

apply it. They generally feel that they have to contribute to sustainable development of

Hungary and the environment. They claim that they consider their stakeholders’ and

customers’ needs. To the question of ‘What do you think, what the difference is between

your CSR politics and other companies’ CSR politics?’ most of them did not answer,

but some of them said that it is depending on the field, where the company operates, but

if they compare themselves with competitors, there are lots of similarities about their

CSR activities. In the same time every company has company-specific areas of CSR.

They also mentioned that the difference is mostly recognisable in the available resources

for CSR activity.

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Danish civil organisations’ answers’ review

Out of 50, 20 civil institutions, foundations, and other non-profit orientated

organisations responded. There were 3 organisations, who answered that they are

corporate-foundations, so they are not concentrating on fund-raising. This was one other

thing, I was not expecting. The criterion of the choice of the organisations was that they

have to be Danish organisations, which are non-profit-makings and non-governmentals.

50% of them said that they have constant relationship with companies, who support

their organization as a part of the company’s corporate social responsibility and most of

them said that this relationship is mostly like material support and non-material support

as well. But it was still a bit more, who put a cross near that ‘The company gives

material support.’, than to near ‘The company gives non-material support’. Usually

these organisations seek for partnership with companies and all of them think that

‘constant support and mutually favourable relationship with a company’ is the best way

to be related with the business sphere, even if not all of them have this kind of

relationship.

Hungarian civil organisations’ answers’ review

Out of 50 associations, NGOs, foundations and other kind of civil associations, 30

organisations sent back the questionnaire, 66% of them do not have constant

relationship with companies, who support their organization as a part of the company’s

corporate social responsibility, but all of them would like to have. Those, who have this

kind of relationship, receive both material and non-material support, but the number of

material supports is higher. There are some associations, who are searched by

companies, but most of them (90%) are searching for company relations by their own

initiations. 50% of the associations would like to receive support for their events,

because some of them say, they have less and less resources for organising events and

operation, and 100% of them would like to receive constant support from a company

and to have mutually favourable relation with it. Some associations also mention that

they do not have concrete strategy for attract company support. One foundation said that

it is difficult to find a company who is really sustainable-development-supporter and

besides this, ready to donate associations. There are few this kind of companies and it

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needs lot of input to build a good relation with them. Two associations also pointed out,

that they used to have programmes, and strategies for finding relevant companies, who

would like to support their programmes, but fro today they became pessimists and gave

it up.

Conclusion of the research

As I claimed in my hypothesis, Danish company-civil organisation relationships

are more favourable, because of the Danish business sphere’s more responsible

operation. The reason is complex. We can mention different reasons as culture, the

companies’ different business culture, and priorities, the difference between the states.

Danish companies tend to be more responsible socially than Hungarian companies and

they more likely consider their CSR activity as part of their managerial decisions, while

Hungarian companies still consider CSR as something extra. According to a research

from 2006, just 35 Hungarian corporations made sustainability and/or CSR report.32

According to me, the key elements of the differences exist in the culture: both in the

countries’ and the companies’ culture and also in the consciousness of consumers.

Hungarian costumers are still more price-sensitive that Danish consumers, so CSR is

more out of their view, because of this.

I also would like to mention the fact, that the biggest Danish companies have own

foundations, which is less popular in Hungary.

32 Kincsei 2009

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Part Seven

Conclusion

As a conclusion of my thesis I would like to mention the importance of civil society’s

existence. I think the core element, from what the society is able to recognise its own

needs, is to listen to voice of their citizens. A society with common norms and values

can create associations, which can influence the state in order to make better

environment for those, who cannot make it better for themselves.

NGOs are the main associations of this civil society, and their importance is also

strengthening through their role, that they mediate the messages of their members, and

stakeholders. The media has also relevant role in the civil society. They are seen as the

link among all sectors.

Danish and Hungarian civil spheres have different histories of course. In Denmark

everything, which was related to civil sphere, developed earlier and more consciously.

In Hungary the communism and other powers blocked the development of the civil

sphere, so this is one of the reasons, why the two countries still have differences in their

social system.

Beside history, culture is also an important factor. Under culture I mean not only the

habits and attitudes of the society, but also the culture of doing business. Corruption is a

huge obstacle of the civil society and its organisations. In corruption, nothing can exist,

which do not have connections, and considered that NGOs and non-profit-orientated

companies are not the richest associations; they don’t have power of money, which can

make connections in a corrupt society, so they are also not able to meet the criterion of

good company. According to me one of the biggest enemy of development and

sustainability is the corruption, because usually corrupt people aim short-term success

and forget about environment.

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For long-term success and sustainability, companies use marketing, public relations and

corporate social responsibility practices. More and more companies recognise that they

cannot forget about social and environmental issues, human rights, labour issues and

responsible production. The tendency of recognition CRS is larger in Denmark, than in

Hungary. While leading multinational companies know, that during crisis, CSR is a

more important issue, some firms with smaller CSR-history think that CSR is

something, what we should apply just when everything else is fine around the company.

There are also researchers, who think, that CSR is just the asset of companies, avoid

state-regulations. They say that the problem is with the global capitalism, and alternative

corporations should be seen as examples of real responsibility and ethical operating.

In my research I was examining the reasons of the differences of Denmark’s and

Hungary’s different CSR practices. I found that, there are differences, which show, that

Denmark is truly the state of associations, and civil organisations. The co-operation

between state and the civil society brings favourable conditions for all those, who exist

in this world.

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White, AL 2009, ’Confessions of a CSR Champion’, Stranford Social Innovation

Review, col. 7, no. 1, p. 31

Wilburn, K 2009, ’A Model for Partnering with Not-for-Profits to Develop Socially

Responsible Businesses in a Global Environment’ Journal of Business Ethics, vol. 85,

no. 1, pp. 111-120.

Willetts, P 2002, ’What is a Non-governmental Organisation?’ UNESCO Encyclopaedia

of Life Support Systems, Section 1 Institutional and Infrastructure Resource Issues,

Article 1.44.3.7 Non-Governmental Organizations

ReportsEuropean Foundation Centre 2007, The Danish Foundation Sector, European

Foundation Centre, viewed 22 January 2009,

<http://www.efc.be/ftp/public/PIP/2007/CESymp/Danish-Foundation-Sector.doc >

Jonasen, V 2002, Non-profit organisations in the Danish welfare state system The

National Danish School of Social Work, Aarhus, viewed 13 February 2009,

< http://www.ceis.it/euroset/products/pdf/Danish_Welfare.PDF >

Ministry of Foreign Affairs of Denmark 2008, Danish NGOs, Ministry of Foreign

Affairs of Denmark, viewed 22 January 2009,

<http://www.um.dk/en/menu/DevelopmentPolicy/DanishNGOs/>

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Transparency International 2008, Corruption Perception Index 2008, Transparency

International, viewed 18 June 2009,

< http://www.transparency.org/policy_research/surveys_indices/cpi/2008>

WebpageBusiness for Social Responsibility

< http://www.bsr.org/ >

CSR Europe, The European Business Network for CSR

< http://www.csreurope.org/ >

OthersCharter of the United Nations, Chapter X: The Economic and Social Council, Article

70-71

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Appendix

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1. Questionnaire(for companies)

1; Have you ever heard about the corporate social responsibility?yes □ no □

2; If yes, do you apply it at your company in any forms?yes □ no □

3; Please select from the under mentioned, in which extend does your company apply corporate social responsibility?

a; We usually support foundations/other non-profit-oriented organisations by money or by other donations.

b; We sometimes support foundations/other non-profit orientated organisations by money or by other donations.

c; There was a case, when we supported a foundation/other non-profit orientated organisation by money or by other donations.

d; We help to our employees’ social situation by different non-material bonuses (childcare for employees’ children, organizing meetings, performances for employees’, in topics, in which they are involved or/and they are interested in)

e; other:______________________________________________________________

f; In no extend we apply.

4. According to you, corporate social responsibility is important for your company?

a; Yes, it is very important for our company politics and our sustainable politics

b; Yes, it is a very important PR/marketing asset, which helps us to make good impression towards our environment

c; I don’t think that it is an important issue. CSR is a secondary question, if we have time and money, we deal with it.

d; I really do not think that it is an important issue. Unnecessary expense.

5. According to you, which way of the corporate social responsibility is worthy to follow and why?_________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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6. Do you plan, that you will emphasize more your company’s corporate social responsibility? Take up new social issues or spend more money on corporate social responsibility or refresh the company’s existing actions?

yes □ no □

7. What do you think, what the difference is between your CSR politics and other companies’ CSR politics? _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Thank you for your valuable answers and for your help!

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2. Questionnaire(for the civil sphere)

1. Do you have constant relationship with companies, who support your organization as a part of the company’s corporate social responsibility?

□ yes□ no

2. If yes, how this relationship is like?

a; The company gives material support.

b; The company gives non-material support, like:_____________________________

c; The company organizes happenings, events to support an issue, our organization involved.

d; other: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Usually your organization searches for partnership with companies or the companies offer the possibility of a partnership?

□ we search for companies□ companies search for us

4. What is more usual?

□ single or multiple support (the company offers material or nonmaterial help just one time or few times in a certain period)□ constant support from the same company within the confines their CSR

5. Which kind of supported-supporter relationship do you prefer at your organization and why?

a; single/multiple support. Why?___________________________________________________________________________________________________________________________________________________________________________________________________________________

b; support of our organization’s events

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Why?___________________________________________________________________________________________________________________________________________________________________________________________________________________

c; constant support and mutually favourable relationship with a company.Why?___________________________________________________________________________________________________________________________________________________________________________________________________________________

6. Do you have any action program, practice or plan how your organization start to get into touch with companies in order to gain their attention and build a partnership with them?

□ yes□ no

If yes, please explain this practice: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Thank you for your valuable answers and your help!

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3.2008 CORRUPTION PERCEPTIONS INDEX

country rank

country 2008 CPI score

surveys used

confidence range

1 Denmark 9,3 6 9.1 - 9.4

1 New Zealand 9,3 6 9.2 - 9.5

1 Sweden 9,3 6 9.2 - 9.4

4 Singapore 9,2 9 9.0 - 9.3

5 Finland 9,0 6 8.4 - 9.4

5 Switzerland 9,0 6 8.7 - 9.2

7 Iceland 8,9 5 8.1 - 9.4

7 Netherlands 8,9 6 8.5 - 9.1

9 Australia 8,7 8 8.2 - 9.1

9 Canada 8,7 6 8.4 - 9.1

11 Luxembourg 8,3 6 7.8 - 8.8

12 Austria 8,1 6 7.6 - 8.6

12 Hong Kong 8,1 8 7.5 - 8.6

14 Germany 7,9 6 7.5 - 8.2

14 Norway 7,9 6 7.5 - 8.3

16 Ireland 7,7 6 7.5 - 7.9

16 United Kingdom 7,7 6 7.2 - 8.1

18 Belgium 7,3 6 7.2 - 7.4

18 Japan 7,3 8 7.0 - 7.6

18 USA 7,3 8 6.7 - 7.7

21 Saint Lucia 7,1 3 6.6 - 7.3

22 Barbados 7,0 4 6.5 - 7.3

23 Chile 6,9 7 6.5 - 7.2

23 France 6,9 6 6.5 - 7.3

23 Uruguay 6,9 5 6.5 - 7.2

26 Slovenia 6,7 8 6.5 - 7.0

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27 Estonia 6,6 8 6.2 - 6.9

28 Qatar 6,5 4 5.6 - 7.0

28 Saint Vincent and the Grenadines

6,5 3 4.7 - 7.3

28 Spain 6,5 6 5.7 - 6.9

31 Cyprus 6,4 3 5.9 - 6.8

32 Portugal 6,1 6 5.6 - 6.7

33 Dominica 6,0 3 4.7 - 6.8

33 Israel 6,0 6 5.6 - 6.3

35 United Arab Emirates 5,9 5 4.8 - 6.8

36 Botswana 5,8 6 5.2 - 6.4

36 Malta 5,8 4 5.3 - 6.3

36 Puerto Rico 5,8 4 5.0 - 6.6

39 Taiwan 5,7 9 5.4 - 6.0

40 South Korea 5,6 9 5.1 - 6.3

41 Mauritius 5,5 5 4.9 - 6.4

41 Oman 5,5 5 4.5 - 6.4

43 Bahrain 5,4 5 4.3 - 5.9

43 Macau 5,4 4 3.9 - 6.2

45 Bhutan 5,2 5 4.5 - 5.9

45 Czech Republic 5,2 8 4.8 - 5.9

47 Cape Verde 5,1 3 3.4 - 5.6

47 Costa Rica 5,1 5 4.8 - 5.3

47 Hungary 5,1 8 4.8 - 5.4

47 Jordan 5,1 7 4.0 - 6.2

47 Malaysia 5,1 9 4.5 - 5.7

52 Latvia 5,0 6 4.8 - 5.2

52 Slovakia 5,0 8 4.5 - 5.3

54 South Africa 4,9 8 4.5 - 5.1

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55 Italy 4,8 6 4.0 - 5.5

55 Seychelles 4,8 4 3.7 - 5.9

57 Greece 4,7 6 4.2 - 5.0

58 Lithuania 4,6 8 4.1 - 5.2

58 Poland 4,6 8 4.0 - 5.2

58 Turkey 4,6 7 4.1 - 5.1

61 Namibia 4,5 6 3.8 - 5.1

62 Croatia 4,4 8 4.0 - 4.8

62 Samoa 4,4 3 3.4 - 4.8

62 Tunisia 4,4 6 3.5 - 5.5

65 Cuba 4,3 4 3.6 - 4.8

65 Kuwait 4,3 5 3.3 - 5.2

67 El Salvador 3,9 5 3.2 - 4.5

67 Georgia 3,9 7 3.2 - 4.6

67 Ghana 3,9 6 3.4 - 4.5

70 Colombia 3,8 7 3.3 - 4.5

70 Romania 3,8 8 3.4 - 4.2

72 Bulgaria 3,6 8 3.0 - 4.3

72 China 3,6 9 3.1 - 4.3

72 Macedonia (Former Yugoslav Republic of) 3,6 6 2.9 - 4.3

72 Mexico 3,6 7 3.4 - 3.9

72 Peru 3,6 6 3.4 - 4.1

72 Suriname 3,6 4 3.3 - 4.0

72 Swaziland 3,6 4 2.9 - 4.3

72 Trinidad and Tobago 3,6 4 3.1 - 4.0

80 Brazil 3,5 7 3.2 - 4.0

80 Burkina Faso 3,5 7 2.9 - 4.2

80 Morocco 3,5 6 3.0 - 4.0

80 Saudi Arabia 3,5 5 3.0 - 3.9

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80 Thailand 3,5 9 3.0 - 3.9

85 Albania 3,4 5 3.3 - 3.4

85 India 3,4 10 3.2 - 3.6

85 Madagascar 3,4 7 2.8 - 4.0

85 Montenegro 3,4 5 2-5 - 4.0

85 Panama 3,4 5 2.8 - 3.7

85 Senegal 3,4 7 2.9 - 4.0

85 Serbia 3,4 6 3.0 - 4.0

92 Algeria 3,2 6 2.9 - 3.4

92 Bosnia and Herzegovina 3,2 7 2.9 - 3.5

92 Lesotho 3,2 5 2.3 - 3.8

92 Sri Lanka 3,2 7 2.9 - 3.5

96 Benin 3,1 6 2.8 - 3.4

96 Gabon 3,1 4 2.8 - 3.3

96 Guatemala 3,1 5 2.3 - 4.0

96 Jamaica 3,1 5 2.8 - 3.3

96 Kiribati 3,1 3 2.5 - 3.4

96 Mali 3,1 6 2.8 - 3.3

102 Bolivia 3.0 6 2.8 - 3.2

102 Djibouti 3,0 4 2.2 - 3.3

102 Dominican Republic 3,0 5 2.7 - 3.2

102 Lebanon 3,0 4 2.2 - 3.6

102 Mongolia 3,0 7 2.6 - 3.3

102 Rwanda 3,0 5 2.7 - 3.2

102 Tanzania 3,0 7 2.5 - 3.3

109 Argentina 2,9 7 2.5 - 3.3

109 Armenia 2,9 7 2.6 - 3.1

109 Belize 2,9 3 1.8 - 3.7

109 Moldova 2,9 7 2.4 - 3.7

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109 Solomon Islands 2,9 3 2.5 - 3.2

109 Vanuatu 2,9 3 2.5 - 3.2

115 Egypt 2,8 6 2.4 - 3.2

115 Malawi 2,8 6 2.4 - 3.1

115 Maldives 2,8 4 1.7 - 4.3

115 Mauritania 2,8 7 2.2 - 3.7

115 Niger 2,8 6 2.4 - 3.0

115 Zambia 2,8 7 2.5 - 3.0

121 Nepal 2,7 6 2.4 - 3.0

121 Nigeria 2,7 7 2.3 - 3.0

121 Sao Tome and Principe 2,7 3 2.1 - 3.1

121 Togo 2,7 6 1.9 - 3.7

121 Viet Nam 2,7 9 2.4 - 3.1

126 Eritrea 2,6 5 1.7 - 3.6

126 Ethiopia 2,6 7 2.2 - 2.9

126 Guyana 2,6 4 2.4 - 2.7

126 Honduras 2,6 6 2.3 - 2.9

126 Indonesia 2,6 10 2.3 - 2.9

126 Libya 2,6 5 2.2 - 3.0

126 Mozambique 2,6 7 2.4 - 2.9

126 Uganda 2,6 7 2.2 - 3.0

134 Comoros 2,5 3 1.9 - 3.0

134 Nicaragua 2,5 6 2.2 - 2.7

134 Pakistan 2,5 7 2.0 - 2.8

134 Ukraine 2,5 8 2.2 - 2.8

138 Liberia 2,4 4 1.8 - 2.8

138 Paraguay 2,4 5 2.0 - 2.7

138 Tonga 2,4 3 1.9 - 2.6

141 Cameroon 2,3 7 2.0 - 2.7

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141 Iran 2,3 4 1.9 - 2.5

141 Philippines 2,3 9 2.1 - 2.5

141 Yemen 2,3 5 1.9 - 2.8

145 Kazakhstan 2,2 6 1.8 - 2.7

145 Timor-Leste 2,2 4 1.8 - 2.5

147 Bangladesh 2,1 7 1.7 - 2.4

147 Kenya 2,1 7 1.9 - 2.4

147 Russia 2,1 8 1.9 - 2.5

147 Syria 2,1 5 1.6 - 2.4

151 Belarus 2,0 5 1.6 - 2.5

151 Central African Republic 2,0 5 1.9 - 2.2

151 Côte d´Ivoire 2,0 6 1.7 - 2.5

151 Ecuador 2,0 5 1.8 - 2.2

151 Laos 2,0 6 1.6 - 2.3

151 Papua New Guinea 2,0 6 1.6 - 2.3

151 Taijikistan 2,0 8 1.7 - 2.3

158 Angola 1,9 6 1.5 - 2.2

158 Azerbaijan 1,9 8 1.7 - 2.1

158 Burundi 1,9 6 1.5 - 2.3

158 Congo, Republic 1,9 6 1.8 - 2.0

158 Gambia 1,9 5 1.5 - 2.4

158 Guinea-Bissau 1,9 3 1.8 - 2.0

158 Sierra Leone 1,9 5 1.8 - 2.0

158 Venezuela 1,9 7 1.8 - 2.0

166 Cambodia 1,8 7 1.7 - 1.9

166 Kyrgyzstan 1,8 7 1.7 - 1.9

166 Turkmenistan 1,8 5 1.5 - 2.2

166 Uzbekistan 1,8 8 1.5 - 2.2

166 Zimbabwe 1,8 7 1.5 - 2.1

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171 Congo, Democratic Republic 1,7 6 1.6 - 1.9

171 Equatorial Guinea 1,7 4 1.5 - 1.8

173 Chad 1,6 6 1.5 - 1.7

173 Guinea 1,6 6 1.3 - 1.9

173 Sudan 1,6 6 1.5 - 1.7

176 Afghanistan 1,5 4 1.1 - 1.6

177 Haiti 1,4 4 1.1 - 1.7

178 Iraq 1,3 4 1.1 - 1.6

178 Myanmar 1,3 4 1.0 - 1.5

180 Somalia 1,0 4 0.5 - 1.4

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