Social Investment Strategy
MOL Group is committed to sustainability and believes that sharing the value created by the presence of the company in areas in which it operates contributes to social progress and economic development in local communities. MOL Group member companies, as integral parts of the society, will be mindful of wider social and environmental concerns and their own local responsibilities. MOL Group’s goal for its corporate giving activities is to be in line with the expectations of the communities that live in the vicinity of operational areas.
Social responsibility objectives are designed to improve social and environmental conditions and contribute to the long term socio‐economic development of communities, rather than simply funding community investment projects. Each member company’s target is to move beyond earning a ‘License to Operate’ towards earning a ‘License to Lead’, and, by doing so, build trust in the local community. The needs of shareholders will be met by maintaining profitability with the support of local stakeholders and achieving positive societal change in an effective way.
MOL Group is striving to embed economic, social and environmental concerns into its programmes to the highest degree possible. To achieve meaningful change, business interests will be aligned both with overarching societal and environmental considerations and the long-term priorities of local communities. Before determining whether to undertake any social investments, the following three steps will be taken:
- Building a knowledge base that includes social characteristics, traditions and customs, the legislative framework, Health, Safety and Environment-related considerations and key stakeholders and issues that are relevant to the given region or community. All potential risks that could hinder the successful execution of any social investment to be made by MOL Group will be taken into account and thoroughly assessed beforehand to identify the most effective approaches to discussion and consultation;
- Establishing a formal means of engagement and a documentation process for all discussions and grievances;
- Developing formal agreements about the company’s and the community’s specific responsibilities which contain details about how the Parties will ensure that they are on course to fulfil their commitments.
Social investments made by MOL Group and its member companies should always:
- be consistent with MOL Group’s Corporate Giving Principles;
- contribute to the ability of the Group/company/site to meet its business objectives;
- be implemented through the life-cycle of the project by cooperating/collaborating with interested stakeholders, particularly target communities, NGOs and governmental authorities;
- effect positive societal change, reflecting the sustainable development priorities identified in MOL’s Environmental and Social Impact Assessment where appropriate;
- be divided into stages, including an exit strategy.
To act according to the principles of sustainable development is the main goal of MOL Group; this policy determines the nature of the steps that are taken. Social investment priority areas for MOL Group are the following:
- Education: the cornerstone of social progress. Promoting education is one of MOL Group’s main focal areas. MOL seeks to facilitate access to basic and a secondary education in areas where such circumstances are not assured. MOL Group also considers that supporting the next generation of young talents is a priority. Investing into local human capital benefits both business and society.
- Healthcare-related projects improve quality of life and create room for social innovation. Such benefits can be generated either by granting access to healthcare services and drinking water or promoting sports and a healthy lifestyle, depending on the specific needs of local communities.
- Environmental protection is crucial for sustainability. Consequently, the company defines its own standards as well as implementing projects which raise awareness about the importance of saving traditional habitats.
The promotion of diversified initiatives and projects which only require support during the start-up phase and which are later self-sustaining is preferred, especially when such initiatives are responses to global concerns.
MOL Group employs a transparent and well-regulated corporate giving scheme to ensure equal opportunities and to maintain its credibility and the trust which has been developed towards the company – accordingly, MOL’s procedures are in line with its pre-defined principles and steps. MOL Group’s companies/sites report on their social investment programmes to MOL Group’s HQ using the methodology and templates developed by the London Benchmarking Group (LBG). Reports on the company’s annual social investment spending are public and include separate sets of figures for the categories defined by the LBG, as well as the combined total.
In addition to social investments, MOL Group creates opportunities for growth in its operational areas to develop the capacity of local people and companies. This process is managed through contracting local suppliers in line with local procurement principles and building capacity through knowledge transfer in order to initiate independent, long-lasting development and avoid the creation of dependency on contributions received from the company. The above-described policy must also be followed by MOL Group’s contractors and subcontractors.