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Sustainability ReportPwC Hungary 1 July 2017 ndash 30 June 2018
2
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
ContentsCEOrsquos letter 3
1 Responsible business 4
11 The means to sustainability our strategy and values 5 Prioritising topics 5 Our values 6 Business strategy responsible and profitablegrowth 7
12 What we do to be sustainable ndash our tools 8 Our sustainability report ndashareflectionofouractivity 8 Definingthecontentsofthereport 8 Responsible marketing amp communications 8
13 Key to sustainability our people 9 Our people 9 Diversity and inclusion 11 EuropeanDiversityCharter 11 HeForShe 11 WEX Day 12 Ourpublicationsonthetopicofdiversity 12 Benefits 13 Cafeteriaplan 13 HealthDay 13 Sporting opportunities promotingahealthylifestyle 13 HealthDay 14 LunchampLearnndashWelearnfromeachother 14 Outlook ndash inspiring people interestingstories 14 Corporate environment 15 Employer-employeerelationship 15 Annual Global People Survey 15 Workday and recruitment 16
2 Responsible partnership 17
21 Corporate responsibility strategy 18 CR management 19 Standard measurement system across theglobalPwCnetwork 19 Our community initiatives 20 Volunteer Week 20 Step Counting and Cycle to Work 21 Itrsquosaboutothers 21 Blood donation 21 Offeringfreeaccesstoourvenues 21 1 campaign 21 Training and education 22 Our pro bono activities 22 Presentationsandworkshops 23 Civil Mentoring Programme 23 PeacutenzSztaacuter 24
22 Relations with stakeholders 25 Ourstakeholdersmappingprioritising and dialogue 26 Employees 27 Next generation potential employees 27 Our clients 27 Client acceptance and retention 27 Client Feedback Survey 28 PwCrsquos Hungarian CEO Survey 29 Tax Dialogue 29 Keyplayersinoursupplychain 30 Cooperating trade organisations 30
23 Awards and recognition 31 BusinessCouncilforSustainableDevelopment in Hungary (BCSDH) 31
3 Responsible operation 32
31 Innovative solutions in our daily operations 33 Smartcity 34 SmartTaxSolutions 34 RPA 34
32 Environmental and operational awareness 35 Modernenvironmentallyfriendlyoffices 35 Our operation by numbers 36 Paper use 36 Dailytravelwithelectriccars 37 Road transport in numbers 37 Air transport in numbers 37 Greenofficetaskforce 38
33 Our presence in Hungary 39 Ourservices 40 Legalentitiesownershipstructure 41 Governance 42 PwCHungaryrsquosorganisationalstructure 42
34 Our global network ndash PwC International 43
35 Economic indicators 44
36 Promoting lasting and sustainable economic growth ndash Our economic role 45 Publications and surveys 45
36 Quality and risk management 47
37 Human rights 47
38 Ethical requirements 48
39 About our sustainability report 49 List of indicators 50
3
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
CEOrsquos letter
ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse
ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear
Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies
Tamaacutes Lőcsei
Country Managing Partner PwC Hungary
4
Responsible business1
5
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
11 The means to sustainability our strategy and values
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness
Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics
Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems
Diversity amp Inclusion
Sustainability in our supply chain
Professional assistance to civil society
Community engagement
Reaching the next generation
Engaging our people
Professional self-fullment of our people
Innovative business solutions
Client satisfaction
Talent management
Wellbeing of our people
Our priorities
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
2
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
ContentsCEOrsquos letter 3
1 Responsible business 4
11 The means to sustainability our strategy and values 5 Prioritising topics 5 Our values 6 Business strategy responsible and profitablegrowth 7
12 What we do to be sustainable ndash our tools 8 Our sustainability report ndashareflectionofouractivity 8 Definingthecontentsofthereport 8 Responsible marketing amp communications 8
13 Key to sustainability our people 9 Our people 9 Diversity and inclusion 11 EuropeanDiversityCharter 11 HeForShe 11 WEX Day 12 Ourpublicationsonthetopicofdiversity 12 Benefits 13 Cafeteriaplan 13 HealthDay 13 Sporting opportunities promotingahealthylifestyle 13 HealthDay 14 LunchampLearnndashWelearnfromeachother 14 Outlook ndash inspiring people interestingstories 14 Corporate environment 15 Employer-employeerelationship 15 Annual Global People Survey 15 Workday and recruitment 16
2 Responsible partnership 17
21 Corporate responsibility strategy 18 CR management 19 Standard measurement system across theglobalPwCnetwork 19 Our community initiatives 20 Volunteer Week 20 Step Counting and Cycle to Work 21 Itrsquosaboutothers 21 Blood donation 21 Offeringfreeaccesstoourvenues 21 1 campaign 21 Training and education 22 Our pro bono activities 22 Presentationsandworkshops 23 Civil Mentoring Programme 23 PeacutenzSztaacuter 24
22 Relations with stakeholders 25 Ourstakeholdersmappingprioritising and dialogue 26 Employees 27 Next generation potential employees 27 Our clients 27 Client acceptance and retention 27 Client Feedback Survey 28 PwCrsquos Hungarian CEO Survey 29 Tax Dialogue 29 Keyplayersinoursupplychain 30 Cooperating trade organisations 30
23 Awards and recognition 31 BusinessCouncilforSustainableDevelopment in Hungary (BCSDH) 31
3 Responsible operation 32
31 Innovative solutions in our daily operations 33 Smartcity 34 SmartTaxSolutions 34 RPA 34
32 Environmental and operational awareness 35 Modernenvironmentallyfriendlyoffices 35 Our operation by numbers 36 Paper use 36 Dailytravelwithelectriccars 37 Road transport in numbers 37 Air transport in numbers 37 Greenofficetaskforce 38
33 Our presence in Hungary 39 Ourservices 40 Legalentitiesownershipstructure 41 Governance 42 PwCHungaryrsquosorganisationalstructure 42
34 Our global network ndash PwC International 43
35 Economic indicators 44
36 Promoting lasting and sustainable economic growth ndash Our economic role 45 Publications and surveys 45
36 Quality and risk management 47
37 Human rights 47
38 Ethical requirements 48
39 About our sustainability report 49 List of indicators 50
3
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
CEOrsquos letter
ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse
ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear
Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies
Tamaacutes Lőcsei
Country Managing Partner PwC Hungary
4
Responsible business1
5
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
11 The means to sustainability our strategy and values
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness
Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics
Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems
Diversity amp Inclusion
Sustainability in our supply chain
Professional assistance to civil society
Community engagement
Reaching the next generation
Engaging our people
Professional self-fullment of our people
Innovative business solutions
Client satisfaction
Talent management
Wellbeing of our people
Our priorities
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
3
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
CEOrsquos letter
ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse
ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear
Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies
Tamaacutes Lőcsei
Country Managing Partner PwC Hungary
4
Responsible business1
5
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
11 The means to sustainability our strategy and values
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness
Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics
Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems
Diversity amp Inclusion
Sustainability in our supply chain
Professional assistance to civil society
Community engagement
Reaching the next generation
Engaging our people
Professional self-fullment of our people
Innovative business solutions
Client satisfaction
Talent management
Wellbeing of our people
Our priorities
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
4
Responsible business1
5
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
11 The means to sustainability our strategy and values
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness
Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics
Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems
Diversity amp Inclusion
Sustainability in our supply chain
Professional assistance to civil society
Community engagement
Reaching the next generation
Engaging our people
Professional self-fullment of our people
Innovative business solutions
Client satisfaction
Talent management
Wellbeing of our people
Our priorities
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
5
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
11 The means to sustainability our strategy and values
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness
Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics
Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems
Diversity amp Inclusion
Sustainability in our supply chain
Professional assistance to civil society
Community engagement
Reaching the next generation
Engaging our people
Professional self-fullment of our people
Innovative business solutions
Client satisfaction
Talent management
Wellbeing of our people
Our priorities
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
6
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our values
AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients
Act with integritybull Speak up for what is right especially when
it feels difcult
bull Expect and deliver the highest quality outcomes
bull Make decisions and act as if our personal reputations were at stake
Make a difference
bull Stay informed and ask questions about the future of the world we live in
bull Create impact with our colleagues our clients and society through our actions
bull Respond with agility to the ever-changing environment in which we operate
Work together
bull Collaborate and share relationships ideas and knowledge beyond boundaries
bull Seek and integrate a diverse range of perspectives people and ideas
bull Give and ask for feedback to improve ourselves and others
Reimagine the possiblebull We continuously develop new digitally
adequate solutions
bull We are to understand everybody who we get in contact with
Care
bull Make the effort to understand every individual and what matters to them
bull Recognise the value that each person contributes
bull Support others to grow and work in the ways that bring out their best
Our values
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
7
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
We build trust in society and to solve important problems with sustainable operation
Financial capitalEquity from partners
third-party debt
Human capitalGraduates
school leaversexperienced hires
Trusted relationshipsBrand and reputation
stakeholder relationships licence to operate
Intellectual capitalTechnical and technological expertise proprietary tools
amp methodologies
Natural resourcesTravel energysupplies for offices
Physical assetsOffices IT equipment
Business inputs Our performanceBusiness strategySustainability strategy
Our impact onsociety
Our purposeTo build trust in society and solve
important problems
Cre
atin
g ex
ceptional insight amp know
-howU
nder
stan
di
ng client needs amp opportunities
Att
ract
ing
and developing diverse talent
Harne
ssin
g te
chno
logy amp delivering distinctive solutions
Four strategic processes ndash Vision 2020
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
8
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety
Defining the contents of the report Purpose and scope
Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders
Defining the topics
ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable
Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback
Responsible marketing amp communicationsThe PwC brand
OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business
SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS
Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades
When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report
12 What we do to be sustainable ndash our tools
DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents
OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases
Media appearances in the 2017 financial year
Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)
ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
9
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
13 Key to sustainability our people
Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves
OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear
PwC employees
776Full-time (8-hour)
employment
694Part-time employment
85
Our people
PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds
Forms of employment
Interns
81
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
10
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Turnover according to age and gender
Position Gender Age FY 2016 FY 2017 FY 2018
PartnerFemale
30-49 5 5 350-69 0 0 1
Male30-49 12 10 1150-69 4 4 6
Staff
FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11
MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10
InternsFemale Under 30 40 15 29
Male Under 30 27 4 38
Total 673 661 776
Staff numbers by position gender and age
New entrants Leavers
FY 2018FY 2017 FY 2018FY 2017
Female
Male
170
105
40
52
2
1
205
127
48
89
5
18
143
121
126
113
118
79
94
79
Under 30
Between30 and 50
Over50
In FY 2018
senior managers joined PwCrsquos leadership
5In FY 2018
5In total
5
colleagues had the opportunity to go on secondment
9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
11
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Diversity and inclusion
AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface
European Diversity Charter
InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices
Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo
Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary
Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women
Nick Koacutes CEE CEO
HeForShe
WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
12
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Our publications on the topic of diversity
PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications
WEX Day
ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
13
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Benefits Sporting opportunities promoting a healthy lifestyle
SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)
WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions
OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions
Guaranteed pay
BASE
Variable pay
Company bonus andor sales incentives
Financial incentives
New business bonus referral bonus project bonus
Other incentivesInstant recognition card loyalty recognition success story award
for teams
BenefitsCafeteria insurance promoting health paid company holidays
learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day
Cafeteria plan
WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits
In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
14
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Outlook ndash inspiring people interesting stories
WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist
I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons
making them more aware of societal issues And all this is done
efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo
Aacutedaacutem Dallos MCBD
Health Day
OurJanuaryHealthDaycentredonthreetopics
bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound
bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers
bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer
Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
15
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Employer-employee relationship
Annual Global People Survey
EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire
TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums
Our colleagues among our colleagues globally give feedback and valuation about the following topics
Commitment Flexible worktime Innovation
Team-work Diversity and inclusion
Allowance and recognition
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
16
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Workday and recruitment
TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations
Advisory by night
An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants
Risks and side effects ndash PwC IT
An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession
Auditorsrsquo evening
An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25
Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear
Workday A single system for human resource management
In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
17
Responsible partnership2
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
18
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
21 Corporate responsibility strategy
OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed
Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement
Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity
WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
19
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Standard measurement system across the global PwC network
ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo
MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear
850 00060 5001843 m USD
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
34855406 995 471 HUF
Financial and in-kind donation
Number of volunteers
Volunteering work (hours)
CR management
InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam
OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner
WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo
InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation
Globally
In Hungary
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
20
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Our community initiatives ndash pwctegyunkerte
TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns
Volunteer Week
WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies
Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout
WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
21
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Step Counting and Cycle to Work
IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues
Itrsquos about others
WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses
Blood donation
Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart
Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report
Offering free access to our venues
ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents
Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents
BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)
1 campaign ndash What takes you only five minutes is vital for a civil society organisation
WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures
41persons
August2017
38persons
December 2017
22persons
April2018
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
22
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Training and education
EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance
ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup
QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in
the financial year 2018 in Hungary
Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring
In FY 2018 we delivered
1572 hours of pro bono professional services
European Pro Bono Summit
In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering
Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary
Our pro bono activities
Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations
ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest
Our Pro Bono clients
American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
23
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Presentations and workshops
ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear
uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme
Civil Mentoring Programme
InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear
Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation
InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow
Konnect Mentor Programme
TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach
Koumlz-Pont Youth Organisation
TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme
Recognition for our Civil Mentoring Programme
KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
24
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Kerekasztal Theatre Education Centre
KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance
TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge
Social Innovation Foundation ndash InDaHouse
Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool
Volunteer day ndash free training for non-profit organisations
Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking
Kamaszteacuter
Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers
PeacutenzSzTaacuter
PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
25
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
22 Relations with stakeholders
Our clientsMeans of communication
newsletters professional events studies social media campaigns tenders and feedback
Local communities non-profit organisationsMeans of communication
participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training
EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters
Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases
AlumniMeans of communication
alumni club events semi-annual newsletter social media
invitations to trainings
SuppliersMeans of communication
dialogue with suppliers tenders feedback
Media and pressMeans of communication
press events press releases publications online tools background materials
Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
26
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communities
non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Employees
Customers and clients
Former employees
Alumni
Local communi-ties non-profit organisations
Suppliers
Media and press
Government and regulatory
bodies
Next generation
potential employees
Customers and clients
Government and regulatory
bodies
Employees
Stage 1 ndash Mapping
Stage 2 ndash Prioritization
Stage 3 ndash Consultation
Our stakeholders mapping prioritising and dialogue
WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto
ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
27
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork
Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions
Digital recruitment
PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary
Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients
Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies
Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions
Client acceptance and retention
PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)
Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement
Among the issues our experts consider during the AampC procedure are
bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial
reporting personnelbull anyincentivesorinclinationsformanagementto
manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue
recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto
evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments
bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup
bull anyindicationsthatthecompanymightbeinfinancialdifficulty
bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
28
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship
UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable
Client Feedback Survey
WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents
ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess
PwCrsquos competences according to clients
The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value
IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent
InFY2018wescoredanetNPSof53inourclientfeedbacksurvey
Organization level
Knowledge
Creativity
Communication
Business impact
Tailoring
Risk management
Relations44
464
399
457412427
426
454
PwC engagement team competencies score
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
29
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing
Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld
Intotal165CEOsfromsevenindustriestookpartinour2018survey
RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems
ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills
CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour
Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml
Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary
Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges
11
Labour shortage emerges as top threat
More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent
55
51
54
2018
2016
2017
8459
Respondents planning to increase headcount
Overall how easy or dif cult is it for you to recruit for digital or skilled talent
(chart shows percentage of respondents saying it is diffi cult)
Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
30
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers
Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)
Selecting our suppliers ndash steps taken to support the non-profit sector
As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople
The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith
In addition we selected non-profit organisations as suppliers for several of our events
bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association
bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd
bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders
bull Circular economy business breakfast catering services No Waste Bistro
ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition
Cooperating trade organisations
Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies
We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
31
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible partnership
23 Awards and recognition
PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive
PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide
Universum Worldrsquos Most Attractive
Employer 2017
4th place
The survey is conducted each year among business and
engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies
(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses
from more than 24000 participants
Brand Finance Index 2017
The Worldrsquos 10 Most Powerful Brand
8th placeFirst among the Big Four
A ranking of the most valuable brands in the world Each brand
has been accorded a brand rating a benchmark study of the
strength risk and future potential of a brand relative to its
competitor set as well as a Brand Value a summary measure of the
financial strength of the brand
Business Council for Sustainable Development in Hungary (BCSDH)
TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld
ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources
What motivated us to join BCSDH
Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
32
Responsible operation 3
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
33
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
31 Innovative solutions in our daily operations
At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices
Innovation Jam ndash Opening the way to innovation
We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking
In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space
Regional innovation leader Tamaacutes Lőcsei said about the event
I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we
received there is a growing need to present our solutions
in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
34
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment
Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment
Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation
Connect
OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros
Automated resource booking
AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
35
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
32 Environmental and operational awareness
Modern environmentally friendly offices
PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas
Green features of the building
bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity
bull thebuildingisheatedandcooledusinganair-sourceheatpump system
bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)
bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors
bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants
bull externalfacadelightingwithaLEDsourceandBMScontrol
bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith
rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport
bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers
bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion
detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)
bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
36
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Headcount
2018
7762017
661
Our operation by numbers
(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)
Electronic waste
FY 2018
072 t 09 kgcapita
FY 2017 092 t
Municipal wate
FY 2018
1056 m3 13 m3capita
Paper waste
FY 2018
45 t 57 kgcapita
FY 2017 48 t
Total energy consumption
FY 2018
666 666 kWh859 kWhcapita
FY 2017 755 018 kWh
Recycled wastePlastic
FY 2018
57 m3
Recycled wastePaper
FY 2018
343 m3 044m3fő
Paper use
AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow
569
boxes2 847
pack
14235 m sheets
71tonnes
= = =
2320 sheetcapita
Ofce space
8325 m2We use
60of the total ofce space
Our paper use
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
37
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Electric cars (2)
25 662 kmFY 2017
30 530 km
Petrol-powered
430 217 kmFY 2017
305 378 km
Diesel
521 207 kmFY 2017
446 407 km
Short-haul
(less than 460 km)
Medium-haul
(between 460 km and 3700 km)
Long-haul
(more than 3700 km)
14 697 passenger miles
584 592 passenger miles
813 977 passenger miles
FY 2017 9 954 passenger miles
FY 2017 500 000 passenger miles
FY 2017 1 225 329 passenger miles
Daily travel with electric cars
OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell
Road transport in numbers
Usagefiguresforfirm-ownedandleasedvehicles
Air transport in numbers
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
38
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping
Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains
InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren
Irsquom glad that the company I work for is housed in an office building that
uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as
part of our corporate culture I decided to join For many
years I have been mindful of reducing the burden I place on my
environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office
Zsoacutefia Dali e-learning specialist PwCrsquos Academy
Globally we reduced our fuel consumption by 4 (tCO2e)
2018592293 tCO2e2017618845 tCO2e
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
39
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
33 Our presence in Hungary
PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices
InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties
Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
40
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Advisory
Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment
managementbull Business restructuringbull Innovation management
Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory
servicesbull Property
Technology consultingbull IT deployment and systems
integration bull CIOagendaprojectlifecycle
managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business
Our services
Assurance services
Core assurance services
Value-added assurance services
Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and
compliancebull Technologybull Audit support
Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting
Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy
Tax and legal services
Tax Controversy amp Dispute Resolution (TCDR)
Tax Policy
State Aid and Tax Incentives
Tax Reporting amp Strategybull Consulting on tax and accounting technology
bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax
People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security
contributions payable by employersbull Private clientsbull Marketing campaigns and corporate
eventsbull Changemanagementand
communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits
Legal servicesbull Company law corporate restructuring
investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia
bull Labour law
Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax
Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services
bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts
bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency
bull Transferpricing
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
41
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCrsquos history
Samuel Lowell Price sets up business in London
William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers
Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand
Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery
Price Holyland and Waterhouse join forces in partnership
The companyrsquos name changes to Price Waterhouse amp Co
Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers
Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed
PwC opens its first regional office in Győr
1849
1854
1865 1865
1874
1898
1898
1957
1957
1982
1989
1998
2010
2011
Price Waterhouse world firm is formed
As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC
Legal entities ownership structure
PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)
Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby
bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)
bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)
bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)
ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies
SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion
ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards
Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol
2012 The CEO Survey is launched in Hungary
2014
2018
PwC moves into the Eiffel Palace
2017 The number of staff exceeds 800
Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
42
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies
Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues
PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are
Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive
Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw
TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually
PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018
Nick KoacutesCountry Managing Partner
Legal services
State Aid amp Incentives
Indirect tax related advisory services
Personal income tax and social security consulting
Transfer pricing
Bookkeeping and payroll services
Reviews of the efficiency of payroll accounting
Foreign VAT refund applications
Corporate tax related advisory services
Smart Tax Solutions
Tamaacutes LőcseiTax and legal services
Management consulting services
Deals
Technology consulting
Aacutedaacutem OsztovitsAdvisory
Capital Markets and Accounting Advisory Services
PwCrsquos Academy
Risk Assurance Services
Audit Services
Value-added assurance services
Aacuterpaacuted BalaacutezsAudit
Internal firm services
In Hungary the members of the Territory Leadership Team (TLT) are
theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer
TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel
TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
43
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
34 Our global network ndash PwC International
PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices
PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld
PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices
BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection
North Central and South America
71222employees
Middle East and Africa
15090 employees
Western Europe
75151 employees Central and
Eastern Europe
11538 employees
Asia
68963employees
Australasia and the Pacific
8966 employees
Budapest and Győr
776employees
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
44
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork
APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are
bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears
bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere
bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy
bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness
bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam
35 Economic indicators
18 167 695 t HUF
12 093 073 t HUF
22 257 924 t HUF
16 543 948 t HUF
6 916 722 t HUF
7 367 618 t HUF
17 063 319 t HUF
14 229 752 t HUF
19 786 000 t HUF
14 887 224 t HUF
6 243 894 t HUF
8 503 496 t HUFFY 2017
FY 2018
Employeersquos wages and benets
Taxes
Operating expenses
Income
Balance sheet total
Net sales
776 661
Number of employees
Theseareourkeyeconomicindicatorsforthepasttwoyears
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
45
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Promoting lasting and sustainable economic growth ndash Our economic role
AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications
Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog
EVP (Employer Value Proposition) survey
ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers
InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers
Automotive Supplier Survey
EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat
Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave
alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines
Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons
Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018
wwwpwccomhu
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
46
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
Circular economy
PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness
breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing
How much is your data worth
Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe
industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata
Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday
Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances
Presentations
KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject
ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions
PwC Hungary is committed to building a circular future ndash we
approach both our own business processes and client engagements with a sustainability mindsetrdquo
Aacutedaacutem Osztovits Partner Advisory service line leader
Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban
wwwpwccomhu
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
47
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
36 Quality and risk management 37 Human rights
AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry
Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality
Nohumanrightsviolationswerereportedduringtheperiodconcerned
WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy
PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf
LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases
PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues
Those criteria are
bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear
bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
48
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
38 Ethical requirements
WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff
EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee
CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom
Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation
PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation
PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed
TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors
TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml
Living our Purpose and ValuesPwCrsquos Code of Conduct
May 2017
wwwpwccomcodeofconduct
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
49
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible operation
39 About our sustainability report
Purpose of the report
WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability
Limits of the report
ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison
WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess
WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext
Definition of the reporting process
InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem
Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation
GRI Content Indices
GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
50
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
102-14 3
102-15 29 httpswwwpwccomhuhuceo2018html
102-1 41
102-2 42
102-3 43
102-4 41
102-5 41
102-6 43
102-7 42
102-8 10
102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential
102-9 30
In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles
102-10There has been no significant change amongst PwCrsquos suppliers
102-11 PwC Transparency Report 2018
102-12 31
102-13 30
102-45 44
102-46 49
102-47 5
GRI Standards
Reference CommentPublication
numberPage
number
103-1 5
102-48 48
102-49 46
102-40 26
102-42 26
102-43 44
102-44 28-29
102-50 48
102-51 48
102-52 48
102-53 52
102-54 46
102-55 48-49
102-56 49
102-18 42
102-19 42
102-20 19
102-21 29
102-22 42
102-23 42
102-24 42
102-25 PwC Transparency Report 2018
102-26 42
102-27 42
102-28 PwC Transparency Report 2018
102-29 28-29
102-30 47
102-31 26-27
102-32 19
GRI Standards
Reference CommentPublication
numberPage
number
102-33 PwC Transparency Report 2018
102-34 PwC Transparency Report 2018
102-35 NAThis information is confidential according to PwCrsquos HR policy
102-36 13
102-37 NAThis information is confidential according to PwCrsquos HR policy
102-38 NAThis information is confidential according to PwCrsquos HR policy
102-39 NAThis information is confidential according to PwCrsquos HR policy
102-16 6
102-17 PwC Transparency Report 2017
103-1 7
103-2 7
103-3 7
201-1 44
201-2 NA No such information is available
201-3 13
201-4 NA
202-1 NA Does not apply to PwC Hungary
202-2 10
203-1 32-34
203-2 27
204-1 49
401-1 10
401-2 NAFull-time and part-time employees are entitled to the same benefits
401-3Staff on parental leave 35 Staff returning from parental leave 5
List of indicators
Employment agreement Form of employment
permanent temporary full-time part-time
25 751 694 85
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
51
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
GRI Standards
Reference CommentPublication
numberPage
number
402-1 The notice period is 30 working days
403-1 NA Confidential information
403-2There were no accidents at work related absences or lost working time during the reporting period
403-3 NA
403-4 NA
404-1
6 7
2017 2016 2017 2016
455 469
Gyakornok
Egy főre eső keacutepzeacutesi oacuteraszaacutem
Oumlsszes keacutepzeacutesi oacuteraszaacutem
60 64 35 490 37 440
Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters
50 52 1085 1092
Ceacutegtaacuters
404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs
404-3 16
PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system
405-1 10
GRI Standards
Reference CommentPublication
numberPage
number
414-1 30
414-2There were no such incidents at our company during the period under review
412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf
406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period
407-1 29
408-1 PwC Transparency Report 2018
409-1 PwC Transparency Report 2018
410-1 PwC Transparency Report 2018
411-1No human rights violations were reported during the period concerned
412-1 PwC fully complies with this commitment
414-1 30
414-2 30
413-1 22-23
413-2 NA PwC is not aware of any negative effects
205-1There were no such local incidents during the period under review
205-2 47
205-3There was no such incident during the period under review
415-1 NA
206-1There was no such incident during the period under review
419-1
PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period
GRI Standards
Reference CommentPublication number
Page number
416-2There was no such incident during the period under review
417-2Number of incidents of non-compliance concerning product and service information and labelling 0
102-43
102-44
13-1416
20-24
27-29
102-2 40
417-3 8
418-1There was no such incident during the period under review
419-1There was no such incident during the period under review
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report
52
Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018
Responsible business
Imprint
CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary
PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary
Balaacutezs MeacuteszaacuterosPartnerPwC Hungary
PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock
CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom
Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report