International guidelines, corporate best practices and a large volume of professional literature have together created the system which today is referred to as CSR.
The relationship between CSR and public affairs (PA) has not been sufficiently studied (Nelson, 2008). This seems to be attributed to the fact that the world is coping with a number of complex global and local problems like poverty, population increase, the lack of drinking water, etc. and overcoming these problem poses an increasing challenge for nation states. The sustainability of the economic, social and natural environment is indispensable for the long-term, value creating operation of businesses (Nelson, 2008). As a result of these phenomena and processes, the interests and responsibilities of the state meet the interests related to the sustainable operation of businesses.
According to Kargaci-Kovats (2012), CSR is still considered a novelty in Hungary. While, CSR was already a known concept in the country, its popularity gained momentum following the Hungarian Business Leaders Forum in 1990 when the forum made CSR one of their topics or agenda for discussion (Lakatos, 2013). The value of public affairs in CSR relates to the decree passed in 2006 in Hungary with the Promotion of Employers’ Social Responsibility alongside the creation of the National Council of Sustainable Development as supported by the Parliament, its delegates and business as well as science, civic, abd religious representatives. Through the council, various functions were considered. The first function refers to its role in informing the Government about sustainability risks in different proposed legislation and second, the council also takes part in supposting the national sustainability strategies (Lakatos, 2013). Even with political support and sufficient business engagement, there is still insufficient elaboration and clarity for Hungarian organizations on what CSR actually covers (Lakatos,