american chamber of commerce in

VOICEVol IV. issue 16, september 2014

Envisioning a Better Future?

MORE INSIDE: Incentivizing Whistleblowing Positive Impact 3 Contents

4 introduction 14 COVER STORY 30 AmCham news Dear Members and Friends… BSE Making no Headway Dare to Dream About HR 5 PEOPLE 16-17 COVER STORY Value and Impact Envisioning a Better Future 31 AmCham news Acing a Creative Network BUSINESS WITHOUT 6 PEOPLE 19-21 COVER STORY Creating a Culture Moving to a new of Whistleblowing Model of Education 32-34 AmCham news BOUNDARIES New Members PEOPLE 7 22-23 lifestyle Incentivizing Whistleblowing CIB EXPORT AND András Török’s 36-39 AmCham news Photo Coverage 8 PEOPLE TRADE FINANCING Making Hungary More Popular 24-25 AMCHAM NEWS 40 Patron profile 9 PEOPLE Positive Impact Budapest Marriott Hotel Open up new horizons for your business. Choose the Thumbs up to Innovation favourably priced, fi xed rate export loans of Hungary’s 26 Amcham News 10 -11 News & ANALYSIS Become a Disability- 41 Patron profile -leading corporate lender CIB . Business News Roundup friendly Workplace! Coca-Cola HBC Hungary Ltd. 12-13 macroeconomics 29 AmCham news Hungary Tops EU Growth Jubilee Thanksgiving 42 Ceo’s note for Q2 Charity Drive Getting on Board

Voice is published on behalf of the American Chamber of Commerce by Absolut Media Zrt., Madách Trade Center, 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Editor-in-chief: ROBIN MARSHALL ([email protected]) • Contributors: LEVENTE HÖRÖMPÖLI-TÓTH, ROBIN MARSHALL, ANDRÁS TÖRÖK, Photography: András Hajnal, Lázár Todoroff • Design: ABSOLUT DESIGN STÚDIÓ ([email protected]) • Art Design: NORBERT BALÁZS • CEO: TAMÁS BOTKA Advertising: ABSOLUT MEDIA Zrt. ([email protected]) • Sales and Marketing: BALÁZS ROMÁN ([email protected]) Subscriptions: [email protected] • Printing: Absolut Print Kft. Bank of Websites: www.amedia.hu, www.bbj.hu For AmCham Content and Advertising: ZSÓFIA JUHÁSZ ([email protected] + 36 1 266-9880/360)

HU ISSN 2062-1817

CIB_Uzlet_hatarok_nelkul Voice_A4 ENG.indd 1 08/09/14 14:51 VOICE american chamber of commerce in hungary Introduction People 5 Dear Members, Dear Friends, Interview

for future generations, we put the from one sector to another can help focus on finding and encouraging entrepreneurs in divergent industries Value and Impact those pioneers who will launch and to learn from one another and to learn by Robin Marshall lead organizations in fields that are from one another’s experiences. only beginning to emerge. Some of VOICE sat down with chairs to collect their input into the these will be innovative ideas; some I encourage you to read the program to new CEO Irisz Lippai- definition of our strategy. On August may be different business models for get a feeling for the complexity of the 28 we had a very dynamic and fruitful existing ideas. But it’s not enough to organization surrounding the summit. Nagy to discuss her hopes discussion to determine the direction talk about it. AmCham’s Transparency From universities to private business and aspirations for the and next steps. It was really promising and Governance committee has taken people, their companies, AmCham staff, to organization she now to see how active the participants were, it upon itself to organize the Third other civic organizations, we’ve endeavored sharing their thoughts and transmitting Entreprenuership summit to inspire to include others in shaping this part of helps lead. their energy and commitment. entrepreneurs – decided and undecided the Hungarian business landscape. People Currently we are working on finalizing – to adopt an exciting way of thinking. and companies giving of them selflessly our strategy, defining how best we can But it’s not enough to be excited. The produce outstanding results. I am proud to What attracted you to the create value and make an impact in committee has worked out a program know many involved and know that with in the first place? a structured way. My task is to make – called ‘Start Your Business’ – to each passing year, the bar is raised. We The board asked me the same question sure we have an executable strategy Photo: István Nagyapáti encourage entrepreneurs to play within learn and adapt, learn and adapt. during the recruitment process and and detailed work plan for 2015 in the bounds of the law, to create and my answer was – and still is – that I place to mobilize and motivate not only If you have spent any amount of time contribute so to speak. At AmCham If you feel a slight tug to help organize, would like to work with interesting, AmCham staff, but also our members in Hungary over the last three years, we believe in making an impact within support and mentor leaders and inspiring people to promote the for the effective execution. you have likely noticed that the topic a framework. The program serves to businesspeople of the future, we’d business environment in Hungary. of entrepreneurship has slowly crept show several examples of successful be happy to discuss how you could During the first three months in the job How will you judge near the top of many agendas. This entrepreneurs, their paths, and their contribute to this wonderful effort. I have met more than 50 professionals whether you have been includes that of AmCham. As society nuggets of wisdom. No two ventures Hats off to those involved. It’s a big representing many different industries. successful in the CEO’s post? concerns itself with sowing the seeds are alike, but cross-pollination step to help others take a small step. These people hold important leadership Beside informal feedback from our positions, they have already achieved members and our staff, there is a very a lot in their career, and it is very clear indicator: increasing retention AmCham Member’s Board fulfilling to see that they devote time of current members and a growing and energy to AmCham to move number of new members. President First Vice President Second Vice President Secretary Treasurer William Norbert Ferenc Péter forward things they believe in. Benkő FOGARASI PONGRÁCZ Fáth You have held high- Morgan Stanley Rózsakert Hungary IBM Hungary Honorary You have had a chance to powered jobs for a number Medical Center Analytics Ltd. 1117 Budapest, member Neumann Str. 1. get your feet under the of years and you also have 1026, Budapest, 1095 Budapest, Gábor Áron u. Lechner Ödön table and settle in now. two children. How do you 74-78. fasor 8. What has surprised you services to meet their needs. In the maintain a healthy work/ [email protected] [email protected] [email protected] [email protected] Phone: +36 1 225 7350 Phone: +36 1 881-4113 Phone: +36 1 382 5924 Phone: +36 23 502 400 most about the job? past AmCham has been a powerful life balance? Fax: +36 1 881-3700 Fax: +36 1 382 5501 Although I was managing huge and impactful organization, which I have been lucky as I could always Board Members at large organizations, this time I need to is a very good base from which to count on the help of my parents, Gábor Edina Márk Andrea GONDA Heal Hetényi Juhos engage volunteers and coordinate their define those areas where we can be a helping me look after the children work. While it is fulfilling on one credible partner for decision makers and organizing things at home. Hewlett Packard Google Flextronics LHH Magyarország, 1117, Budapest, 1077 Budapest, International Career Consultants Kft. hand, it also requires very different in improving the competitiveness of Still today my mother stays with us Alíz utca 1. Wesselényi u. 1183 Buda- 1021 Budapest, 16/A. pest, Hangár Ötvös János u. 1-3. leadership capabilities and in my view our market. If I look not only at GDP during the week, which is not only utca 5-37 personal engagement becomes even but also the brain power concentrated a big help but also transmits the [email protected] [email protected] [email protected] [email protected] Phone: +36 1 229 9001 Phone: +36 1 888 0501 Phone: +36 30 677 5029 Phone: +36 1 392 5070 more important. in AmCham, represented by our values of living in a big family, with Fax: +36 1 229 9999 Fax: +36 1 888-0501 Fax: +36 1 297 0158 Fax: 36 1 392-5071 members from almost all industries, three generations together. When my Board Members at large Chief executive officer What are the biggest I am confident the chamber can act previous employer moved to Budaörs, Bob Diána Eszter Irisz challenges in the role and as a source of information and be a we took the decision to move there so I MANSFIELD STEGENA Szabó LIPPAI-NAGY facing AmCham itself? think tank for working out overarching didn’t lose time in traffic. When I am Mansfield & Amgen Kft. GE American Chamber Associates 1055 Budapest, 1138 Bp., Duna of Commerce in During my discussions with our recommendations. Our challenge now asked for advice by younger women 1051 Budapest, Kossuth tér Tower, Népfürdő Hungary 1051, members the question I am most is to define those areas of focus that I always stress two things – try to Szent Istvan 16-17. III/2. utca 22. B-C. Budapest, Szent tér 11. épület István tér 11. interested in is what they expect coincide with the interests of both our organize the help around the children [email protected] [email protected] [email protected] [email protected] Phone: +36 30 609 6379 Phone: +36 1 354-4710 Phone: +36 1 237 6811 Phone: +36 1 428-2080 from AmCham. As we have almost members and decision makers. and the household well to be able to Fax: +36 1 354-4702 400 members, ranging from big concentrate on your job while working Ex officio members international companies to SMEs and During the summer our team was busy and to enjoy quality time when with Robert Peaslee, István Havas, Gusztáv Bienerth NGOs: we have to find a structured preparing for a strategic discussion with your loved ones, and, by all means way to target and communicate our our board members and committee possible, avoid trying to be perfect! VOICE american chamber of commerce in hungary People 7

PEOPLE interview Creating Incentivizing Whistleblowing Tara Lee is global compliance program that ensures ethical behavior and enables employees to speak a Culture of chair of DLA Piper’s up without fear of retaliation. Ideally, Cross Border Litigation an employee’s personal moral compass, practice, and will be one duty of loyalty to the company, and of the key speakers at the goals of the organization would all Whistleblowing align. When they do, a whistleblower AmCham’s upcoming who is willing to come forward helps whistleblowing workshop. prevent both overtly fraudulent conduct Ahead of AmCham’s Workshop on Whistleblowing (for more and organizational practices that are VOICE asked her about wasteful or potentially harmful to public details see page 35), VOICE spoke to keynote speaker Anna the growth of the practice safety, and everyone benefits. Myers about the importance of the subject area, and likely future What are the latest trends, developments. internationally? Should the whistleblowing support system be developed publicly traded companies facing False How and why did you Culture is probably the biggest organically, or does it Claims Act cases brought by whistleblowers first get involved with challenge. Sharing information or How did you first require state legislation to and the U.S. Government must report the whistleblowing? warning others of risk should be civil society is engaged and that is the become interested in get things moving? costs they incur defending those claims, That is a good question. I had never unremarkable, but in the context focus of the international network I am whistleblowing? I think the trend internationally is to enact and they often exceed tens of millions heard of whistleblowing until I of work relationships it can coordinating. Through my work defending clients legislation that incentivizes whistleblowing, of dollars per company. Additionally, applied for the job of legal officer at challenge notions of duty, loyalty, facing whistleblower originated lawsuits. in particular in order to uncover fraud just by way of example, every year since Public Concern At Work nearly 15 and obligations. Employers can How would you describe After successfully defending a very- against the government. The United Sarbanes-Oxley was passed in 2002, there years ago. But it made perfect sense do a lot to create a more open and attitudes towards whistle high visibility case brought by the U.S. States’ experience with whistleblowing have been reports quantifying the costs to me – the value and importance of responsible workplace by encouraging blowing today? Is it getting Government and a whistleblower a few legislation, especially in the last ten years, of compliance with it. Early reports in the people speaking up in the interest communication on a wide range of more supportive? years ago (we obtained a total dismissal demonstrates pretty convincingly that years immediately after it was enacted of others. What amazes me is that subjects – and be ready to account for Broadly there is more support for the of the government’s case, and the U.S. corporate whistleblower protections placed the cost per company at an average whistleblowing is now something that their conduct when necessary. It is also idea of whistleblowing than ever before Government wins more than 95% increase dramatically after mandating of $2 million, with variance depending on young lawyers and practitioners might important that there is public debate – but there is also confusion about what of the cases in which it intervenes) I legislation. Some corporations historically the size of the company. actually seek out rather than just fall about what whistleblowing means and it means and hostility from those who became particularly interested in reform develop those programs organically, but into as so many of us did. why it is important in real terms. see it as a threat to the status quo. I try initiatives and some of the ancillary because those programs can be quite Is there a measurable to keep it simple: we all know when effects and unintended consequences of expensive, more corporations do so once growth in acceptance for Why is it so important to Right now, what is we want the whistle to be blown – to whistleblowing laws. legislation mandates it. There have been whistleblowing? Do you encourage whistleblowing? more important for protect the well-being of a loved one or some interesting studies recently in the think businesses tend to The activities of organizations – creating a better safeguard our life savings, for example. How much of your role as United States tracking the advantages of tolerate it as a necessary whether it is in the public or private support environment for But if we want others to speak up for head of the DLA Piper’s Global smaller companies choosing to remain evil, or embrace it as a sectors – affects people in real and whistleblowing: organic us, then we need to support those who Investigations practice is privately held, rather than becoming vital part of corporate direct ways, in the products sold and growth through corporate speak up in the interests of others – devoted to various aspects of publicly traded, specifically to avoid the responsibility? the services provided. No matter initiatives, or state even if that means that sometimes our whistleblowing? oversight and compliance costs associated In certain sectors (healthcare, what systems we put in place, things sponsored legislation? own authority is challenged. More and more. Ten years ago it with triggering the whistleblower pharmaceuticals, , defense), can go wrong. Whistleblowing I don’t believe one approach will work was probably less than 10% of my protections required of public companies whistleblowers are a significant means of is about communication. Inside on its own. Corporations can do a lot What, above all else, would work. Last year, more than half my in the States. detecting fraud. I think most businesses organizations, whistleblowing can to make it easier for staff to speak up, you like to see changed caseload was responding to complaints recognize that, and even value it, but there act as an early warning system but, particularly in the way they handle tomorrow in order to originated by whistleblowers. Is it possible to estimate is still definitely some legitimate skepticism importantly, whistleblowing is also and address information they receive, improve the situation? the costs to business of recognizing that the incentives created for a matter of public responsibility. It is whether or not there is a law in place. Above all, I would like people to What is, or should be, the role whistleblowing? reporting fraud often have little impact our back-up alarm when systems of But a law, properly developed through understand whistleblowing from a of whistleblowing in the Yes, there have been several empirical on actually preventing (as opposed to oversight fail or are corrupted. In my broad national consultation, sends a human perspective – as a matter of business world? studies conducted in America to measure detecting) fraud. I certainly think that experience, whistleblowing saves lives strong message that whistleblowing public interest and accountability. There really isn’t a one-size-fits-all way to the cost of some of our whistleblower whistleblowing carries less stigma than it and livelihoods. is acceptable and will encourage Then sensible decisions can be incorporate whistleblowing into a business legislation. For example, the U.S. Chamber did 20 years ago, and is more accepted as corporations to do the right thing. made about how best to address it in culture. The role of whistleblowing in of Commerce in 2013 published a detailed an aspect of corporate culture. A culture What are the biggest However, in my view, the -term different contexts – whether it is anti- Japan will never be exactly the same as research brief assessing the impact of that accepts the reporting of wrongdoing challenges in encouraging benefits of whistleblowing for the wider corruption, or protecting in Djibouti. What is critical everywhere the False Claims Act in the States and is a critical step towards the goal of people to speak up? society will only be realized if national human rights. is that corporate leadership structures a recommending reforms. Additionally, preventing wrongdoing. VOICE american chamber of commerce in hungary People 9 PEOPLE Interview Making Hungary More Popular Thumbs up to Innovation by levente Hörömpöli-tóth VOICE talks to State Secretary for Foreign Affairs and Trade László Szabó by shorter area-specific meetings where visitors can establish face-to-face contacts about how his previous position as head of Teva Hungary and an AmCham Innovative ideas in and forge invaluable business ties. member can help in his new role Hungary have a better Pitching will be on the agenda in order to give it an even more practical edge. South chance than ever of being Korea and France will be in the spotlight turned into reality. Endre as privileged guests. Until a few months ago, you your new role? Spaller, President of the had been CEO of Teva Hungary AmCham has the potential to attract other Why were those countries for more than three years, to Hungary through organizing Hungarian Innovation invited? and before that worked at conferences and professional workshops Office (NIH), explains South Korea has an intense presence Eli Lilly for 17 years. How highlighting investment opportunities in what role the government, in Hungarian industry. Few are aware do you hope to bring your the country. AmCham also has a vital role that the country has an R&D facility experience of the commercial in facilitating bilateral meetings between European Union funds here. They could have set it up just next world to bear in relation to Hungarian and American decision-makers and his own organization door in China, but they chose us. By your new role, responsible regarding economic policy. As for me, I am can play in the process. providing them with an important role for foreign policy and trade? happy to meet leaders of those companies entrepreneurial concepts are viable. It is in Innotrends, our message can go out to There are several similarities with my that have already invested or are considering worth repeating on a yearly basis. the Far East that Hungarian engineering previous tasks. In the past years I have investing in Hungary to discuss their ideas, is of the highest quality and everybody not only worked for the success of Teva, answer their questions and listen to their Startup Tel Aviv 2014 will from that area is welcome to cooperate. but also for Hungarian products reaching recommendations. Hungary’s government How has the office changed offer another chance for more Hungarian patients and for improved has set the aim for the country to become since you took over? Hungarian entrepreneurs to What are the plans for the investments in the pharmaceutical sector. the production center of . In order to The biggest achievement is that the office show what they are capable of. rest of the year? Since 2010, Teva has established one of fulfill this goal, the government has focused is becoming more project-based in its Our activities cover providing the best NIH would like government-owned the world’s biggest tablet production sites on infrastructure development and the functioning, which means that we are with opportunities to gain experience corporations to get engaged in the in Debrecen, and one of the world’s most boosting of investments. For all companies searching for projects that have specific beyond our borders. Twenty six startups process of innovation, not only by modern sterile units in Gödöllő. This has keen on expanding their production Asian partners would help by improving financing. We strive to get investors signed up for the Tel Aviv event and one, supporting existing innovative products, also significantly contributed to employment capabilities in Europe, it is important to the conditions of competition for our or help companies to market their namely Test Jockey, will actually get but also by identifying needs that require and economic growth. In order to get more make Hungarian business options available. exporters. For Hungary the early and target products abroad. We continue there in mid-September. But it is not such a solution. They could then order investment we had to convince global leaders peaceful resolution of the conflict between monitoring until projects turns into a the only occasion of its kind. - the best product from among those to choose Hungary as their investment What are going to be the most Ukraine and Russia is of key political as smoothly running enterprise without focused startups receive support from us manufactured. Thus we could create a destination. I also had to transform this huge, important developments well as economic importance. any outside help. to do an incubation in France, to name large market for innovation. On the one but occasionally inefficient firm and change affecting trade globally, but one example. hand, the state gains access to high- the sentiments of the workers to become and specifically for Hungary? Where are we with Will the launch of the new tech material cheaply. The producers, more committed and effective. Hungary is one of the most open negotiations for T-TIP? Do parliamentary term have What is the so-called Mentor in turn, will have that crucial reference In my new position, my most important economies in Europe – the share of you see any likelihood of an any impact on the work of Club organized by NIH? that they can use to sell their items more task is to enforce the priorities of the exported goods and services is growing agreement being signed soon? your office? We now have 170 entrepreneurs under the easily globally. This is what is called . My aim is to make and reached 95% of our GDP. Though our T-TIP is a historic endeavor; it is New resources for innovation will be guidance of 140 mentors. In one case the ‘government incubation’ since the state Hungary more popular among foreign deep integration into world trade brings undoubtedly the most important free available soon and that will certainly set mentor has even become an angel provides a market for innovation, which investors and let them explore investment a high level of dependence on global trade negotiation the EU has started things in motion. Those with creative in the company. Another product got a can then draw financing faster. opportunities in production, thereby economic developments, our foreign trade to date. An ambitious and balanced ideas have an excellent opportunity to whole new (and much more marketable) contributing to job-creating investments. has shown remarkable resilience during agreement will offer important turn them into reality. Some HUF 100- look after its creators were encouraged European funds will be My other task is to make the foreign policy the global slowdown experienced in economic benefits to both partners in 150 billion will have to be spent from by their mentor to take part in a design available under the Horizon establishment a more efficient organization, recent years. We are running a high trade terms of improved competitiveness, the structural funds. contest. The latter proves what a difference 2020 scheme. What role will so that officers working in public service surplus amounting to some 7% of our GDP increased economic growth and new a creative environment can make. they play? can better represent our priorities. This will and this sector keeps making a positive jobs. The negotiations are progressing Startup Spring was launched There’s enormous interest in those funds. be a new, interesting task for me, but I hope contribution to our GDP growth. We hope as expected; this year has already seen this year. Any plans to make Innotrends Hungary was have filed the sixth most that my experience in the private sector that the economic recovery in Europe will the first exchange of offers on market it an annual event? organized last summer for applications for grants among the EU28, – together with HR and leadership skills continue and expect emerging markets to opening for goods and services. On the The whole idea was to see how much the first time. How do you which puts the country at the top of the acquired in different countries in the past grow at a higher than average rate. We want basis of the state-of-play, I consider the a startup can improve within a period rate it? region in this regard. Clearly not all two decades – will prove useful. to take advantage of both these processes objective of concluding the negotiations of three months when assisted by It was our top event in 2013 with a applications will be accepted; however, and diversify our exports towards markets by 2016 as ambitious but reachable. Let experts. We demonstrated that this is record attendance of some 3,000. Every the really good ones will have a second Through Teva, you were also with higher growth potential. Progress in me add, though, that for us the content enough time to effect major changes. stakeholder in the innovation world was chance with the opening of the structural a member of AmCham. How can WTO as well as bilateral trade negotiations of T-TIP is far more important than the Pitch training and the boot camp represented. The two-day gathering this funds, so they can be implemented from the chamber best help you in with the USA, Japan, and emerging timing of its signature. proved suitable tools to reveal which year will feature a plenary session followed domestic resources. VOICE american chamber of commerce in hungary News & Analysis 11

in operations and technology, finance WING creates new MSD inaugurates and consumer areas for Citi clients.” Citi production hall for GE distribution center in Business news Magyarorszag CEO Aftab Ahmed said Citi Property developer WING reported Hungary wants to expand its service activity based the completion of a 11,000 sqm, HUF American drug maker MSD inaugurated It isn’t necessarily all doom on the highly-qualified and committed 4.5 bln ($18.5 mln) production hall for a regional distribution center on the and gloom out there… professionals available in Hungary. Beata General Electric at its East Gate Business outskirts of Budapest on September 3. roundup Előd, head of Budapest Citi Service Park in Fót, near Budapest. GE now The company reported that the center Compiled from Hungary AM’s news service Center said the investment would expand leases 17,500 sqm, and it created more was set up with the co-operation of service activity in the areas of information than 100 new jobs at the industrial park, international express delivery company technology, , engineering WING reported. The eight-month-long UPS. MSD Pharma Hungary managing development and financial analysis. construction of the unit was supported director Thomas Straumits said the with EU funding of HUF 272 mln and center would serve 14 countries in Dow AgroSciences opens HUF financed by UniCredit Bank. GE is Central and Eastern Europe. MSD 600 mln plant-breeding station planning to make central control units Pharma is Hungary’s fifth-biggest Dow AgroSciences Hungary, the Hungarian for power plants at the site. pharma company. unit of the American agricultural-chemical and technology company Dow AgroSciences, and U.S. firm Navigation software firm inaugurated a new plant-breeding station market new drug in Europe acquires U.S. peer nFuzion worth HUF 600 mln ($2.4 mln) in Szeged on Hungarian drug producer Gedeon Hungarian navigation software developer September 2, Dow AgroSciences Hungary Richter has concluded an agreement NNG, which makes the iGO application, CEO Imre Erdei announced. The Hungarian with U.S. biopharmaceutical company has bought U.S. peer nFuzion with unit was awarded HUF 300 mln in European Palatin Technologies to develop and the aim of expanding its profile, the Union funding for the construction. Erdei commercialize bremelanotide, an company’s media agent told national said that the unit would conduct R&D active ingredient in a drug designed news agency MTI. NNG started focusing activities focusing on maize and sunflowers to treat female sexual dysfunction, the its business on navigation solutions in at the facility. The investment created 21 jobs, Hungarian company announced. The 2008 and now seven of the world’s top increasing the total number of employees drug will be marketed in the European ten carmakers use its products. The working at the unit to more than 50. Union and in a few other countries. company employs more than 600 people.

Photo: Lajos Soós / MTI Audi producing new coupe in Győr the number of spaces for pupils. One fourth of the investment The Chinese are investing heavily in Hungarian citric acid is covered by European Union and state funding, according to German carmaker Audi is launching serial production of its the company. Founded in 2010, the school has been providing third-generation Audi TT Coupe in Hungary, Audi Hungária education in German to students in grades 1-9, and it has RZBC to build HUF 31 bln citric of Budapest) on September 9, city Mayor BorgWarner is planning to raise headcount Motor announced on July 24. The model is entirely and been slowly expanding to include secondary education. At acid plant in Hungary Ferenc Szalay announced. The mayor said at the company’s Hungarian base in exclusively manufactured in the Győr plant of the German the opening ceremony, Thomas Sigi, Audi board member for China’s RZBC group will build a HUF that China BBCA would hire 440 people Oroszlány (76 km west of Budapest) by carmaker. With the launch of the current production the human resources, praised the Hungarian workers of the Győr 31 bln ($127.7 mln) citric acid plant in to work at the factory. Szalay said in March more than 300 in the upcoming years, the factory is reaching its full capacity Thomas Faustmann, the plant for being “well-educated, motivated and committed”. Kazincbarcika (205 km northeast of that the plant would be completed by the managing director of the unit’s turbocharger managing director of Audi Hungária said. He added that the Budapest, near Miskolc), government end of 2015. A Chinese-Hungarian joint production division told Hungarian vehicle output of the plant is expected to triple this spring, Headcount at Audi’s Hungarian unit now exceeds 11,000, and company officials announced on venture has been established to build the news agency MTI on July 9. Currently, reaching more than 120,000 this year. Audi Hungária informed MTI. In the first half of 2014 a September 2. The government approved a plant. The government decided last year that the American company provides jobs for total number of 796 professionals joined. Headcount at Audi one-off HUF 1 bln ($4.1 mln) investment the state’s stake would be no more than 49%. approximately 700 people at the Oroszlány In other news, Audi is planning to start production of new Hungária has gradually been on the rise since September 2011. subsidy for the plant, while RZBC base, however the planned expansion of the engine models at its Győr base, Axel Strotbek, Audi AG’s board committed to employing 165 people for AGCO-GSI inaugurates plant 20,000 sqm production hall will generate member for finance and organization, told Hungarian news the next ten years, said Ministry of Foreign in Hungary more job opportunities, Frederic Lissalde agency MTI in an interview on July 23. “We will continue to Affairs and Trade state secretary Péter GSI, part of AGCO Corporation, an said. Should the new production hall make substantial investments in Győr in order to achieve our Szijjártó (pictured above). The plant will American agricultural equipment reach its full operation, 300 people will be goals,” Strotbek told MTI. turn out 100,000 tonnes of citric acid a year, manufacturer based in Duluth, Georgia, employed in the new unit. using 200,000 tonnes of maize feedstock. has inaugurated a HUF 670 mln (some $2.7 The German carmaker Audi already plans to expand its recently Output of the plant will account for 5% mln) plant at Biatorbágy, near Budapest. Citi to expand BP service inaugurated logistics base in Győr, according to regional daily of the global total. RZBC has already The plant, the company’s first in Europe, center for HUF 3 bln Kisalföld. Audi opened the 75,000 sqm base, built at a cost of registered its Hungarian unit and is in will target Bulgaria, the Czech Republic, Budapest Citi Service Center will create 250 HUF 10 bln ($41.2 mln), last fall. Audi Hungária spokeswomen the process of obtaining environmental Romania, Russia, , and Ukraine, as new jobs through investment of more than Mónika Czechmeister told the paper that the unit would like to permits for the plant. well as the Hungarian market, GSI Hungary HUF 3 bln ($12.3 mln), with support of build a second warehouse in Győr. managing director Jason Colwell said. The HUF 250 mln provided by the Hungarian China BBCA building HUF 53 bln plant is planned to create 125 jobs. government, state secretary of the ministry Government and corporate officials on July 22 laid the citric-acid plant of foreign affairs and trade Péter Szijjártó cornerstone of a HUF 5 bln ($20.6 mln) expansion that will China BBCA laid the cornerstone for the U.S. automotive company to said on August 27. According to Citi bank, triple the size of the Audi Hungária School in Győr and double company’s HUF 53 bln ($218.5 mln) citric- expand in Hungary “Budapest Citi Service Center, established acid plant in Szolnok (120 km southeast U.S. automotive industry supplier in 2005 [...] provides a wide range of services VOICE american chamber of commerce in hungary News & Analysisxxxxx 13

macroeconomics happy to say we are the leading economy in the EU, but that is definitely not true,” says András Somi, Head of Research and Hungary Tops EU Growth for Q2 Content at KBC Securities Hungarian Branch Office. “It has been remarkable growth, but affected by a few one-time Hungary’s macroeconomic landscape was dominated by a huge positive surprise factors, that is why we cannot expect when Q2 figures revealed the economy had expanded by 3.9%, year-on-year, with it to continue all year. The macro environment has improved in the construction and industry the main drivers. past quarters, but we are not out of the tunnel yet.”

ndeed, the figures were so Ákos Kuti, Head of Research at Equilor good that Economy Minister Investment Ltd., said the level of growth Mihály Varga was able to was “a pleasant surprise”, but pointed I boast on September 3 that out that growth had been expected Hungary’s annual economic growth thanks in particular to two events: the was the fastest among the 28 European ‘Funding for Growth Scheme’ through Union member states for the quarter. which the While that probably says more about makes cheap money available to the on-going sluggish recovery within to lend to business, and the expansion of the Union, and among eurozone the local units of car producers such as members in particular, Audi and Mercedes. Source: Hungarian Central Statistical Office (KSH) there is no denying Hungary’s improved performance. But those boosts to the economy cannot changes. It is very hard for companies line of attack, and noted in an August 28 last forever. “Current indicators suggest to update and keep up with all the statement on the May-June figures that, Varga said growth was on a healthier growth from the current point will be changes, even for multinational “The vast majority of these new jobs and more balanced track than rather limited. We will not see a big companies to adjust.” were created within the private sector, previously, and also noted that expansion in the next one or two quarters, in view of the fact that the number of investments were up by more than indeed we expect weaker growth for the Employment up, migrant workers and people employed 20%. “This means we can expect second half of the year and also next year.” Unemployment Down in public work programs did not investments in the future, and with Kuti emphasized that would not mean a As might be expected, a growing increase significantly during that time, them, more jobs,” state news wire MTI decline, however: growth would stay in economy has also seen improved the Ministry of National Economy’s quoted him as saying. positive territory, but be more muted than figures for those in work. According Minister of State for the Labor Market The ministry put the growth down industry and 19.1% in the construction the last quarter. Similarly, Erste Bank to a Ministry for National Economy and Training Sándor Czomba said.” GDP growth in Hungary was at its to “stable and dynamic growth” industry,” the ministry reported. Hungary also sounded a note of caution in statement from September 4, the highest for eight years, right the way mostly achieved thanks to the better “Despite the high base value, the research it issued in late August: “After the employment situation has continued Rates Held Steady back to Q1 2006, the economy ministry productivity, as well as a recovery in growth rate recorded in agriculture outstanding performance expected for this to improve in Hungary. “In the period Having finally brought to an end its said in a statement on the same day. domestic demand. “The production was higher than expected thanks to year, we expect a slowdown of economic May-July 2014, the number of people in record-breaking run of rate cutting, Household consumption, which grew sectors contributed most significantly favorable weather conditions. Higher growth in the medium-term horizon.” employment aged 15-74 years was up by which stretched all the way back to by 2.4%, also hit an eight-year high. to this growth rate in the second foreign and domestic demand in Apart from anything else, 2014 has been 164,000, from 3,963,000 one year ago to August 2012 and moved the interest rate The ministry projects growth of 3.1% quarter as well, with a 5.6% growth the auto industry contributed to the benchmarked against much lower figures 4,127,000. Accordingly, the employment from 7% then to 2.1% in July 2014 via 24 for the whole of 2014. rate recorded in agriculture, 7.2% in increase in industrial production. The than following years will be. “Thanks to rate improved from 51.9% to 54.3% in consecutive steps, the central bank held performance of the service industry the surprisingly strong second quarter, the same period.” the rate steady at that level. gradually improved over the past we have elevated our full-year average period, recording an overall 2.1% economic growth forecast to 3.3% from Looked at another way, the “The MPC [Monetary Policy Council It has been remarkable increase in the second quarter. More the previous 3.0%. However, we see upside unemployment rate fell by 2.2 percentage of the Hungarian National Bank] seems  specifically, higher consumption potential to this level as we try to remain points to 7.9%. In May-July 2014, the to want to maintain a low interest rate growth, but affected by a boosted trade, favorable tourism data conservative because of the external risks. number of jobless people was down by environment for as long as possible,” impacted tourism, while industrial We still expect a slowdown in quarterly 92,000 year-on-year to 354,000. The last Erste Bank noted. “Apart from their few one-time factors, that is production increased transport GDP development this year, due to the time the unemployment rate was below stronger commitment to stimulating why we cannot expect it to activities. The declining performance possible indirect negative effect of the 8% was in Q3 of 2008, the ministry said. economic growth, the ongoing ‘Funding seen in the financial sector eased Russian sanctions.” Its prediction for real for Growth Scheme’ as well as the continue all year. The macro primarily thanks to the central bank’s GDP growth for 2015 is now put at 2.3%. While the figures for those in work have IRS facilities provided by the CB to ‘Funding for Growth Scheme’.” The been on the rise for sometime, cynics commercial banks could make the MPC environment has improved in Hungarian economy has been on a Equlior’s Kuti warned that investors, have pointed out the large number of so- refrain from rate hikes. However, the the past quarters, but we are consistent growth path since Q2 of by and large, remained weary of the called ‘fostered workers’, those employed likely rate increases by the Fed next 2013, the ministry noted. investment climate. “The environment on public work schemes in order to year, as well as the more uncertain not out of the tunnel yet. as such now is not one to encourage qualify for welfare handouts, that have global market environment, should Analysts, however, continue to sound investors for the next three-five years been included. The national economy eventually make tightening unavoidable a more cautious note. “I would be very because of all the legal and taxation ministry seems now to be aware of that in Hungary.” VOICE american chamber of commerce in hungary rent a car capital markets BSE Making no Headway by Robin Marshall The long fallow period the Budapest Exchange has been going through for the past few years shows little sign of ending anytime soon, analysts tell VOICE.

he BSE doesn’t seem to be going anywhere,” says “T András Somi, Head of Research and Content at KBC Securities Hungarian Branch Office, part of the KBC, the Brussels-based Bank Assurance group. “It is finishing almost as the same level where it started the quarter. The main trend is that we do not have a trend, sadly.”

The reasons behind that are cumulative. On the back of the financial crisis, investors fled the equity markets and have been slow to return. On top of that, political issues have also affected the bourse. “The general stance of the government towards the equity and capital markets has not been investor friendly,” says Somi. And his is far from a lonely voice. Ákos Kuti is Head of Research at Equilor Investment Park may see an uptick in share price based on the improved domestic Ltd.: “In 2010 the first sector taxes economic sentiment, analysts say. were announced, which applied to telecoms, retail companies, energy companies and the banks. This changed FX-denominated mortgage loans into big four. “One of our favorites is TVK, the way investors looked at Hungarian HUF loans at a rate that is advantageous the petrochemical unit of MOL, which a lot. There is a significant to the customer. has some potential. It has a huge factory underperformance compared to the which will start production in the first peer group – Czech, Poland – as well as The fourth blue chip is , half of 2015 and that will have a big Western Europe and the United States.” which has no exposure in Ukraine and is, impact on its profits at an EBITA level, according to some rumors denied by the and I do not think that has been fully The position is little helped by the fact that company itself, a candidate for a buy-out priced in. There are some problems, by four blue chip companies dominate by its parent company Deutsche Telekom. though: it has a very low free float, with the BSE, and all of them face problems Both Kuti and Somi, however, believe this 94% owned by MOL, and only the other to a greater or lesser degree. The three has already been priced in by the market, 6% of shares available, and institutional Feels like home. with most immediate challenges are with little chance of a surge in stock prices. investors do not like that sort of ratio.” drug maker Richter Gedeon, oil and gas (Rent a car in Hungary) company MOL, and banking group OTP. Long-term, taking a view over a year or Other potential targets mentioned by All of them have exposure to Russian more, Kuti believes Richter may be the Somi include the Graphisoft business and/or Ukrainian markets, and thus better bet. “It is working very hard to park, which might see some upside are affected by the crisis in the latter, shift risks from the region by finding from the improved domestic economic but each also has its own specific issues: other markets and revenue streams. situation, and the , MOL is in a protracted legal battle over It has also just announced a deal with although Russian travelers have become its shareholding in Croat peer INA, a U.S. partner [Palatin Technologies] and increasingly important segment for Richter has been hit by delays in new to develop and market a new drug in Hungarian tourism, and those figures drug releases, and OTP, like all banks in Europe.” For Somi, however, the more might be affected if the Ukrainian crisis Hungary, faces the forced conversion of immediate answer is to look beyond the continues. sixt.hu

voice_szept.indd 1 2014.09.11. 11:14:44 VOICE american chamber of commerce in hungary Cover Story 17

visionary series “Smart government can make the system more effective and efficient for us all. Ferenc Friedler Distribution of creativity is not even; where liquidity is not there, government Envisioning a Better Future has to intervene.” by Robin Marshall Miller is far from an anarchist, however. What he sees is the potential for a more The ‘Visionary Series’ of events marking AmCham’s 25th anniversary kicked creative society, and one that values all off by taking a look at the future with a talk and roundtable discussion called members of society better, if we only look at the way we organize ourselves ‘Dawn of the Second Machine Age: Technological Revolution and its Effects on differently. “We have always organized Human Capital’ on June 30. the way we live for work: the forest for hunting, the field for farming, the city for factories. What if we organized our work AmCham and GE celebrating for life; what would that look like?” he had 25 years with Hungary Riel Miller asked earlier. Pointing out that there is no ‘chief starling’ in a murmuration, and the algorithm for creating one on a computer is relatively straightforward, he implied there is still much for us to learn by looking again, and from a different view point, at nature.

AmCham, key representative of US and we treat failure as a teaching tool. “Crisis is international business in Hungary is proud essential,” he says, “crisis is feedback, in the Ferenc Pongrácz to celebrate its 25th anniversary together same way death is essential.” with its founding member and the largest US investor, GE. At times it all seemed a little esoteric. Miller talked of murmurations, is to disturb the present.” In Miller’s closing of heterarchy, and of anticipatory remarks he noted that, rather than letting systems (see box below). And there the future unfold and reacting to it, we were clearly areas where he and his are trained to try to bend the future to our roundtable guests were bound not present perspectives. “We have a colonialist to be in perfect agreement. Hetényi The keynote address was made by acclaimed being created), Miller is quick to emphasize vision of the future. We allow ourselves to be posed the provocative question of Canadian futurist Riel Miller, Head of that he is no fortune teller, and does not try dominated by closed, anti-death thinking; what part government would play Foresight at UNESCO’s Bureau of Strategic to predict the future, so much as look at the that impoverishes us. […] Systems for in a murmiration-like economy. Planning, who discussed how societies must way processes might work if we cast our gaze experimentation have been very weak.” Turóczy, the deputy state secretary, become much more flexible and much less forwards with an open mind. was unsurprisingly keen to talk it up. afraid of risk to overcome what he called the Miller believes we have to “understand “From a theory point of view, from an difficult to intervene in a murmuration. “Biological processes are unbelievably “poverty of the imagination that stands in the Central to that is a change in the way we anticipatory systems” much better and economic policy point of view, the role But the system must be somewhat more creative,” he said. “How do we become way of grasping the creativity of the present”. think, a theme he returned to time and again. adapt our “capacity to rethink what is of government is to intervene where complex than pure murmuration. Birds more ambidextrous? How can we become In a nutshell, we cannot achieve the best Early on in his presentation he quoted the emerging in the present”. We also need to the market fails. I am skeptical there are homogenous; society is not.” There better at thinking of open, not closed, possible future, particularly one that values French philosopher and futurist Gaston reflect on where we are, and learn that ‘risk’ will be no failures. If the system fails, was, he said, a need for “good government, systems. There is a contradiction between all human worth, if we constrain ourselves by Berger: “The purpose of looking at the future carries ‘reward’, that there is no ‘failure’ if there is a legitimate role for government strong government” but that did not making sure things do not fail, and only thinking in current terms. to play. How to intervene? It is quite mean it should aim to be omnipotent. adapting and changing.” Pioneers of Futurism Miller’s speech was followed by a roundtable Futurist Definitions systematically explore possibilities for the future, and how conversation moderated by Márk Hetényi, Gaston Berger (October 1, 1896-November 13, 1960) was a French industrialist they might emerge from the present. The Oxford English European Finance VP at Flextronics and and philosopher, perhaps best known for his studies of character structure, a Dictionary dates the earliest use of the term futurism in an AmCham board member, in which the system of relatively permanent traits that are manifested in the specific ways that Anticipatory Systems: A theory developed by Robert Rosen English to 1842 (albeit in a theological context). futurist was joined by: Joerg Bauer, President an individual relates and reacts to others. In the 1930s, he founded the Centre (June 27, 1934- December 28, 1998), an American theoretical Universitaire International et des Centres de Prospective in Paris and directed biologist and Professor of Biophysics (“Perhaps the first lesson of GE Hungary; Ferenc Friedler, rector at the Heterarchy: a system of organization where the elements of philosophical studies. The term prospective, coined by Berger, is the study of possible to be learned from biology is that there are lessons to be learned University of ; Ferenc Pongrácz, of the organization are unranked (non-hierarchical) or where futures. from biology”) who sought to answer the question “What IBM Hungary and Second Vice President of is Life?” He defined an anticipatory system as: “A system they possess the potential to be ranked a number of different AmCham; and László Turóczy, deputy state ways. It is the opposite of a hierarchy. German Prof. Dr. Ossip (Josef) Kurt Flechtheim (March 5, 1909-March 4, 1998) containing a predictive model of itself and/or its environment, secretary for competitiveness at the Ministry was the first person to use the term futurology in its modern sense in the mid-1940s. which allows it to change state at an instant in accord with the of National Economy. Murmuration: a flock of starlings, and specifically the way in Decades ahead of his time (perhaps appropriately for the father of futurology), he model’s predictions pertaining to a later instant.” which it moves, wheeling and darting through the sky in tight, fluid argued that universities should teach about the future, specifically a new ‘science’ of formations. Miller believes societies could be organized around While futurology is far from being a probability. Even if all systematic forecasting ever did was highlight the inevitable, it Futurists (sometimes futurologists) are scientists or social similar, much less structured, much less hierarchical systems. mainstream academic career path (the first would still be of immense value he asserted. scientists whose specialty is futurology, the attempt to university seat in the subject is only now VOICE american chamber of commerce in hungary Cover Story 19

Roundtable Joerg Bauer László Turóczy Moving to a new Model of Education

Reflecting the educate.innovate slogan for AmCham’s 25th anniversary year, a number of educationalists were invited by the chamber to attend the launch of the Visionary Series. Here two of those guests, Prof. Dr. József K. Tar from the Institute of Applied Mathematics in the John von Neumann Faculty of Informatics at Óbuda University, and Dr. Tibor Dőry, director and associate professor at the Knowledge Management Center of Széchenyi István University, reflect on some of the ideas presented by Riel Miller. Both companies have changed the way Márk Hetényi they operate, bringing out products Riel Miller speaks a lot about the need much earlier in the development lifecycle for systems, processes, and people, to than they would have previously. It is become less afraid of failure, rather to an example of multinationals acting embrace it as feedback. Universities are like technology startups, where as much not always seen as the most adventurous development work is done after launch as institutions; is this a step they can take, before, if only because they way people and should they? use a product may change your own view TD: Entrepreneurship education and on its development. experience learning courses could prepare students and young graduates for real life In the field of education there was, failures. It is better that failure happens in a perhaps, slightly more agreement. controlled environment and students learn “Traditional universities will disappear, from it than trying to protect them from it if by traditional you just mean learning,” and delaying their experience of failure to a argued Friedler, the rector at the University time when they cannot cope with it. of Pannonia. Universities will migrate from being a single body dedicated to JT: I am convinced that Riel Miller is one end – education – into a trinity-like absolutely right. I am also convinced that organizational structure, he believes: this question cannot be tackled at the “one for teaching, one for research and restricted and narrow level of economy or one organization for R&D; all must have at the level of universities. I think that in the same bias. And we will have to work general it is a question of the cultural level GE’s Bauer also picked up the idea of together with companies for research.” of the whole society. As normally nothing AmCham’s 25th adaptability, saying the concept was Friedler, who says Pannonia has worked can be obtained “absolutely free of charge Anniversary Year essential for a company that has been with both IBM and GE, argues universities or expenses”, for such feedback somebody is sponsored by: around for so long. “Ninety-five per cent need to open themselves up to the somehow has to pay. The details depend on of our turnover comes from products we organizational skills that top companies the model of the society as a whole. I believe did not have when we started 150 years posses. “In the future in Hungary we that two typical extreme models can be ago.” Pongrácz, representing another should have more private universities.” considered from this point of view: venerable American investor in IBM, And budgets should be redistributed with echoed that idea. It had conducted research one-third spent on education, and the 1) The ‘We are living in the wilderness!’ among CEOs worldwide to ascertain what remaining two-thirds on projects. society model: This is typical for poor they believed would have the greatest societies. We always believe that we have impact on their business. The answer was Three other talks will feature in the only a single “bullet”: if we waste it we “not politics, not taxes, but technology. Visionary Series this fall, before cannot survive, no one will help us. In such Kodak, for example, disappeared because AmCham’s anniversary celebrations societies the benefit of the feedback may of new technology. If a company has conclude on Friday, November 14 with a be for everybody but its price is paid by Dr. Tibor Dőry existed for 100 years, that does not mean it gala event in the Upper Chamber of the the single entity (person or company) that will live for another 100 years.” Houses of Parliament. actually failed. The low level of solidarity VOICE american chamber of commerce in hungary Cover Story 21 makes this price too high, even fatal. Such struggle with problems in which we are in knowledge’ (i.e. at the B.Sc. level), Internet- structures culturally refuse to consider lack of any “well matured expertise”. The based education will dominate. Such failure as a feedback. They rather consider it conditions of such financing contracts seem education does not demand too much AmCham educational as a rightful punishment. to be rather rigid and inappropriate to take personal contact between the student and the 2) The ‘Society as a living organism’ model: such risks. (Imagine Christopher Columbus teacher. The curriculum can be developed In this model solidarity is at high level, the had to sign a contract in which the detailed accordingly, even with the teachers having persons working for the failed companies can geography and ethnography of the territory little contact with the students. projects survive and join prospering organizations to be discovered is precisely prescribed. If 2) I hope that in the M.Sc. level in which the or establish new ones. In such societies the he fails in meeting these requirements and essence is the human contact between the price of the feedback is distributed between discovers something else he has to pay the teacher and the student the ‘traditional form’ The chamber has in recent years placed the players and does not seem to be critical or money back!). will survive in a small segment. Such form a priority focus on doing its bit to bring fatal. I think that on a longer time-scale only of education does not need too much money such constructions will prosper or thrive. in a small volume. I’m not sure whether a the future a little closer, paying particular Our environment is so complex that no one complete ‘life in the campus’ is necessary, but attention to education and innovation can surely avoid failure. Such distribution of some freedom surely is needed for both the expenses is of vital significance. teachers and the students. (hence the educate.innovate slogan). Here 3) I think that the PhD level education we look at some of that work. Regarding the status of the universities I presently suffers from overregulation that believe that their present position is very far should be released for obtaining higher from their original destination. The reason intellectual freedom. Corporate Governance Workshops of this ‘shift’ is technology development. 4) Depending on the structure of financing, The Governance & Transparency (G&T) Committee launched a The original mission of universities was R&D at university level may remain as ‘rigid’ Workshop series nine years ago to help bolster dialogue between the the production of ideas (i.e. neither direct as nowadays it is. business and Hungarian academic communities. Annual workshops profit nor skills for directly producing profit) focus on corporate governance and business integrity issues. to understand our place under the Sun. We talk about medicine becoming ‘Science’ and dealing with science naturally increasingly tailored to individual patients. ‘Board Simulation’ Roadshow belonged to this effort. Might something similar happen with A role play case presentation of a fictional listed education? board meeting where six or more G&T Committee members As ‘science’ step by step became part of the Prof. Dr. József Tar TD: Tailored education somehow demonstrate the business implications of corporate governance industrial production and economy, this contradicts the mass (state) higher education issues. Students watch a typical board meeting enacted. Sensitive mission latently was modified. At the time concept we confront nowadays. Certainly issues and difficult decisions are discussed. Originally created three being universities have the duties as follows: So I think that the universities should take it would be great, but it would need a years ago as a proposed teaching tool for local universities. this step, however, the key of the success is tremendous amount of money that even the 1) Take part in the “mass production” the financing system that does not uniquely richest cannot afford. Corporate Governance Grant Programs of “industrialists” i.e. students at BSc depend on the universities. The Grant Programs (HUF 5 million of funds altogether) level. Acquiring this level seems to be the JT: Yes, I think it should happen at M.Sc. and provided financial support to professors in Hungarian colleges, minimum for finding a job. These students The rector of the University of Pannonia, Ph.D. level. business schools and universities who introduce new or further are trained for the implementation of various told the seminar “Traditional universities develop existing courses devoted – partly or fully – to the topics algorithms without the need for the ability of will disappear”. What do you think What primary role will tertiary education of corporate governance and ethics. . CSR Best Practice award from the Hungarian Public Relations higher-level abstraction. university education will look like in serve: turning out well-rounded human Association in 2012. 2) The M.Sc. and rather the Ph.D. level 25 years’ time? Will it still be primarily beings, or a suitable work force? ‘Start Your Business’ Roadshow of education is needed for a narrower campus-based? How will curricula be TD: Nowadays, tertiary education training Sessions at university campuses structured to inspire students AmCham Schools circle the members of which are able to structured in the future, and by whom? is focusing on well-trained employees, through stories of real Hungarian entrepreneurs and then follow- The AmCham Career and AmCham Communications School actually participate in R&D activities at the TD: Universities should provide students who could be seen as ‘disciplined soldiers’. up with strategy sessions where the students’ first steps towards series provide an opportunity for junior and med-level managers companies. Conducting such educational with numerous co-curricular courses (e.g. However, the longer-term forecasts suggest entrepreneurship can be plotted with the help of legal, financial of AmCham member companies to learn directly from top activities also assumes some R&D activities elective entrepreneurship classes, company that self-employment will and should and HR experts. business executives and well-known successful professionals. on behalf of the universities. project seminars, soft skills training) that be drastically increased, as jobs offered The interactive sessions focus on how the speakers achieved their 3) Since a considerable part of R&D is could serve experience learning. Also, by multinationals and large companies Entrepreneurship Summit Series success and what advice they would offer to future leaders. conducted at private companies the scientific supporting student initiatives such as disappear. In this sense, higher education Aims to bridge the gap between being passionate about a potential results also remain private property and Formula Student teams, organization should focus much more on the educational business venture and making it a reality by educating and inspiring Higher Education Roundtable Discussions are not shared with the public, with the of business plan competitions, and needs of the self-employed, which is pretty young professionals. Each summit lays the groundwork for young Organized by the Labor and Education Committee to create universities. This fact has some effect on ‘hackathons’ would serve the creative spirit different from the traditional training. professionals by stimulating ideas and honing skills through business a common platform for representatives of the business and financing the universities, or more precisely, of students, and they would be prepared for development workshops, case studies and keynote speakers. academic world to develop specific recommendations on how on financing their various activities. competition in the labor market. JT: I think that both aims are important. to improve higher education to better meet the expectations of Together with the expectation that only the AmCham Foreign Language Learning Initiative the business community, and then submit these proposals to I think that the present system of financing JT: I cannot foresee the future, however I small segment of the population will have The main goal is to promote the importance of foreign government. Several roundtable discussions were held with the the R&D activities of the universities makes think that at the different ‘mission levels’ actual jobs “turning out well-rounded human language learning to high school students, since we believe involvement of member companies and universities from all over them organizations that are not seen as the different situations will be found. beings” in the sense that they obtain a cultural language skills are a key factor to economic success. The the country. The Ministry of Human Resources was cooperative most adventurous institutions. Any research level at which their “limited significance in initiative has hus far reached 125 high schools and involved and open to suggestions: the strategy of higher education is or development means dealing with issues 1) At the level needing low abilities for the economy” can be endured will become 150 Language Ambassadors from 53 different companies, on the agenda of the ministry, where our proposals have been that presently seem to be “obscure”, we abstraction and large volume of ‘lexical more and more significant. who gave a combined 285 lectures. The program received the characterized as helpful and constructive. VOICE american chamber of commerce in hungary Lifestyle 23 András Török’s Budapest A Crash Course in Ruin Pubs and Roof Bars

here are few cities around the world that could lift themselves up by grabbing hold in the The most spectacular places in Gozsdu udvar trendy and centrally located; everyone knows Baron Munchausen manner (he rescued himself by pulling on his own hair). We’ll see how in 2014 are Spíler, Kolor and GM. A large and it. Tip Top Bar, on the contrary, is much permanent the trend will be, but Budapest’s ruin pubs first appeared in the spring of 2002 and interesting recent newcomer is called Bordó smaller, and opened in 2013. It is accessible T have become ever more visible and popular since then. Bisztró, in Nagymező utca 3, opposite the from a ruin pub downstairs, called Közhely Capa Photography Center. (a pun, meaning both “public place” and “commonplace”. The whole building is cross What are they? privatization of the Budapest housing Roof Pubs: a Sub-Species of a ruin pub and chic rentable office place. Ruin pubs originally appeared in unused stock in 1991-92. The blocks would If you are in Budapest, it’s a great idea to start There is a wonderful view from the top: the housing blocks in Pest, and are still have to be renovated first, privatized early, before dawn, in one of the ruin pubs spires of nearby University Church, even the an almost 100% Pest phenomenon. Young later. The new landlords were ‘quasi located on a rooftop, and enjoy the sight of the timpanum of the National Museum – not to business people rented the garden area or owners’ of a sort, they were unable to urban jungle and of the sunrise from there. speak of Buda. Here, as in all ruin pubs, you yard on a -term basis, and they proved maintain and renovate the buildings The very first of the species popped up on top are supposed to pay after every drink. to be an instant success. Visitbudapest.travel they had their property in. Developers of the once elegant Corvin Department Store summarized requirements for setting up came and bought the old, decaying in 2008. It was revamped in 2013. It is large, such an establishment thus: “Search for an blocks from the owners then razed the old building in downtown Pest, rent the buildings (often two or three decaying cellar and the ground floor, do not renovate ones) and erected some low quality, Namedropping (Further places of Prestige, in Alphabetical Order) anything, invite some contemporary artists new building that neither fitted the Ruin Pubs 2.0: and designers, recreate the atmosphere of quarter, nor even the street line. So it is an Evolutionary Step A Grund contemporary art space in daytime. Mazel Tov the ’70s, build a bar and serve some drinks, obvious that a highly negative tendency in Gozsdu Udvar is not just a new area the VIII. Nagytemplom u. 30. Offers great pizza slices, a film club, and VII. Akácfa utca 47, Table reservation: +36 invite a band and be open until the morning Budapest – unstoppable decay, and a lack of ruin pubs conquered, but it also brought A bit off the beaten path of ruin pub hordes, contemporary theater. 70 626 4280 this is a lovely remnant of a lovely traditional Opened in the summer of 2014, it instantly comes.” The Hungarian name is romkocsma‘ ’ funds in the public sphere – contributed to a new species (Spíler being the first of its quarter, and you can even stay in its hostel- Fröccsterasz (Spritzer Terrace) became popular. Reserving a table is a must. (literally ruin pub). They became ever more creating a unique symbiosis of the old and kind). They call it “Ruin pub 2.0”. The like rooms. The name refers to the popular V. Erzsébet tér popular, and the proliferation soon led to a new: the genre of ruin pubs, an uniquely creative design is inspired by the original juvenile classic, ‘Paul Street Boys’, set in A newcomer on the scene, and an instant Mika Tivadar Budapest experience. And the names are ruin pubs, but with more obviously designed 1889. The “grund” was the waste ground on success in 2013 – in the open-air arrival Kazinczy utca 47. very funny, often with hidden meanings. and themed elements. Old signs, authentic which two rival gangs fought and played. space of the former long-distance bus The name comes from a carpenter who station (1947). Spritzer is wine plus soda operated here in the inter-war period – Ankert water, an Austro-Hungarian tradition. renovators found it over the main entrance. The Rebirth of Gozsdu Courtyard VI. Paulay Ede utca 33. There is a beer garden of the same name to The longest and most complex arcade in The biggest inner city garden, staffed by the iSKOLA (School) the right of the building. Budapest is 240 meters long; it connects Anker pub, which operates all year round. VI. Hegedű utca 3. Dob utca 16 and Király utca 13. It consists The Anker insurance company erected the Near the opera, in a former school, Pótkulcs (The Spare Key) large yellow building in Károly körút, on the capitalizing on original school VI. Csengery utca 65/b. of courtyards and seven attached buildings. corner of Kirély utca. paraphernalia, with 1960s school book Partly a garden, partly an indoor ruin pub. The passageway between the two streets had pages used as wallpaper. A great place to rent for a birthday. Close to apartments on the top floors and originally Corvintető (Corvin Roof) the Western station. 45 small shops and workshops on the VIII. Blaha Lujza tér 1-2 Grandio Bar Super 8 form of quasi snobbery. One was supposed ground floor. The arcade bears the name Located on top of a department store from VII. Diófa utca 8. 1926, this is the ruin pub with the best view A little hostel combined with a large ruin VIII. Kőfaragó utca 8. to know about the latest openings, and of wealthy lawyer Emanuil Gojdu (Gozsdu of Budapest. bar. The name is a reference to the legendary friends wanted to test them one by one. Manó in the Hungarianized form of the film format, and also District 8, where it is So a typical band of partygoers attended name.) He died in 1870, at the age of 68, and Doboz (The Box) Instant situated. It opened in 2012, an interesting three to five places a night. It was all the left his fortune to his foundation to support VII. Klauzál utca 10. VI. Nagymező utca 38. complex of indoors spaces. Its hallmark is a easier as ruin pubs tended to be close to the studies of Romanian-born students in A large pub with carefully designed interior Perhaps the biggest ruin pub in town. All multicolored statue of a life size giraffe. decoration – the initiator of a new trend. the building, with all its rooms, each with a each other. Since those early days one the Austro-Hungarian Monarchy. During and fabricated traditions, many colors and separate décor. Trafiq major area has been gentrified (so almost Communist times the courtyard was made materials. They are lively places, meant Dürer Kert (Dürer Garden) V. Hercegprímás utca 18. all the ruin pubs there closed), and by the into social housing, and was neglected, as not so much for students, but early career XIV. Ajtósi Dürer sor 19-21 Kuplung (Clutch) A meeting place for the successful and the early 2010s two intersecting streets had all other communally owned buildings. A yuppies and working couples, pre marriage Overlooking , a venue with VI. Király utca 46. beautiful, the winners of Hungary. Also become the epicenter of the ruin pub area: foreign developer had renovated it by 2007, and children. And they are great magnets great history. Originally a nunnery, then One of the oldest places, set in a former good for applied people watching, if you are a high school for fast-track communist garage. not one of them. Kazinczy utca and Király utca, both of but for a long time it seemed to be a failure, for expats of all ages. Gozsdu udvar is large, party officials, then Eötvös University’s them in the Jewish District. until in 2012-13 it gradually came to life, chaotic, funny and spectacular. While Department of Humanities, and now for sale. Kobuci kert Wndrlnd as one pub opened after another. There are city planners dreamed of erecting iconic III. Fő tér 1. Margitsziget A Budapest Paradox about 20 cafés, restaurants and pubs – and buildings, designed by Zaha Hadid and the Fogasház – Fogas Kert (Dental At long last, a ruin pub in (Old) Buda… On , relatively near The decline of the so-called old Jewish many ‘apartments for sale’ signs. (Apparently like (her project was stopped by the crisis House, Dental Garden) In the courtyard of an 18th century castle. . It is open for 20 weeks, VII. Akácfa u. 51. Museum goers during the day, beer drinkers and every week a contemporary artist District (inhabited by few Jewish Hungarians the more pleasant it is to visit, the less of 2008-2012), this gradual development In the deepest urban jungle, a at night. rearranges the decoration. since the terrible events of 1944-45) is a direct attractive it is to live there.) has provided bigger leverage for Budapest consequence of the apparently too quick tourism than any new building could have. VOICE american chamber of commerce in hungary AmCham News 25

podium Positive Impact by Robin Marshall

The challenges of coping with rapidly changing technologies, data protection issues and maintaining an ethical approach, all while continuing to drive growth and helping nations develop through infrastructural investment, were among areas cover by Telenor Group President and CEO Jon Fredrik Baksaas when he became the latest Global Leader on the AmCham Podium on September 10.

better options for people, particularly in modern development, then our industry drives the positives,” Baksaas  Development comes in said. Much of that focus is on the less stages, and the next is 4G. developed world, but there is plenty to be done here, too. The group president If a government really wanted made the point that, for years, Europeans mocked U.S. mobile phone services for it rolled out quickly it would being outmoded and unwieldy. That is no use incentives.” longer the case. “Today the United States has a well developed national network for 4G services driven by regulation in such a way that players in the market have perfect from day one, and companies like the spread of the Arab Spring from invested enormously.” The European Telenor can help, the president believes. 2010-12, one questioner wondered how response had been national, rather than There was much talk about data security Telenor dealt with requests from the continental, fragmented, and non- and privacy issues, areas that affect us all, state for intervention. “It is a dynamic holistic. As a result Europe has fallen wherever in the world we live, in myriad issue, there are conflicts out there. The behind, Baksaas said. ways. Baksaas illustrated the point with government of Pakistan will shut down electric cars, particularly popular in the mobile services because they can be “Development comes in stages, and the Nordic countries. Tesla premium electric used to create big groups of people in a next is 4G. If a government really wanted it cars have a powerful processor through very short time. If that happens, we are rolled out quickly it would use incentives. which their infotainment systems are ordered to shut down in certain areas. In Hungary it has been more concerned connected life to Google Earth. That, We do not like it, but we have to because with using the sector as a taxation source for example, can give you heads up of the local laws.” rather than to drive development.” information to avoid a traffic jam (a fact Google Earth can recognize by spotting Another questioner wondered how hard Telenor has long had a reputation for that lots of GPS-equipped phones are it was to convince authoritarian regimes being an ethical player, and applying remaining stationary for an unusual to accept more transparent methods. nd the timing was apposite, through its ownership of VimpelCom Ltd. human connections Baksaas was keen to the same ethics wherever it operates, as period of time). “But it is a very small “At the point of entry it is not a problem. as Baksaas was in the Increasingly, as it moves into previously emphasize. “The engagement which this far as the local laws allow. “We hope we step from there to Google knowing that Myanmar was particularly concerned country to celebrate 20 underfunded countries like Bangladesh, industry creates, is so beautiful. In short, manage the ethics side of the business Jon Fredrik Baksaas is sitting in a car at about reaching global standards. The A years since Telenor started or Myanmar (formerly Burma), the we impact society, and of course it is our well. We work deliberately on these that exact spot. Do I like that that? No.” problems usually come after a few years, operations in Hungary with what was telecom sector can play an important ambition to do that in a positive way.” issues; in particular where you come to There are “fine lines” separating the use when you get a change in government, then called Pannon GSM. It was also role in laying down infrastructure that a market like Myanmar you need to get of personal data to help us, and the use of then you can reach points where it is Telenor’s first business venture outside allows people to connect with distant This was telecommunications presented this right. Already in just six months we personal data to snoop on us, he said. no longer as clear as before. Then we Norway, a step that would lead to family members, most obviously, but in its best light. “This industry is full have stumbled upon child labor, security have to be ready to present out point of today, where it is directly present in 13 also access to health advice, to education, of challenges but also opportunities. issues.” Countries like Myanmar are on a Given the oft-reported role played by view, we have to be firm in creating an markets, and represented in another 17 and, yes, to entertainment. But it was the If we believe that connectivity drives journey, however; not everything will be social media and mobile phones in industrial position.” VOICE american chamber of commerce in hungary advocacy Become a Disability- friendly Workplace! Each year, the Ministry of Human Capacities, the American Chamber of Commerce in Hungary, the EFQM Hungarian Partner and the Salva Vita Foundation award the Disability-friendly Workplace title to successful applicant companies. Since 2010, nearly 50 workplaces have obtained the title.

uch recognition brings competition criteria are easily adaptable prestige, pride and to the company’s capabilities, and large commitment to any investments are not required. Instead, S organization and fits well recognition comes from continuous with corporate CSR practices. In addition progress: Participants need to invest to the title, companies receive the right in improvements that facilitate equal to use the Disability-friendly Workplace opportunity treatment. These can be and cares for their well-being. It helps logo in their internal and external special training for executives where build trust and a positive atmosphere. communications (such as websites, they learn how to work with a disabled Implementation is monitored by the leaflets, advertisements, reports, etc.). colleague, the creation of an obstruction- prize-giving organizations according to Using the logo not only signifies that the free communications environment the European Foundation for Quality employer is ready to work with disabled for hearing impaired or mentally Management (EFQM) standards. individuals, but also that they are challenged colleagues (e.g.: having a In winning the title, the awarded committed to equal opportunities. sign language interpreter present for job organization may use the logo for the interviews), implementing safeguards duration of two years. After that time – The Salva Vita Foundation introduced for the retention of employees should if they wish to continue using it – new the award to help physically and mentally they become disabled in an accident or disability-friendly objectives must be set. challenged job-seekers find employers even advertising vacant positions on job who are open to them. Any workplace portals for disabled persons. The Salva Vita Foundation is happy to give from the open job market can compete In short, the title is an important information regarding the recruitment for the award, including public and indicator to both disabled and non- and employment of handicapped private sector organizations, SMEs disabled workers alike: It is a statement individuals or the competition itself. See and multi-national corporations. The that their workplace appreciates them more details on: www.fbm.hu AmCham News 29 appeal Jubilee Thanksgiving Charity Drive

he AmCham Foundation, like the chamber itself, is celebrating its 25th anniversary and has launched its Jubilee Thanksgiving T Charity Drive with, as ever, the purpose being to help handicapped children living in poverty anywhere in Hungary.

With the 2014 tender, ACF would like to give support in three categories:

When I’m 25:

I will be healthy! Promoting healthy lifestyles, and physical and mental health (e.g., health education, improving the quality of life, promoting physical and mental well- being through sports, education, work therapy, healing or rehabilitation, healthy eating, etc.)

I will speak your language, I will have a profession! Supporting children’s education and development, and promoting career choices (for example, language learning, language labs, talent management, training, actively assisting disadvantaged communities, providing opportunities for free time activities, social work and development, etc.)

I will be an artist! Talent search and management in a variety of artistic activities by promotion, and offering instruction at anything from beginner to proficient level (e.g., courses, workshops in a variety of art forms, assisting disadvantaged communities, by addressing some artistic activities, etc.).

An external expert committee (including a teacher, a foundation manager, a sociologist, and an AmCham volunteer) will evaluate the tenders in mid-September. On the basis of their recommendation, the AmCham Foundation’s Advisory Board – in accordance with the Board of AmCham – will select the institutions to be supported.

Please keep checking your mailbox for any updates concerning the tender’s progress.

Furthermore, we would cordially like to ask members of AmCham to give these disenfranchised but talented kids, who may not be able to keep up with their peers due to a limiting social situation, a chance through their financial support.

We are kindly asking for your generous support in this matter. VOICE american chamber of commerce in hungary AmCham News 31 workshop chamber corner Dare to Dream Acing a Creative Network AmChams in Europe people behind the creative network by David Mark Arnold idea. “Within AmChams in respective About HR (the European Council countries, great projects and initiatives are implemented and I believe that of American Chambers this kind of reward will further The second AmCham HR Dream Day, a workshop initiated by the HR committee on the encourage chambers to present in a business impact of human resources, was held at the Google Ground on May 21. The chamber of Commerce or ACE) is structured way projects that are already partnered with Assessment Systems, Flextronics, AON Hewitt, Oracle, Arthur Hunt and 10 seeking tenders to design in progress nationally and which can be transferred to and applied by the Minute HR with the aim of developing the role of HR professionals in the workplace. and develop projects that majority of other chambers in the network. This is another opportunity benefit all its member for us to share best practices and create organizations, with the platforms that spark new ideas and r. Tomas Chamorro-Premuzic, a a wide variety of beer tastes and preferences benefits for our members all over the Tender Schedule professor of Business Psychology by allowing customers to select options goal of unlocking and Europe,” she adds. ExCo will invite bids in January of at University College London, from many different locations. Any product incentivizing creativity each year. The deadline for submitting D gave the keynote speech in an can now have a viable market share, as long Tender Eva luation projects will be the end of May, with intriguing lecture entitled, ‘ROI as there is a relevant customer base that within the network The ExCo will establish a special the Committee evaluating all bids and in HR and the Digital World’. He talked at sustains it. committee to evaluate the projects selecting three for the short list over length about the future of talent identification Launched this year, the Executive and select a maximum of three they the summer. At the fall Best Practices using digital resources. A person’s Facebook Zsolt Fehér, of Assessment Systems, Committee (ExCo) of ACE will feel would best serve the interests meeting the three short-listed bids will profile, for example, can reveal many useful further debated the differences between issue an annual tender open to all of the majority or entirety of ACE be presented at a so-called ‘Creative details about their personality, interests, the corporate level and HR employees member chambers. Participating member chambers. These projects Network Session’. An essential part political affiliations, and even intelligence. using straightforward questions such as AmChams will be able to present will then be presented to the board of the bidding process is therefore If this resource were expanded and the data who is more pessimistic, and do you have projects without limitation, but (comprised of representatives of all the presentation of the project, as compiled into a prospective employees’ a personal or corporate policy to measure under the assumption that national ACE members) at the Best Practice each of the top three will be given a database, a whole new method of searching HR success? Fehér demonstrated a clear organizations could benefit from Sharing Session in Europe, which will 15-minute presentation slot. Voting introducing the same project at their vote for the top project. will take place at the board meeting and hiring new employees could occur. division that exists between the corporate own chamber. Proposals must include during the autumn session, with Chamorro-Premuzic also pointed out that level and HR, and possibly evidence of a lack a short description of the project and The committee will evaluate bids on the winner announced at this same while people may take issue with companies of comprehension of function or respect an executive summary describing the overall impression of the project in meeting. Having won the tender, the Besides the expected associations with HR between the respective units. using public information for their gain, its purpose, the greatest benefits for terms of creativity and innovation (on winning chamber should be willing to Internet users continue to put ever more data – namely, recruiting/hiring, performance any national chamber picking up a score of 1-20); benefit for the entire devote 10-12 hours annually to help into the public forum. The pool of analyzable management, and HR strategy – many now Lunch in the garden of Google Ground the project, any challenges of which ACE network and ease of transfer other AmChams to develop similar data continues to grow considerably over also understood HR to be an important led directly into a panel discussion on AmChams should be aware, target and implementation (1-10); benefits programs or ideas. time, with no indication of it slowing or strategic and business partner. expectations of HR by CEOs. This segment audience, funding sources and overall for an individual national AmCham halting in the near future, he said. contained input from Aftab Ahmed budget, and a detailed plan of how to (1-10); benefits/perceived value for In 2014 the tender deadlines have been During a break in lectures, workshop (Citi), Tibor Czakó (Flextronics), Edina introduce and manage the project. the national AmCham’s member slightly modified to allow for the fact The next speaker was Csaba Fehér, of Oracle, participants had a unique opportunity to Heal (Google), Péter Sipos (Lufthansa), companies (1-10); and assessment of that it is only just being introduced, who focused on the presence and influence of take part in ‘HR Speed Dating’. The idea was and Matthias Stickler (Otis), and was “AmChams in Europe is a remarkable the detailed plan on how to introduce although the first winner will still be HR in any given company. Fehér emphasized to rapidly share ideas and create connections moderated by Aon Hewitt’s Éva Virág. network,” says Ajša Vodnik, ACE and manage the project (1-10). This announced at the fall meeting. The the importance of the marriage of HR by sitting down at one of the three booths All those speaking agreed that HR Ex-Co member, executive director of will produce a maximum possible winning Chamber will receive an techniques and technological advancement. with representatives from Aon Hewitt, professionals need the strength and AmCham Slovenia, and one of the score of 60. award of €2,500 and a crystal trophy. He also spoke of the significance of a Assessment Systems, and Oracle. In just courage to standup for themselves, but company’s relationship to its employees, a few minutes both parties had a chance while Ahmed declared that HR should be a highlighting that an employee should receive to quickly become acquainted with each business partner, Sipos also petitioned HR ACE Growth as much care and consideration from a other and their goals and if their priorities to sometimes allow CEOs to say no! company as any of its customers. He also matched a follow up meeting could be AmChams in Europe (the European Council of American Chambers of Commerce) is a network of chambers across Europe. elaborated on how to retain good employees scheduled right on the spot. After the discussion, the CEOs broke Its mission is to exchange best practice ideas, mutual member company benefits and to provide a forum for discussion, debate once you have them, pointing out that After the break, Gergely Tóth, of Interactive everyone into four groups, each focusing and where necessary representation on issues relevant to the European business environment. ACE was established in 1963; training is always necessary. Advertising Bureau, urged HR managers on a different theme: ‘Defining HR by the time of its 50th anniversary in 2013, it represented the corporate interests of more than 17,000 American and European to heed the importance of Hungarian Strategy’; ‘Assessing Measurability of companies based in 45 countries and employing more than 20 million people: ACE member companies account for more than Levente Nagy, of National Instruments, companies keeping up with technology and Project Efficiency’; ‘Defining the HR $1.1 trillion in investment on both sides of the Atlantic. shifted the conversation to examine how innovation. He pointed out that the market Department as a Profit Center, Instead of corporate executives view the role of HR and is changing dramatically, citing online craft a Cost Center’; and ‘Visibility and Tools the perceived tasks necessary to their success. beer distributer Beerjöbber, which caters to of the HR Department’. VOICE american chamber of commerce in hungary AmCham News 33 New Members On Board business Corporate Celgene Kft. Forgó, Damjanovic & Partners Law Firm AXN Central Europe / Raiffeisen Sony Pictures Bank Zrt. Television

Country Manager: Marthin Kwakkelstein CEO: Heinz Wiedner Address: 1132 Budapest, Váci út 22-24. Address: 1054 Budapest, Akadémia u. 6. Phone: +36 1 475-1130 Managing Partner: Dr. Zoltán Forgó General Manager: John Rossiter Phone: +36 1 484-8484 E-mail: [email protected] Address: 1123 Budapest, Alkotás u. 17-19. Address: 1062 Budapest, Teréz körút 55-57. E-mail: [email protected] Web: www.celgene.com Phone: +36 1 214-0080 Phone: +36 1 372-3898 Web: www.raiffeisen.hu E-mail: [email protected] E-mail: [email protected] Web: www.fdlaw.hu Web: www.axn.com Celgene is a global biopharmaceutical company committed to improving the lives of patiens worldwide. At Celgene, we seek to deliver truly Sony Pictures Television, a Sony Pictures Entertainment company, is Founded in 1986, Raiffeisen Bank Zrt. is one of the largest innovative and life-changing treatments for our patients. Forgó, Damjanovic & Partners is a full service Hungarian one of the television industry’s leading content providers. It produces banks within the 18-unit network of the Austrian Raiffeisen commercial law firm. We pride ourselves in our especially and distributes programming in every genre, around the world and for Bank International AG. Raiffeisen Bank Zrt., as a universal strong track record in the fields of M&A transactions, a multitude of platforms. SPT’s worldwide television networks portfolio bank, offers a wide range of both asset- and liability side Employment Law and Dispute Resolution. Our primary sector includes 126 channel feeds available in 168 countries, reaching more products to large, medium-sized and small corporate clients focuses are Pharmaceuticals, TMT (Telecommunications, than 980 million cumulative households worldwide. SPT Networks’ as well as to private individual clients. For further information Media, Technology), Energy and Gaming/Betting. portfolio across Central Europe includes highly successful brands such please visit our web-page at www.raiffeisen.hu or contact us at Jones Lang as AXN, AXN Black, AXN White, AXN Spin and AXN HD. 0036404848484. LaSalle Kft.

StarKing Óbuda Kft. business Managing Director: Ferenc Furulyás Finance Manager: Péter Gyerkes Address: 1054 Budapest, Szabadság tér 14. Address: 1036 Budapest, Bécsi út 77-79. Phone: +36 1 489-0202 Phone: +36 1 439-3333 E-mail: [email protected] E-mail: [email protected] Web: www.jll.hu Web: www.icentre.hu Schönherr Hetényi Ügyvédi Iroda iCentre is the first Premium Apple Reseller and Service Provider ALLWIN JLL is a financial and professional services firm specializing in in Hungary. We serve our clients in three stores and in a Premium commercial real estate services and investment management. We create Service. The iCentre Apple Premium Reseller’s expert team is Informatika Kft. value for companies and institutions that invest in and use real estate. dedicated to help costumers to choose the best solution for their needs Our 48,000 people work across 1000 locations in 70 countries to serve the whether it is iPad, iPhone or Mac. Our service has been in operation global, regional and local needs of corporates, investors and developers. since 1993, therefore, our employees have extensive knowledge of previous models, as well as Apple’s latest iOS devices and computers.

Managing Partner: Dr. Kinga Hetényi Kálmán Tamás Address: 1024 Budapest, Buday László u. 12. Phone: +36 1 345-8778 Holcim CEO: Dániel Szöllősi E-mail: [email protected] Magyarország Kft. Address: 1111 Budapest, Zenta u. 1. Web: www.schoenherr.eu Phone: +36 21 255-9468 E-mail: [email protected] Web: www.allwin.hu/en Schönherr Hungary was established in 2008 when a team of Tamás Kálmán experienced legal professionals, now led by Kinga Hetenyi, joined the firm in order to benefit from Schönherr’s strong ALLWIN Informatics is a dynamic developing software Address: 1035 Budapest, Kerék u. 34. Phone: +36 70 311-7061 position in the CEE/SEE region. It has a long track record of CEO: Ottó Magera company with 20 employees. Our main activities are representing foreign investors, mainly in acquisitions and Address: 1138 Budapest, Madarász Viktor u. 47-49. bespoke software development, ERP system and CMS E-mail: [email protected] Phone: +36 1 472-5000 Web: www.uzleticoaching.eu green field investments, corporate, employment law, merger portal development. Our solutions reflect an engineering control filings and other competition matters, finance E-mail: [email protected] way of thinking and a system-oriented approach and are Web: www.holcim.hu My name is Tamás Kálmán, I am the module leader of the International matters as well as real estate, construction and development used by a large scale of partners including SMEs and large Business School (IBS), teach at the Budapest College of Communication projects. enterprises. and Business (BKF), and I am also active as a business coach. I have Holcim Magyarország Kft. is a member of Holcim Group. Holcim is been working for Hungarian and multinational companies in the last one of the world’s leading suppliers of cement and aggregates (crushed 10 years. I can help You to increase your performance, spend more time stone, sand and gravel). We also supply ready-mix concrete and with your loved ones, find balance in your life and avoid burn-out. asphalt, and provide related services. VOICE american chamber of commerce in hungary

Start-up

Be-novative Hungary Kft.

CEO: Priszcilla Várnagy Address: 9700 Szombathely, Belsikátor 3. Phone: +36 30 561-9026 CEO: Anita Tompa, Jutka Süle E-mail: [email protected] Address: 1026 Budapest, Gárdonyi Géza út 57. Web: www.be-novative.com Phone: +36 1 796-9166 E-mail: [email protected] Be-novative is a young, dinamic company, which develops its unique Web: www.chestnutce.com software: be-novative. With be-novative, companies can motivate their employees to share and implement their creative development Chestnut Global Partners Central Europe (CGPCE) is a leader in ideas and look for answers to the most important challenges, the design and delivery of employee assistance, work-life, wellness questions, problems that the company is facing. Be-novative enables and related support services. We are providing EAP programs companies to find hidden talents and motivated employees and to to multinational and local companies in Hungary, Romania, build visionary organizations, where continuous innovation is the Poland, Bulgaria, Serbia, Croatia, Czech and Slovakia. Our CEE core element of the organization. headquarter is in Budapest, our branch offices are located in Warsaw and Bucharest.

Flow Aviation Zrt. non-profit

The Municipality of Hajdúböszörmény CEO: Péter Hidvégi Address: 1016 Budapest, Derék u. 2. Phone: +36 1 920-1638 E-mail: [email protected] Web: www.flowaviation.com

Uniquely in Central Europe, Flow Aviation provides high-level and cost Mayor: Attila Kiss effective private air transportation services. Our main goal is to offer Address: 4220 Hajdúböszörmény, Bocskai tér 1. flexible and tailor made aviation services to corporate, governmental Phone: +36 30 339-3310 and private customers at an affordable price. Our stable financial E-mail: [email protected] background is ensured by our main shareholder Euroventures. Web: www.hajduboszormeny.hu

The Municipality of Hajdúböszörmény provides for manufacturing companies - free of charge industrial plot Inzelt Law Firm over 50 jobs - 25,000 job seekers in 20 kms and - a dedicated vice mayor, smoothing your investment’s implementation and operation in the town. For more details visit: www.m35businesspark.hu

Attorney: dr. András Inzelt Address: 1025 Budapest, Kupeczky u. 2. Phone: +36 1 466-5372 E-mail: [email protected] Web: www.peter-gondos.com

Inzelt Law Firm is a client oriented law office, that provides legal services for both local and international clients. The office is specialized in all aspects of commercial law, but in cooperation with our partner law firms we are always able to deliver the best legal solution for any kind of upcoming legal problem. The office is the member of Péter & Gondos and Partners Lawyers’ Association. american chamber of commerce in hungary VVOICEOICEamerican chamber of commerce in hungary AmCham News 3737 AmCham Events – Photo Coverage AmCham Independence Day Family Celebration 2014

Sunday, July 06, 2014 Location: Restaurant: Budapest

Miklós Boronkay, Szecskay Attorneys at Law AmCham Mini Morning Seminar on Hot Hungarian Competition Law Richard Burton, Van Bael & Bellis Issues in a European Context.

Wednesday, June 11, 2014 Location: AmCham Conference Room

AmCham Career School with Andrea Kővágó-Laky, Managing Director, FORD Közép-és Kelet-Európai Értékesítő Kft.

Tuesday, June 10, 2014 Location: AmCham Conference Room

Ma építeni a jövőt: Praktikus tanácsok kis- és középvállal- kozásoknak: ERP - céges hálózatok – „Homo networkiensis”

Friday, May 23, 2014 Location: KoWerk Office

Pertics Richárd, Opten Kft. Csáky Gábor, DBH IT Services VVOICEOICE americanamerican chamber chamber of of commerce commerce in in hungary hungary AmChamxxxxx News 3939

László Szépkúti, Chairman, HR AmCham Communications Committee of AmCham Hungary School with Szabolcs Ferenc, SVP Corporate Affairs, MOL AmCham HR Group & Bence Gáspár, Head Dream Day: of Media communications Second Workshop Department, OTP Bank on the Business Impact of HR Monday, May 12, 2014 Location: AmCham Conference Room Wednesday, May 21, 2014 Location: Google Ground

Extraordinary IT Committee meeting with Chris Mattheisen, CEO, Magyar Telekom

Aftab Ahmed, Country managing Monday, May 12, 2014 director, Citi and Edina Heal, Location: AmCham Conference Room Country manager, Google

AmCham Communications School with Péter Uj, chief editor, 444.hu and Gábor Kardos, CEO, 444.hu

Monday, May 05, 2014 Location: AmCham Conference Room

Start your business event at the University of Gödöllő Open Career School event with Róbert Alföldi, May 5, 2014 former Director of the Location: University of Gödöllő National Theatre Előd Solti, SYB program coordinator Tuesday, April 22, 2014 and Dániel Rátai, founder of Leona3do Location: AmCham Conference Room VOICE american chamber of commerce in hungary AmChamxxxxx News 41 patron profile patron profile Budapest Marriott Hotel Coca-Cola HBC Hungary Ltd.

Field of business: Hospitality Field of business: Beverages When established (parent company and Hungarian company): Marriott International was founded in 1927; When established (parent company and Hungarian company): Since 1886 in the United States, since 1968 in Hungary the Budapest Marriott Hotel was established in 1992 and officially reopened in 1994 after a large refurbishment. Hungarian operation Workforce: 1,150 Workforce: Marriott International: 146,000 Associates, Biographical details of interviewee: Minas Agelidis, 45, general manager (15 years with the company) Marriott Hungary (Marriott, Courtyard and Marriott Executive Apartments): 276 Associates Length of time the company has been an AmCham member: Since 1994 Biographical details of interviewee: Rick Enders, 45, General Manager (26 years with Marriott International) Length of time an AmCham Patron: Since 2006 How long has the company has been an AmCham member? From August 13, 1994 Since when has it been an AmCham Patron: Since November 1, 2013 How would you invested HUF 110 billion only describe the current in the last two decades in business environment the country, and 90% of our in Hungary? portfolio is produced locally Countries and companies have in our two plants. become more interconnected Our portfolio has also gone and interdependent than ever through a transformation: before. Trade barriers have we have entered into new been broken down, capital and categories such as natural know-how can move freely mineral waters, flavored and fast, bringing never- waters, fruit juices and ice before-seen opportunities and teas. Our company has also competition to Hungary. started distributing premium The challenges experienced spirits as well. by European markets have Local suppliers provide also brought about significant approximately two-thirds of changes, causing a decrease the raw materials used for the in domestic consumption in production of beverages. The almost all EU countries and production, transportation impacting our industry as and sales of our drinks – well. Although we see some including our employees – good signs (e.g. consumption provide jobs for nearly 13,000 is on the rise), recovery from people. We export beverages recession will take some to 22 countries, so our more years. It will take a lot products not only reach the of cooperation to strengthen shelves of Hungarian stores Hungary’s competitiveness, but an increasing number of so continuous sharing consumers all around Europe. of ideas is also required between the government and What are the companies. The strategic greatest challenges

Photo: Bianka Májay partnership agreement in doing business in How would you It has become much easier What one thing Getting additional information signed by Coca-Cola HBC Hungary right now? if Hungary could offer a What are the describe the over the years, especially would you like to on what is happening Hungary and the Hungarian The ever-changing economic predictable legislative and additional benefits current business since Hungary is now part see changed above within the country, meeting government in 2012 laid and legislative environment; economic policy environment of being a Patron? environment of the European Union. all others to interesting people who are down the framework for a certainly it is not a domestic for five years, set – for example Patron membership offers us in Hungary? improve the business invited by the chamber, common dialogue. but a global phenomenon, yet – in an economic constitution. first hand information and The hospitality business is What are environment? attending seminars that are Hungary cannot escape these insights, exclusive top-to-top progressing again after the big the greatest Further putting Budapest tailor made to the industry. How has doing international trends. Why is it important meetings and an opportunity financial crisis, more people challenges in on the world map as being business in Hungary to belong to an to further contribute to are travelling and tourists doing business a great destination for What are the changed since the What one thing organization such AmCham’s policy-making are exploring the beautiful in Hungary incentive groups, corporate additional benefits company was set would you like to as AmCham? initiatives. city of Budapest, known as right now? groups and leisure and, in of being a Patron? up here? see changed above Through our membership a hidden treasure of Central Finding the right addition to this, to have Networking and learning In a nutshell, it has changed a all others to in AmCham we have access and Eastern Europe. talent: many talented more international long hall from other industries. lot! The Coca-Cola Company improve the business to a strong community of candidates are leaving carriers flying into Budapest. started bottling soft drinks in environment? international investors. How has doing the country to gain Hungary in 1968. It is not an Businesses need a stable and It feels great to belong to business in Hungary international experience Why is it important exaggeration to say that after foreseeable environment. a business organization changed since the and not that many to belong to an a period of two generations, Therefore it would be a sharing the common vision of company was set are coming back from organization such we have become an integral tremendous advantage in the competitiveness, transparency up here? a financial perspective. as AmCham? part of Hungary. We have competition for investments and open partnership. AmCham Staff

Chief executive officer VOICE american chamber of commerce in hungary Irisz LIPPAI- NAG42Y CEO’S note

[email protected] Phone: +36 1 428-2080 Getting on Board Chief Operating Officer László Metzing

[email protected] Phone: +36 1 266-9880/316 Membership Manager Ildikó Takács- Berka

[email protected] Phone: +36 1 266-9880/329

Events Manager Anita Árvai

[email protected] Phone: +36 1 266-9880/325

Financial Issues, Charity Erika Bosnyák

[email protected] Phone: +36 1 266-9880/312

Marketing and Communications Manager Zsófia Juhász Before joining AmCham I spent almost months I understand that AmCham is 22 years with the same company. I stayed a strong community with even stronger for more than two decades not only values that we must build on. [email protected] because I loved what I was doing and had As you might now the tenure of our Phone: +36 1 266-9880/360

wonderful development opportunities, current president Willy Benkő is about to Project Manager but also because I thought there is no end in December and some of our long- Ildikó other company taking such good care of time and very supportive board members Bryják its people, showing such good leadership – Eszter Szabó and Márk Hetényi – cannot examples. I am still thankful for the renew their positions at the coming Board wonderful years I spent with them. elections. I encourage you to consider running for a position. Not only for [email protected] But in the last three months the world personal or corporate visibility, which Phone: +36 1 266-9880/310 opened up around me. is of course an added benefit, but for the Project Manager While I still believe that I had a chance to tap into the great potential this Judit unique privilege to work for one of the organization has and will have in 2015! SZILÁGYI best, now, visiting our members and seeing not only their business results If you are interested in standing for

and success stories, but also their Presidency or Board member-at- [email protected] firm commitment in investing in the large, please note that the deadline for Phone: +36 1 266-9880/332 AmCham community and also in future submission to the AmCham Office, Assistant generations, simply amazes me. including an expression of interest and József other related nomination material is 2 Gál I am inspired to see our committed p.m. local time on Monday, November board members and committee 3, 2014. Please watch your email for chairs, and the members who devote detailed information on the election [email protected] volunteer hours and days to making rules, procedures and deadlines. Phone: ++36 1 428-2089 this organization better and to making Irisz Lippai-Nagy AmCham office contact info Hungary a better place. After three H-1051 Budapest, Szent István tér 11. Phone: +36 1 266 9880 Fax: +36 1 266 9888 Email: [email protected] website: www.amcham.hu

QR6242_VoiceMag_W210xH297.indd 1 9/1/14 10:48 AM AFR_AmCham_HiRes.pdf 1 2014.07.23. 16:34:08

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