Experiences from Denmark: Action Plan and Legislation on CSR by Carsten Ingerslev Danish Government Center for CSR Brussels, 23rd February 2010

Experiences from Denmark: Action Plan and Legislation on

CSR

by Carsten Ingerslev Danish Government Center for CSR

Brussels, 23rd February 2010

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The Danish Government Centre for CSRWho: Part of Danish Ministry of Economics and Industry

Why: Giving Danish businesses a competitive advantage, by addressing the CSR agenda in a strategic manner

What: Providing training, tools, inspiration and knowledge

How: Staying abreast of latest international knowledge and developments, implementing it in a pragmatic way that’s at eye level with Danish SME’s

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Strategic CSR

Integrate CSR into the company’s core business concept.

Synergy between business demands and society needs.

Balancing the company’s chain of values against the competitive context to benefit society and the company the most.

GOAL: To go beyond best practice, differentiating from rivals and attracting customers while serving society.

(Ref. Porter & Kramer 2006)


Three stages of CSR

Compliance Medium to High Strategic and

Operational Impact

Fundamental Strategic and Operational Impact

InnovationSustainable Business Models

Provide funding and skills

Little Strategic or Operational Impact

Business-driven/strategic CSRCSRas

ValueCreation

CSR as

Risk Management

CSRas

Corporate Philanthropy


An international perspective

• The challenges are on the international market

• International frameworks are needed– For businesses: UN Global Compact– For investors: ’Principles for Responsible

Investments’ – PRI • Both are:

– International frames of reference– Widely recognized– Compatible with strategic CSR

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The beginning: A large scale CSR-project

• Comprehensive training for more than 12.000 employees in SME’s

• From 2005 – 2007

• Budget: 3 million EURO

• Finance from The European Social Fund and The Danish Labour Market Authority

Carsten Ingerslev , Brussels, 23rd February 2010

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CSR-Compass – a responsible sourcing tool

Target group: Companies, who

1) get demand about CSR from customers

2) want to demand CSR from their suppliers

More than 5000 users per month



The Government’s Action Plan for CSR• Launched in May 2008

• Denmark and Danish businesses should be associated internationally with responsible growth

• Danish businesses should benefit more from their leading position within CSR

meet global challenges, while at the same time increasing Danish competitiveness and growth


Initiatives in the Action Plan for CSR

30 initiatives within four action areas:

1. Propagating business-driven social responsibility

2. Promoting businesses’ social responsibility through Government activities

3. Corporate sector’s climate responsibility

4. Marketing Denmark for responsible growth


Initiatives – some examples

• Encouraging businesses to take up CSR as a strategic activity

• Integration of Global Compact/UN PRI in state activities

• Conference on Socially Responsible Investing at Princeton University (November 2008)

• Setting up of a national Council for CSR (August 2009)

• Improving communication and developing web tools

• Mandatory reporting on CSR for large companies and investors (December 2008)


New law: CSR reporting mandatory for large businesses• It is mandatory to report about CSR for the 1100 largest companies and institutional investors – not to work with CSR

• They must report on their policies on CSR, how these are translated into action and the results of the work with CSR

• No CSR – must be also be disclosed

• Members of UN Global Compact or UN PRI can refer to their communication on progress instead


Why make a law on CSR-reporting?

Transparency is essential• If a company wants to be publicly recognized• If a company wants to reap the full benefit of its

efforts• If the company wants to engage its stakeholders

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The law supports UN Global Compact & PRI

• Strong support to international framework for CSR – UN Global Compact and PRI

• Number of Danish members of Global Compact has more than tripled - from 54 to 163 companies

• Number of Danish member of PRI has tripled – from 4 to 18 investors



More information

Info and tools: http://www.csrgov.dk

Blog on CSR: http://blog.csrgov.dk

CONTACT:

Government Centre for CSR: [email protected]

Carsten Ingerslev: [email protected]

Documents

Experiences from Denmark: Action Plan and Legislation on CSR by Carsten Ingerslev Danish Government Center for CSR Brussels, 23rd February 2010