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Renewed EU strategy
for corporate social responsibility 2011-2014
CSR
by Ms Evelyne Pichenot, EESC member
10 April 2012 – Hong Kong
1) Corporate responsibility and accountability in the EU
• Many European companies already adhere to international CSR
frameworks.
• A growing number of EU companies report on the sustainability of
their activities.
• Progress in the EU since 1990.
- Definition
- Instruments and policies
- Practices.
2) Various early activities in Europe
- 1994 Danish government launched a CSR campaign
- 1998 UK government backed the voluntary ETI (ethical trading initiative – for
the improvement of labour conditions in supply chains).
- 1999 Sweden started to require large companies to include environmental
information in their annual reports
- 1999 Germany gave financial backing to the launch of the UN global compact.
- 2000 UK appointed a minister for CSR.
- 2001 France adopted a law on New Economic Regulations (NRE) making CSR
disclosure mandatory for listed companies.
Conclusion: Over the next decade, new challenges, such as social
inclusion, the environment, diversity and
competitiveness, spawned a range of new activities.
3) Transparency: a key question for European
countries
• Several EU Member States have a well developed policy on CSR
• Convergent transparency practices noted in the inventory of national
policies:
- exemplary CSR management in public organisations
post, energy, etc)
- regulation of CSR disclosure to clients and investors
- organisation of exchanges between various CSR
stakeholders
- global orientation of CSR disclosure in other policies
(industry, banking, development, etc.)
• Various instruments and tools at national level (DK, UK, FR, NL, SV)
- guidelines, ratings, reporting, procurements with
specific provisions
- mandatory reporting
4) Voluntary approach to CSR in EU and international
standards (2001-2002)
• The European Commission adopted a voluntary approach on CSR
(2001)
• The European Commission established a European CSR policy
providing exchanges, projects and financial support (2002) to the
stakeholders forum.• In addition to this voluntary approach, the European Commission
handles labour and environmental issues through directives (Reach,
IPPC, etc)• A directive introduced the possibility of extra financial information in
annual balance (2003)• The SRI market begins developing (2007)
5) Development of the definition of CSR
First step in the definition (2001)
CSR “is a concept whereby companies integrate social and
environmental concerns in their business operations and
in their interaction with their stakeholders on a voluntary basis”.
Second step in the definition (2006)
CSR has a role in achieving Sustainable Development and
ensuring more and better jobs.
The Europe 2020 Strategy added consumer trust to the roles of
CSR.
Third step in the definition (2011)
a new communication from European Commission.
6) New communication on CSRA new step in the definition.
CSR refers to “the responsibility of enterprises for their impacts on society”
and respect for applicable legislation and for collective agreements
between social partners
CSR in the EU recognises principles and guidelines internationally and integrates
United Nations guiding principles on business and human rights.
CSR is a long-term approach and includes the supply chains and impacts both
direct and indirect.
CSR has a multidimensional nature. The EU notes:
“According to these principles and guidelines, CSR at least covers
human rights, labour and employment practices (such as training, diversity,
gender equality and employee health and well-being), environmental issues
such as bio-diversity, climate change, resource efficiency, life cycle assessment
and pollution prevention) and combating bribery and corruption”.
The disclosure of non-financial information is also recognised as an important
issue.
7) Recent progress in CSR within the EU
•
Social dialogue: 140 transnational company agreements (from 79 in
2006)
Monitoring: 700 members in the business social
compliance initiative (from 69 in 2007)
Reporting: 850 European enterprises following the global
reporting initiative (from 270 in
2006)
International standard: 1900 European enterprises involved in UN
global compact (from 600 in 2006) and
good participation in ISO26000
Environment: 4600 enterprises adopting EMAS.
Evaluation of the impact of CSR but the EU could do better.
What kind of new actions?- Role of public authorities: each Member State must update a national
plan and accept peer review
- Role of Social partners: Database for international agreements
- Role of EU institutions: - creating an award and financial support
for promotion and
education on CSR.
- struggling against unfair commercial
practices.
- (greenwashing) promoting CSR in
public procurement
and trade agreement
- submit a legislative proposal on the
transparency for
social and
environmental information (2012)
- create sectoral multistakeholder
platforms.
Conclusion: more visibility, more accountability and more trust.