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Studies and reports
Socio-economic Sciencesand Humanities
E U R O P E A NCOMMISSION
Research & Innovation
Towards a greater understanding of the changing role of business in society
KI-NA-24-651-EN
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The move towards urbanisation is progressing and more than half of the world population is today living in cities. By the 2030s, five of the world’s eight billion people will live in urban areas.
How can this continuous urbanisation trend be reconciled with the “Rio+ 20” Earth Summit hopes and the European Union’s commitment towards a smart, sustainable and inclusive growth by 2020?
This publication addresses the issues of urbanisation focusing on the concentration of needs and services, the migration and settlement patterns in Europe, the new forms of poverty and exclusion, urban welfare and social innovation, and green urban planning.
A greater understanding of the dynamics of urban societies will allow instability and risks within cities in humanitarian, economic and security terms to be better managed.
With the increasing activities of the European Commission aimed at promoting responsible business and advancing Corporate Social Responsibility throughout the private sector, there is a growing need of robust scientific analysis of the phenomenon and its different aspects. This publication summarises the outcomes of a conference ‘Towards a greater understanding of the changing role of business in society’ organised on 22 April 2010 in Brussels by the European Commission, Directorate-General for Research and Innovation. The conference participants discussed a number of topics related to the role business in society including, among others, the challenges of interaction and cooperation between enterprises and their stakeholders, the problem of voluntary codes versus legal frameworks in promoting corporate responsibility in a globalised economy, the need to build new relationship between enterprises and the state, as well as potential contribution of business to Millennium Development Goals. In its final section the publication proposes a number of topics which could inspire future research funding.
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EuropeanCommission
EUR 24651 EN — Towards a greater understanding of the changing role of business in society
Luxembourg:PublicationsOfficeoftheEuropeanUnion
2011—44pp.—format17.6x25cm
ISBN978-92-79-18870-1doi 10.2777/44703
EUROPEAN COMMISSION
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EUROPEAN COMMISSION
Towards a greater understanding
of the changing role of business in society
Directorate-GeneralforResearchandInnovation2011 Socio-economicSciencesandHumanities EUR24651EN
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33
Table of contents
Acknowledgements 4
Preface 5
Introduction 7
Chapter1.EUresearchonCorporateSocialResponsibility 9
Chapter2.Newgovernancestructuresandrelationshipsbetweentheenterpriseandthestate 15
Chapter3.Thecrisisoftrustanditsimplications 23
Chapter4.CorporateSocialResponsibilityinaglobalisedeconomy–newstrategiesforvaluecreation 27
Chapter5.Futureresearchneedsrelatedtotheroleofbusinessinsociety 33
Appendices:IMPACT–anewEuropeanresearchprojectonCSR 40
Conferenceprogramme 42
4
AcknowledgementsThispublicationwasdraftedbyUrsulaHuws,aspecialistinlabourstudies,globalisationandcorpo-rateresponsibilityworkingattheLondonMetropolitanUniversityintheUnitedKingdom.Inordertocompleteherwork,ProfessorHuwsparticipatedintheconference‘Towardsagreaterunderstandingofthechangingroleofbusinessinsociety’whichtookplaceinBrusselson22April2010;inadditionshereviewedthoroughlythewrittencontributionsofallspeakers.
OnbehalfoftheEuropeanCommissiontheworkwascoordinatedandsupportedbyDominikSobczakfromtheDirectoratefor‘Science,EconomyandSociety’intheDirectorate-GeneralforResearchandInnovation.
Thispublicationisadirectresultoftheconference‘Towardsagreaterunderstandingofthechang-ingroleofbusinessinsociety’,whichprovidedmaterialandservedasasourceofreflectionfortheauthor.TheconferencewouldnothavetakenplacewithoutthededicationoffourpeopleintheDirectorate-GeneralforResearchandInnovationoftheEuropeanCommission:Jean-MichelBaer,Director,andPierreValette,HeadofUnit,whoencouragedtheinitiativeandprovidedguidance,DominikSobczakwhocameupwiththeideaandwasthedrivingforceoftheeventandKameliyaPetrovawhosupportedhimalongthewayinalladministrativeandorganisationalmatters.
Moreover,indevelopingtheprogrammeoftheconferenceandinvitingsomeofthekeyspeakers,TomDoddfromtheDirectorate-GeneralforEnterpriseandIndustryandSimonPickardfromtheEuropeanAcademyofBusinessinSocietyprovidedinvaluableassistancetotheorganisers.
TheconferencewouldnothavebeenasuccesswithouttheexcellentinputsandcooperationofallspeakersandpanelmoderatorsfromtheEuropeanCommission,academiaanddifferentstakeholderorganisations,whosecontributionsformthebackboneofthispublication.
Finally,severalcolleaguesfromDirectorate-GeneralforResearchandInnovationgavetheirtimeandsupporttotheconferenceandthereport:LouisaAnastopoulou,JoelleMoraïtis,CorneliaSmet,andMooniraMerali.
PrefaceTheEuropeanCommissionhasmadealotofeffortinthelastdecadetopromoteresponsiblebusinessandadvanceCorporateSocialResponsibilitythroughouttheprivatesector.However,therecentworldfinancialandeconomiccrisisrevealedaconsiderabledeficiencyofresponsibleman-agementandaccountabilityoffinancialinstitutionswhichcontributedsignificantlytothechaosonthemarketsandthedepthofthecrisis.Duetothis,itistimeforamuchbroaderdefinitionoftheroleandresponsibilityofbusinessintheglobalisedworld,wheregrowingresponsibilityshouldgohandinhandwithgrowinginfluence.Manybusinessleadersareawareofthisneedandtheirincreasingengagementindialoguewithacademics,stakeholdersandpolicymakersdemonstratestheirreadinesstofacesocietalexpectations.
Asitstands,however,theEUFrameworkProgrammeresearchshowsthatonlyalimitednumberofglobalcompaniesputconsiderationofresponsiblebusinesspracticesatthecoreoftheirbusi-nessmodelandtheircorporatestrategy.Toomanycompaniesstillseetheirimpactonsocietyandtheenvironmentmorefromthepointofviewofreputationratherthanresponsibility.Thisprob-lemcanoftenbemuchmorevividlyobservedindevelopingcountriesasbusinessthereisundermuchlesspublicpressureandscrutiny,duetocivilsocietybeinglessdeveloped,lowersocietalexpectationsandamuchlessheavilyregulatedbusinessenvironment.ThesituationinEuropealsovariessignificantlyacrosssectors.WhatEuropeanresearchclearlyshowsisthatwhencompaniesengageindialoguewithstakeholderstherearestillsignificantdiscrepanciesbetweenrealsocietalexpectationsandwhatcompaniesbelievethemtobe.Thisisstillanimportantbarriertomutualunderstanding.
Theconference‘Towardsagreaterunderstandingofthechangingroleofbusinessinsociety’,whosemainoutcomesthispublicationpresents,actuallyaddressedthechallengeofmakingcom-paniesmore responsibleandaccountable to societyat large.Thereareanumberof clearconclusions.First,intheglobalisedworldnewgovernancemechanismsareneededtotacklecom-monproblemsandfacechallengeslyingahead.Nosingletypeofactorscandoitontheirown,beitstategovernments,internationalinstitutions,multinationalcompaniesorsupranationalcivilsocietyorganisations.Theyneedtoacttogether.Second,buildingsuchnewrelationshipsbetweenallactorswillbepossibleonlyiftheyarebasedontrustandcommonconcerns.Althoughtrustisthekeyinsuchasetting,thecrisishasshakenitup,especiallyinthedevelopedworld.Evidenceshowsthatpeopletrustgovernmentslessandtheytrustbusinessconsiderablyless.Trustneedstoberebuilt,asanystructurethatissetupwithdeficitoftrustisdeemedtobelesseffective.Finally,italsoneedstoberecognisedthatresponsibilityandaccountabilitycangohandinhandwithgoodbusiness,developingnewmarkets,generatingcompetitiveadvantages,contributingtogrowthandfurtheringsocialbenefits.Companiesshouldmakeanefforttograspthesenewopportunitiesandpublicpolicyshouldsupportthisprocessthroughappropriateincentivesandsmartregulation.
Giventhecross-borderactivitiesofbusiness,theEUiswell-placedtoengageinboldpoliciesinfavourofcorporatesocialresponsibility,policiesthatcouldinspireothergrowingworldregionsandoffermodelsfortheregulationofglobaltrade.
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IntroductionThefinancialcrisisof2008putthequestionofbusinessethicsatthetopoftheagendabothforpolicy-makersandforthegeneralpublic.Publictrustinbusinesswasshakenasneverbeforeandfundamentalquestionswereraisedconcerningnotjusttheregulationandpublicaccountabilityofbusinessbutalsoitsvalues,itscultureanditsrelationshipswithstakeholders.Furthermore,itgaveanadditionalimpetustothetrendtoredefinetheresponsibilitiesofbusinessnotjustasresponsibilitiestothetraditionalconstituenciesofshareholders,employees,suppliersandcustomersbutalsotoamuchbroaderrangeofstakeholdersatagloballevel,and,indeed,eventhephysicalwellbeingoftheplanetitself.
Thishaslenturgencytothetaskofcriticallyinvestigatingexistingbusinesspractices,evaluatingtheirimpactsandidentifyingprioritiesforfutureresearchinthisfield.Theneedtoshineaspotlightoncurrentpracticesisnotjustanissueforthemassmediaandthegeneralpublic.Itisalsoincreasinglyimportantformanydimensionsofpublicpolicy,infieldsrangingfromeconomic,financial,regionalandinternalmarketaffairs,enterprisesupport,educationandtraining,employmentandsocialaffairstodevelopmentaidandenvironmentalprotection.
Theinvestigationofsuchamulti-facetedtopicrequiresabroadinterdisciplinaryapproachthatbringstogetherthe‘softer’sciencesofpsychology,culturalstudiesandethicswiththemethodologicalapproachesdevelopedwithinthefieldsofeconomics,organisationalstudies,sociologyandpoliticalscience.ThispresentsamajorchallengetotheEuropeanresearchcommunity.WhilstthereisanexistingbodyofresearchonCorporateSocialResponsibility(CSR)onwhichitcanbuild,thereisaneedtoexpandthefieldofvisionandgobeyondthis,inordertoaddresstheissuesthatlieatthecoreofthebusinessandsocietalvaluesthatarecurrentlyunderscrutiny.
TheEuropeanCommissionhasagrowingnumberofpoliciesaimedatpromotingresponsiblebusinessandadvancingCorporateSocialResponsibility.Combinedwithanawarenessofthedeficienciesinresponsiblemanagementandaccountabilityrevealedbythefinancialcrisis,thishasledtoagrowingrealisationoftheneedforrobustscientificanalysisofthephenomenonanditsdifferentaspects.Tocontributetoadiscussionofthechangingroleofbusinessinsociety,theCommission’sDirectorateGeneralforResearchandInnovationorganisedaEuropeanconference(1)on22April2010inBrusselsonthetopicof‘Towardsagreaterunderstandingofthechangingroleofbusinessinsociety’.Thisconferencebroughttogetherarangeofstakeholders,includingenterprises,interestgroups,civilsocietyorganisations,academicsandpolicymakersfromarangeofdifferentEuropeanpolicyfields.
Asastartingpointfordiscussion,theconferencedrewonthemainoutcomesoffourresearchprojectsfundedundertheEuropeanUnionSixthResearchFrameworkProgrammeaswellasaPolicyReviewonCSRwhichwaspreparedbyAlbertSchramfromUniversityofMaastricht.Howevertheaimwastogobeyondtheseconclusionsandprovideaforumforbroaderreflectiononthemostrelevantissuesthatshouldbetakenupbyfutureresearchinordertoimproveunderstandingoftheevolvingroleofbusinessinsocietyanditsimplications.
Apartfromtheresearchdimension,theconferencefocusedinparticularonthreeissuesespeciallyimportantinthecontextofthefinancialandeconomiccrisis.Thesewerenewgovernancestructuresandrelationshipbetweenenterprisesandthestate,thecrisisoftrustandits implicationsforsustainable economic development and social and political stability, and Corporate SocialResponsibilityinaglobalisedeconomy.
(1) http://ec.europa.eu/research/social-sciences/events-102_en.html
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Chapter 1. EU research on Corporate Social ResponsibilityThetopicofCorporateSocialResponsibility(CSR)inEuropewasintroducedintotheEuropeanUnionSixthResearchFrameworkProgrammeinrecognitionofthegrowingimportanceofthetopicinEUpolicy.
ThetablebelowpresentskeydocumentsadoptedbytheEuropeanCommissionsince2001whichdefineitspolicyinrelationtoCSR.
EUlevelactivitiesinCorporateSocialResponsibility,however,gofarbeyondofficialdocumentspre-sentedabove.Theyinvolve,forexample,resolutionsoftheEuropeanParliament,whichworksactivelyinthisfield,aswellastheorganisationofaMulti-StakeholderForuminCSR.Thetablebelowpresentsthoseactivities.
CSR policy milestones
• 2001:GreenPaperonCSR.
• 2002:CommunicationonCorporateSocialResponsibility(CSR)asapartoftheLisbonAgenda.InOctober2002,theCommissionlaunchedtheEUMultiStakeholderForum(MSF)onCSR.TheEuropeanParliamentpassedafirstresolutiononCSRendorsingtheMSFandunderlinedtheimportanceoftheimplementationofcodesofconduct,andwideradoptionofsocialreporting.
• 2003:TheEuropeanParliamentpassesasecondresolutiononCSR,stressingtheimportanceofthecontributionofbusinesstosustainabledevelopment,andsupportingthegreateruptakeoftheGlobalReportingInitiative(GRI)standards.
• 2004:FinalreportMulti-StakeholderForumcallingforabetterlegalframeworkforCSR.
• 2006:SecondCommunicationbytheCommission‘Implementingthepartnershipforgrowthandjobs:makingEuropeapoleofexcellenceonCSR’waspublishedon22March2006.Inthispaper,theCommissiondefinesCSRas‘aconceptwherebycompaniesintegratesocialandenvironmentalconcernsintheirbusinessoperationsandintheirinteractionwiththeirstakeholdersonavoluntarybasis’.AnapproachtoCSRinvolvingadditionalrequirementsforbusinessrisksbeingcounter-productiveandcontrarytotheprinciplesofgoodregulation.
• 2007:EuropeanParliamentresolutiononCSRexpressesthatCSRcanbeenhancedandimplementedusingexistinglegalinstruments.
• 2008:CommunicationontheEuropeanCompetitivenessReportnotedthepositiveimpactofCSRonfirms’competitiveness,andtheneedformoreCSRactivitiesintimesofeconomiccrisis.
CSR key policy documents
If three key policy documents on CSR were to be selected, they would probably be:
1. OfficialConsultationonCSR,July2001.CorporateSocialResponsibilityGreenPaper,PromotingaEuropeanFrameworkforCorporateSocialResponsibility(COM(2001)366finalof18/07/2001).
2. Communication from the Commission concerning Corporate Social Responsibility, July 2002 Abusinesscontributiontosustainabledevelopment(COM(2002)347finalof02/07/2002).
3. Communication from theCommissionconcerningCorporateSocialResponsibility,March2006.Implementingthepartnership forgrowthand jobs:MakingEuropeapoleofexcellenceonCSR(COM(2006)136finalof22/03/2006).
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Four projects were funded under the European Union Sixth Research Framework Programme in Social Sciences and Humanities with the aim of consolidating and expanding knowledge on CSR and its impacts. These were the research projects, ESTER (2), RESPONSE (3) and RARE (4) and the CSR-Platform project (5), which was set up with the aim of mobilizing researchers to support and develop excellence in research on CSR and business in society issues in the European Research Area.
The results of these projects taken together generated a comprehensive overview of the state of the art and produced some important new insights into the role of business in society and the ways in which CSR policies are developed.
ÔÔ CSRÔresearchÔinÔpractice
The CSR-Platform carried out an overview of the state of play when its project commenced and concluded that there were a number of weaknesses in European research on CSR, including:
• fragmentation of European CSR research;• lack of collaboration in CSR research with little integration of theoretical and applied work and
low interdisciplinarity;• lack of stakeholder input into CSR research design and delivery;• uneven and diffuse dissemination of CSR research;• failure to translate the results of CSR research into effective education and training or programmes
for institutional change;• lack of institutional support for developing the next generation of CSR researchers.
In particular, there was a very big gap between the goals of the European Commission (which saw CSR as a vital link between innovation and competitiveness on the one hand and social inclusion on the other) and, with a few exceptions, the perceptions of scientific CSR academics (6).
To address these weaknesses, the CSR-platform project created a multi-stakeholder platform and a series of research colloquia designed not only to bring together researchers from business, academia and policy but also to span the gaps within and between disciplines, across generations and between different types of research.
The diverse community that was brought together as a result of these efforts exchanged research findings and experiences from theory and practice, fostered mutual trust and identified gaps in knowl-edge and priorities for future research. In doing so, it helped to develop a distinctive European view that transcends institutional boundaries. One challenge for the future is to extend this vision into main-stream business studies and fields such as innovation studies: to move beyond the concept of CSR to ‘construct a new face for business in society’ (7).
(2) SocialRegulationofEuropeanTransnationalCompanies–http://ester.u-bordeaux4.fr/siteanglais/accueil.htm
(3) UnderstandingandRespondingtoSocietalDemandsonCorporateResponsibility–http://www.insead.edu/v1/ibis/response_project/
(4) RhetoricsandRealities:AnalysingCorporateSocialResponsibilityinEurope–http://www.rare.net/
(5) http://www.eabis.org/csrplatform
(6) NigelRoome,conferencepresentation.
(7) NigelRoome,conferencepresentation.
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ÔÔ CSRÔpoliciesÔinÔpractice
ÌÌ VoluntaryÌcodesÌversusÌlegalÌframeworks
AnalysisbytheESTERprojectrevealedthattheformsofCSRpreferredbycompanieswereunilat-erally-imposedcodesofpracticeandethicscharters.Oneweaknessofthisapproachisitstendencytocreateglobalentrepreneurialsystemsoninstitutionallines,bypassingnationallegalframeworks.Furthermore,ithasnopowertopreventhumanrightsviolations,exceptbyhighlyindirectmeans,suchasimposingtradepenaltiesviaasocialclauseincommercialcontractswithsuppliers(8).
Nevertheless,aprocesscouldbeobservedwherebyovertimeCSRbecomes‘legalised’throughthecreationoflegalandpara-legalCSRinstruments,eventhoughcompaniescontinueto‘pickandchoose’fromamongtheavailableinternationalinstruments.
CompanieswerefoundtobenefitfromadoptingCSRnotonlybecauseitenhancedtheircorpo-rateimageandlegitimacybutalsobecauseitprovidedacompetitiveadvantageandameanstodemonstratethecompany’sperformanceinanewareaatarelativelymodestcost.
OneinterestingdevelopmentistheemergenceofInternationalFrameworkAgreements(IFAs)whichplayapartinshapinglabourrelations,inparticularbyencouragingtradeunionstoengagewithCSRissues.Bytheendof2007,61oftheseIFAshadbeennegotiatedbetweenEuropeanmultinationalcompaniesandglobalunionfederations.SuchagreementsfavourthedevelopmentofCSRinmulti-nationalcompanies,butthisneedstotakeuniversalstandardsintoaccountandtobedevelopedwithinthecontextofaglobalforumofinternationalinstitutions.
Inrelationtothequestionwhetherself-regulationorexternalregulationismoreeffective,theRAREprojectconcludedthatthereisstillmorerhetoricthanrealityinrelationtoCSRpolicy.Forpolicymakersthekeymessageisthatthereisnosimpleblueprinttobefoundineitherapproach:CSRisneitheralwaysbetterthanregulationnortheotherwayround(9).
ÌÌ DifferingÌinterpretationsÌofÌCSRÌbyÌsector
Theterm‘CSR’isinterpretedverydifferentlydependingonthesectoralcontext.AccordingtotheresultsoftheRAREproject,CSRisstronglylinkedtothecompanies’corebusinessratherthanrelat-ingtotheirwidersphereofinfluence.Inbanking,forinstance,theavoidanceofbriberyandthepursuitofgenderequalityareimportantissues,whereastheoilindustryfocusesmoreonthemitigationofcli-matechange.Inthefishingindustry,theCSRprioritiesrelatetosustainabilityandthecontrolofpollutingchemicals.
Differentdegreesof‘CSRmaturity’couldbediscernedindifferentsectors,withalargerrangeofinstru-mentsinuseinthebankingandoilindustriesthaninfishprocessing.Banksuseanarrayofinstrumentsincludingformsofstakeholderengagementandco-operation,company-specificcodesofconduct
(8) EsterDaugareilh,writtensubmission.
(9) RegineBarth,conferencepresentation.
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andnon-financialreportingbasedontheGlobalReportingInitiative.TheoilcompaniesprefertoendorsetheGlobalCompact,theOECDGuidelinesforMultinationalEnterprises,theResponsibleCareInitiative,ISO14001aswellastheGlobalReportingInitiative.MeanwhilethefishprocessingsectorsusestheFAOCodeofConductforResponsibleFisheries,theMarineStewardshipCouncilcertificationandtheHazardAnalysisandCriticalControlPoint(HACCP)system.
InSMEsinautosupplychains,CSRpoliciesrarelygobeyondcompliancewithminimumlegalrequire-ments.Whenthesecompaniesadoptstandardizedinstruments,thesetendtobemanagementsystems,aboveallISO9001andISO14001.
Withthepartialexceptionofthebankingsector,thereisconsiderablereluctancebycompaniestoevaluatetheirCSRperformance,settargetsordevelopmethodsforsystematicmonitoringofprogress.Impactperformanceishamperedbyalackofkeyperformanceindicatorsthatwouldenablesuchmonitoringtobecarriedoutovertime.
ÌÌ DifferingÌstakeholderÌperceptionsÌofÌCSR
TheRESPONSEresearchfoundawidegapbetweenmanagers’andstakeholders’understandingofwhatconstitutesthecompany’ssocialresponsibilities,withmanagersinterpretingthisinanarrowandconservativewayasmeaning‘donoharm’,ratherthanthemoreproactive‘dogood’approach.Managersalsotendtoperceiveresponsibilityaslyingnarrowlywithinthelegalboundaries,whereasexternalstakeholdershaveamuchbroadernotionofanexpandedenterprisewhichincludesandintegratestheinterestsofwidersocialgroupsandsocietyasawhole.
Moredynamicregionsandindustries,suchashigh-techindustries,areassociatedwithbetter‘cog-nitivealignment’(orsharedunderstandingsbetweenstakeholders).Pressurefromexternalactorsalsoimprovesthealignment.
Alignmentisalsoaffectedbyfactorsthatarespecifictoparticularfirms:thosethatadoptastrategyofdifferentiationwithinthemarketaremorelikelytohaveagoodalignmentthanthosethatcom-peteonthebasisofcostminimization,andfirmsthatpursueaninnovation-drivenstrategyshowhigheralignmentthanthosemotivatedbytheorganizationalvaluesofothertypesofbusinesscasearguments,suchasriskreduction,cost-efficiency,salesormargingrowth.
CSRinitiativesbasedoninternalchangeinitiativesaremorelikelytoleadtopositivecognitivealign-mentthanthosethatarebasedonengagementwithexternalstakeholders.
ÌÌ NationalÌdifferences
TherearealsonationalvariationsinapproachestoCSR,withfourdistinctEuropeantypes,relatedtodifferentregimetypes.TotheextentthatpolicycanbecategorizedataEuropeanlevel,itseemstobemovingtowardstheNordic‘partnership’model.
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ÌÌ TypologyÌofÌCSRÌpoliciesÌandÌmodels
Source: RARE Corporate Social Responsibility: Integrating a business and societal governance perspective. The RARE project’s approach, p. 28, adapted by Schram
ÌÌ ChangingÌtheÌmanagerialÌmindset
RESPONSEinvestigatedtheimpactsonCSRofdifferingformsofmanagementeducationandfoundthatcoachingprogrammesbasedonintrospectionandmeditationtechniqueshaveasignificantimpactontheprobabilityofactinginasociallyresponsibleway.Bycontrast,thestandardexecu-tiveeducationapproachbasedondiscussionandcaseanalysisfailstoshiftmanagers’thinking.Theresearchteamconcludedthatresponsibilityisfundamentallyanindividualissueandneedstobestudiedassuch.Thereisaneedforresearchthatfocusesoninternallearningandchangeproc-esses.Thisrequiresdetailedresearchovertime,includinginputsfrompsychologyandneuroscience,aswellassociologyandorganizationaltheory,inordertogainanunderstandingofwhatgoesoninpeoples’mindswhentheymakedecisions(10).
ÌRegulatedÌCSRÌpolicyÌ
‘sustainabilityÌÌ&Ìcitizenship’Ì(Continentals)
ÌImplicitÌCSRÌÌpolicyÌ‘agora’Ì
(Mediterraneans)
StimulatedÌCSRÌÌ
policyÌ‘partnership’Ì(Nordics)
ExplicitÌCSRÌÌ
policyÌ‘businessÌÌinÌcommunity’Ì
(Anglo-Saxons)
Control & disincentives
Hig
h im
pact
Low
impa
ct
Incentives
(10)MaurizioZollo,conferencepresentation.
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1515
Chapter 2. New governance structures and relationships between enterprises and the state
ÔÔ TheÔglobalÔcontext
Majorquestionshavebeenraisedabouttherelationshipsbetweentheenterpriseandthestate,ques-tionsthatgofarbeyondimmediateissuesconcerningtheregulationofbankstoafundamentalquestioningoftherelationshipbetweenthestateandbusinessasawhole.Thecontextofglobali-sationrendersthesequestionshighlycomplextoaddress.
Itcouldevenbesaidthatthecurrentcrisishasbroughtaboutasituationwhere‘globalmarketcapitalismistodayconfrontedwiththechangesithasbroughttobear’(11).Complicatingfactorsintheglobalcon-textincludetheshiftingofthefocalpointoftheworldeconomytowardsAsia,thethreatposedbytheresurgenceoftheoldMalthusiandilemmabetweenthefixedenvelopeofnaturalresourcesandexpand-ingdemographicsandeconomiesandthe‘over-financialisation’oftheglobaleconomy.Asthethreelargestglobaleconomicgroupings,itistheUSA,theEUandChinathatwillbedecisiveforthefutureofglobalmarketcapitalismandforthebalancebetweenitsmaindifferentcontinentalmodels(12).
Nationaldifferencesstillaffectthemovementsofmobilemultinationalcompanies,byencouraging‘regime-hopping’insearchofthemostfavourableregulatoryandtaxarrangements.Theeffectsofthismobilitycascadedownthesupplychain,multiplyingthelocalsocialandeconomicimpacts.Theyalsoplacelimitsontheabilityofnationalregulatorysystemstoimposestringentconditionsoncom-panies.Nevertheless,thereisageneralconsensusthatanewapproachtoregulationisrequired.
ÔÔ RegulationÔandÔmarketsÔ–ÔaÔcomplementaryÔrelationshipÔ
Itisoftenarguedthatregulationhindersthefreeworkingsofmarketsandthereforea‘lighttouch’isrequiredfromregulatorsifmarketsaretofunctioneffectively.Butinstitutionaleconomicsshowusthattheemergenceofinstitutionsofgovernanceisadirectoutcomeofrationalutility-maximisingmarketbehaviour(13).Thisisbecausemarketsgeneratebothcompetitionandcollusionbetweeneconomicagents:undersomecircumstancestheycompetewitheachother,whilstunderotherstheyjoinforcestoform‘clubs’,cartelsorotherorganisationsthatfixpricesorwagesorlimitcompetitioninsomeotherway.Thebalancebetweencollaborativeandcompetitivebehaviourvariesindifferentcontextsbutleadstothedevelopmentofpressuresfromtheeconomicagentsforindependentinstitutionsthatensure‘fairplay’inthemarket.‘Contrastingformsofmarketcorrespondtoinstitutionalcompromisesbasedonthepolicy-rent-seekingpreferencesofinteractingagentsgeneratinginstitutionsofgovernanceastheydoso.’(14)
Regulationandthefreeoperationofthemarketshouldnotthereforebeseenasopposingeachotherbutpartofacomplementaritythatprovidesanecessarybasisforthesustainablefunctioningofbusinesses.
(11) PierreDefraigne,conferencepresentation.
(12)PierreDefraigne,conferencepresentation.
(13)GeoffreyUnderhill,conferencepresentation.
(14)GeoffreyUnderhill,conferencepresentation.
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Successfulreformwillrequireaconceptualunderstandingofthislinkbetweengovernanceandmarketcompetition,andappropriatechangesinthenatureofthepolicyprocesssoastoreshapemarketstoavoidfinancialinstabilityinthefuture(15).
Inordertoconvinceexternalstakeholdersthattheyaredeservingoftrust,companieshavetodemonstratetheircommitmentthroughtheiractualbehaviour.Someexamplesofbehaviourthatcreatesmistrustinclude:postponementofCSReffortsintotheindefinitefutureusingshort-termeconomiccrisesasanexcuse;lobbyingagainstattemptstotightenregulation;limitingCSRbudgets;failuretoundertakesystematicriskassessments;andrefusaltotakeresponsibilityforactionsbysub-sidiarycompaniesorsuppliers.Suchactionsdonotjustreboundnegativelyonthespecificcompanyinquestionbutcontributetomorewidespreadcynicismaboutbusinessingeneral.Allbusinessesthereforehaveaninterestinthedevelopmentofbindingregulationsthatsanctionthosefirmsthatviolatehumanrightswhileendangeringfaircompetition(16).Bothsticksandcarrotswillbeneededtoraisethegeneralstandards.
Aswellastakingaccountofthediversitybetweencompanies,itisalsonecessarytoacknowledgediversitywithinthem.Notonlyaretheredifferencesbetweentheinterestsofshareholders,employeesandotherdirectstakeholders,itisalsoimportanttorecognisethattheremaybedifferencesbetweendifferentpartsofthesamefirm.Forinstancecustomer-facingdepartmentsmaybeanxioustotakeactionsthatwillrestoretrustinthefirmasquicklyaspossible,buttheseissuesmayseemlargelyirrel-evanttomanagersinvolvedinco-ordinatingproduction,forwhomcost-effectivenessremainsthedominantpriority(17).
(15)GeoffreyUnderhill,conferencepresentation.
(16)OlivierMaurel,conferencepresentation.
(17) EtienneDavignon,conferenceopeningstatement.
Bridging the gap between regulation and markets at a supranational level – the role of the ILO
TheInternationalLabourOrganisation(ILO)isaUNspecialisedagencythatbringstogethergovernments,employersandworkersof183countriesaroundtheobjectiveofdecentworkforall.Itsactionsandinstrumentsincludenotonlyinternationallabourconventionsandpolicyframeworks–suchasthe2009ILOGlobalJobsPact–addressedtotheMemberStatesbutalsothe1977ILOTripartiteDeclarationonMultinationalEnterprisesandSocialPolicy,directlyaddressedtoenterprisesandbusiness.Thisinstrumenthasbeenupdatedseveraltimes,mostrecentlyin2006,wasreaffirmedbythe2008ILODeclarationonSocialJusticeforaFairGlobalisationandconstitutesthemostcomprehensiveupdateoftheILOmandatesince1944.
ThisDeclarationcallsfornewpartnership,includingwithMultinationalEnterprises(MNEs).Itwasadoptedbyconsensusanddefinesthedecentworkagendaandprovidesaframeworkforitsimplementationandfollow-up.Itconstitutes,togetherwiththeOECDGuidelines,theonlyinternationallyagreedCSRinstrument.
TheMNEinstrumentrecognisesthepositivecontributionthatbusinesscanmaketosustainedeconomicandsocialdevelopmentandisrootedinsocialdialogue.HoweveritalsoacknowledgesthelimitsofCSR,definedasavoluntaryenterprises-driveninitiativereferringtoactivitiesthatareconsideredtoexceedcompliancewiththelaw(RudiDelarue,conferencepresentation).
1717
ÔÔ AÔnewÔapproachÔtoÔbusiness-stateÔcollaboration
Whatisclearisthatanychangeintherelationshipbetweengovernmentsandmultinationalcompaniesisgoingtorequireactivecollaborationonbothsides.Ontheonehand,politicalandregulatorychoicesarepivotaltobringingaboutsociallyresponsiblechange;ontheotheritisessentialthatsolutionsaredeployedcommerciallyifthesechangesaretobeimplemented.
Shellhasdevelopedscenariostoexploredifferentapproachestobusiness-statecollaborationandidentifiestwoextremes,whichcanbeillustratedwithreferencetoenergypolicy.Thefirstoftheseisdesignated‘scramble’.Underthisscenario,peoplefinditdifficulttonegotiateapaththroughthecomplexitywithwhichtheyarefacedandchoosetheeasiestoptionforthem.Thisusuallyinvolvesadaptingtoeventsastheyunfoldratherthandevelopingclearstrategiesforchange.Eventhoughtheymaybeawareofpossiblenegativeoutcomes,fearaloneisnotenoughtomotivatethemtochangetheirbehavior.Underthisscenario,actionwillbedelegatedtothestate,despitetheknownlimitationsofthisapproach.A‘scramble’mindsetproducestheillusionthatgovernmentsareincontrolandlegitimatescomplacency.Thismakeschangeslowandcreatesdiscontinuities.
People at the heart of different outcomes … individually and collectively
Source: Shell
Business stresses over many time horizons
Source: ShellStrategies, policies & action today
Near term
Potential for Shocks
Market dynamics
Next 20 years
Rising demand
New supply sources
Emergent fault-lines
To 2050
Beyond hydrocarbons?
Climate change
Energy needs of
9 bln people
Today
18
Thesecondscenariohasbeennamed‘blueprint’.Thisapproachisnotbasedonaltruismbutonsharedinterests,whichareidentifiedindialoguebetweenstakeholders.Genuinechangeisachievedthroughaprocessoftrialanderror,collaborationandsharingandcopyingofgoodpractice:inotherwordsthroughaprocessof‘mainstreaming’.Successisnotcentrallydirected,atleastnotinitially,butemergesfromthiscollaborativeprocess.A‘blueprint’mindsetacknowledgesinterdependenciesandshiftingcoalitionsofinterestwhichcanshapestatepolicies.ThiscanprovideaframeworkinwhichNGOsandacademicscancometogetherwithbusinessandencourageharmonisation.
Movingtowardsthisapproachrequiresmechanismsandaclimateofdiscussionthatpromotesandrewards‘collaborationsofthewilling’.(18)
Shell energy scenarios
Source: Shell
(18)HansvanderLoo,conferencepresentation.
1919
ÔÔ ÔDevelopingÔnewÔpartnershipÔapproachesÔ–ÔtheÔneedÔforÔÔnewÔformsÔofÔsocialÔcontract
Developingsuchpartnershipapproachesinvolvesachangeofmindset.Whereashistoricallycompaniesaimedtoachievetheirgoalssingle-handedly,theissuesthattheynowneedtoaddressaretoocomplexandmultifacetedforsuchanapproach.Partnershipsandbroadermulti-stakeholderalliancesplayakeyrolenotonlyindevelopingsociallyresponsiblestrategiesforthefuturebutalsoinbuildingtrust(19).
Thecomparativesuccessofthepartnershipapproachhasledtotheviewthata‘networkperspectivebasedonpartnerships’canbeacrucialingredientinthedevelopmentofanew‘post-enlightenmentcapitalism’.Inthisview,thefirmisre-envisagedasaneconomicandsocialinstitutionembeddedinstakeholdernetworksandbecomesanintegralpartofsociety.Suchanapproachrequires‘smartregulation’thatgoesbeyondnationalborders(20).
Apartnershipapproachrequiresacompleteparadigmshiftforstrategicmanagement,whichhastoletgooftraditionaltop-downprocessesandlearntoworkinabottom-upwaywithotherpartners.
Thisunderstandingofmutualeconomicandsocialvaluecreationwithandforstakeholdersprovidesfirmswitha‘licensetomanage’whichincludes:
• alicensetooperate(conditionalonservingsocietybysustainingandimprovinglivingconditions);• alicensetoinnovate(dependentonthefirm’sabilitytocooperatewithengagedstakeholders
asresourceowners);• alicensetocompete(subjecttothefirm’sabilitytodevelopadequatetypesofinteractionsin
andbetweennetworks)(21).
Thisapproachmakesconsiderablenewdemandsonfirmstotakeonadditionalresponsibilities.Theseneedtobebalancedwithnewresponsibilitiesonotherstakeholders,whoalsoneedasociallysanctioned‘licensetooperate’basedonmutualtrustwithinpartnerships.Researchresultsshowthatpoolingknow-how,experiencesandvalueswithinapartnershipcanleadtoinnovationaswellasnewformsofco-operationbasedonrespectfulpartnershipsthatpromisesolutionswithmoresustainability.Insuchprocesses,societyisnotseenasameansformanagementbutasanendinitself:managingmutualvaluecreationimpliesservingsocietybysustainingandimprovinglivingconditions(22).
Anystrategytobringaboutthisparadigmshifthastotakeaccountofthediversityandcomplexityoftheexistingsituation.‘Whilstsomecompaniescontributetohumanrightsimprovement,othersdon’t.Somecompaniesperpetratehumanrightviolations,andothersstronglyopposethisbehav-iour.Evenwithinthesamecompany,somepeopleconsiderhumanrightsasasidedish,whileotherstrytointegratethemintotheirdailybusiness’(23).
(19)GavinNeath,conferencepresentation.
(20)SybilleSachs,conferencepresentation.
(21)SybilleSachs,conferencepresentation.
(22)SybilleSachs,conferencepresentation.
(23)OlivierMaurel,conferencepresentation.
20
ÔÔ BeyondÔCSR:ÔrespondingÔtoÔtheÔenvironmentalÔchallenge
Theenvironmentalchallengesfacingtheworldaresoimmensethattherealisationoftheirscaleisonlybeginningtodawnformostmembersofthegeneralpublic,aswellaspolicymakersandbusi-nesses.AccordingtotheWorldWildlifeFund’sLivingPlanetReport,wearecurrentlyliving40%abovebiocapacitylevels.IfeveryonehadthesamecarbonfootprintasintheUK,oncurrenttrendswewillneedtwoplanetsby2030.TheWorldWildlifeFund(WWF)concludesthatthecurrentbusinessresponseisnotcommensuratetotacklingtheseenormousecologicalchallenges,or,morespecifically,toreducingCO
2emissionsby80%by2050.Nothingshortofacompletetransformationoftherole
ofbusinessisrequiredtoaddressthem.(24)
Theavenuesforchangethatarebeingdiscussedare:
1. CSR.Thishashadoveradecadetorespondtothesechallengesandhasprovenitself,alone,inadequatetothetask.
2. CSR plus stronger stakeholder input.Stakeholderengagementisnotthepanaceabecause–likeCSR–itisvoluntaryanddependsontheskillsandcapacityofNGOstorespond.
3. Increased policy direction.Inthepast,policydirectionhasbeeninadequate,asgraphicallydemonstratedbythecaseofthefinancialservicessector.TheprocessofpolicycreationhasoftenbeentooclosedaprocesstoNGOsandtooinfluencedbycorporatelobbying.
ThereisaneedatEuropeanandnationallevelstolookathowtoopenupthepolicyprocess,makeitmoretransparent,andexaminetheissueofcorporatelobbyingwiththeintentionthatallpartsofsocietyhaveamoreequalinfluence.ThereisalsoaneedtoinvestigatetheskillsandcapacityofNGOstosupportstrongerstakeholderengagement,andconsidertheroleofpolicymakersinsupportingcivilsocietyinthisenlargedexpectation(25).
Ifatotaltransformationoftheroleofbusinessistobeachieved,itwillbenecessarytoexplorenewwaysofworkingwithNGOs,businessandpolicymakersatalllevelsinactionresearchprojectswherepolicycanbemadeinamuchshortertime-spanandlinkthisworkwitheconomicreform,asproposedintheWWF’s‘OnePlanetFuture’initiative(26).
Whatisclearisthatanyindividualcompany’sCSRactivitiesareinadequatetochangethemarketsoreconomyintime,orprotectthemfromsystemicrisk.Theeffortsofcompanieswillhavetobeharnessedtothoseofpolicymakersandotherstakeholdersinanewapproachifthereistobeanyhopeofmeetingtheecologicalchallengesthatconfronttheplanet.
(24)OliverGreenfield,conferencepresentation.
(25)OliverGreenfield,conferencepresentation.
(26)OliverGreenfield,conferencepresentation.
2121
2222
2323
Chapter 3. The crisis of trust and its implications Thefinancialcrisiswasawake-upcallandachallengebothforcapitalismasaneconomicsystemandforfirms’roleinsociety(27).Howeverthiscrisisoftrustmustbeseeninthecontextofanalreadyexisting‘geographyofmistrust’.WhilstoverhalfthepopulationinmostofAsia,LatinAmericaortheformerSovietUnion(28)stillsaythattheytrustbusiness,perhapsbecausetrustingovernmentisgenerallylowinsuchregions,thisisnotthecaseinNorthAmerica,AustraliaandmostofWesternEuropewheremistrustishigh.Intheseregions,lessthanhalftheworking-agepopulationsaythattheytrustbusiness,andEuropeanmultinationalcompanieshaveasteephilltoclimbtoregaintheconfidenceofthepublic,bothathomeandabroad.
Source: Edelman Trust Barometer
ÔÔ DefiningÔtrustÔinÔtheÔ21stÔcentury
Althoughever-moresophisticatedindices,barometersandotherinstrumentshavebeendevelopedinanattempttomeasuretrust,thereisstilladearthofin-depthknowledgeonthetopic.Researchsuggeststhatbanks,businessesandpoliticianshavealreadylostpublictrustwhilsttheCatholicChurchisrapidlylosingit.Nurses,NGOs,neighboursandfriendsarethegroupswhoaremosttrusted.(29)
Weshould,ofcourse,makeallowancesforthemuchgreateravailabilityofinformationinthemod-ernworld.Itisquitepossiblethatifthepublichadknownmoreabouttheirprivatelives,suchheroes
(27)SybilleSachs,conferencepresentation.
(28)AlbertSchram,conferencepresentation.
(29)GavinNeath,conferencepresentation.
24
as Winston Churchill, John F. Kennedy, Mahatma Ghandi, Willy Brandt and Franklin D. Roosevelt would also fail the ‘trust test’ if they were around today (30). There is clearly a need for new con-cepts and new definitions of trust that are appropriate for a global information society where digital media spread information instantaneously.
ÔÔ HowÔcanÔtrustÔinÔbusinessÔbeÔrebuilt?
Unilever has developed a three-pronged strategy to try to regain the trust of the public. Precondition for rebuilding trust is transparency. Involving trusted external bodies, such as NGOs, to carry out audits is one means for companies to work towards this goal.
(30)GavinNeath,conferencepresentation.
‘Trust is not something you decide by yourself… it’s something others accept to give you temporarily because you deserve it. Unilateral initiatives or commitments are not enough: they are monologues not dialogues; therefore they can’t be a reliable base ground for trust to be given. Trust also requires present time instead of future or conditional time. And saying something while acting otherwise, and denying it, is definitely cheating and breaking trust for a long, long time.’ Olivier Maurel, conference presentation.
Myriad measures of trust
Source: Unilever
2525
Transparencythereforeconstitutesthefirstprongofthisapproach.Thishasincludedinvitingindependentexpertstoaudittheimpactofthecompany’spresenceindevelopingeconomies.
Thesecondpronginvolvesdevelopingpartnershipswithexternalstakeholders.OneexampleofsuchacollaborativeapproachistheSustainablePalmOilPartnership,initiatedbyUnileverthroughaformalcoalitionwiththeRoundtableonSustainablePalmOilandtheWorldWildlifeFederation.ThepartnershipalsoincludesinformalcoalitionswithabroaderrangeofcompaniesandNGOsincluding,Nestlé,KraftFoods,P&G,Shell,NesteOil,Tesco,Carrefour,Greenpeace,ConservationalInternational,theRainforestAllianceandOxfamaswellasworkingwithstatebodies.Buildingaconsensusacrossthisbroadrangeofstakeholdershasmadeitpossibletodevelopsustainablepracticesrightacrossthevaluechain.
Thethirdpronginvolvesdevelopingnewbusinessmodelsinwhichethicalprinciplesarerespectedinanintegratedapproachthatextendsrightacrossthevaluechain,fromtheproductionofrawmaterial,throughmanufacture,distribution,consumeruseandfinallywastedisposal(31).
Inthelongerterm,suchanapproachcannotonlybringbusinessadvantages,rangingfromthedevelopmentofnewproductstotheopeningupofnewmarkets,butalsocontributesignificantlytobuildingtrustamongconsumersandotherstakeholders.
(31)GavinNeath,conferencepresentation.
In2004UnileverconductedastudywithOxfamtoevaluatetheeconomicimpactofitspresenceinIndonesia.Conclusion:althoughUnileveronlyemployedasmallnumberofpeopledirectly,indirectlytherewereover300,000jobsinitssupplychains.Whenthesesuppliersweretakenintoaccount,itcouldbeseenthat62%ofpre-taxprofitsremainedinIndonesia.Thiswentsomewaytowardsreversingtheimageofthecompanyasonethatsimplyexploitedregionaleconomiesandgavenothingback.
New business models
Accross the value chainSource: Unilever
2626
2727
Chapter 4. Corporate Social Responsibility in a globalised economy – new strategies for value creation InSeptember2000,buildinguponadecadeofmajorUnitedNationsconferencesandsummits,worldleaderscametogetheratUnitedNationsHeadquartersinNewYorktoadopttheUnitedNationsMillenniumDeclaration(32),committingtheirnationstoanewglobalpartnershiptoreduceextremepovertyandsettingoutaseriesoftime-boundtargets–withadeadlineof2015–thathavebecomeknownastheMillenniumDevelopmentGoals(MDGs).
TheMDGsplayanimportantpartinEuropeanDevelopmentAidPolicy.TheEUisthebiggestdonorofdevelopmentaidintheworld(with56%ofallofficialdevelopmentaid),faraheadoftheUSAandJapan.Despitethecrisis,Europeancitizensremaininfavourofglobalsolidarity.TheEUisalsotheprincipaltradepartnerofmostAfricancountries.TheEUhascompletelyopeneditsmarketforproductsfromlessadvancedcountries.ItstradeagreementswiththeSouthcountriesaredesignedtofavourtheirdevelopment(33).
InApril,2010,theEuropeanCommissionadoptedanambitiousactionplantospeedupprogresstowardsthesegoals.However,especiallyinviewoftheimpactofthefinancialcrisis,publicsupportwillnotbeenough.Therewillbeaneedtoinvolvetheprivatesectorinmeetingthischallenge.CSRmightbeakeymodelforfacilitatingtheroleofprivatesectorinmeetingEUdevelopmentchallenges(34).
The EU is committed to the Millennium Development Goals
MDG 1: Eradicate extreme poverty and hunger
MDG 2: Achieve universal primary education
MDG 3: Promote gender equality and empower women
MDG 4: Reduce child mortality
MDG 5: Improve maternal health
MDG 6: Combat HIV/AIDS, malaria and other diseases
MDG 7: Ensure environmental sustainability
MDG 8: Develop a global partnership for development
(32)http://www.un.org/millennium/declaration/ares552e.pdf
(33)http://ec.europa.eu/development/how/achieving_mdg_en.cfm
(34)LuisRieraFigueras,conferencepresentation.
28
Thereareavarietyofwaysinwhichfirmscancontributetothedevelopmentofsocietaladdedvaluewithoutdamagingshareholdervalue.Indeedthesetwoformsofvaluecanbeseenascomplementingeachotherratherthanopposedtoeachother(35).
Source: J. Nelson – IBFL/Harvard
HarnessingÔsocialÔandÔbusinessÔgoals
Inorderforamulti-stakeholderpartnershipapproachtobesuccessful,itisnecessaryforeachstake-holdertoseeclearbenefitsresultingfromthecollaboration.Forsocialstakeholders,progresstowardsmeetingtheMillenniumDevelopmentGoalsrepresentssuchaclearbenefit;forcompanies,arangeofdifferentbusinessbenefitscanbeforeseen.Thesemightinclude:
• buildingbrandreputationandconsumerpreference;• developingcustomerloyalty;• drivinginnovation(e.g.fuelinnovationorpackaginginnovation);• growthindevelopingandemergingmarkets;• generatingcostsavings(36).
OneexampleofharnessingsocialandbusinessgoalsthroughpartnershipissuppliedbyJohnsonandJohnsonandtheAgaKhanFoundation.
(35)FrankWelvaert,conferencepresentation.
(36)GavinNeath,conferencepresentation.
Charity
ÌÌ
Compliance
CreateÌnewÌvalue
Control•Ìcosts•Ìrisks•ÌnegativeÌimpact
Business as usual
Soci
etal
val
ue-a
dded
Shareholder value-addedD
o no
har
mD
o po
siti
ve g
ood
Build competitive advantage
Value creation
2929
JohnsonandJohnson,aglobalhealth-carecompany,hascollaboratedwiththeAghaKhanDevelop-mentNetwork(AKDN)todevelopprojectsthatmakeadirectcontributiontoimprovingpublichealthinEastAfrica,whilstalsohelpingtopromotethecompany’sownimageinthefieldofhealth.Thispartnershipemergedaftereightmonthsofintensivediscussionandisbasedonalong-termcommitmenttoregionsandcommunities,withaconsciousfocusonembracingdiversityandplu-ralisminprogrammesandoperations,takingforwardinnovativeapproachesandlessonslearned.Itaimstoinvestinthedevelopmentofhumanresourcesthroughprogrammesfocusingonhealth,educationandcommunitydevelopmentandbuildingandenhancingsoundinstitutionalframe-worksenablingsocialandeconomicdevelopmenttogrow.
Source: Johnson and Johnson and Aga Khan Foundation
ÌBridgingÌvaluesÌandÌprioritiesÌ
J&JÌCSRÌmission:ÌÌToÌmakeÌlifeÌchanging,ÌlongÌtermÌdifferencesÌ
inÌhumanÌhealthÌÌbyÌtargeting,ÌÌ
throughÌcommunityÌengagement,ÌtheÌ
world’sÌmajorÌhealthÌrelatedÌissuesÌ
ÌAKDNÌgoalsÌinÌÌ
theÌhealthÌsector:ÌToÌcontributeÌtoÌtheÌoverallÌwell-beingÌÌ
ofÌcommunitiesÌÌbyÌimprovingÌhealthÌ
outcomes
ÌAKDNÌhealthÌÌ
programmesÌinÌEastÌAfricaÌ(AKDN/J&JÌ
cooperation)
Building health care
capacity
Innovations
in educating health professionals
Advanced Nursing
Studies (ANS)
Preventing diseases
Innovations in health
promotion
Early childhood development –
Resource centres and pre-schools
Saving and improving
lives
Innovations in health
services
Raha Leo community health programme
30
JohnsonandJohnsonwascreatedin1943withanexplicitcredobasedoncommitmenttoitscus-tomers,employees,communitiesandshareholders–inthatorder.Itattributesthesuccessofthispartnershiptoseveralfactors,includingadecentralisedstructurewithahorizontalapproach,respectforpeopleindifferentregionsanddifferentsocietalmodelsandafocusonpeopleandvalues.TheseweremirroredbytheAKDN’smissiontoempowercommunitiesandindividuals,withapar-ticularfocusonpoorpeopleinresource-poorareas.Thepartnershipmadeitpossibletobridgethevaluesandprioritiesofbothpartiesandtodevelopconcreteprogrammeswithcleargoals.
Thebusinessbenefitsforthecompanyincludedenhancedvisibilityandbrandrecognitionaswellasgrowthinanimportantemergingmarket.WhilstmakingadirectcontributiontotheMilleniumDevelopmentGoals,ithasbeenabletoexpandthemarketforitsownproductsandservicesandpromoteitsreputationintheregion.
AKDN/J&J partnership goal: contribute to the overall well-being of communities in East Africa by improving health outcomes (2009-2011)
Source: Johnson and Johnson and Aga Khan Foundation
• Scholarship for RN to BScN and for EN to RN programmes
• Training nurse perceptors• Alumni support
• Educational Resource Centers
• ANS trainees do clinical rotations at RLCHP
• ANS trainees influence quality standards and conduct training
• ANS provides relevant modular courses at RLCHP
• Replicate best practices to other dispensaries in Zanzibar
• Strengthen community outreach• Ensure sustainability
• Install pro-poor cost sharing system• Documents & disseminate
good practices
• ANS provides technical input on H&N package and educational materials • ANS trainees participate in Health
Action Days and home visits• ANS trainees visit preschools to
advise on H&N practices
• H&N framework development• Material development
• Capacity Building• H&N promotion
• Small grants for environment & child health
• Documentation and dissemination
• RLCHP support MRCs on health components• RLCHP will co-facilitate health promotion activities
• ANS trained nurses provide services to Madrasa preschools
Innovations in:• Educating Health Professionals
• Health Promotion• Health Services
Advanced Nursing Studies Programme
Raha Leo Community Health Programme
MadrasaResource Center
3131
32
3333
Chapter 5. Future research needs related to the role of business in society BuildingonthesuccessofprojectsonCSRfundedunderitssixthFrameworkProgramme,theEuropeanCommissioncreatedasubstantialplaceinitsseventhFrameworkProgramme’sresearchagendaofsocio-economicsciencesandhumanities(SSH)forthistopic.Thisprogrammeempha-sisesresearchonInnovation,CSRandSocialInnovation.Here,moreambitiousgoalsweresetrelatingCSRdirectlytoeconomicgrowth,innovationandsustainabilitywithinthebroad‘societalchal-lenges’.TheCommissionhasalreadyidentifiedanumberofresearchneedsrelatedtotheroleofCSRinsocietywhichhavebeenincludedincallsfortheseventhFrameworkProgramme,includingananalysisoftheimpactofCSR(2009)andresponsiblemanagementofthefinancialsystem(2010).
AccordingtotheSSHResearchRoadmap2011-2013,‘theevolvingroleofbusinessinsociety’willbeathemeforfundingin2012-2013,alongsideotherissuesrelevanttothistopicincluding‘thefutureofthebankingsystem’and‘oldandnewmultinationalcompaniesfacingamulti-polarworld’(whichincludesthetopicof‘developmentofresponsiblebusinessinemerginganddevelopingcountries’).
TheseresearchprioritiesemergefromtheEUpolicycontextsetbyEurope 2020.ThisnewstrategyfortheUnionisakeydrivingforceforCSRandentrepreneurship,withitspillarsof‘smartgrowth’,‘sustainablegrowth’and‘inclusivegrowth’.
Theimportantconceptof‘socialinnovation’isacross-cuttingthemeintheCommission,withactivitiesbytheBureauofEuropeanPolicyAdvisers(BEPA)anddifferentDirectorates-GeneralincludingDGEnterpriseandIndustry,DGEmployment,SocialAffairsandEqualOpportunities,DGRegionalPolicy,DGHealthandConsumers,DGResearchandInnovation,andDGInformationSocietyandMedia.Thisishighlyrelevantforinitiativesrelatingtochangingtheroleofbusinessinsociety(37).
(37)PierreValette,conferencepresentation.
‘Thefinancialandeconomiccrisismakescreativityandinnovationingeneralandsocialinnovationinparticularevenmoreimportanttofostersustainablegrowth,securejobsandboostcompetitiveness.’J.M.Barroso,20January2009.
34
Indevelopingtheseissues,andanyotherfutureresearchontheroleofbusinessinsocietyitwillbenecessarytogofarbeyondthetraditionalconcernsofCSRresearchtoembracenewtopicsanddrawonbroaderfieldsofknowledge.Thisnewresearchmustnotonlybeinterdisciplinaryandmulti-methodologicalbutmustalsoplaceitselfinthemainstreamofeconomic,socialandpoliticalthought.
Thisisaformidablechallenge.Meetingitwillinvolveovercomingsimplisticdichotomousthinkingthat,forinstance,seesmarketsasopposedtoregulation,ortheinterestsofbusinessasopposedtothoseofotherstakeholders.Itwillinvolveaddressingthefullcomplexityoftheinterconnectednessofglobalsociety,economyandecologyandacknowledgingthataninterventioninoneplaceislikelytohavefar-reachingconsequences,whetherintendedorunintended,forsocialgroupsandregionaleconomies,andindeedfortheearth’sfragileecology,inotherpartsofthesystem.
ÔÔ TheÔneedÔforÔmonitoringÔandÔevaluation
IthasbecomecommonplacetocomparethekindsofvoluntarycodesofpracticeassociatedwithCSRwithregulatoryframeworksasthoughthetwoapproachesarenecessarilyopposedtoeachother.Researchresultssuggest,however,thattheymaycomplementeachotherinanumberofways,withregulations,lawsorcontractualagreements,whetheratcompany,sector,nationalorinternationallevel,providingabasiccommonly-agreedsetofnormsthatcreatea‘floor’,leavingscopeforthedevelopmentofadditionalvoluntaryinitiativesatahigherlevel.
Whicheverapproachisadopted,thereisaneedforrobustdataonitsimplementation,whetherthisrelatestohumanrightsabuses,environmentaldamage,unfaircompetitionorothertransgressionsofthecodes,lawsorregulationsinquestion.
Thisimpliesaneedforobservatories,surveys,administrativedatabasesandothersourcesofreliabledata.
ÔÔ TheÔneedÔforÔaÔmulti-levelÔapproach
Thesedataneedtobeavailableatmultiplelevels.Forinstanceinordertomonitortheeffective-nessoftheILO’sMNEinstrument(adoptedin183countries),ortheInternationalFrameworkAgreements(IFAs)ofmultinationalcompanies,dataisneededatagloballevel.Inothercases,itmaybemoreusefullycollectedatasectoral,nationalorregionallevel.Atthecompanylevelthereisaneedforinternal,aswellasexternalmonitoring.Here,thereisscopeforthedevelopmentofnewtoolsforusewithinmultinationalcompaniesandalongtheirsupplychains.
AtaskfortheERAhereistoexaminetheextenttowhichsuchdataarealreadyavailable(forinstance,inlegal,financialorcompanyregistersordatabases),orcanbecollectedfairlyeasilybytheadditionofnewquestionstoexistingsurveys,andtowhatextentnewresearchinstrumentswillberequired.
Inordertointerprettheresultsofquantitativeresearchinthisfield,itwillalsobenecessarytocarryoutcomplementaryqualitativeresearchinordertogaininsightintothefactorsthatinfluencecomplianceornon-compliance.
3535
ÔÔ TheÔneedÔforÔnewÔformsÔofÔpartnershipÔandÔstakeholderÔengagementÔÔinÔpolicyÔdevelopmentÔandÔimplementationÔ
Thereisastrongmessagefromtheresearchresults,aswellasfrompolicystakeholders,thatthereisanurgentneedfornewformsofpartnershipandstakeholderengagement.
Whilstinterestingcasestudyevidenceisavailablefromsomecompanies,sectorsandregions,thistendstobepatchyandissue-specific.Thereisaneedformuchbroaderandmoresystematicinvesti-gationofthewaysinwhichcompaniescananddocollaboratewitheachother,withgovernments,withNGOSandwithotherstakeholders,thestrengths,weaknessesandlimitationsoftheseapproachesandtheirsocial,economicandenvironmentalimpacts.Apreconditionforsuchaninvestigationisacomprehensivereviewofthecurrentstateoftheart.
Thisisatopicthatraisesimportanttheoreticalquestionsaswellasdemandingnewapproachestoempiricalresearch.Aconceptionofbusinessesasactorsthatoperateinpartnershipwiththeircompetitors,customersandsuppliersorwithgovernmentsororganisationsrepresentingemployees,citizensorothergroups,presentsafundamentalchallengetothedominantparadigmsinpoliticalscience,economics,sociologyandothersocialsciencedisciplines.Withoutaclearconceptualframeworkit,ofcourse,becomesdifficulttoframecoherentresearchquestionsanddesigneffec-tiveresearch.
Empirically,thisquestionraiseschallengesacrossabroadrangeofdisciplines.Forinstance:psy-chologistsarechallengedtounderstandthewaysinwhichtraditionallyantagonisticstakeholderscandevelopwaysofcollaboratingactivelywitheachother;economicgeographersarechallengedtounderstandthepatternsthatdeterminewhichstakeholders,fromwhichregionsoftheglobe,areincludedinthenewpartnershipsthatareemerging;economistsarechallengedtobuildthesenewformsofrelationshipintotheirmodels;andorganisationalscientistsarechallengedtounder-standhowthetensionsbetweencompetitionandco-operationareplayedoutbetweendepartmentsorcompaniesandexternalplayerswithingloballynetworkedorganisations.
ÔÔ StakeholderÔengagementÔinÔtheÔresearchÔprocessÔatÔallÔstages
StakeholderengagementisnotonlynecessaryforthesuccessfulimplementationofCSRbutisalsonecessaryintheresearchprocess,fromtheinitialresearchdesignstage,throughthedatacollectionphaseuptoandincludingthedisseminationoftheresults.
TheCSR-Platformhasdemonstratedthattherelevanceandpracticalityofresearchisgreatlyenhancedbytheparticipationofbusiness,policyandcivilsocietystakeholdersfromtheoutset.Thiscannotbeachievedovernight.Thereisaneedtodevelopacommonlanguageandframeofreferencebetweentheresearchcommunity,practitionersandotherstakeholdersandtoovercometheproblemthatmanagers‘donotknowwhattheydonotknow’(38).Nevertheless,suchadialogueisfruitfulforthedevelopmentofnewresearchideas,especiallywhenbasedinaproperlyresourcednetworkorplatform(asopposedtoatemporaryadhocencounter).
(38)EtienneDavignon,conferenceopeningstatement.
36
Closeco-operationbetweenresearchersandotherstakeholders(whetherfromcompanies,NGOs,governmentsorotherbodies)isalsoimportantforcarryingouttheresearchitself,forinstancebyensuringaccesstocasestudysitesorexpertinformants,providingaccesstorelevantdataandpro-vidingfeedbackontheusabilityofresearchinstruments.Ongoingco-operationisparticularlyimportantforstudiesthatinvolvetheanalysisofchangeovertime.Howeveritisalsoimportanttoensurethatthescientificindependenceofresearchersisguaranteedandethicalcodesrespectedintheconductofanyresearch.Thismayinvolveadelicatebalancingoftheresponsibilitytorespectconfidentialitywiththeresponsibilitytoreportresearchfindingstransparentlyandimpartially.Again,suchcollabo-rationcanbeenhancedbybeingbasedinacontextofdialogue,mutualknowledgeandrespect.
Finally,collaborativenetworksandplatformsinvolvingarangeofdifferentstakeholdersmakeanimportantcontributiontothedisseminationofresearchresultsinawell-targetedmannertothedecision-makerswhowillactuallybeinapositiontoactonthelessonslearned.
ÔÔ RethinkingÔtheÔboundariesÔofÔtheÔfirm
Thecomplexityofindustrialorganisationinthe21stcenturyandthespeedoforganisationalchangehavemadeitincreasinglyanachronistictothinkofthe‘firm’asasingle,stableentity.Inmanycases,companies,or‘brands’couldbemoreaccuratelyregardedaslarge,constantlyshifting,internationalagglomerationsofbusinessfunctionslinkedtogetherthroughanarrayofcontractualarrangementswhichrangefromdirectownershipatoneextreme,throughvarietiesoffranchising,licensing,partialownership,partnership,strategicalliance,‘captive’outsourcingorsubcontractingtostraightforwardpurchaser/supplierrelationshipsinanopenmarketattheotherextreme.
Indevelopingresearchonbusinessinsocietyitisthusnecessarytoaskwheretheboundariesofthefirmlieandwheretheresponsibilityofanygivencompanystops.Thisimpliestheneedfortheo-reticalandempiricalresearchonvaluechainswithafocusonunderstandingthedriversofrestructuring,thedynamicsofchangeandthelevelsatwhichkeydecisionsaremadewithinthem,andhencewhereresponsibilityshouldbeassigned.Giventheglobalscopeofthereachofvaluechains,directlyorindirectly,suchresearchshouldbecarriedoutincollaborationbetweenEuropeanresearchersandtheircounterpartsindevelopedandemergingeconomies.AfocusonSMEsisalsoimportanthere.
Theresultsofresearchinthisareashouldaddressthequestionofthebalancebetweentheindi-vidualandcollectiveresponsibilitiesofbusiness.Ifbusinessesaretobeheldcollectivelyresponsible,thenitwillbenecessarytodefinetheappropriatecollectiveunit,forinstanceatanational,sectoralorregionallevel.
ÔÔ TheÔneedÔforÔnewÔmanagerialÔmindsets
AnotherveryclearconclusionfromexistingresearchonCSRandBusinessinSociety,amessagethathasgainedaddedweightfromthefinancialcrisis,isthatthereisaneedforanewmindsetinbusi-ness.Theresearchhasalsodemonstratedthatthiscannotbeachievedsimplybyaddingnewitemstothemanagementeducationcurriculumbutrequiresafundamentallydifferentapproach.
3737
Inordertounderstandwhatmightbetheingredientsforsuchanapproachalargeamountofresearchwillberequired,drawingoninsightsfromeducationaltheory,psychology,neuroscience,culturalstudiesandotherdisciplines,andexaminingtheformationofvaluesateverydevelopmentalstagefromearlychildhoodtoMBAlevelandbeyond.Aswellasexaminingthefactorsthatshapeindividualorgroupvalues,researchshouldalsoaimtocollectandshareinformationonbestpracticeandmakerecommendationstogovernmentsandeducationandtrainingbodiesaswellasbusinessaudiences.
ÔÔ UnderstandingÔtrust;ÔunderstandingÔresponsibility
Linkedtotheneedforresearchonachievingmindsetchangeamongstmanagersisaneedtounder-standthemechanismsbywhichtrustisdeveloped(oreroded)andasenseofpersonaland/orcollectiveresponsibilitybuiltup.Relatedtothisisthequestionofhowconsentcanbegainedfornewformsofgovernanceandhowaculturecanbecreatedinwhichnon-financialvaluescanbeexpressed.
Thesetopicscanbeaddressedqualitatively,forinstancethroughthelensesofculturalstudies,gen-derstudiesorsocialpsychology,orquantitatively,forinstancethroughattitudesurveys.Howevertheyarealsotopicsthatlendthemselvestoexperimentalapproaches.
ÔÔ SocialÔinnovationÔandÔdemocracy
TheconceptofsocialinnovationisanimportantnewadditiontotheEuropeanresearchandpolicyagenda.Howeverasanewtopicitisstillrelativelyunexplored.Thereisaneedforboththeoreticalandempiricalworktodevelopusefulworkingdefinitionsandexploreitsrelationshipwithotheroverlappingconcepts.
Thereisaparticularneedtoinvestigatethemechanismsbywhichsocialinnovationisachieved:whichtypesofstakeholdersaretypicallyinvolved,whatrolestheyplayandwhethersuccessfulinitiativesaremorelikelytobeinstigatedfromthetopdownorthebottomup.Thereisalsoaneedtoinvestigatesocialinnovationinacomparativeperspectiveasameansofachievingsocialchange.Somequestionsthatariseinthiscontextare:Whatpatternsofsocialinclusionandexclusionarereinforcedorchallenged?Whatistherelationshipofsocialinnovationtomoretraditionalmechanismsofdemocracy?Howareconflictsmediated?Howareparticularsocialinterestsrepresented?
ÔÔ TheÔchallengeÔforÔdevelopment
InordertomeetthechallengingMillenniumDevelopmentGoals,atatimewhen,intheaftermathofthefinancialcrisis,thereisunprecedentedpressureonpublicexpenditureamongMemberStates,andinanincreasinglymulti-polarworld,theEUwillhavetodevelopinnovativenewapproachestodevelopmentaidpolicy.
Thishasplacedontheagendathequestionofhow,andtowhatextent,businessesshouldbeinvolvedintheprocessofmeetingthesegoals.ArelatedquestioniswhetherEuropeandevelopmentaidis,orshouldbe,linkedtotheideaofaparticularEuropeansocialmodelorsetof‘Europeanvalues’and,ifso,theextenttowhichEuropean-basedmultinationalcompaniesare,orshouldberequiredtobe,carriersoftheseEuropeanvalues.Thelinkbetweentradeandaidisalsoproblematised.
38
Inordertoaddresssuchquestions,itwillbenecessarytocarryoutresearchonanumberofinter-relatedissues.Theseinclude:theactualpracticesofEuropean-basedcompaniesintheglobalSouth;howtheseEuropean-basedmultinationalcompaniescomparewiththosemultinationalcompaniesbasedintheUS,Japanoremergingeconomies;howsuccessfullytheyhaveengagedwithlocalstake-holders;howtheyareperceivedbytheselocalstakeholders;andtheeconomic,socialandenvironmentalimpactsoftheirpoliciesinaidrecipientregions.SuchresearchwillrequirecollaborationbetweenEuropeanresearchersandtheircounterpartsinotherpartsoftheworld.
ÔÔ NewÔauditingÔtoolsÔforÔhumanÔrightsÔandÔenvironmentalÔimpacts
Mostcompanieshavewell-establishedtoolsforcarryingoutcost-benefitanalysisonnewprojects,assessingthemarketfornewproductsorauditingfinancialprocedures.Howevertherearerela-tivelyfewtoolsavailableforauditingtheenvironmentalorhumanrightsimpactsofnewinitiatives.Thereisaneedforsuchtoolstobedeveloped,perhapsincollaborationbetweencompanies,NGOsandacademics.
ÔÔ RiskÔassessment
Theopennessofglobalmarkets,therapidityofinternationalflowsofcapitalandinformationandtheinterconnectednessofeconomieshavegreatlyincreasedsystemicrisks,whethertheserefertorisksoffinancialcrises,diseasepandemicsorenvironmentaldisasters.Suchrisksaffecteachother,forinstanceecosystemriskexpandstheoperationalriskprofiletobusinessesbutalsocreatesriskchangesinsocialsystems(39).
Systemicrisksaretoolargeandcomplextomodelforanyindividualfirmorgovernmenttoaddresstheminisolation.Thereisaneedtobringtogetheralliancesofpolicymakers,scientists,businessesandotherstakeholderstodeveloptoolstoassessandaddresssystemicrisk.
(39)OliverGreenfield,conferencepresentation.
3939
40
AppendicesÔÔ IMPACTÔ–ÔaÔnewÔEuropeanÔresearchÔprojectÔonÔCSR
IMPACT(ImpactMeasurementandPerformanceAnalysisofCSR)(40)isamajornewresearchprojectfundedbytheEuropeanUnionunderitsSeventhResearchFrameworkProgramme.
Consistingofaconsortiumof16Europeanresearchinstitutions,undertheleadofRegineBarthfromTheOekoInstitut,aGermanresearchcentre,combiningindependentsustainabilityresearch,businessschools,universitiesandCSRnetworks,theIMPACTprojectaimsto:
• systematicallymeasuretheimpactofCSRonsocial,economicandenvironmentalgoalsoftheEuropeanUnion;
• provideinsightsoncorporateandinstitutionalfactorsthatdrivethecreationofCSRimpact;• developandtestmethodstoassessCSRimpactandproviderecommendationsonhowto
improvethem.
Adistinctivefeatureoftheprojectisitsuseofmultipleresearchmethodstocapturetheseimpactsinamultidisciplinaryway.Theprojectcombineseconometricanalysisandnetworkanalysiswithin-depthcompanycasestudies,supplementedbyaDelphistudytoexplorefuturetrends.Itisthefirstprojecttocreateamethodologyfortheex-anteimpactassessmentofCSR.
InexploringtheimpactofCSR,theprojectadoptsamulti-levelapproach,lookingseparatelyattheimpactofCSRoncompetitiveness,growth,environmentalsustainability,jobqualityandothersocialimpactsatthecorporatelevel,thesectorlevel,theregionallevel,thenationallevelandtheEUlevel.
Itfocusesinparticularonfivesectors:theretail,auto,IT,constructionandtextileindustries.
BuildingonearlierworkcarriedoutwithintheRARE,RESPONSEandCSRPlatformprojects,theprojectdrawsonexistinglargedatabasesonCSRandoninnovation.However,sincethesemainlyrelatetolargecompanies,italsocarriesouttheimportantinnovationofdevelopingadditionaldatasourcesrelatingtoSmallandMedium-sizedEnterprises(SMEs).
Theprojectalsoworkswithawiderangeofstakeholders.
ResultsfromtheIMPACTprojectwillbedocumentedandpublishedinvariousways.ThreekeyIMPACTproductswillcompilethemainresultsfromtheprojectbyMarch2013:
• apractitioners’handbookonassessinganddevelopingCSRimpacts;• apolicybriefingreportonpoliciesandactionstopromotetheimpactofCSRinEU-27;• scientificarticlesandjournaleditionsonthestructureandexplanationofCSRimpacts.
Furtherinformationisavailablefromtheprojectwebsite:www.csr-impact.eu
(40)http://www.csr-impact.eu
4141
Structure of IMPACT
Main IMPACT objectives
Main IMPACT products
Analytical levels Impact areas
Corporate level Competitiveness
Growth
Environment/Sustainability
Social / Quality of jobs
Sector levelRegional level
National levelEU level
Practitioner’s handbook on assessing and
developing CSR impacts
Policy briefing reportpolicies and actions to
promote the impact of CSRin EU-27
Scientific articles and journal editions
on structure and explanation of CSR impacts
Source: IMPACT – Impact Measurement and Performance Analysis of CSR
Structure of IMPACT
42
Opening statements • ViscountEtienneDavignon,President,CSREurope
Session1 EU research on Corporate Social Responsibility – implications for policy
Moderator PierreValette–HeadofUnit,DGResearchandInnovation,EuropeanCommission
Input CSRPolicyReviewpresentation–AlbertSchram,Professor,
SchoolofBusinessandEconomics,MaastrichtUniversity Discussion • MaurizioZollo–Director,CenterforResearchinOrganization
andManagement,BocconiUniversity • RegineBarth–HeadofEnvironmentalLaw&GovernanceDivision,
OekoInstitute • NigelRoome–Directorfull-timeinternationalMBAProgramme,
VlerickLeuvenGentSchoolofManagement • IsabelleDaugareilh–DirectorofResearch,CentreofComparative
LabourLawandSocialSecurity,UniversityofBordeaux
Session2 New governance structures and relationship between enterprises and the state
Moderator PedroOrtunSilvan–Director,DGEnterpriseandIndustry,EuropeanCommission
Input Changingthewaythatgovernmentsandbusinesscooperate–
HansvanderLoo–HeadofEuropeanUnionLiaison,RoyalDutchShell
Discussion • PierreDefraigne–ExecutiveDirector,Madariaga–CollegeofEuropeFoundation
• GeoffreyUnderhill–ProfessorofInternationalGovernance,UniversityofAmsterdam
Session3 The crisis of trust – implications for sustainable economic development and social and political stability
Moderator PierreDelsaux–Director,DGInternalMarket,EuropeanCommission Input Changingperceptionsontheroleofbusinessandthefinancialcrisis–
GavinNeath,SeniorVice-PresidentGlobalCommunications,Unilever
Discussion • SybilleSachs–HeadoftheInstituteforStrategicManagement:StakeholderView,UniversityofAppliedSciencesinBusinessAdministration,Zurich
• OlivierMaurel–AssociateprofessoratIAEGustaveEiffel–Paris12University,MemberofEnterpriseCommission,AmnestyInternationalFrance
Conference programme (41): ‘Towards a greater understanding of the changing role of business in society’
4343
Session4 Corporate Social Responsibility in a globalised economy
Moderator LuisRieraFigueras–Director,DGDevelopment,EuropeanCommission Input Corporateresponsibilityasanewstrategyofvaluecreation–FrankWelvaert,
CSRDirector,EMEARegion,Johnson&JohnsonandMichaelaMantel,SeniorHealthProgrammeOfficer,AgaKhanFoundation,Geneva
Discussion • RudyDelarue–Director,LiaisonOfficewiththeEUandBeneluxcountries,InternationalLabourOffice
•OliverGreenfield–WWF-UK,DirectorofOnePlanetBusiness
Session5 The role of business in society – future research agenda
Moderator Jean-MichelBaer–Director,DGResearchandInnovation,EuropeanCommission
Input ImpactofCorporateSocialResponsibility–RegineBarth,OekoInstitute
CSRinSocio-economicSciencesandHumanitiesProgramme2010-2013–PierreValette,DGResearchandInnovation,EuropeanCommission
Discussion • Prioritiesforpolicymakers–ThomasDodd,PolicyOfficer,DGEnterprise,EuropeanCommission
• Prioritiesforbusiness–GilbertLenssen,President,EuropeanAcademyofBusinessinSociety
• Prioritiesforcivilsociety–TeresaFogelberg,DeputyChiefExecutive,GlobalReportingInitiative
Closing statements
• Jean-MichelBaer–Director,DGResearchandInnovation,EuropeanCommission
(41)http://ec.europa.eu/research/social-sciences/events-102_en.html
How to obtain EU publications
Free publications:• viaEUBookshop(http://bookshop.europa.eu);• attheEuropeanUnion’srepresentationsordelegations.Youcanobtaintheircontact
detailsontheInternet(http://ec.europa.eu)orbysendingafaxto+3522929-42758.
Priced publications:• viaEUBookshop(http://bookshop.europa.eu);
Priced subscriptions (e.g. annual series of the Official Journal of the European Union and reports of cases before the Court of Justice of the European Union):
• viaoneofthesalesagentsofthePublicationsOfficeoftheEuropeanUnion(http://publications.europa.eu/others/agents/index_en.htm).
EuropeanCommission
EUR 24651 EN — Towards a greater understanding of the changing role of business in society
Luxembourg:PublicationsOfficeoftheEuropeanUnion
2011—44pp.—format17.6x25cm
ISBN978-92-79-18870-1doi 10.2777/44703
EUROPEAN COMMISSION
Directorate-GeneralforResearch&InnovationDirectorateB—EuropeanResearchAreaUnitB.5—Socialsciencesandhumanities
Contact:DominikSobczak
EuropeanCommissionB-1049Brussels
Tel.(32-2)29-81004Fax(32-2)29-79608E-mail:[email protected]
Studies and reports
Socio-economic Sciencesand Humanities
E U R O P E A NCOMMISSION
Research & Innovation
Towards a greater understanding of the changing role of business in society
KI-NA-24-651-EN
-C
The move towards urbanisation is progressing and more than half of the world population is today living in cities. By the 2030s, five of the world’s eight billion people will live in urban areas.
How can this continuous urbanisation trend be reconciled with the “Rio+ 20” Earth Summit hopes and the European Union’s commitment towards a smart, sustainable and inclusive growth by 2020?
This publication addresses the issues of urbanisation focusing on the concentration of needs and services, the migration and settlement patterns in Europe, the new forms of poverty and exclusion, urban welfare and social innovation, and green urban planning.
A greater understanding of the dynamics of urban societies will allow instability and risks within cities in humanitarian, economic and security terms to be better managed.
With the increasing activities of the European Commission aimed at promoting responsible business and advancing Corporate Social Responsibility throughout the private sector, there is a growing need of robust scientific analysis of the phenomenon and its different aspects. This publication summarises the outcomes of a conference ‘Towards a greater understanding of the changing role of business in society’ organised on 22 April 2010 in Brussels by the European Commission, Directorate-General for Research and Innovation. The conference participants discussed a number of topics related to the role business in society including, among others, the challenges of interaction and cooperation between enterprises and their stakeholders, the problem of voluntary codes versus legal frameworks in promoting corporate responsibility in a globalised economy, the need to build new relationship between enterprises and the state, as well as potential contribution of business to Millennium Development Goals. In its final section the publication proposes a number of topics which could inspire future research funding.
