Jan Noterdaeme, Senior Director of CSR Europe

Published: 13 April 2003

Mr. Noterdaeme warns against seeing accession countries as being in a "catch-up" role, while actually, with regard to CSR they may be better positioned to move ahead of existing EU countries.


The EU Multi-Stakeholder Forum has a mandate until summer
2004. What concrete achievements would you like to see in its final
conclusions?

I would like to see three major outcomes.

First, that we agree a set of principles that
are recognised internationally. We can then examine their practical
implementation in the light of what has enabled success and what
has created obstacles for implementing corporate social
responsibility in the past.

Second, that understanding the link between
these principles and their practical implementation, we can analyse
the reasons for the gap between them.

I would like each stakeholder organisation to
develop a list of actions that it plans to take to help close this
gap, and I would like the Forum to develop a list of actions that
we are going to take together. All our action needs to demonstrate
a change in our fundamental approach to implementing CSR.

And third, the Forum should challenge the
European Union to mainstream corporate social responsibility in its
three main functions as of policy development, fund allocation and
in its role as a catalyst for the development of stakeholder
organisations.

Finally, I would add that 2004 is only a first
step. This type of stakeholder dialogue and involvement should
become the way forward for the European Union to improve and
develop policy that impacts upon Europe's social and economic
performance.

What more radical changes relating to CSR would you
support?

I would support any initiative that is aimed at
improving skills - anything that can better equip middle managers
and business leaders to implement corporate social responsibility
and sustainable development in the private, public and civil
sectors.

How do you see the 10 accession countries feed into the CSR
debate?

There is a danger that these countries are only
seen as being in a "catch-up" role, whereas actually, with regard
to CSR they may be better positioned to move ahead of existing EU
countries. The change that they are experiencing as an accession
country makes them fertile ground for new ideas and new ways of
working.

What is ahead for CSR in Europe at the policy level in the
next 10 years? Will reporting be mandatory or voluntary
then?

First, it will be about getting the principles
of social responsibility and social entrepreneurship into the
European Convention. The broad principles of the convention do
include sustainable development, but we need to have it articulated
in more detail.

Second, I believe it will be EU trade and the
European internal market that will be the two policy areas where
CSR will be developed and have an impact.

Finally, what is more important than whether a
report is mandatory or voluntary is the mass of best practice that
is available to companies to help them report effectively. If
legislation is introduced but there is not enough best practice or
skills available to implement it effectively then it will not have
the effect people want. I believe building this critical mass of
knowledge and skills is the key to more and, crucially, better
reporting.

In your view, how can European companies' social
performance and international competitiveness be improved
simultaneously?

This is too big a question to answer in a few
short sentences; there are just so many ways - and this is what we
are hearing from the cases presented at the Forum.

For example, we have heard how small and
medium-sized enterprises have combined competitiveness and
responsibility through management commitment, applying total
quality management, by investment in staff training, and by
stakeholder dialogue.

What kind of a formal system is necessary within compani es
to ensure that CSR reports are not for PR purposes only, but that
the findings of the social audit are implemented?

Why not let a company start with a report that
they think is for PR purposes? They will soon realise that this is
inadequate, from the reaction they will receive from stakeholders.
Such criticism can sometimes be the best kickstart for a company to
take the issues seriously and see what really has to be done.

The whole field of social auditing really is in
its infancy and companies are still learning how to combine
measurement and implementation. We need to focus on the development
of managers' skills.

Where should accountability for CSR activities rest within
companies?

With those responsible for corporate
governance.