Voluntary vs mandatory to remain point of contention in CSR 

The EU's Multi Stakeholder Forum on Corporate Social Responsibility (CSR) completed its 20-month mandate on 29 June after delivering its final summary report and recommendations. This final report brings together the conclusions submitted by the individual round tables.

The overall recommendations of the Forum are included in the final section of the report. Firstly, in the context of "raising awareness and improving knowledge on CSR", the Forum makes a number of recommendations on how to raise awareness of key principles in reference texts, how to collect, exchange and disseminate information about CSR and how to step up research on CSR. The set of recommendations which focus on "developing the capacities and competences to help mainstream CSR" highlight action to be taken to enhance the capacity of business to integrate CSR, to build the capacity of 'capacity builders', ie organisations or individuals that specialise in CSR, and to include CSR in business school curricula. The report sees an important role for the EU, public authorities, companies and stakeholders in "ensuring an enabling environment for CSR".

The introductory section of the report explains the origins of the concept of CSR in the EU and the concept of CSR itself, starting from the definition put forward by the Commission in an earlier Communication. The Commission has defined CSR as "... a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis."

The report then goes on to consider the texts and instruments which have most commonly served as a starting point for companies and stakeholders when developing their CSR approaches. These include the ILO declaration on multinational enterprises (MNEs) and social policy (1977, rev 2000), the OECD guidelines for MNEs (1976, rev 2000) and the UN Global Compact (2000).

The next section in this summary explains that the take-up and development of CSR depends on internal and external 'determining factors' which vary in relevance according to the characteristics of a company (such as its size, age, activity and its geographical, political or cultural context).

The values and commitment of key decision makers as well as the 'business case' defined as "minimising risk, maximising opportunity" are important internal drivers for the pursuit of CSR. Different parts of society, including investors, consumers, public authorities, NGOs, trade unions and other companies, put pressure on companies from the outside to adopt a CSR approach.

A number of obstacles may arise along the way, such as cost elements, lack of information, unclear boundaries and even the 'CSR jargon' which has developed over the years. In order for CSR to succeed, key people in companies need to show commitment, the CSR approach should be integrated into corporate strategy and the company should engage with both internal and external stakeholders.

On the day of the final meeting of the forum, a group of NGOs, including the Social Platform, the Green 8, Oxfam, Amnesty International and BEUC sent an open letter to the commissioners for enterprise and social affairs, the prime ministers of Ireland and the Netherlands [the latter being the holder of the current six-month rotating EU presidency] and to the European Parliament to demand binding legal measures to ensure the accountability of companies.

"Taken together the recommendations, if they are fully implemented by the relevant actors, will help to generate a significant advance," states the letter. However, the letter states that voluntary commitment in itself is not enough to ensure corporate accountability. "Only binding legal measures will establish a general incentive for responsible corporate behaviour," it says.

UNICE, the European confederation of employers and industry, welcomed the final Forum report as the outcome of a twenty-months learning and discussion process. UNICE's Secretary General Philippe de Buck highlighted that discussions within the Forum had not been easy, particularly because of "the high complexity of the subject; the very different understandings on some issues... and very different expectations". While the report is not considered perfect, UNICE welcomed the fact that the final Forum report is a joint contribution and conclusion by the stakeholder organsiations that have participated in the Forum, building on the common understanding that has been gained. As such, the report was judged to be an achievement and to add value to the CSR debate in general. Philippi de Buck expressed some criticism with regard to organisational and procedural aspects, considering the process "unneccessarily complicated, complex and heavy", but praised the methodology chosen for the Roundtables. UNICE invites the European Commission to take account of the final Forum report, stressing that public policies must respect the voluntary nature of CSR, support dynamism and the development of a competitive edge and should not be mixed up with policies pursuing different objectives.