CSR & EU [Archived]

Summary

CSR has recently moved up the list of EU priorities. The European Council in Lisbon in 2000 marked an important step when it appealed to companies' sense of social responsibility to achieve "the most competitive and dynamic knowledge-based economy in the world". The European Summit in Stockholm in 2001 also emphasised the role of the private sector in achieving long-term economic growth in combination with social cohesion. As a result of this interest, the Commission issued a Green Paper on 18 July 2001 on a European framework for Corporate Social Responsibility (CSR). The aim of the Green Paper was to launch a wide debate among the stakeholders. The consultation phase ended 31 December 2001. On 2 July 2002, the Commission published a follow-up to the Green Paper in the form of a Communication entitled "Corporate Social Responsibility: A business contribution to Sustainable Development". As a follow-up the the Communication, the Commission launched the EU Multi Stakeholder Forum on CSR in October 2002.

Issues

The Communication of 2 July 2002, pleased industry but disappointed many NGOs by not including any calls for mandatory regulation in the field of CSR. The key issues discussed in the Communication are:

• Multi-stakeholder Forum on CSR: The Commission will set up a multi-stakeholder Forum with the aim of prom oting transparency and convergence of CSR practices and instruments. It will consist of app. 40 members, representing employers, employees, consumers and civil society. The Forum should set up theme based round tables to discuss issues such as competitiveness, sustainable development, codes of conduct, reporting and assurance, etc. The Forum should develop commonly agreed guidelines and criteria for these issues by mid-2004.
• Integrating CSR: The EU should work on mainstreaming CSR issues into all policy areas. An interservice group within the Commission should be set up to ensure consistency. By 2004, the Commission assess its own social and environmental performance and publish a social and environmental report.
• External relations: The EU should promote CSR principles and practice at international level, particularly in developing countries. International codes of conducts and principles, such as the ILO declaration on fundamental principles and rights at work, and OECD guidelines for multinational enterprises, will be supported and promoted.
• The Commission will explore the opportunities of using EMAS as a management standard also for social performance of companies and organisations.

Positions

Industry emphasised the voluntary basis of CSR, to allow each company to find the methods suitable for its culture and needs. On the other hand, many NGOs and think-tanks were explicitly against the present voluntary approach to CSR. They claimed social reporting, auditing and labelling are not efficient and credible without any standardised methods or independent monitoring.

On 30 May 2002, the Parliament adopted its opinion on the CSR Green Paper. The main recommendations in the report were (rapporteur: Richard Howitt, UK-PES):

• the creation of an EU multi-stakeholder CSR platform made up of the different EU Actors involved;
• companies to supply information on the social and environmental impact of their operations;
• the mainstreaming of CSR in all areas of EU competence, in particular regional and social funding;
• the Commission to investigate the possibility of creating a European Ombudsman for European enterprises operating in developing countries with respect to CSR.

The consultation process on the Communication has just started. Many stakeholders have been involved in the discussions on setting up the multi-stakeholder Forum, and have welcomed the initiative. However, it is clear that many NGOs remain critical to the fact that the Commission did not explicitly open the door for mandatory regulations, especially in the field of social reporting.

Friends of the Earth Europe (FoEE) called the Communication a missed opportunity to stop business scandals. It states that: "The Commission's paper ignores calls from Friends of the Earth and others for binding rules to regulate multi-national companies world-wide. FOE has called for the paper to address binding corporate accountability including key measures such as, at the very least, mandatory social and environmental reporting."

Timeline

The Commission will publish a communication on CSR expected by the end of 2005.  

External Links

Non-assigned links

• European Commission:DG Employment and Social Affairs: EU Multi Stakeholder Forum on CSR
• European Commission:DG Enterprise: Multi Stakeholder Forum
• Commission:Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Public Policy and Corporate Social Responsibility" Centre for European Reform(3 July 2003)
• European Commission:Communication concerning Corporate Social Responsibility: A business contribution to Sustainable Development(2 July 2002) [FR] [FR] [DE]
• Eur-Lex:Green paper: Promoting a European framework for Corporate Social Responsibility, COM(2001) 366 final, (18 July 2001) [ FR FR DE
• DG Employment & Social Affairs:Corporate Social Responsibility
• DG Employment & Social Affairs:Responses to the consultation on the Green Paper on CSR
• European Council:Council Resolution on follow-up to the Green Paper on CSR(3 December 2001)
• European Parliament:Draft Report on the Commission Green Paper on Promoting a European framework for Corporate Social Responsibility(30 April 2002) Rapporteur: [FR] [FR] [DE] [FR] [DE] Richard Howitt
• European Economic and Social Committee:Opinion on Corporate social responsibility (Green Paper)(March 2002)
• OECD:Response to Green Paper on CSR(13 December 2001)
• Global Reporting Initiative (GRI):Global Reporting Initiative (GRI) offers full cooperation to ensure comparability(3 July 2002)
• UNICE:Position on CSR(26 November 2001)
• UNICE:Draft report on the Commission Green Paper on promoting a European framework for corporate social responsibility. Letter to the European Parliament(22 March 2002)
• CSR Europe:Response to the European Commission18 December 2002
• ERT, CSR Europe, UNICE:Open letter to Mr Prodi regarding Corporate Social Responsibility (CSR)(4 June 2002)
• European Roundtable of Industrialists (ERT):Position on CSR(20 November 2001)
• American Chamber of Commerce:The EU committee's position on the Green Paper on CSR(19 December 2001)
• BDA/BDI:Position on the Green Paper on CSR(13 December 2001)
• CBI:Position on the Green Paper on CSR(19 December 2001)
• Eurocommerce:Position on Green Paper on CSR(19 December 2001)
• Centre des Jeunes Dirigeants d'entreprise:Réponse du CJD au Livre vert de la Commission européenne sur la Responsabilité sociale des entreprises
• European Telecommunication Network Operators Association:Reflection Document on the EU Commission's Green Paper: promoting a European framework for Corporate Social Responsibility(December 2001)
• BP:BP's position paper on Green Paper on CSR(July 2001)
• Levi Strauss:Contribution to the Commission's consultation on the green paper on CSR(December 2001)
• British Telecom (BT):BT's Response to the EU Green Paper on CSR(December 2001)
• Norsk Hydro:Reply to the European Commission Green Paper on Promoting a European Framework for Corporate Social Responsibility(December 2001)
• Nike:Response to the European Commission green paper on Corporate Social Responsibility
• Ford:Ford's Response to the EU Green Paper on CSR(18 December 2001)
• General Motors Europe:General Motor's Response to the EU Green Paper on CSR(17 December 2001)
• Procter & Gamble:P& G's Response to the EU Green Paper on CSR(18 December 2001)
• Rio Tinto plc:Position on Green Paper on CSR(12 December 2001)
• Siemens:Position on Green Paper on CSR(22 November 2001)
• Burson-Marsteller:The responsible century
• Microsoft:The EC's CSR Green Paper: Advancing the corporate citizenship discussion(April 2002)
• ETUC:Position on CSR(11 October 2001)
• Friends of the Earth Europe:One Week After Worldcom: Europe Bows to Big Business(3 July 2002)
• Eurosif:Join the Ongoing Debate on a European Framework for CSR
• Social Platform:Social Platform's response to Commission's Green Paper(27 November 2001)
• World Wide Fund (WWF):WWF's position on the Green Paper(19 December 2001)
• Solidar:Position on CSR(27 November 2001)
• Amnesty International:Position on CSR(19 December 2001)
• New Economics Foundation:Position on the Green Paper on CSR(4 December 2001)
• Friends of the Earth (UK):Position on the Green Paper on CSR(19 December 2001)
• European Foundation Centre (EFC):Position on the Green Paper on CSR(December 2001)
• CEN - European Committee for Standardization:Position on the Green Paper on CSR
• EPPA:Position on the Green Paper on CSR(December 2001)
• European Policy Centre (EPC):Position on the Green Paper on CSR(January 2002)
• European Sustainable and Responsible Investment Forum (Eurosif):Eurosif's response to EC Green Paper(December 2001)
• Austrian Federal Chamber of Labour (AK)Green Paper on Corporate Social Responsibility(13 November 2001)
• Solagral:La responsabilité sociale des entreprises
• Euro Coop:Euro Coop's Comments to the European Commission's Green Paper: "Promoting a European framework for Corporate Social Responsibility" (COM (2001) 366)(18 December 2002)
• Royal institute of international affairs:Towards Global Corporate Social Responsibility(April 2002)
• International Institute for Environment and Development (IIED):Promoting a European Framework for Corporate Social Responsibility: IIED Response to the EC Green Paper(December 2001)