Renewed EU strategy for corporate social responsibility 2011-2014 CSR by Ms Evelyne Pichenot, EESC member 10 April 2012

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Renewed EU strategy for corporate social
responsibility 2011-2014 CSRby Ms Evelyne
Pichenot, EESC member10 April 2012 Hong
Kong
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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.

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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.
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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

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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)

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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.
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New communication on CSR
A 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.
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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
  ISO26000Environment 4600 enterprises
  adopting EMAS.Evaluation of the impact of CSR
  but the EU could do better.

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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.