News Commission white paper: Corporate Social Responsibility

Source Paolo G. Meozzi
Release date 17/07/2002
Contributor bulanmir

CSR contributs to the achievement of the European strategic goal of becoming, by 2010, “the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion" adopted by the Lisbon Summit of March 2000, and to the European Strategy for Sustainable Development.

In the communication of July 2002 , the Commission presents a EU strategy to promote CSR.The communication is a follow-up to the 2001 Green paper “Promoting a European Framework for Corporate Social Responsibility”

Highlights

  • Commission received more than 250 responses to the Green Paper;
  • CSR is defined as a concept whereby companies integrate social and environmental concerns in their businesses and interactions with stakeholders on  voluntary basis. The main features of CSR are: 1) going over and above legal requirements by adopting voluntarily measures; 2) linking to the  sustainable development concept of the EU; 3) changing management approaches.
  • CSR  takes as its basis international standards and agreements (i.e. OECD Guidelines for Multinational Enterprises, international agreements, ILO fundamental Conventions);
  • CSR instruments (such as management standards, labelling and certification schemes, reporting, etc.) are difficult to compare, and therefore, there is a role for Community action to facilitate convergence in the instruments used to ensure a proper functioning of the internal market;
  • The Commission proposes to build its strategy to promote CSR on a number of principles. These are:

o        recognition of voluntary nature of CSR;

o        need for credibility and transparency of CSR practices;

o        focus on activities where Community involvement adds value;

o        balanced and all-encompassing approach to CSR, including economic, social and environmental issues as well as consumer interests;

o        attention to the needs and characteristics of SMEs;

o        support and compatibility with existing international agreements and instruments (ILO core labour standards, OECD guidelines for multinational enterprises).

The Commission proposes to focus its strategy on the following areas:

§         Increasing knowledge about the positive impact of CSR on business and societies in Europe and abroad, in particular in developing countries;

§         Developing the exchange of experiences and good practices on CSR between enterprises;

§         Promoting the development of CSR management skills;

§         Fostering CSR among SMEs;

§         Facilitating convergence and transparency of CSR practices and tools;

§         Launching a Multi-Stakeholder Forum on CSR at EU level;

§         Integrating CSR into Community policies.

·         Exchange of experience and good practices about CSR between companies, stakeholder dialogue and participative management.

The effectiveness of existing fora for the exchange of good practice and experience at local, regional, national and EU level, could be reinforced through better networking and coordination of their activities. The integration of CSR into the work of European business support networks would facilitate dialogue and co-operation between them.

·         Developing the exchange of experience and good practices on CSR between Member states;

·         Integrating CSR principles in general education as well as in business administration training;

·         Working towards better (codes of conduct; management standards; accounting, auditing and reporting; labels; and socially responsible investments) where increased convergence and transparency is desirable in order to further promote the development of CSR practices.

·         Launching a Multi-Stakeholder Forum

The Commission proposes to set up a EU Multi-Stakeholder Forum on CSR (CSR EMS Forum) with the aim of promoting transparency and convergence of CSR practices and instruments, through: – exchange of experience and good practice between actors at EU level; – bringing together existing initiativeswithin the EU, and seeking to establish common EU approach and guiding principles, including as a basis for dialogue in international fora and with third countries; – identifying and exploring areas where additional action is needed at European level.

  • Environmental Policy - In the context of the strategy for sustainable development adopted by the European Union at the Gothenburg Summit of June 2001, and of the Charter of Fundamental Rights of the European Union, proclaimed in Nice in December 2000, the European Union is committed to fully integrate economic, social and environmental considerations as well as fundamental rights including core labour standards and gender equality, into its policies and actions, with due respect to both their internal and external dimensions;
  • The role of business in fostering environmental sustainability is a central issue in the newly adopted 6th Environmental Action Programme (Eco-Management and Audit Scheme (EMAS), Eco-Efficiency Initiative (EEEI), annual accounts and annual reports of companies, Environmental Technology for Sustainable Development);
  • Consumer Policy - Consumers and their representative organisations have an important role to play in the evolution of CSR.
  • Public Procurement Policy - Community law offers numerous possibilities to public purchasers who wish to integrate social and environmental considerations into public procurement.

 

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