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CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY. 1. CSR Standards and Approaches. 1.1. Global Instruments OECD Guidelines for Multinational Enterprises ( http://www.oecd.org/daf/inv/mne / ) Ten principles of the UN Global Compact ( http://www.unglobalcompact.org / )

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CORPORATE SOCIAL RESPONSIBILITY

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  1. CORPORATE SOCIAL RESPONSIBILITY

  2. 1. CSR Standards and Approaches • 1.1. Global Instruments • OECD Guidelines for Multinational Enterprises (http://www.oecd.org/daf/inv/mne/) • Ten principles of the UN Global Compact (http://www.unglobalcompact.org/) • ISO 26000 Guidance Standard on SocialResponsibility (http://www.iso.org/iso/home/standards/iso26000.htm) • UN GuidingPrinciples on Business and Human Rights(http://www.ohchr.org/EN/Issues/Business/Pages/BusinessIndex.aspx) • ILO Tripartite Declaration of Principles concerning Multinational Enterprises on Social Policy (http://www.ilo.org/empent/Publications/WCMS_094386/lang--en/index.htm)

  3. 1. CSR Standards and Approaches 1.1. Global Instruments For reportingandtransparency : Global Reporting Initiative (www.globalreporting.org) and International Integrated Reporting Council (http://www.theiirc.org/) In general : • Voluntary • Canbeseen as mostlywindow-dressing • CSR as a new ‘sales argument’ • CSR as a separate issue, and not part of an integrated business approach (company level)

  4. CSR Standards and Approaches • 1.2. Specific sector and supply chain initiatives • Mainly, but not exclusively, in hands of NGO’s • See example of Textile and Apparel Industry. There is more than Clean Clothes Campaign…. • http://www.wearfair.at/index.php?id=87 • (at least 24 different organisations for the TCL sectors, each with own standards, procedures, audits, etc.) • A company, member of one organisation, is not necessarily compliant with other organisations (and their standards)

  5. 1. CSR Standards and Approaches 1.2. Specific sector and supply chain initiatives (sometimes) With support of the European Commission • Process on Corporate Responsibility in the field of Pharmaceuticals (http://ec.europa.eu/enterprise/sectors/healthcare/competitiveness/process_on_corporate_responsibility/index_en.htm) • Cosmic project : CSR oriented supply-chain management to improve competitiveness in the textile/clothing sector (http://www.cosmic.sssup.it/) • Chemicals : Prisme2 project on CSR implementation in SMEs (http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/industrial-sectors/index_en.htm) • Supply chain CSR initiatives, case of mobile phones • EU Practical Human Rights Guidance for enterprises in 3 business sectors : Employment agencies, ICT, Oil & Gas (… ‘intended not to be legally binding’…) (http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/human-rights/index_en.htm)

  6. 1. CSR Standards and Approaches CSR is about : • Human Rights, Social Standards, ILO & OECD Conventions / Guidelines, Environment, supply chain, accountability, transparency, … But foremost : • voluntary, moral commitment, ‘we do itbecauseit is goodforour business’, non-integrated business approach (‘CSR is a new department’) The European Commission defines (October 2011) Corporate Social Responsibility as “the responsibility of enterprises for their impacts on society”. To fully meet their social responsibility, enterprises “should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders”.

  7. 2. The EU Roadmap on CSR so far 1995 : European Commission President Jacques Delors and a group of European companies launch the Manifesto of Enterprises against Social Exclusion. March 2000 : Lisbon European summit sets new strategic goal of making Europe the most competitive and dynamic knowledge-based economy in the world by 2010. For the first time, the European Council makes a special appeal to “companies’ corporate sense of social responsibility regarding best practices on lifelong learning, work organisation, equal opportunities, social inclusion and sustainable development”. June 2000 : EU adopts Social Policy Agenda, stressing the importance of CSR in adapting working conditions to the new economy. July 2001 : European Commission publishes the Green Paper on promoting a European framework for CSR (COM/2001/366) + Communication on promoting core labour standards. July 2002 : European Commission Communication on Corporate Social Responsibility: A business contribution to sustainable development (COM/2002/347). October 2002 : European Commission sets up European Multi-Stakeholder Forum on CSR (CSR EMS Forum) to exchange good practices and assess common guidelines. June 2004 : CSR EMS Forum presented its report to the European Commission.

  8. 2. The EU Roadmap on CSR so far March 2006 : European Commission issues a new Communication: Implementing the Partnership for Growth and Jobs: Making Europe a pole of excellence on CSR, and launches a ‘European Alliance for CSR’. The ETUC, together with a range of NGOs including the Social Platform, accuses the Commission of adopting an unbalanced, unilateral approach that gives undue weight to the interests of industry and business. March 2007 : The ETUC welcomed the European Parliament’s report on CSR, which it found brought the debate back onto the right track, recovering elements such as multilateralism, accountability and transparency, which had been lost in the recent work of the Multi-stakeholder Forum. October 2011 : European Commission publishes new Policy on CSR, with an action agenda 2011-2014.

  9. 2. The EU Roadmap on CSR so far EU Commission CSR Action agenda 2011-2014 covers 8 areas : • Enhancing the visibility of CSR and disseminating good practices • Improving and tracking levels of trust in business • Improving self- and co-regulation processes • Enhancing market rewardfor CSR • Improving company disclosure of social and environmental information • Further integrating CSR into education, training and research • Emphasising the importance of national and sub-national CSR policies • Better aligning European and global approaches to CSR Implementation agenda and progress can be followed on EC Website with implementation table : http://ec.europa.eu/enterprise/policies/sustainable-business/files/doc/csractionstimeline121213webversion_en.pdf

  10. 2. The EU Roadmap on CSR so far 16/04/2013 : Proposalfor Directive on ‘Non-Financial Reporting’ Enhancingtransparency of certain large companies on socialandenvironmentalmatters, byamendingtwoexisting Accounting Directives (Fourth and Seventh Accounting Directives on Annual and Consolidated Accounts, 78/660/EEC and 83/349/EEC). • For companies > 500 employees (estimation : 18,000 companies, 2,500 already doing it) • Disclosure on policies, risks and results concerning environmental aspects, social and employee-related matters, respect for human rights, anti-corruption and bribery issues, and diversity on board of directors • May use international or national guidelines (f.ex : UN Global Compact or German Sustainability Code) • Commission target : first reporting not earlier as 2017

  11. 3. Trade Union approaches • European Trade Unionsinvolved in generaland sector level CSR debates over the last 15 years • Consumers consider it as important, see Textile Labelling Directive discussion

  12. 3. Trade Union approaches • Severalnationaltradeunions have been involved in nationalandsectoraldebatesandpolicies, includingdevelopment of owntradeunionposition papers, guidelinesfor shop stewards, etc • Globalisationgives a responsibilitytotradeunionsto look after Human Rights, socialstandardsandworkingconditions at global level • NGO’s : partnerorcompetitor ? • Supply chain approach • Global Framework Agreements – European Framework Agreements • Agreements made by European Works Councils (andnationaltradeunions), see EC Database (http://ec.europa.eu/social/main.jsp?catId=978&langId=en) (BMW, Bosch, Arcelor-Mittal, Brunel, EADS, EDF, Enel, ENI, ………)

  13. 4. Questionsfor the debate • Does yourtradeunion have policies, strategies on CSR ? Do you have national / sectoral / company experiences in your country ? • At European level, CSR is on the tablewhenGFA’s / EFA’s are discussed, or whenEWC’s are involved. Do we need a European coordinatedstrategy ? Andwhatshoulditbe ? What kind of form shouldit have ? Also in light of the forthcoming Non-Financial Reporting Directive.

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