CSR and Coherence for Development within the EU’

1. CSR and Coherence for Development within the EU’

2. On the 22nd of March 2006, the European Commission published a communication on Corporate Social Responsibility (CSR) announcing that it will encourage CSR in the interests of sustainable development, economic growth and job creation. CSR and Coherence for Development within the EU’

3. In this paper the Commission calls: On the European business community to publicly demonstrate its commitment to sustainable development; Urges public authorities at all levels to further improve the consistency of their policies in support of sustainable development; ... CSR and Coherence for Development within the EU’

4. In this paper the Commission reiterates: Its commitment to continue its leadership role in promoting high environmental standards internationally and strengthen the sustainable development dimension of bilateral trade negotiations. CSR and Coherence for Development within the EU’

5. In this paper the Commission stressed: Its belief that CSR matters to each and every European since it represents an aspect of the European social model. CSR and Coherence for Development within the EU’

6. The definition of CSR as adopted by the Commission in its 2001 Green Paper “Promoting a European Framework for Corporate Social Responsibility” clearly emphasises that CSR covers social and environmental issues and that an important aspect of CSR is how enterprises interact with their internal and external stakeholders. CSR and Coherence for Development within the EU’

7. Furthermore the EU sees the concept of CSR as a relevant business contribution to poverty reduction. CSR and Coherence for Development within the EU’

8. In its paper “Policy Coherence for Development: Accelerating progress towards attaining the Millennium Development Goals”, the EU emphasises that special attention will be given to better defining the development dimension of CSR ... CSR and Coherence for Development within the EU’

9. ... with respect to the implementation of the major international environmental and social conventions, the supply-chain in developing countries and the participation of non-EU stakeholders. CSR and Coherence for Development within the EU’

10. The paper looks at the relationships of the European Union with the southern Mediterranean countries through the Barcelona Process and whether these relationships advance and encourage high environmental and social standards, privilege real participation and promote sustainable development in general. CSR and Coherence for Development within the EU’

11. Two major processes govern the relationships of the European Institutions with the Southern Mediterranean countries, the Barcelona Process and the European Neighbourhood Policy (ENP). CSR and Coherence for Development within the EU’

12. Through the Barcelona Process the European Union carries out a number of activities bilaterally with each country, in particular the Euro-Mediterranean Association Agreements that the Union negotiates with the Mediterranean Partners individually. CSR and Coherence for Development within the EU’

13. The Barcelona Process has come under huge criticism and according to most observers more than a decade later the high hopes for Mediterranean development have been replaced with disillusion and the Barcelona Process has brought about few solid results. CSR and Coherence for Development within the EU’

14. The criticisms are plentiful and evolve around the following points: Without peace it is very difficult to have any progress in the region The income gap between the EU and Mediterranean countries is almost the same over more than a decade CSR and Coherence for Development within the EU’

15. There has been insufficient progress in the area of agriculture Opportunities for real participation of Non EU stakeholders have been minimal CSR and Coherence for Development within the EU’

16. In sythesis there is a well founded fear that once the 2010 free trade area will be established within the so-called Euromed zone matters will turn out worse for poorer communities in the Mediterranean region. CSR and Coherence for Development within the EU’

17. The renowned academic and activist Tonino Perna anticipates that some four million small farmers with less than three hectares of land and small fishermen will be swamped out of business by big companies with big money. CSR and Coherence for Development within the EU’

18. There is a need to bring the concerns of the people in the Mediterranean region on board and to effectively reduce the gap between the stated intentions of the Barcelona process and the implemented policies. CSR and Coherence for Development within the EU’

19. A good indication of what a preferable future would look like can be found by examining some examples of good practice of CSR. CSR and Coherence for Development within the EU’

20. One such example of Good Practice is Fair Trade, an alternative form of trade based on voluntarily adopted norms that respects both the social rights of producers and workers and the environment. CSR and Coherence for Development within the EU’

21. The Fair Trade movement today is a global movement, with over a million small-scale producers and workers organized in as many as 3,000 grassroots organizations and with an umbrella structures in over 50 countries in the South. While relatively well established in Africa, Asia and Latin America, Fair Trade is still in its infancy in the Mediterranean Region. CSR and Coherence for Development within the EU’

22. Fair Trade and Related experiments show that there are alternatives to the inherent contradictions within the European Union institutions, that through the Barcelona Process pronounce themselves in favour of a region of stability and prosperity, but that at the same time implement policies that endanger the food sovereignty of the very same countries. CSR and Coherence for Development within the EU’

23. Adopting the principles of fair trade through fair rules, including for the agricultural sector, seems to hold great potential for poverty reduction. This requires attention to implementation of already existing policies rather than anything new. CSR and Coherence for Development within the EU’

24. The “Policy Coherence for Development” statement clearly states that the EU will enhance its support for Fair Trade as a tool for sustainable development and poverty reduction. CSR and Coherence for Development within the EU’

25. A 2006 report by the EU Parliament Committee on Development clearly endorsed the position that Fair Trade has proved to be an effective way of promoting sustainable development. CSR and Coherence for Development within the EU’

26. Adopting some of the examples of good practice of CSR at a macro level would move a step forward in eliminating the incongruence between the values of CSR as promoted by the EU and the less noble practices as sometimes realised through EU agreements and its member states. CSR and Coherence for Development within the EU’

27. The exhortations outlined in the introduction regarding CSR promoting sustainable development, creating the type of society we would like to live in, and giving special attention to the development dimension, run in parallel with a skewed and narrow fixation on security, and within the Mediterranean region, with trade rules that endanger food sovereignty and livelihoods. CSR and Coherence for Development within the EU’

28. As a leader in the support and promotion of CSR and as a leader in making big commitments on aid and big promises on the Millennium Development Goals, European institutions need to examine themselves for any incoherencies and deliver on their agenda. CSR and Coherence for Development within the EU’

29. Here civil society groups, based on their experiences of progressive CSR initiatives have a role to play, namely in influencing official international diplomacy and decision making. CSR and Coherence for Development within the EU’

30. Having successfully experimented with alternative models themselves and backed by a strong consumer base, fair trade and similar initiatives have both credibility and authority in their advocacy work for a more responsible Europe. CSR and Coherence for Development within the EU’