UK Government approach to CSR

1. UK Government approach to CSR Jane Leavens CSR Policy Department of Trade and Industry

2. What is CSR? • Business contribution to sustainable development • Lots of definitions – key is about what business does to address environmental, social and economic impacts • Not new agenda • Wide ranging issues – labour conditions, health & safety, environment protection, regeneration, community investment etc • Starts with compliance with law but what companies do over and above that baseline

3. Who does what in Government? Margaret Hodge– current Minister for CSR – acting for Government as a whole DTI lead on CSR policy approach– coordinate across Government

4. Who does what in Government • Inter departmental group of officials on CSR • Includes key Depts covering both domestic and international issues

5. Why DTI lead? DTI vision –creating conditions for business success and helping UK respond to the challenges of globalisation DTI objectives • Successful businesses • World-class science and innovation • Fair markets CSR about companies adopting responsible practice in their own competitive interests – not primarily about philanthropy

6. How can CSR contribute ? • CSR can contribute to the key drivers of productivity – • Competition • Skills • Investment • Innovation • Enterprise

7. For example • Cost savings to industry from waste minimisation techniques • CSR can attract new staff – CIPD* survey of graduate indicated 2/3 say company ethical reputation will influence decision to apply • CSR within the business can help with retention and motivation – 82% of employees involved in company CSR would recommend their company • Potential to identify new markets and products through dialogue with communities, customers, employees • Improving trust and reputation with customers *CIPD- Chartered Institute for Personnel Development

8. Reputational benefits • Research* shows continued decline in trust in institutions, Governments and companies • High trust in NGOs compared with low trust in global companies • Partnerships with trusted organisations can improve public opinion eg UNGC *Globescan

9. CSR about business so what is role for Government? • Provide policy environment to • Set decent minimum standards • Stimulate companies to raise performance beyond those levels • Target interventions

10. Voluntary v regulatory what is the Government’s approach? • Not either/or • CSR a broadranging term – not feasible to regulate “CSR” • Regulatory framework will evolve to reflect changing circumstances and expectations • Any interventions should be well designed and targeted to the specific issue

11. What is DTI doing?Companies Act 2006 • Enlightened shareholder value • Business review –quoted companies must disclose information on social and environmental matters to extent necessary for understanding of the business • Directors duties – must promote success of business in best interests of shareholders but in doing so have regard to wider factors such as employees and environmental impacts

12. Support for SMEs 2002 research on SMEs: CSR not seen as a strategic issue Supported development of toolkit for SMEs www.smallbusinessjourney.com • How to guides • Case study example

13. Skills for CSR • CSR Academy launched July 2004to develop skills for CSR practice through: • CSR competency framework • Signposting to Training and development opportunities • 5000 users downloaded framework • 900 large and 300 SMEs attended Academy masterclasses and regional events • Academy now transferred to Business in the Community

14. Final thoughts • Responsible business should mean being more sustainable, more efficient and more profitable • For all companies – SMEs as well as large ones. But what/how will vary by type of business as well as size • Government will promote, support and reinforce

15. Related websites • www. csr.gov.uk • www.smallbusinessjourney.com • UK SD Strategy - www.sustainable-development.gov.uk/