EUERC

Corporate social reponsibility

The European Union has pioneered the concept of corporate social responsibility (CSR). It is a philosophy that suggests commercial corporations have a duty of care for all those affected by their operations, everyone from employees, customers, suppliers, subsidiaries and affiliates to people living in the neighbourhoods in which the businesses work and the community organisations that represent their interests.

Under CSR, businesses are required not just to meet legal obligations, but to go further in considering the economic, social and environmental impacts of their decisions. Many companies have already realised that such an approach can improve their reputations and give them a business edge.

The European Union has promoted CSR for many years, not just with the big corporations but with small and medium-sized enterprises, the major type of business in the member nations.

That work has included researching ways in which CSR can be applied and the funding of projects that promote its use.

That culminated last year in the launch of a European alliance for corporate social responsibility, driven by the desire to inspire more European enterprises to go beyond their minimum legal obligations in favour of society and sustainable development.

The Alliance is not a legal instrument but a political umbrella for new or existing CSR initiatives by large companies, SMEs and their stakeholders. The EU says it should lead to new partnerships and opportunities for those involved.

Its aims include:

Recruitment of more people from disadvantaged groups
Investment in skills development, lifelong learning and employability
Improvements in public health in areas such as food marketing and labelling
Better innovation performance
A more rational use of natural resources and reduced levels of pollution, thanks to investments in eco-schemes and the voluntary adoption of environmental management systems
A more positive image of business and entrepreneurs in society
Greater respect for human rights and labour standards, especially in developing countries
Poverty reduction

Commission Vice-President Günter Verheugen, responsible for enterprise and industry policy, said: 'This Alliance will help reconcile Europe's economic, social and environmental ambitions. The Commission has opted for a voluntary approach which is more effective and less bureaucratic. Since CSR is about voluntary business behaviour, we can only encourage it if we work with business. Europe needs a public climate in which entrepreneurs are appreciated not just for making good profits but also for making a fair contribution to addressing societal challenges.'

Social Affairs Commissioner Vladimir Spidla added: 'I believe that CSR can help workers better adapt to change and gain the skills for the 21st century economy. It can also contribute to making equal opportunities a reality in European companies and encourage the integration of disadvantaged groups.'