SAK highlights employers' social responsibility

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Corporate social responsibility has been an issue for debate among the Finnish social partners in recent times. As part of this process, in January 2002, the SAK blue-collar trade union confederation expressed concern about the effects on workers of changes in the economic environment and working life, and challenged employers to define 'good work' and its content. In the employers' view, companies must have a free hand to define their social responsibility.

At a seminar on 'Work, health and future' held in Helsinki on 25 January 2002, the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK) - representing mainly blue-collar workers - expressed its concern about the employees' position at a time when companies are adapting to world markets. According to Kirsti Palanko-Laaka, an SAK department head, increasing competitiveness and adapting to world markets cannot be based on 'social dumping'- ie compromising on terms and conditions of employment and social security.

In the view of Ms Palanko-Laaka, Finnish company managers now have 'hard' values. With the coming of international ownership of firms, Finnish management has been clearly 'Americanised' and personnel management is dominated by economic and production values. Furthermore, 'from the employees' point of view, the tendering of work has gone to the extreme. In competition for subcontracts, for outsourced services or other acquisitions, labour costs have a significant part in the tendering. When the prices are being squeezed to the minimum, the cuts take place in terms of employment, workforce size, tightening of the pace of work, and the working conditions,' she added.

According to Ms Palanko-Laaka, the psychological and physical burden of work has increased steadily in Finland and other EU countries (FI0201198F). For its part, 'SAK is aiming for a more humane working life and wants to challenge the employers to define good work and its content. Good work is a competitive advantage for the future – and decisive in the recruitment of a skilled workforce.' She stated that the responsibility of employers should not be limited to the level of ethical debate or speeches: 'The personnel must be taken care of in all phases of the working career. The common national goal to lengthen the period of working life is not a credible one without an increase in the responsibility borne by employers,' she underlined.

Ms Palanko-Laaka's speech can be considered part of the ongoing Finnish debate on corporate social responsibility, and an extension of 'shareholder-value' thinking to concern all interest groups ('stakeholder value').

The Confederation of Finnish Industry and Employers (Teollisuuden ja Työnantajain Keskusliitto, TT) and the Employers' Confederation of Service Industries (Palvelutyönantajat, PT) stress the voluntary basis of companies' social responsibility. An example of this are discussions which have recently started in the Finnish Ethical Forum, in which representatives of business life, public authorities and various non-governmental organisations can take part.