European alliance for corporate social responsibility

Through its backing of the European Alliance for Corporate Social Responsibility, the European Commission aims to encourage enterprises to commit to social measures aimed at addressing the challenges of globalisation. This involves signing up to an agenda covering economic, social and environmental challenges.

Importance of corporate social responsibility

The European Commission’s support for the recently launched European Alliance for Corporate Social Responsibility marks an important juncture in its promotion of corporate social responsibility (CSR). Since the publication of its Green Paper, Promoting a European framework for corporate social responsibility (165Kb pdf) in 2001, along with the launch of the European Multi-stakeholder Forum in 2002, and the Forum’s final report (2Mb pdf) in 2004, CSR has been a key issue on the Commission’s agenda. The European Alliance for Corporate Social Responsibility constitutes a political umbrella organisation aimed at promoting the Commission’s CSR initiatives. This open alliance of European enterprises was first conceived in the Commission’s Communication (2006: 136)Implementing the partnership for growth and jobs: Making Europe a pole of excellence on corporate social responsibility (162Kb pdf).

Acknowledging that important steps have already been made in the area of CSR, the European Alliance for Corporate Social Responsibility represents a further move aimed at improving the uptake of CSR. This latest initiative aims to encourage enterprises to commit themselves voluntarily to CSR. Moreover, the alliance highlights how the Commission conceives enterprises as being among the main actors of CSR.

Triple bottom line approach

The Commission’s documents on CSR frequently refer to the ‘triple bottom line approach’. This approach is concerned with reconciling economic, social and environmental interests; it conceives CSR as being able to achieve:

• increased recruitment of persons from disadvantaged groups;

• investment in skills development, lifelong learning and employability;

• improved public health, i.e. food marketing and labelling;

• innovative entrepreneurship in sustainable technologies, products and services;

• better use of natural resources;

• respect for human rights and core labour standards;

• a reduction in poverty;

• a better image for enterprises through greater transparency.

Aims of alliance

In line with its aim to promote CSR, the alliance will focus on three core areas of activity: raising awareness and knowledge of CSR; mainstreaming and developing open coalitions and cooperation; and fostering an enabling environment for CSR. In its 2006 communication on CSR, the Commission outlines in detail a programme of work that should help to fulfil the alliance’s three areas of activity:

• The Commission aims to raise awareness and encourage best practice of CSR in Member States and acceding countries, where the concept still remains widely unpractised.

• The success of CSR initiatives requires the involvement of all stakeholders. The Commission will support such initiatives by regularly convening the European Multi-stakeholder Forum. Measures aimed at such inclusiveness are intended to make CSR far more credible, as well as ensuring that it represents a source of important initiatives.

• Member States and acceding countries have at their disposal different means of promoting CSR. Through cooperation with the Member States, the Commission will support CSR development at regional level.

• In an attempt to support the critical choice of consumers, the Commission is committed to increased transparency and product information. This will involve consulting stakeholders about how this can best be achieved through voluntary actions.

• There is a need for interdisciplinary research on CSR. The Commission believes that the research, among other things, should focus on links at macro- and meso-levels between CSR, competitiveness and sustainable development, innovation and corporate governance.

• The Commission is committed to placing CSR on the curriculum of business schools. It is hoped that the emphasis on education will help to develop the relevant skills among the entrepreneurs, business leaders, employees and politicians who are needed to implement CSR practices.

• The Commission is committed to identifying specific ways in which small and medium-sized enterprises (SMEs) can practise CSR.

• The Commission is also committed to the international promotion of CSR. This will involve acknowledging other socially oriented guidelines, such as the International Labour Organisation’s (ILO) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

Stakeholder responses

The European Alliance has received a mixed response. The Union of Industrial and Employers’ Confederations of Europe (UNICE) welcomed the move, in particular the voluntary nature of the Commission’s initiative. UNICE highlighted that the alliance’s ‘tailor-made’ approach will help to promote innovation and competitiveness (press release, 22 March 2006). In contrast, non-governmental organisations (NGOs) suggest that the alliance is too business-oriented, particularly given the fact that mandatory accountability of enterprises has been rejected. The European Trade Union Confederation (ETUC) relayed a general concern that non-business interests could be excluded from the debate on CSR.

In response to these reservations, the European Commission reiterated its commitment to involve all of the stakeholders actively. In a first step, the Commission will reconvene the Multi-stakeholder Forum meetings in 2006. The Forum will have the task of reviewing progress made so far in relation to CSR.

Michael Whittall, Institute for Labour Foundation, Technical University of Munich