Social partners reach agreement on corporate social responsibility

Representatives of the government and social partners finally reached consensus on the agreement on corporate social responsibility (CSR) in December 2007. The agreement provides for the creation of a national council for the promotion and dissemination of good practice among companies and public administration bodies. It also seeks to increase the clarity of CSR practices and to enhance the management skills and capacities of companies in relation to CSR.

On 19 December 2007, representatives of the government, the Spanish Confederation of Employers’ Organisations (Confederación Española de Organizaciones Empresariales, CEOE), the Spanish Confederation of Small and Medium-sized Enterprises (Confederación Española de Pequeñas y Medianas Empresas, CEPYME), the Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO) and the General Workers’ Confederation (Unión General de Trabajadores, UGT) approved an agreement on corporate social responsibility (CSR).

The agreement consists of two parts: the first part defines the concept and scope of CSR, while the second part comprises a set of proposals for promoting CSR practices in companies and public administration bodies. It is intended that the agreement, established through social dialogue, should clarify the concepts and practices of social responsibility and act as a reference mechanism.

Definition and premises of CSR

The agreement defines CSR as a set of practices adopted voluntarily by companies. These practices involve commitments to enhance management through social, labour and environmental criteria; these criteria provide added value to compliance with legal obligations and involve the direct stakeholders, such as workers, customers, shareholders and suppliers.

The basic premises of CSR include its voluntary nature and its necessary link with the viability and competitiveness of companies. CSR initiatives must be sufficiently flexible to adapt to the different sectors, territories and sizes of companies.

Proposals for promoting CSR

The signatories to the agreement are aware of the confusion that surrounds the different CSR actions and initiatives. Thus, they believe that priority should be given to improving the clarity of CSR practices, helping to identify and disseminate good practices, and making companies aware of the advantages of making commitments in this area and of the instruments available to them.

A second objective concerns promoting the management skills and capacities of companies and the social partners for the development of CSR. Such proposals include fostering training on CSR for management staff and for worker representatives, encouraging the drafting and dissemination of CSR and sustainability reports, and promoting CSR among small and medium-sized enterprises (SMEs) according to their particular characteristics.

Linking CSR practices with competitiveness, growth and social cohesion factors constitutes a further aim, as does incorporating these practices in the management of change and the modernisation of industrial relations. This objective includes equality policies, reducing the industrial accident rate, and fostering employment stability and work-life balance measures. Furthermore, CSR must be included in business restructuring processes that affect employment and social cohesion.

Finally, the agreement provides for the creation of a national council as a government advisory body for the promotion of CSR policies. The council will consist of delegates from the most representative employer organisations, trade unions, public administration bodies and non-governmental organisations (NGOs).

Views of social partners

The social partners largely approve of the agreement as it fosters a growth model that is both ecologically sustainable and socially responsible, while involving the participation of the social partners. Nonetheless, the trade unions emphasise that CSR is voluntary and should never replace collective bargaining or any other form of regulation. On the contrary, once management has voluntarily assumed its commitment towards socially responsible practices, these should be jointly negotiated with employee representatives to ensure that such practices are effectively implemented and do not respond to a mere marketing campaign.

On the other hand, the position of the main Spanish employer organisation, CEOE, remains consistent with the objective of defending companies’ freedom with regard to social responsibility. Moreover, the confederation has delayed the establishment of the proposed national council since it fears that it may interfere with companies’ activities and lead to an increase in production costs, particularly for SMEs.

National council established

The National Council on CSR was finally established on 15 February 2008. It seems that the council’s activities as a consultative body will concentrate on the field of public administration: firstly, by promoting the inclusion of social responsibility and environmental clauses in public contracts; and, secondly, by ensuring that the agreement on the future investments of the Social Security Reserve Fund take into account the principles of social, economic and environmental responsibility (ES0706019I).

Juan Arasanz Díaz, QUIT, University Autònoma of Barcelona (UAB)