Corporate Social Responsibility in the European Union :  Strategy and Practice Yukiko Fukasaku  Innovmond, France Yokohama...
Outline <ul><li>Policies and strategies on Corporate Social Responsibility (CSR) in the European Union since 1990s </li></...
Origin of EU CSR policy <ul><li>1995 European Business Declaration against Social Exclusion </li></ul><ul><ul><li>Policy i...
Lisbon and SD Strategies <ul><li>Lisbon Strategy for growth and jobs, 2000 </li></ul><ul><ul><li>Goal to become “ the most...
Green paper on CSR and the First Communication <ul><li>Green paper (2001) </li></ul><ul><ul><li>CSR can contribute to Lisb...
Multistakeholder Forum on CSR <ul><li>Aim: promoting transparency and convergence of CSR practices and instruments in Euro...
Revised Lisbon Strategy, Renewed SD Strategy, European Social Agenda (2005) <ul><li>Stress on economic growth and job crea...
Second EC Communication on CSR (2006) and European Alliance on CSR <ul><li>CSR as voluntary activity of businesses “can pl...
Current status of EU CSR policy  <ul><li>MSF :   Depolarise “Voluntary” vs. “Mandatory” argument </li></ul><ul><li>Europea...
EU level CSR policies - summary <ul><li>A tool in regional policy,  </li></ul><ul><ul><li>To enhance competitiveness,  </l...
CSR practices in France <ul><li>National public policy context </li></ul><ul><ul><li>National SD Strategy n 2003 </li></ul...
Danone <ul><li>Food sector giant in dairy products, bottled water, infant and medical nutrition </li></ul><ul><li>CSR awar...
L’Or é al <ul><li>World’s largest cosmetics manufacturer </li></ul><ul><li>Raw material assessment </li></ul><ul><ul><li>R...
Sanofi-Aventis <ul><li>Pharmaceutical giant </li></ul><ul><li>Ethics 21 </li></ul><ul><ul><li>Ethics in R&D: stopping biop...
EDF – Electricit é de France <ul><li>Largest power producer and distributor in  France, investments in other countries in ...
GDF-Suez <ul><li>Gas, liquid natural gas, electricity producer, distributor,  water distribution and treatment, waste trea...
Summary  – CSR in French multinationals <ul><li>Stress on social and human resource issues eg, diversity, local developmen...
Conclusion and future prospects <ul><li>High awareness of the importance of CSR both at public policy and business levels ...
Thank you Innovmond SARL [email_address]
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Corporate Social Responsibility in the European Union: Strategy and Practice

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Talk by Yukiko Fukasaku
Innovmond, France
Yokohama, 28 May 2009

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  • Corporate Social Responsibility in the European Union: Strategy and Practice

    1. 1. Corporate Social Responsibility in the European Union : Strategy and Practice Yukiko Fukasaku Innovmond, France Yokohama, 28 May 2009
    2. 2. Outline <ul><li>Policies and strategies on Corporate Social Responsibility (CSR) in the European Union since 1990s </li></ul><ul><li>CSR practices in some large European firms based in France </li></ul><ul><ul><li>Danone </li></ul></ul><ul><ul><li>L’Oreal </li></ul></ul><ul><ul><li>GDF-Suez </li></ul></ul><ul><ul><li>EDF </li></ul></ul><ul><ul><li>Sanofi-Aventis </li></ul></ul>
    3. 3. Origin of EU CSR policy <ul><li>1995 European Business Declaration against Social Exclusion </li></ul><ul><ul><li>Policy instrument to promote the European “social model”, i.e., “social” aspect stressed. </li></ul></ul><ul><li>Since 2000: instrument to achieve Lisbon Strategy for growth and employment and the Sustainable Development Strategy </li></ul>
    4. 4. Lisbon and SD Strategies <ul><li>Lisbon Strategy for growth and jobs, 2000 </li></ul><ul><ul><li>Goal to become “ the most competitive and dynamic knowledge-based economy…” </li></ul></ul><ul><li>SD Strategy, 2001 </li></ul><ul><ul><li>“ Public policy…key role in encouraging a greater sense of corporate social responsibility… </li></ul></ul>
    5. 5. Green paper on CSR and the First Communication <ul><li>Green paper (2001) </li></ul><ul><ul><li>CSR can contribute to Lisbon targets </li></ul></ul><ul><ul><li>“… concept whereby companies integrate social and environmental concerns to their business operations and their interaction with their stakeholders on a voluntary basis.” </li></ul></ul><ul><li>First EC Communication on CSR </li></ul><ul><ul><li>Public policy has a role to promote CSR </li></ul></ul><ul><ul><li>Launch EU Multistakeholder Forum on CSR </li></ul></ul>
    6. 6. Multistakeholder Forum on CSR <ul><li>Aim: promoting transparency and convergence of CSR practices and instruments in Europe </li></ul><ul><ul><li>Involving businesses, business organisations, employee organisations (social partners), consumer groups, civil society </li></ul></ul><ul><li>Final report 2004 </li></ul><ul><ul><li>Support for “voluntary” approach to CSR </li></ul></ul><ul><li>Assessment : c onvergence difficult to achieve </li></ul><ul><ul><li>“ Voluntary” (businesses) vs. “Mandatory” (civil society) not resolved </li></ul></ul><ul><ul><li>CSR approach satisfactory to all stakeholders was not possible </li></ul></ul>
    7. 7. Revised Lisbon Strategy, Renewed SD Strategy, European Social Agenda (2005) <ul><li>Stress on economic growth and job creation: priority on “economy” of the three pillars? </li></ul><ul><li>Role of innovation, education, R&D in enhancing growth, jobs and SD </li></ul><ul><li>CSR could modernise the European “social model”: </li></ul><ul><ul><li>adapting to globalisation, aging, technological advances, lower employment rates, persisting inequality, </li></ul></ul><ul><ul><li>enhancing stakeholder dialogue and transparency in business practices. </li></ul></ul>
    8. 8. Second EC Communication on CSR (2006) and European Alliance on CSR <ul><li>CSR as voluntary activity of businesses “can play a key role in contributing to SD while enhancing Europe’s innovative potential and competitiveness” </li></ul><ul><li>Backed launching of European Alliance for CSR </li></ul><ul><ul><li>To make Europe a pole of excellence on CSR </li></ul></ul><ul><ul><li>Open coalition of European enterprises </li></ul></ul><ul><li>European Alliance on CSR </li></ul><ul><ul><li>More than 200 businesses and business organisations </li></ul></ul><ul><ul><li>three themes </li></ul></ul><ul><ul><ul><li>Raising awareness and improving knowledge on CSR and its reporting </li></ul></ul></ul><ul><ul><ul><li>Mainstreaming CSR </li></ul></ul></ul><ul><ul><ul><li>Ensuring enabling environment for CSR </li></ul></ul></ul><ul><li>Instruments </li></ul><ul><ul><li>Cartography on CSR Innovations – Online Marketplace on CSR - CSR laboratories </li></ul></ul>
    9. 9. Current status of EU CSR policy <ul><li>MSF : Depolarise “Voluntary” vs. “Mandatory” argument </li></ul><ul><li>European Parliament resolution (2007): Urges further EC action to promote CSR </li></ul><ul><li>EC: No plan to formulate regulatory framework for CSR </li></ul><ul><ul><li>Support existing international agreements (eg, Global Compact) and participate in their eventual revisions </li></ul></ul><ul><li>DG Employment, DG Enterprise </li></ul><ul><ul><li>Mainstream CSR in existing policy areas: equal opportunity, gender, SMEs, climate change, innovation </li></ul></ul><ul><ul><li>European corporate behaviour changed as result of promoting CSR </li></ul></ul><ul><ul><li>businesses that are strong in innovation also strong in CSR </li></ul></ul><ul><li>Non governmental organisations actively promoting CSR </li></ul><ul><ul><li>Regional business organisations eg, CSR Europe </li></ul></ul><ul><ul><li>National organisations eg. ORSE in France </li></ul></ul>
    10. 10. EU level CSR policies - summary <ul><li>A tool in regional policy, </li></ul><ul><ul><li>To enhance competitiveness, </li></ul></ul><ul><ul><li>To move towards knowledge society and sustainability, </li></ul></ul><ul><ul><li>To modernise the social model </li></ul></ul><ul><li>Explicit inclusion as a tool of Lisbon Strategy demonstrates its importance </li></ul><ul><li>Recognition of the importance of innovation in CSR practices </li></ul><ul><li>Idea that public policies should play a role in promoting CSR </li></ul><ul><li>EC consultations, MSF, Alliance, NGOs facilitate networking and knowledge exchange among stakeholders </li></ul>
    11. 11. CSR practices in France <ul><li>National public policy context </li></ul><ul><ul><li>National SD Strategy n 2003 </li></ul></ul><ul><ul><li>2001 economic regulations oblige listed companies to include social and environmental information in annual reports </li></ul></ul><ul><ul><li>2007 Grenelle Environnement </li></ul></ul><ul><li>The five enterprises in this study </li></ul><ul><ul><li>A few decades of experience in addressing environmental and social issues </li></ul></ul><ul><ul><li>publish annual Sustainable Development reports, </li></ul></ul><ul><ul><li>have dedicated bodies (committees at board level, divisions) to address SD issues in their corporate governance structures, </li></ul></ul><ul><ul><li>Large foreign operations including in developing countries </li></ul></ul>
    12. 12. Danone <ul><li>Food sector giant in dairy products, bottled water, infant and medical nutrition </li></ul><ul><li>CSR awareness and activities since 1972 </li></ul><ul><ul><li>“ Long-term business success depends on improving human and social welfare” </li></ul></ul><ul><li>Danone Way (2001) and Danone Way Ahead (2007) </li></ul><ul><li>Social innovation </li></ul><ul><ul><li>Prioritise local needs development </li></ul></ul><ul><ul><li>Danone Grameen Foods (Bangladesh) and danone.communities </li></ul></ul><ul><ul><li>Share your Meal programme (Poland) </li></ul></ul><ul><ul><li>Water protection schools (Thailand, Nepal, Argentina) </li></ul></ul>
    13. 13. L’Or é al <ul><li>World’s largest cosmetics manufacturer </li></ul><ul><li>Raw material assessment </li></ul><ul><ul><li>Respect for EU regulations, safety assurance in raw material use eg. nanotechnology materials </li></ul></ul><ul><li>Responsible procurement </li></ul><ul><ul><li>Biodiversity protection, respect for local rights, fair trade </li></ul></ul><ul><li>Sustainable innovation </li></ul><ul><ul><li>Green chemistry </li></ul></ul><ul><ul><li>Stop animal testing </li></ul></ul><ul><ul><li>Alternative skin models – Episkin and SkinEthic </li></ul></ul><ul><li>Diversity promotion </li></ul><ul><ul><li>Diversity – nationality, ethnic and social origins, disability, gender and age </li></ul></ul><ul><ul><li>recruitment </li></ul></ul>
    14. 14. Sanofi-Aventis <ul><li>Pharmaceutical giant </li></ul><ul><li>Ethics 21 </li></ul><ul><ul><li>Ethics in R&D: stopping biopiracy - laboratory animals - clinical trials </li></ul></ul><ul><ul><li>Respect for biodiversity- local knowledge, Human rights, supplier relations </li></ul></ul><ul><ul><li>Counterfeit drugs </li></ul></ul><ul><li>Patient 21 </li></ul><ul><ul><li>Improving access to pharmaceutical products by promoting innovation and respecting IP rights, generic drugs development – focus on developing country diseases eg. Malaria, TB, </li></ul></ul><ul><li>People 21 </li></ul><ul><ul><li>Equal opportunity – worker health and safety – career development – local community dialogue </li></ul></ul><ul><li>Planet 21 </li></ul><ul><ul><li>Biodiversity – climate change – resource management </li></ul></ul>
    15. 15. EDF – Electricit é de France <ul><li>Largest power producer and distributor in France, investments in other countries in EU and elsewhere </li></ul><ul><li>Now privatised, but long history as public enterprise, as such public welfare is of utmost importance – the origin of its CSR philosophy </li></ul><ul><li>Climate change and resource management most important issues </li></ul><ul><ul><li>Optimising generation mix – promoting energy eco-efficiency – minimizing impact on environment and health </li></ul></ul><ul><li>Main points of current CSR policies </li></ul><ul><ul><li>Safety and security of infrastructure </li></ul></ul><ul><ul><li>Human resource measures </li></ul></ul><ul><ul><li>Access to energy services for the most vulnerable </li></ul></ul><ul><ul><li>Local partnership </li></ul></ul><ul><ul><li>Education and awareness about energy production and use </li></ul></ul><ul><ul><li>Commitment to ethics – fight discrimination, employee profit sharing </li></ul></ul><ul><ul><li>Stakeholder dialogue </li></ul></ul><ul><li>Flamanville EPR - Laos dam </li></ul>
    16. 16. GDF-Suez <ul><li>Gas, liquid natural gas, electricity producer, distributor, water distribution and treatment, waste treatment </li></ul><ul><li>Stress on local development in foreign implantation </li></ul><ul><li>Promotes innovation for SD through R&D and bottom-up approaches </li></ul><ul><ul><li>Many opportunities for eco-innovation because operations cover the entire energy-water-waste chain </li></ul></ul><ul><li>Promotes ethical behaviour, fights corruption, equal opportunity, employee well-being, workplace safety, information sharing with developing country partners, addressing needs of vulnerable clients </li></ul>
    17. 17. Summary – CSR in French multinationals <ul><li>Stress on social and human resource issues eg, diversity, local development, responsible resourcing, human rights, employee welfare and capacity development, </li></ul><ul><li>Active in addressing issues specific to developing countries; also stakeholder dialogue, </li></ul><ul><li>Report environmental, social (societal) and governance aspects – triple bottom line approach, </li></ul><ul><li>Aware of the role of innovation in promoting CSR and creating win-win situations, </li></ul><ul><li>Comply and go beyond regulations and policies; ie., participate in initiatives at national, European, and global levels and use them for information exchange, </li></ul><ul><li>“ CSR is common sense for business” . </li></ul>
    18. 18. Conclusion and future prospects <ul><li>High awareness of the importance of CSR both at public policy and business levels in Europe to enhance business performance by advancing the ESG agenda </li></ul><ul><li>From emphasis on “social” pillar to the triple bottom line concept; </li></ul><ul><li>Mainstreaming in major policy areas </li></ul><ul><li>Recognition of the importance of innovation in CSR practices </li></ul><ul><li>Move towards regulation and standards? </li></ul><ul><li>EU CSR policies, regional and national NGOs facilitate knowledge sharing and debate among companies and promote stakeholder dialogue </li></ul>
    19. 19. Thank you Innovmond SARL [email_address]
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