The European Commission's Approach to Responsible Business: Towards a strategy on Corporate Social Responsibility

Transcription

1 The European Commission's Approach to Responsible Business: Towards a strategy on Corporate Social Responsibility Tomislav Ivančić Team Leader, Corporate Social Responsibility DG Internal Market, Industry, Entrepreneurship and SMEs

2 Why Corporate Social Responsibility? European citizens do not feel not informed about what companies do to manage their social and environmental impacts Influential factor in strengthening the competitiveness and growth of European companies Important for the European economy, CSR contributes to sustainable long-term economic growth, job creation and community engagement

3 The EC's Understanding of CSR EC definition of CSR: The responsibility of enterprises for their impacts on society Definition consistent and designed according to global instruments addressing responsible business Positive and negative influences on society; all enterprises have impacts, all have a social responsibility Legal compliance is a pre-requisite to being responsible Process of integrating social, environmental, ethical, consumer and human rights concerns into business strategy and operations, in cooperation with stakeholders

4 Internationally Recognised CSR Guidelines and Principles

5 THE APPROACH OF THE EUROPEAN COMMISSION OUR STRATEGY

6 EC Communication on Corporate Social Responsibility (CSR), AGENDA FOR ACTION 1. Enhancing visibility (Multi-stakeholder sectorbased platforms, and award scheme for enterprise-stakeholder partnerships) 2. Improve and tracking levels of trust in business (consider measures on green washing, and surveys of citizen perceptions) 3. Code of good practice for self- and coregulation 4. Enhancing market reward for CSR (consumption, investment, public procurement) 5. Legislative proposal on company disclosure of social and environmental information 6. CSR in education, training and research 7. Importance of national and sub-national CSR policies 8. Better alignment of European and global approaches on CSR

7 Activities: Guiding Material for Enterprises and the Public For SMEs (My Business and Human Rights) Five SME case studies Sector guidance notes (ICT, Oil & Gas, Employment & Recruitment Agencies) Corporate Social - Responsibility National Public Policies in the European Union - Compendium 2014

8 Activities: National Action Plans on CSR / Business and Human Rights The EU has endorsed the UN Guiding Principles in its 2011 CSR strategy and has made a commitment to support their implementation. National Action Plans are designed and driven by EU MS themselves, according to individual needs and specificities (NAP on CSR, B&HR, etc.)

9 2014 Reviewing our 2011 CSR strategy A year of review, consultation, stocktaking, preparation 2015 Public consultation on the Commission's CSR achievements, shortcoming and future challenges (29 April 15 August) Preparation of the Staff Working Document on the UN Guiding Principles on Business and Human Rights (Dec. 2014) Technical Report with the results of the Public Consultation (Nov. 2014) Plenary meeting of the Multi- Stakeholder Forum 450 participants, Charlemagne (3-4 February 2015) New Commission strategy on Corporate Social Responsibility (tbc., June/July 2015) Q Q Q Q2 2015

10 CSR-RELATED REGULATORY ACTIVITIES

11 Directive on Non-Financial Information Reporting New disclosure rules for companies above 500 employees to report on non-financial information in their management reports including human rights Companies concerned will need to disclose information on policies, risks and outcomes as regards environmental matters, social and employee-related aspects Respect for human rights, anti-corruption. bribery issues, and diversity key features of the directive

12 Procurement New Provisions Regarding Social, Environmental Concerns New procurement rules were adopted in January 2014 by the EP and Council Social, labour and environmental concerns were included in the following areas: Award decisions (Art. 54 (2)) Exclusion grounds (Art. 55) Rejection of a tender (Art. 69 (4)) Conditions for the performance of contracts (Art. 70)

13 Tomislav Ivančić Team Leader, Corporate Social Responsibility European Commission DG Internal Market, Industry, Entrepreneurship and SMEs Public Consultation on Corporate Social Responsibility

14 Public Consultation on CSR Objective: to receive feedback on the role of the Commission in CSR, its activities based on the 2011 policy communication, along with an identification of potential shortcomings and future challenges in CSR High response rate: 525 replies; respondents include private sector (44%), civil society (16%) and general public (14%) Results confirm the important role of the Commission in promoting CSR (more than 80% approval) Very high approval on importance of CSR in fostering competitiveness (79%) and sustainability (80%) in the EU's economy

15 The Role of the European Commission Q1. Should the EC engage in a policy on CSR? Q2. Does the EC put adequate emphasis on CSR? 83% of of all all respondents believe think that that the Commission should engage in a policy the Commission should engage on CSR Respondents believe that there has been only an average emphasis on CSR over the last years

16 Role of the European Commission Most important actors in promoting CSR : Private Sector - 71% (companies, social enterprises, business associations) Civil Society Organisations -51% International Organisations -47% Public Authorities - 41% Academia -20% Business Customers -7% The results confirm the Commission's approach: Private sector plays a key role

17 Results: The EC and CSR What was the most important contribution of the EC's Communication on CSR? Emphasizing the importance of CSR with companies and the society (259 replies) The proposal for a Directive on the Disclosure of Non-Financial and Diversity Information by certain Large Companies and Groups (233 replies) A New Definition of CSR (197 replies) Industry Priorities: enhancing visibility, CSR awards, MSF platforms SMEs and Public Sector Priorities: mainstreaming CSR in a wide range of policies

18 Results: Shortcomings Responses to the question: Were there shortcomings in the 2011 CSR Communication? Suggestions in addressing weak areas: 1. Creating a CSR website with access to best practices etc. 2. Establishing greater coherence with other policies 3. Greater focus on SMEs 4. Recognition of CSR rating agencies 5. Stronger collaboration with relevant stakeholders 6. Promoting consumer education 7. Highlighting the linkages and potential between CSR and innovation

19 Results: Role of CSR policy in the context of other EU policies CSR perceived as an impetus for other Commission policies by the majority of respondents 46% - positive connotation with the Commission's country-bycountry reporting for the extractive and forestry sectors (ex. EU Timber Regulation) 40% positive link to the Commission proposal for a Regulation setting up a system for supply chain due diligence and selfcertification of responsible importers of tin and other metal-based materials (draft regulation on Conflict Minerals) Commission's CSR policy is part of larger policy context, with strong spill over effects across sectors

20 Results: The Future of EC's Role in CSR Desired future role of the EC in CSR: International standard setting/leadership in CSR Raising the awareness and visibility of CSR Bringing stakeholders together around key CSR issues Supporting companies in implementing CSR Answers Ratio % % % % The EC should not be active at all 12 2%

21 Results: The Future of the EC's Role in CSR Desired future objectives of the CSR Policy: To raise visibility and importance of CSR amongst all actors in society To enhance market reward for CSR (through e.g. public procurement, investment or consumer policies ) To implement the UN Guiding Principles on Business and Human Rights To strengthen the cooperation with EU member states and regions on CSR To work enhance education on CSR

22 Results: The Future of the EC's Role in CSR Expected challenges for the future Communication: To find a balance between voluntary and regulatory actions To understand the needs of SMEs and the specific challenges they face in CSR matters To raise visibility and importance of CSR amongst all societal actors, specially consumers and investors. To create an international level playing field in order to avoid that responsible European companies are put at a disadvantage by third country competitors To enhance communication and outreach on CSR

23 100% 90% Results: Connecting CSR with jobs and growth 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1. Does CSR have an impact on the long-term competitiveness of the EU economy? Q2. Relationship between CSR and the sustainability of the EU economy? 42% 37% 35% All 40% 41% 41% 13% 15% 10% 5% 2% 6% 1% 4% 3% 53% 38% 7% 0% 2% Industry Civil society Public authorities 5 (Highest) (Lowest) In both questions a clear majority of stakeholders believe that CSR has an important impact. It is clear that CSR is not a trend but a factor of competitiveness, economic growth, job creation and sustainable development 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 49% 45% 44% 31% 30% 13% 15% 3% 2% 5% 1% 9% 4% 1% All 38% 63% 25% 12% 0% Industry Civil society Public authorities 5 (Highest) (Lowest)

24 Tomislav Ivančić Team Leader, Corporate Social Responsibility European Commission DG Internal Market, Industry, Entrepreneurship and SMEs Multi-Stakeholder Forum on Corporate Social Responsibility 3-4 February, 2015 Brussels, Belgium

25 EU's Multi-Stakeholder Forum on CSR Over 90 speakers and 500 participants from across: Sectors: extractives, textiles, ICT, agriculture, automotive, etc. Stakeholders: civil society, international organisations, governments, business/industry Objective: to obtain input on priorities for the EC's strategy on CSR

26 General Conclusions Strengthening platforms for exchanging dialogue, best practices and collaboration among stakeholders. Greater media engagement; media to play a more proactive role documenting developments, progress and setbacks. A new strategy on CSR should thus continue to be aligned with global principles and guidelines More guidance for firms, particularly SMEs

27 Panel Sessions International Market Access Education and Human Capital SMEs International Development Cooperation Business and Human Rights Public Procurement Innovation, Competitiveness and Growth Human Rights and Access to Remedies Responsible Investment Responsible Supply Chains National and Regional Policies on CSR Financial Institutions

28 Executive Summary Full executive summary available on DG GROW's website at:

29 Thank you for your attention Tomislav Ivančić Team Leader Corporate Social Responsibility

30 Responsible management of the supply chain in the garment sector, preparation of a possible EU flagship initiative European Commission

31 Responsible management of the supply chain: preparation of an EU flagship initiative on garments Why an initiative at EU level with the involvement of several Commission DGs and EEAS, as well as EU MS and other relevant actors? European Year for Development in 2015, an opportunity to showcase EU initiatives and to engage with citizens Responsible supply chains in the garment sector, a key issue in developing countries, close to citizens' concerns and expectations

32 Responsible supply chains in the garment sector

33 Possible EU flagship initiative proposed objectives (1) Improve communication on successful initiatives and relevant EU actions + raise awareness among European consumers Encourage better coordination, dialogue and exchanges between all stakeholders active in this area, aiming at long term improvements

34 Possible EU flagship initiative proposed objectives (2) Build on EU added value and stimulate all actors to step up efforts, including by: o encouraging and supporting developing countries to sign up to and implement international standards and conventions o fostering responsible supply chain management by private sector o strengthening global governance (with ILO, OECD, UN and others)

35 Process and next steps Informal consultation meeting organized on 23 January 2015 to share experience and good practices in the garment sector, gather ideas and suggestions to feed into the preparation process For more information contact: EuropeAid-