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The European Commission's Approach to Responsible Business:
Towards a 2016-2020 strategy on Corporate Social Responsibility
Giuseppe Cacciato, Senior Adviser,DG for Internal Market, Industry, Entrepreneurship and SMEs
• Policy areas (current):• CSR, Tourism, Service Industries;• Policy areas (past):• Completion of the Single Market;• Competition;• Consumer Protection;• Toy Safety;• Trade Agreements
Albert Einstein :
• 'It' easier to break an atom than a prejudice'
Why Corporate Social Responsibility?
• European citizens do not feel 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
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
Internationally Recognised CSR Guidelines and Principles
Cooperation Across the European Commission and EU
Institutions
• EEAS, Business and Human Rights• DG Trade• DG Employment and Social Affairs• DG Development and Cooperation• DG Justice • Several other DGs - CNCT, ENV, etc.
THE APPROACH OF THE EUROPEAN COMMISSION
OUR 2011 – 2014 STRATEGY
AGENDA FOR ACTION
1. Enhancing visibility (Multi-stakeholder sector-based 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 co-regulation
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
EC Communication on Corporate Social Responsibility
(CSR) , 2011-2014
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
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.)
Reviewing our 2011 CSR strategyA year of review, consultation, stock-
taking, preparation
Q3 2014 Q1 2015
Public consultation on the Commission's CSR
achievements, shortcoming and future
challenges(29 April – 15 August)
Plenary meeting of the Multi-Stakeholder Forum – 450 participants,
Charlemagne (3 - 4 February
2015)
Preparation of the Staff Working Document on the UN Guiding
Principles on Business and Human Rights (Dec. 2014)
Q4 2014 Q1 2016
Technical Report with
the results of the Public
Consultation (Nov. 2014)
New Commission strategy on
Corporate Social Responsibility
(tbc., Q1 2016)
20142016
CSR-RELATED REGULATORY ACTIVITIES
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
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)