In the run-up to an important new phase in the development of Corporate Social Responsibility (CSR) in Europe, the European Trade Union Confederation has laid down a series of priorities for the European Commission and businesses.

As globalisation intensifies, the ETUC strongly reaffirms its demand for European businesses to behave responsibly towards their workforces and the wider community, both within the European Union and beyond its borders. At the same time, it insists that Corporate Social Responsibility cannot be an alternative to necessary regulation, social dialogue, or agreement with democratically elected workers’ representatives.

“The ETUC believes that Corporate Social Responsibility should complement, but in no way replace, legislation on social and environmental rights or standards set by collective bargaining,” said ETUC General Secretary John Monks. “No company failing to comply with agreements or legislation can be defined as socially responsible.”

In July 2001, the European Commission published a Green Paper aimed at opening the debate on promoting a European framework for Corporate Social Responsibility. This was followed just over a year later by the setting up of a European Multi-Stakeholder Forum on CSR (CSR EMS Forum), bringing together trade unions, businesses, non-governmental organisations (NGOs), investors and consumers, to promote innovation, consistency and transparency in the tools and practices employed under the CSR umbrella.

The CSR EMS Forum concludes its work on 29 June 2004 and will report to the Commission on its findings. This will be an important milestone for the development of CSR in Europe.

The ETUC re-emphasises its view that CSR, to be effective, must mean a change of attitude permeating the entire company, making environmental and social considerations an intrinsic part of day-to-day management and decision-making. ‘Responsibility’ is not merely about improving commercial image or winning over consumers, but rather a challenge for corporate thinking on a worldwide basis.

CSR in the EU must also reflect the principles of Social Europe and the aims of the Lisbon Agenda, such as better jobs, sustainable development, and lifelong learning.

The ETUC insists that, while CSR is a voluntary undertaking, it must be shaped by consistent guidelines established at European level:

• Lay down a single framework of standards and criteria that companies must comply with;
• Promote global responsibility, to prevent social dumping and the exploitation of weaker communities;
• Require larger companies to publish an annual report outlining activities in the field of CSR;
• Set standards for transparency and quality throughout the production chain, also covering supply and subcontracting;
• Adopt a consistent policy for the use of EU funds to promote CSR;
• Support the setting up of a resource centre, for information, training, and the exchange of good practice;
• Develop a system of certification to verify the legitimacy of CSR claims;
• Set up a permanent monitoring body with responsibility for maintaining European standards, and publish an annual report for the social partners, measuring progress on CSR.

Final report by ETUC