The European Commission’s second
white paper on CSR draws a line under more than five years of
deliberation by officials. EP examines what it says
What is the purpose of an EC white paper?
To outline future commitments and policies on a specific topic.
We had a white paper on CSR in 2002. Why a second one?
The
first white paper made few concrete proposals. Its main outcome was the
‘multi stakeholder forum’ of business groups, non-governmental
organizations and unions that the Commission hoped would inform its
policy-making. This second white paper was intended to elaborate on EC
policy in this area, taking into account the forum’s deliberations.
So what did the forum decide?
Not
a lot. It was riven from the outset by polarized views, with business
groups favouring a voluntary approach and others wanting more
regulation. When the forum finally came out in support of the voluntary
approach, NGOs broke ranks and withdrew their support.
What position does the new paper take on the voluntary versus regulatory debate?
It
comes down firmly against any specific EC regulations on CSR, arguing
that imposing ‘additional obligations and administrative requirements’
on business ‘would be contrary to the principle of better regulation’.
How has that been received?
Business
lobby groups, such as the European employers organization Unice, that
do not favour regulation, are pleased. NGOs, which were hoping for
signs that regulation would at least remain in prospect, are not.
However, it’s not just NGOs that are upset: British Euro MP Richard
Howitt, a former EC rapporteur on CSR, says the paper, which is only 12
pages long, ‘has dumped five years of debate and consultation into a
black hole’. It may also upset companies that have developed CSR
policies and would now like regulation to level the playing field.
Is there any glimmer of hope for the supporters of regulation?
The
white paper pledges to ‘reconvene meetings of the multi-stakeholder
forum at regular intervals’. That at least leaves the door open for
NGOs and unions to make their case.
If there are no plans for regulation, what measures has the white paper come up with?
The
main one is the European Alliance for CSR, which is described as an
‘umbrella for new or existing CSR initiatives’ by companies large and
small.
What will the Alliance look like?
That
remains unclear. The white paper says it will not be a ‘legal
instrument’ and that there will be ‘no formal requirements for
declaring support’. The EC will not even maintain a list of companies
that are in the Alliance, whose ‘open nature’ will bring companies and
stakeholders together in ‘coalitions of co-operation’ on areas such as
supply chain management. The companies will have to keep the Commission
informed of what they are doing. The Alliance will ‘not imply any new
financial obligations for the Commission’, though it could attract
money from the existing CSR budget.
Any other measures?
The
EC undertakes to continue to raise awareness of CSR, especially in new
European Union member states; encourage voluntary transparency by
companies on public health issues; support research; ‘seek to address
CSR issues’ in trade talks and agreements; and raise corporate
responsibility as an issue at the EU-Africa Business Forum this autumn.
It will also urge universities and business schools to bring the topic
into the mainstream curriculum.
Any significant omissions?
There
is no mention of socially responsible investment. Earlier suggestions
that guidelines on measurement, reporting and assurance would be
developed have gone, as have previous commitments to foster responsible
business practice by changing the rules on public procurement and bring
in social and eco-labels for products.
And what about the timetable for the measures it has put forward?
There are no time targets for implementing any of the key measures.
