A springboard to success

Tuesday, March 24, 2009

On the journey towards a more sustainable competitiveness of the European economy, CSR Europe's Ben Davies offers his views on corporate social responsibility – from challenges to opportunities

The global economic slowdown brings unprecedented challenges to companies, governments and societies across the world. Against the backdrop of the financial crisis, there is an increased urgency for different players in business and society to build mutual trust and engage in joint efforts towards a more sustainable and responsible economy.

The challenging economic situation highlights the need for companies to develop corporate social responsibility (CSR) strategies and practices that are truly embedded in their operations and interaction with stakeholders. Responsible business practices can help companies strengthen brands and reputation, attract and retain talent, meet societal expectations, achieve efficiency gains and cost savings, and create new business opportunities. Progressive companies no longer see CSR as an add-on to their core business activities, but as an integral part of the way they do business and an important driver for strategic innovation and long-term value creation.

It is in this spirit that around 80 global corporations and 25 national CSR organisations have joined CSR Europe. The network was created in 1995 by a group of European business leaders in response to an appeal by the European Commission President Jacques Delors, and over the years has developed its activities along with the evolving CSR movement – from raising awareness for the nascent concept of CSR to providing a platform for business-to-business exchange and concrete co-operation projects among companies and their stakeholders.

Engaging in the European CSR policy debate
Since its inception, CSR Europe has played an important role in providing input into the European CSR policy debate and continues to do so today as the agendas of competitiveness and sustainability become increasingly intertwined.

CSR Europe is a key partner of the European Alliance for CSR, an initiative launched in 2006 by the European business community with the strong backing of the European Commission. The Alliance is an open partnership based on a dual commitment: that the European Commission and member states strengthen a business-friendly environment in which enterprises can flourish and grow; and that, through a voluntary approach, more enterprises in Europe and internationally will further learn and innovate with regards to their products and services, management, governance and stakeholder dialogue.

By urging European companies of all sizes to join the responsible business movement, the Alliance stresses the potential of CSR to contribute to the goals of the EU's Lisbon Strategy for Growth and Jobs – sustainable economic growth, more and better jobs, and greater social cohesion. In its reaction to the financial crisis, the European Commission further emphasised that overcoming the economic recession and finding solutions to our environmental and social problems must not be a zero sum game.

The latest annual European Competitiveness Report released by the Commission in November 2008 analysed the links between CSR and competitiveness in detail, and concluded that 'the importance of CSR cannot be overestimated, not least since one lesson from the current financial crisis is that socially responsible entrepreneurs and CEOs are of utmost importance for the wellbeing of our societies'. It also stressed that the biggest competitiveness gains will come to those companies who integrate CSR in their core strategy and purpose. Companies that deal with CSR as peripheral issue, mainly related to public relations, risk missing out on potential competitiveness gains.

Co-building solutions for a complex world
In practice, companies and their stakeholders can engage in the European Alliance for CSR in a number of ways. At the heart of the Alliance are 'CSR Laboratory' projects led by companies and co-ordinated by CSR Europe and its partner organisations. In these collaborative projects, hundreds of business practitioners, policy-makers, NGO representatives and other stakeholders work closely together to tackle pressing socio-economic and environmental challenges. The existing projects address issues ranging from demographic change to wellbeing at work, diversity and equal opportunities, financial inclusion, eco-efficiency and responsible supply chain management, among many others.

To take an example, a Europe-wide initiative launched by Microsoft, Cisco, State Street and Randstad aims to build the foundations for employability and inclusion by providing access to IT and other employability related skills to current and future generations and groups at risk. The campaign aims to reach 20 million people across Europe by 2010 through innovative partnerships with industry, local public sector employment agencies, skills councils, local chambers of commerce and SME associations. In Portugal, Microsoft and partners have co-operated with local public and private organisations to help over 1,700 unemployed textile workers get the IT skills necessary in today's job market. In France, the companies leading the initiative have joined forces with a local NGO in a project that aims at bringing women over the age of 45 back into the workplace.

In the globalised world, addressing issues such as working conditions, demographic change, global poverty or environmental degradation effectively requires new – and sometimes unconventional – partnerships that extend across industrial sectors and geographical regions. In a laboratory project on responsible supply chain management, companies as diverse as the technology giant HP, cosmetics group L'Oréal, cement producer Titan and car manufacturer Volkswagen have joined forces to help companies mainstream responsible business practices across their supply chain. The web portal developed by the group (www.csr-supplychain.org) provides hands-on tools and information on CSR for both buyers and suppliers.

CSR Europe has made the first results of all existing laboratory projects publicly available on its website as part of its online Toolbox for a Competitive and Responsible Europe (www.csreurope.org/toolbox). The toolbox includes practical guides, research reports, interactive tools and network models on a wide range of topics divided into five broad themes of key importance to business and society: creating an integrated workplace, developing human capital, engineering new business models, promoting sustainable production and consumption, and enhancing trust through open communication.

As a source of inspiration and a springboard to accelerated action, the toolbox is an open invitation to other companies and stakeholders to join the journey towards a more sustainable competitiveness of the European economy.

More information:
CSR Europe: www.csreurope.org
CSR Europe's Toolbox: www.csreurope.org/toolbox
The European Alliance for CSR: www.csreurope.org/alliance