# EUR-Lex - 52011DC0681 - EN

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# 52011DC0681

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A renewed EU strategy 2011-14 for Corporate Social Responsibility /* COM/2011/0681 final */**

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TABLE OF CONTENTS

1........... Introduction.................................................................................................................... 3

1.1........ Addressing corporate social
responsibility is in the interests of enterprises........................ 3

1.2........ ...and in the interests of society
as a whole...................................................................... 3

1.3........ Why is the Commission presenting
this new strategy now?............................................... 4

2........... Evaluation of the impact of
European policy on CSR....................................................... 4

3........... A modern understanding of
corporate social responsibility............................................... 6

3.1........ A new definition.............................................................................................................. 6

3.2........ Internationally recognised
principles and guidelines........................................................... 6

3.3........ The multidimensional nature of
CSR................................................................................ 7

3.4........ The role of public authorities
and other stakeholders........................................................ 7

3.5........ CSR and the Social Business
Initiative............................................................................. 7

3.6........ CSR and social dialogue................................................................................................. 8

4........... An agenda for action 2011-2014.................................................................................... 8

4.1........ Enhancing the visibility of CSR and
disseminating good practices...................................... 8

4.2........ Improving and tracking levels of
trust in business.............................................................. 9

4.3........ Improving self- and co-regulation
processes.................................................................... 9

4.4........ Enhancing market reward for CSR................................................................................ 10

4.4.1..... Consumption................................................................................................................ 10

4.4.2..... Public procurement....................................................................................................... 10

4.4.3..... Investment.................................................................................................................... 11

4.5........ Improving company disclosure of
social and environmental information........................... 11

4.6........ Further integrating CSR into
education, training and research......................................... 12

4.7........ Emphasising the importance of
national and sub-national CSR policies........................... 13

4.8........ Better aligning European and
global approaches to CSR................................................ 13

4.8.1..... Focusing on internationally
recognised CSR principles and guidelines............................. 13

4.8.2..... Implementing the UN Guiding
Principles on Business and Human Rights......................... 14

4.8.3..... Emphasising CSR in relations with
other countries and regions in the world..................... 14

5........... Conclusion................................................................................................................... 15

1.
Introduction

The European Commission has previously
defined Corporate Social Responsibility (CSR) as “a concept whereby companies
integrate social and environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis”.[1]

Corporate social responsibility concerns
actions by companies over and above their legal obligations towards society and
the environment. Certain regulatory measures create an environment more
conducive to enterprises voluntarily meeting their social responsibility.

1.1.
Addressing corporate social responsibility is in
the interests of enterprises...

A strategic approach to CSR is increasingly
important to the competitiveness of enterprises. It can bring benefits in terms
of risk management, cost savings, access to capital, customer relationships,
human resource management, and innovation capacity.[2]

Because CSR requires engagement with
internal and external stakeholders, it enables enterprises to better anticipate
and take advantage of fast changing societal expectations and operating
conditions. It can therefore drive the development of new markets and create
opportunities for growth.

By addressing their social responsibility
enterprises can build long-term employee, consumer and citizen trust as a basis
for sustainable business models. Higher levels of trust in turn help to create
an environment in which enterprises can innovate and grow.

1.2.
...and in the interests of society as a whole

Through CSR, enterprises can significantly
contribute to the European Union’s treaty objectives of sustainable development
and a highly competitive social market economy. CSR underpins the objectives of
the Europe 2020 strategy for smart, sustainable and inclusive growth, including
the 75% employment target.[3]
Responsible business conduct is especially important when private sector
operators provide public services. Helping to mitigate the social effects of
the current economic crisis, including job losses, is part of the social
responsibility of enterprises. CSR offers a set of values on which to build a
more cohesive society and on which to base the transition to a sustainable
economic system.

1.3.
Why is the Commission presenting this new
strategy now?

The Council and the European Parliament
have both called on the Commission to further develop its CSR policy.[4] In the Europe 2020 Strategy,
the Commission made a commitment to renew the EU strategy to promote Corporate
Social Responsibility. In its 2010 communication on industrial policy the
Commission said it would put forward a new policy proposal on CSR.[5] In the Single Market Act it
stated that it would adopt a new communication on CSR by the end of 2011.[6]

The economic crisis and its social
consequences have to some extent damaged consumer confidence and levels of
trust in business. They have focused public attention on the social and ethical
performance of enterprises. By renewing efforts to promote CSR now, the
Commission aims to create conditions favourable to sustainable growth,
responsible business behaviour and durable employment generation in the medium
and long term.

2.
Evaluation of the impact of European policy on
CSR

The Commission has played a pioneering role
in the development of public policy to promote CSR ever since its 2001 Green
Paper[7]
and the establishment of the European Multistakeholder Forum on CSR. In 2006
the Commission published a new policy whose centrepiece was strong support for
a business-lead initiative called the European Alliance for CSR.[8] The policy also identified 8
priority areas for EU action: awareness-raising and best practice exchange;
support to multistakeholder initiatives; cooperation with Member States;
consumer information and transparency; research; education; small and
medium-sized enterprises; and the international dimension of CSR.

This policy has contributed to progress in
the field of CSR. Indicators of progress include:

–
The number of EU enterprises that have signed up
to the ten CSR principles of the United Nations Global Compact has risen from
600 in 2006 to over 1900 in 2011.

–
The number of organisations with sites
registered under the Environmental Management and Audit Scheme (EMAS) has risen
from 3,300 in 2006 to over 4,600 in 2011[9].

–
The number of EU companies signing transnational
company agreements with global or European workers’ organisations, covering
issues such as labour standards, rose from 79 in 2006 to over 140 in 2011.

–
The Business Social Compliance Initiative, a
European, business-driven initiative for companies to improve working
conditions in their supply-chains, has increased its membership from 69 in 2007
to over 700 in 2011.

–
The number of European enterprises publishing
sustainability reports according to the guidelines of the Global Reporting
Initiative rose from 270 in 2006 to over 850 in 2011.

Through the European Alliance on CSR,
leading enterprises developed a series of practical tools on key issues.[10] About 180 enterprises
expressed support for the Alliance. National employers’ associations also
supported the Alliance and undertook a number actions to promote CSR.

In spite of this progress, important
challenges remain. Many companies in the EU have not yet fully integrated
social and environmental concerns into their operations and core strategy.
Accusations persist of the involvement of a small minority of European
enterprises in human rights harm and failure to respect core labour standards.
Only 15 out of 27 EU Member States have national policy frameworks to promote
CSR.[11]

The Commission has identified a number of
factors that will help to further increase the impact of its CSR policy,
including:

–
The need for a balanced multistakeholder
approach that takes account of the views of enterprises, non-business
stakeholders and Member States.

–
The need to better clarify what is expected of
enterprises, and to make the EU definition of CSR consistent with new and
updated international principles and guidelines.

–
The need to promote market reward for
responsible business conduct, including through investment policy and public
procurement.

–
The need to consider self- and co-regulation
schemes, which are an important means by which enterprises seek to meet their
social responsibility.

–
The need to address company transparency on
social and environmental issues from the point of view of all stakeholders, including
enterprises themselves.

–
The need to give greater attention to human rights,
which have become a significantly more prominent aspect of CSR.

–
The need to acknowledge the role that
complementary regulation plays in creating an environment more conducive to
enterprises voluntarily meeting their social responsibility..

The remainder of this communication
presents a modern understanding of CSR, including an updated definition, and a
new agenda for action. In doing so it builds on the 2006 policy while also
introducing important new elements which can help further extend the impact of
the policy. It seeks to reaffirm the EU’s global influence in this field,
enabling the EU to better promote its interests and values in relations with
other regions and countries. It will also help to guide and coordinate EU
Member State policies and so reduce the risk of divergent approaches that could
create additional costs for enterprises operating in more than one Member
State.

3.
A modern understanding of corporate social
responsibility
3.1.
A new definition

The Commission
puts forward a new definition of CSR as “the responsibility of enterprises for
their impacts on society”. Respect for applicable legislation, and for
collective agreements between social partners, is a prerequisite for meeting
that responsibility. To fully meet their corporate social responsibility,
enterprises should have in place a process to integrate social, environmental,
ethical, human rights and consumer concerns into their business operations and
core strategy in close collaboration with their stakeholders, with the aim of:

–
maximising the creation of shared value for
their owners/shareholders and for their other stakeholders and society at
large;

–
identifying, preventing and mitigating their
possible adverse impacts.

The complexity
of that process will depend on factors such as the size of the enterprise and
the nature of its operations. For most small and medium-sized enterprises,
especially micro-enterprises, the CSR process is likely to remain informal and
intuitive.

To maximise the
creation of shared value, enterprises are encouraged to adopt a long-term, strategic approach to CSR, and
to explore the opportunities for developing innovative products,
services and business models that contribute to societal wellbeing and lead to
higher quality and more productive jobs.

To identify,
prevent and mitigate their possible adverse impacts, large enterprises, and
enterprises at particular risk of having such impacts, are encouraged to carry
out risk-based due diligence, including through their supply chains.

Certain types
of enterprise, such as cooperatives, mutuals, and family-owned businesses, have
ownership and governance structures that can be especially conducive to
responsible business conduct.

3.2.
Internationally recognised principles and
guidelines

For companies seeking a formal approach to
CSR, especially large companies, authoritative guidance is provided by internationally
recognised principles and guidelines, in particular the recently updated OECD
Guidelines for Multinational Enterprises, the ten principles of the United
Nations Global Compact, the ISO 26000 Guidance Standard on Social
Responsibility, the ILO Tri-partite Declaration of Principles Concerning
Multinational Enterprises and Social Policy, and the United Nations Guiding
Principles on Business and Human Rights. This core set of internationally
recognised principles and guidelines represents an evolving and recently strengthened
global framework for CSR. European policy to promote CSR should be made fully
consistent with this framework.

3.3.
The multidimensional nature of CSR

According to these principles and
guidelines, CSR at least covers human rights, labour and employment practices
(such as training, diversity, gender equality and employee health and
well-being), environmental issues (such as biodiversity, climate change, resource
efficiency,  life-cycle assessment and pollution prevention), and combating
bribery and corruption. Community involvement and development, the integration
of disabled persons, and consumer interests, including privacy, are also part
of the CSR agenda. The promotion of social and environmental responsibility
through the supply-chain, and the disclosure of non-financial information, are
recognised as important cross-cutting issues. The Commission has adopted a
communication on EU policies and volunteering in which it acknowledges employee
volunteering as an expression of CSR.[12]

In addition, the Commission promotes the
three principles of good tax governance – namely transparency, exchange of
information and fair tax competition – in relations between states. 
Enterprises are encouraged, where appropriate, also to work towards the
implementation of these principles.

3.4.
The role of public authorities and other
stakeholders

The development
of CSR should be led by enterprises themselves. Public authorities should play
a supporting role through a smart mix of voluntary policy measures and, where
necessary, complementary regulation, for example to promote transparency,
create market incentives for responsible business conduct, and ensure corporate
accountability.

Enterprises must be given the flexibility
to innovate and to develop an approach to CSR that is appropriate to their
circumstances. Many enterprises nevertheless value the existence of principles
and guidelines that are supported by public authorities, to benchmark their own
policies and performance, and to promote a more level playing field.

Trade unions and civil society
organisations identify problems, bring pressure for improvement and can work
constructively with enterprises to co-build solutions. Consumers and investors
are in a position to enhance market reward for socially responsible companies
through the consumption and investment decisions they take. The media can raise
awareness of both the positive and negative impacts of enterprises. Public authorities
and these other stakeholders should demonstrate social responsibility,
including in their relations with enterprises.

3.5.
CSR and the Social Business Initiative

Corporate
social responsibility is applicable to all enterprises. This communication is
adopted together with a complementary but distinct Social Business Initiative
(SBI) which supports a specific kind of enterprise, namely those whose primary
purpose is explicitly social and/or environmental, that reinvest profits for
that purpose, and whose internal organisation reflects the societal objectives.[13] The SBI deals with the
ecosystem required for social business and social innovation to flourish and
contribute to the European social market economy.

3.6.
CSR and social dialogue

In recent years several sectoral social
dialogue committees have promoted good CSR practices and established guidelines.[14] The Commission facilitates
such initiatives and recognises that CSR contributes to and supplements social
dialogue.
Innovative and effective CSR policies have also been
developed through transnational company agreements (TCAs) concluded between
enterprises and European or global workers' organisations.[15] The EU actively supports TCAs and will launch a searchable database
of such agreements.

4.
An agenda for action 2011-2014

This agenda contains commitments from the
Commission itself, as well as suggestions for enterprises, Member States, and
other stakeholder groups. In implementing this agenda, the Commission will at
all times take account the particular characteristics of SMEs, especially their
limited resources, and avoid creating unnecessary administrative burdens.

4.1.
Enhancing the visibility of CSR and
disseminating good practices

By giving
public recognition to what enterprises do in the field of CSR, the EU can help
to disseminate good practice, foster peer learning, and encourage more
enterprises to develop their own strategic approaches to CSR. Building on the
lessons of initiatives in different Member States, the Commission will support
capacity-building for SME intermediary organisations to improve the quality and
availability of CSR advice for small and medium-sized enterprises.

The Commission has launched a wide range of
programmes to work with enterprises and other stakeholders on critical social
and environmental issues.[16]
Further engagement with enterprises will be important for the success of the
Europe 2020 strategy. The Commission will therefore promote dialogue with
enterprises and other stakeholders on issues such as employability, demographic
change and active ageing[17],
and workplace challenges (including diversity management, gender equality,
education and training, and employee health and well-being). It will in
particular focus on sectoral approaches and on the dissemination of responsible
business conduct through the supply chain.

CSR Europe’s Enterprise 2020 initiative is
an example of business leadership in the field of CSR that is particularly
relevant to EU policy objectives. The Commission will help to review the
initial results of this initiative by the end of 2012, and to define its next
steps.

The Commission intends to:

1.
Create in 2013 multistakeholder CSR platforms in
a number of relevant industrial sectors, for enterprises, their workers and
other stakeholders to make public commitments on the CSR issues relevant to
each sector and jointly monitor progress.

2.
Launch from 2012 onwards a European award scheme
for CSR partnerships between enterprises and other stakeholders.

4.2.
Improving and tracking levels of trust in
business

Like all organisations, including
governments and the EU itself, enterprises need to be trusted by citizens. The
European business community should aspire to be amongst the most trusted groups
of organisations in society. There is frequently a gap between citizens’
expectations and what they perceive to be the reality of business behaviour.
This gap is caused partly by instances of irresponsible behaviour by some
enterprises, as well as by cases of some enterprises exaggerating their
environmental or social credentials. Sometimes it is caused by an insufficient
understanding on the part of some enterprises of fast evolving societal
expectations, as well as by an insufficient awareness on the part of citizens
of the achievements of enterprises and the constraints under which they
operate.

The Commission intends to:

3.
Address the issue of misleading marketing
related to the environmental impacts of products (so-called
"green-washing") in the context of the report on the application of
the Unfair Commercial Practices Directive[18]
foreseen for 2012, and consider the need for possible
specific measures on this issue.

4.
Initiate an open debate with citizens,
enterprises and other stakeholders on the role and potential of business in the
21st century, with the aim of encouraging common understanding and
expectations, and carry out periodic surveys of citizen trust in business and
attitudes towards CSR.

4.3.
Improving self- and co-regulation processes

Enterprises often participate in self- or
co-regulation processes, for example sector-wide codes of conduct on societal issues
relevant to the sector in question. When such processes are designed in an
appropriate way they can earn stakeholder support and be an effective means of ensuring
responsible business conduct. Self and co-regulation are acknowledged by the EU
as a part of the better regulation agenda.[19]

Experience suggests that self and
co-regulation processes are most effective when they: are based on an initial
open analysis of the issues with all concerned stakeholders, in the presence of
and if necessary convened by public authorities such as the European
Commission; result, in a subsequent phase, in clear commitments from all
concerned stakeholders, with performance indicators; provide for objective
monitoring mechanisms, performance review and the possibility of improving
commitments as needed; and include an effective accountability mechanism for
dealing with complaints regarding non-compliance.

The Commission intends to:

5.
Launch a process in 2012 with enterprises and
other stakeholders to develop a code of good practice for self- and
co-regulation exercises, which should improve the effectiveness of the CSR
process.

4.4.
Enhancing market reward for CSR

The positive impacts of CSR on
competitiveness are increasingly recognised, but enterprises still face
dilemmas when the most socially responsible course of action may not be the
most financially beneficial, at least in the short term. The EU should leverage
policies in the field of consumption, public procurement and investment to
strengthen market incentives for CSR.

4.4.1.
Consumption

Consumer attention to
CSR-related issues has grown in recent years, but significant barriers remain,
such as insufficient awareness, the need sometimes to pay a price premium, and
lack of easy access to the information necessary for making informed choices. Some
enterprises play a pioneering role in helping consumers to make more
sustainable choices. The revision of the Sustainable Consumption and Production
Action Plan may provide an opportunity to identify new measures to facilitate
more responsible consumption.

4.4.2.
Public procurement

The Commission set an indicative target
that by 2010 50% of all public procurement in the EU should comply with agreed
environmental criteria. In 2011 the Commission published a guide on Socially
Responsible Public Procurement (SRPP), explaining how to integrate social
considerations into public procurement while respecting the existing EU legal
framework.[20]
SRPP can include positive action by public authorities to help
under-represented businesses, such as SMEs, to gain access to the public
procurement market.

Member States and public authorities at all
levels are invited to make full use of all possibilities offered by the current
legal framework for public procurement. The integration of environmental and
social criteria into public procurement must be done in particular in a way
that does not discriminate against SMEs, and abides by Treaty provisions on
non-discrimination, equality of treatment and transparency.

The Commission intends to:

6.
Facilitate the better integration of social and
environmental considerations into public procurement as part of the 2011 review
of the Public Procurement Directives, without introducing additional
administrative burdens for contracting authorities or enterprises, and without
undermining the principle of awarding contracts to the most economically
advantageous tender.

4.4.3.
Investment

In response to the financial crisis, the
Commission is making a number of regulatory proposals to ensure a more
responsible and transparent financial system. By taking adequate account of relevant
non-financial information, investors can contribute to a more efficient
allocation of capital and better achieve longer-term investment
goals. The Commission is supporting capacity-building
for investors on how to integrate non-financial information into investment
decisions. In this context, the Commission encourages enterprises to disclose
information related to the implementation of good tax governance standards.

European asset managers and asset owners,
especially pension funds, are invited to sign up to the UN Principles for
Responsible Investment. Public authorities have a particular responsibility to
promote CSR in enterprises which they own or in which they invest.

The Commission intends to:

7.
Consider a requirement on all investment funds
and financial institutions to inform all their clients (citizens, enterprises,
public authorities etc.) about any ethical or responsible investment criteria
they apply or any standards and codes to which they adhere.

4.5.
Improving company disclosure of social and
environmental information

Disclosure of social and environmental
information, including climate-related information, can facilitate engagement
with stakeholders and the identification of material sustainability risks. It
is also an important element of accountability and can contribute to building
public trust in enterprises. To meet the needs of enterprises and other
stakeholders, information should be material, and cost-effective to collect.

Some Member States have introduced
non-financial disclosure requirements that go beyond existing EU legislation.[21] There is a possibility that
different national requirements could create additional costs for enterprises
operating in more than one Member State.

A growing number of companies disclose
social and environmental information. SMEs often communicate such information
informally and on a voluntary basis. One source estimates that about 2,500
European companies publish CSR or sustainability reports, which puts the EU in
a position of global leadership[22].
However this is still only a small fraction of the 42,000 large companies
operating in the EU.

There are a number of international
frameworks for the disclosure of social and environmental information, including
the Global Reporting Initiative. Integrated financial and non-financial
reporting represents an important goal for the medium and long term, and the
Commission follows with interest the work of the International Integrated
Reporting Committee.

In order to ensure a level playing field, as
announced in the Single Market Act the Commission will present a legislative proposal on the transparency of the social
and environmental information provided by companies in all sectors. An impact assessment of possible options for this proposal, which
will also include a competitiveness proofing and SME test, is currently
ongoing. The Commission is also developing a policy to
encourage companies to measure and benchmark their environmental performance
using a common life-cycle based methodology that could also be used for
disclosure purposes.

All organisations, including civil society
organisations and public authorities, are encouraged take steps to improve
disclosure of their own social and environmental performance..

4.6.
Further integrating CSR into education, training
and research

The further development of CSR requires new
skills as well as changes in values and behaviour. Member States can play an
important role by encouraging education establishments to integrate CSR,
sustainable development and responsible citizenship into relevant education
curricula, including at secondary school and university level. European
business schools are encouraged to sign the UN Principles for Responsible
Management Education.

High quality academic research supports the
development of business practice and public policy in the field of CSR. Further
research should build on the results of projects financed under the 6th
and 7th EU Framework Programmes. The Commission will explore
opportunities for financing further research and innovation on CSR, and
supporting CSR principles and guidelines in research funded still under the 7th
Framework Programme, as well as under its successor, Horizon 2020, and in
building the European Research Area.

The Commission intends to:

8.
Provide further financial support for education
and training projects on CSR under the EU Lifelong Learning and Youth in Action
Programmes, and launch an action in 2012 to raise the awareness of education
professionals and enterprises on the importance of cooperation on CSR.

4.7.
Emphasising the importance of national and
sub-national CSR policies

Many public policy measures to support CSR
are best carried out at national, regional and local level. Local and regional
authorities are encouraged to make smart use of EU structural funds to support
the development of CSR, especially amongst SMEs, and to partner with companies
to better address problems such as poverty and social inclusion.

The Commission intends to:

9.
Create with Member States in 2012 a peer review
mechanism for national CSR policies.

The Commission invites:

A            Member States to develop or update by mid 2012 their
own plans or national lists of priority actions to promote CSR in support of
the Europe 2020 strategy, with reference to internationally recognised CSR
principles and guidelines and in cooperation with enterprises and other
stakeholders, taking account of the issues raised in this communication.

4.8.
Better aligning European and global approaches
to CSR

The EU should promote European interests in
international CSR policy developments, while at the same time ensuring the
integration of internationally recognised principles and guidelines into its
own CSR policies.

4.8.1.
Focusing on internationally recognised CSR principles
and guidelines

In order to advance a more level global
playing field, the Commission will step up its cooperation with Member States,
partner countries and relevant international fora to promote respect for
internationally recognised principles and guidelines, and to foster consistency
between them. This approach also requires EU enterprises to renew their efforts
to respect such principles and guidelines.

The OECD Guidelines are recommendations
addressed by governments to multinational enterprises. The Commission welcomes
the adherence of non-OECD countries to the Guidelines. In addition to
governmental endorsement, the Guidelines have a distinctive implementation and
grievance mechanism, the network of National Contact Points established by all
adhering countries, that can assist enterprises and their stakeholders in
resolving practical issues, including through mediation and conciliation.

The Commission intends to:

10.
Monitor the commitments made by European
enterprises with more than 1.000 employees to take account of internationally
recognised CSR principles and guidelines, and take account of the ISO 26000
Guidance Standard on Social Responsibility in its own operations.

The Commission invites:

B            All large European enterprises to make a commitment by
2014 to take account of at least one of the following sets of principles and
guidelines when developing their approach to CSR: the UN Global Compact, the
OECD Guidelines for Multinational Enterprises, or the ISO 26000 Guidance
Standard on Social Responsibility.

C            All European-based multinational enterprises to make a
commitment by 2014 to respect the ILO Tri-partite Declaration of Principles
Concerning Multinational Enterprises and Social Policy.

4.8.2.
Implementing the UN Guiding Principles on Business
and Human Rights[23]

Improving the coherence of EU policies
relevant to business and human rights is a critical challenge. Better
implementation of the UN Guiding Principles will contribute to EU objectives
regarding specific human rights issues and core labour standards, including
child labour, forced prison labour, human trafficking, gender equality,
non-discrimination, freedom of association and the right to collective
bargaining. A process involving enterprises, EU Delegations in partner
countries, and local civil society actors, in particular human rights
organisations and defenders, will raise understanding of the challenges
companies face when operating in countries where the state fails to meet its
duty to protect human rights.

The Commission intends to:

11.
Work with enterprises and stakeholders in 2012
to develop human rights guidance for a limited number of relevant industrial
sectors, as well as guidance for small and medium-sized enterprises, based on
the UN Guiding Principles.

12.
Publish by the end of 2012 a report on EU priorities
in the implementation of the UN Guiding Principles, and thereafter to issue
periodic progress reports.[24]

The Commission also:

D            Expects all European enterprises to meet the corporate
responsibility to respect human rights, as defined in the UN Guiding
Principles.

E            Invites EU Member States to develop by the end of 2012
national plans for the implementation of the UN Guiding Principles.

4.8.3.
Emphasising CSR in relations with other
countries and regions in the world

Internationally recognised CSR guidelines and
principles represent values which should be embraced by the countries wishing
to join the European Union, and the Commission will therefore continue to
address this in the accession process.

The Commission promotes CSR through its
external policies. It will continue, through a mix of global advocacy and
complementary legislation, to aim at disseminating internationally recognised
CSR guidelines and principles more widely and enabling EU businesses to ensure
that they have a positive impact in foreign economies and societies. The
Commission will make relevant proposals in the field of trade-and-development.
Furthermore where appropriate, it will propose to address CSR in established
dialogues with partner countries and regions.

EU development
policy recognises the need to support CSR.[25]
By promoting respect for social and environmental
standards, EU enterprises can foster better governance and inclusive growth in
developing countries. Business models that target the
poor as consumers, producers, and distributors help to maximise development
impact. The search for synergies with the private sector will become an
increasingly important consideration in EU development cooperation and in EU responses
to natural and man-made disasters. Enterprises can play
an important role through employee volunteering in this respect. The future
European Voluntary Humanitarian Aid Corps may provide one means of better
exploiting synergies with the private sector.

The Commission intends to:

13.
Identify ways to promote responsible business
conduct in its future policy initiatives towards more inclusive and sustainable
recovery and growth in third countries.

5.
Conclusion

The Commission will work with Member
States, enterprises and other stakeholders to periodically monitor progress and
to jointly prepare a review meeting to be held by mid 2014. In preparation for
that meeting the Commission will publish a report on the implementation of the
agenda for action set out in this communication. This will require more
coordinated working methods between the European Multistakeholder Forum on CSR
and the High Level Group of CSR representatives of Member States. The
Commission will present an operational proposal for this by the end of 2011.

On the basis of this communication, the
European Commission would welcome discussion with and commitments from the
Council, the European Parliament, the Economic and Social Committee, the
Committee of the Regions, enterprises and other stakeholders.

The Commission calls on European business
leaders, including those from the financial sector, to issue, before mid 2012,
an open and accountable commitment to promote, in close cooperation with public
authorities and their other stakeholders, the uptake of responsible business
conduct by a much larger number of EU enterprises, with clear targets for 2015
and 2020.

[1]               COM(2001)366

[2]               European Competitiveness Report 2008 (COM(2008)774),
and accompanying Staff Working Paper SEC(2008) 2853

[3]               A number of the Europe 2020 flagship initiatives make
reference to CSR: the Integrated Industrial Policy for the Globalisation Era COM(2010)614,
the European Platform against Poverty and Social Exclusion COM(2010)758, the
Agenda for New Skills and Jobs COM(2010)682, Youth on the Move COM(2010)477 and
the Single Market Act COM(2011)206. In addition, the Innovation Union
COM(2010)546) aims to enhance the capacity of enterprises to address societal
challenges through innovation, and the contribution of enterprises is central
to achieving the objectives of the flagship initiative “A Resource-Efficient
Europe” COM(2011)21 and COM(2011)571..

[4]               Environment Council 5 December 2008, Environment
Council 20 December 2010, Foreign Affairs Council 14 June 2010, European
Parliament Resolution 13 March 2007 (P6_TA(2007)0062), European Parliament Resolution
8 June 2011 P7_TA(2011)0260

[5]               Integrated Industrial Policy for the Globalisation
Era COM(2010)614

[6]               COM(2011)206

[7]               COM(2001)366

[8]               COM(2006)136

[9]               Of these organisations, it is estimated that about
80% are enterprises.

[10]             For example: gender equality, responsible supply-chain
management, and improving dialogue with investors on companies’ non-financial
performance. See www.csreurope.org/pages/en/toolbox.html

[11]             “Corporate Social Responsibility: National Public
Policies in the EU”, European Commission, 2011

[12]             “Communication on EU Policies
and Volunteering: Recognising and Promoting Crossborder Voluntary Activities in
the EU” COM(2011)568.

[13]             COM(2011)682

[14]             "Industrial relations in Europe 2010",
Chapter 6.3.4, European Commission, DG Employment Social Affairs and Inclusion,
2011

[15]             “The role of transnational company agreements in the
context of increasing international integration” COM(2008) 419 final

[16]             For example: the Retail Forum for Sustainability; the
EU Platform for Diet, Physical Activity and Health; the Business and
Biodiversity Campaign; the process on corporate responsibility in the
pharmaceutical industry; the European Food and Sustainable Production Round
Table; the University-Business Forum; the Advertising Round Table; and the
European Pact for Mental Health and Well-being.

[17]             2012 is the European Year of Active Ageing.

[18]             Directive 2005/29/EC

[19]             See the Interinstitutional Agreement on better
Law-making 2003/C 321/01, and Commission Communication “Better Regulation for
Growth and Jobs in the European Union” COM(2005)97.

[20]             “Buying Social: a guide to taking account of social
considerations in public procurement”, European Commission, 2011

[21]             The Fourth Directive on annual
accounts 2003/51/EC requires enterprises to disclose in
their annual reports environmental and employee-related information to the extent necessary for an understanding of the company's
development, performance or position. All Member States have chosen to exempt
SMEs from this requirement.

[22]             CorporateRegister.com

[23]             The UN Guiding Principles cover three pillars: the
state duty to respect human rights; the corporate responsibility to respect
human rights; and the need for access to effective remedy.

[24]             Reports published by the European Commission on the
legal framework for human rights and the environment applicable to EU
enterprises when they operate outside the EU (2010), and on responsible supply
chain management (2011), will be considered in this context.

[25]             The European Consensus on Development, 2005