Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee - Implementing the partnership for growth and jobs : making Europe a pole of excellence on corporate social responsibility
Date: 2006-03-22
Institutions: European Commission
Subjects: European Employment Strategy, business management, business policy, corporate social responsibility, economic and social cohesion, sustainable development, type of business

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.3.2006 
COM(2006) 136 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE 

IMPLEMENTING THE PARTNERSHIP FOR GROWTH AND JOBS: 
MAKING EUROPE A POLE OF EXCELLENCE 
ON CORPORATE SOCIAL RESPONSIBILITY 

EN 

   EN 

 
 
 
  
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE 

IMPLEMENTING THE PARTNERSHIP FOR GROWTH AND JOBS: 
MAKING EUROPE A POLE OF EXCELLENCE 
ON CORPORATE SOCIAL RESPONSIBILITY 

1. 

INTRODUCTION 

Corporate  social  responsibility  (CSR)  is  a  concept  whereby  companies  integrate  social  and 
environmental  concerns  in  their  business  operations  and  in  their  interaction  with  their 
stakeholders  on  a  voluntary  basis1.  It  is  about  enterprises  deciding  to  go  beyond  minimum 
legal requirements and obligations stemming from collective agreements in order to address 
societal needs. Through CSR, enterprises of all sizes, in cooperation with their stakeholders, 
can  help  to  reconcile  economic,  social  and  environmental  ambitions.  As  such,  CSR  has 
become an increasingly important concept both globally and within the EU, and is part of the 
debate  about  globalisation,  competitiveness  and  sustainability.  In  Europe,  the  promotion  of 
CSR  reflects  the  need  to  defend  common  values  and  increase  the  sense  of  solidarity  and 
cohesion. 

Since  the  end  of  the  Cold  War  the  market  economy  has  prevailed  throughout  most  of  the 
world.  While  this  has  opened  up  new  opportunities  for  business,  it  also  creates  a 
corresponding  need  for  self-limitation  and  mobilisation  on  the  part  of  the  business 
community,  in  the  interest  of  social  stability  and  the  well-being  of  modern  democratic 
societies.  Moreover,  within  the  EU,  better  regulation  and  the  promotion  of  entrepreneurial 
culture  are  now  high  on  the  European  agenda,  as  confirmed  by  the  Commission’s  2006 
Annual  Progress  Report  on  Growth  and  Jobs2.  The  Commission  is  committed  to  promoting 
the  competitiveness  of  the  European  economy  in  the  context  of  the  relaunched  Lisbon 
Partnership  for  Growth  and  Jobs.  In  turn  it  calls  on  the  European  business  community  to 
publicly demonstrate its commitment to sustainable development, economic growth and more 
and  better  jobs,  and  to  step  up  its  commitment  to  CSR,  including  cooperation  with  other 
stakeholders.  More  than  ever  Europe  needs  active  entrepreneurs,  positive  attitudes  towards 
entrepreneurship,  and  confidence  and  trust  in  business.  Europe  needs  a  public  climate  in 
which entrepreneurs are appreciated not just for making a good profit but also for making a 
fair contribution to addressing certain societal challenges. 

The Commission therefore wishes to give greater political visibility to CSR, to acknowledge 
what European enterprises already do in this field and to encourage them to do more. Because 
CSR is fundamentally about voluntary business behaviour, an approach involving additional 
obligations  and  administrative  requirements  for  business  risks  being  counter-productive  and 
would  be  contrary  to  the  principles  of  better  regulation.  Acknowledging that  enterprises  are 
the primary actors in CSR, the Commission has decided that it can best achieve its objectives 
by  working  more  closely  with  European  business,  and  therefore  announces  backing  for  the 

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COM(2001) 366. 
COM(2006) 30. 

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launch of a European Alliance on CSR, a concept drawn up on the basis of contributions from 
business  active  in  the  promotion  of  CSR.  The  Alliance  is  an  open  alliance  of  European 
enterprises,  for  which  enterprises  of  all  sizes  are  invited  to  express  their  support.  It  is  a 
political  umbrella  for  new  or  existing  CSR  initiatives  by  large  companies,  SMEs  and  their 
stakeholders.  It  is  not  a  legal  instrument  and  is  not  to  be  signed  by  enterprises,  the 
Commission  or  any  public  authority.  It  is  a  political  process  to  increase  the  uptake  of  CSR 
amongst European enterprises. 

Backing for the new Alliance should be understood as a key component of a wider partnership 
that  the  Commission  wishes  to  pursue  with  all  stakeholders  involved  in  CSR.  In  presenting 
this  Communication,  the  Commission  draws  on  several  years  of  public  debate  and 
consultation  with  all  stakeholders,  most  particularly  in  the  context  of  the  European 
Multistakeholder Forum on CSR, which presented its final report in 2004. The Commission 
continues  to  attach  utmost  importance  to  dialogue  with  and  between  all  stakeholders,  and 
proposes  to  re-convene  meetings  of  the  Multistakeholder  Forum  at  regular  intervals  with  a 
view to continually reviewing progress on CSR in the EU. 

2. 

CSR IN SUPPORT OF SUSTAINABLE GROWTH AND MORE AND BETTER JOBS 

Sustainable growth and more and better jobs are the twin challenges the EU must now address 
in  the  face  of  global  competition  and  an  ageing  population  to  safeguard  our  model  for 
European  society,  based  on  equal  opportunities,  high  quality  of  life,  social  inclusion  and  a 
healthy environment. This is why the Commission called for a fresh start to the Lisbon agenda 
by  launching  a  Partnership  for  Growth  and  Jobs  in  February 2005  and  renewing  its 
Sustainable Development Strategy in December 2005. This is also why the informal meeting 
of Heads of State and Government at Hampton Court in October 2005 called for innovative 
answers to address the competitive challenge while defending European values. 

The  revised  Lisbon  strategy  promotes  growth  and  jobs  in  a  manner  that  is  fully  consistent 
with sustainable development, which remains an overarching long term goal for the European 
Union. Enterprises, as the motor for economic growth, job creation, and innovation, are key 
actors in delivering the Lisbon and sustainable development objectives.  

Europe needs business to do what it does best: to provide products and services that add value 
for society and to deploy entrepreneurial spirit and creativity towards value and employment 
creation. However Europe does not need just business but socially responsible business that 
takes  its  share  of  responsibility  for  the  state  of  European  affairs.  In  its  contribution  to  the 
March  2005  Spring  Council,  the  Commission  recognised  that  CSR  “can  play  a  key  role  in 
contributing  to  sustainable  development  while  enhancing  Europe’s  innovative  potential  and 
competitiveness”3.  In  the  Social  Agenda4,  the  Commission  announced  that  it  would,  in  co-
operation  with  Member  States  and  stakeholders,  present  initiatives  to  further  enhance  the 
development and transparency of CSR. In the revised Sustainable Development Strategy5, the 
Commission called “on the business leaders and other key stakeholders of Europe to engage 
in urgent reflection with political leaders on the medium- and long-term policies needed for 
sustainability and propose ambitious business responses which go beyond existing minimum 
legal requirements”. 

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COM(2005) 24. 
COM(2005) 33. 
COM(2005) 658.  

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In March 2005, the European Council underlined that “in order to encourage investment and 
provide  an  attractive  setting  for  business  and  work,  the  European  Union  must  complete  its 
internal market and make its regulatory environment more business-friendly, while business 
must  in  turn  develop  its  sense  of  social  responsibility”.  In  the  Integrated  Guidelines  for 
Growth  and  Jobs  (2005-2008),  the  Council  recommended  that  Member  States  should 
“encourage  enterprises  in  developing  their  corporate  social  responsibility”.  The  European 
Parliament has made valuable contributions to the debate on CSR, notably in its resolutions of 
20026 and 20037. 

Against this backdrop, the Commission has reviewed the work accomplished on CSR at EU 
level, in order to align its approach with the priorities and working methods of the Growth and 
Jobs  strategy.  The  Commission  believes  that  the  potential  of  enterprises  can  and  should  be 
better harnessed in support of sustainable development and the Growth and Jobs strategy. In 
keeping with the spirit and priority areas of its 2006 Annual Progress Report on Growth and 
Jobs,  the  Commission  invites  European  enterprises  to  “move  up  a  gear”  and  to  strengthen 
their  commitment  to  CSR.  In  doing  so  the  Commission  wishes  to  create  a  more  favourable 
environment for all actors in CSR and to explore with all stakeholders the potential of CSR to 
contribute to the development of European societies.  

CSR  practices  are  not  a  panacea  and  can  not  on  their  own  be  expected  to  deliver  these 
outcomes. They are not a substitute for public policy, but they can contribute to a number of 
public policy objectives, such as:  

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more  integrated  labour  markets  and  higher  levels  of  social  inclusion,  as  enterprises 
actively seek to recruit more people from disadvantaged groups; 

investment  in  skills  development,  life-long  learning  and  employability,  which  are 
needed to remain competitive in the global knowledge economy and to cope with the 
ageing of the working population in Europe; 

improvements  in  public  health,  as  a  result  of  voluntary  initiatives  by  enterprises  in 
areas such as the marketing and labelling of food and non-toxic chemicals; 

better  innovation  performance,  especially  with  regard  to  innovations  that  address 
societal problems, as a result of more intensive interaction with external stakeholders 
and the creation of working environments more conducive to innovation; 

a  more  rational  use  of  natural  resources  and  reduced  levels  of  pollution,  notably 
thanks  to  investments  in  eco-innovation  and  to  the  voluntary  adoption  of 
environmental management systems and labelling; 

a more positive image of business and entrepreneurs in society, potentially helping to 
cultivate more favourable attitudes towards entrepreneurship; 

greater respect for human rights, environmental protection and core labour standards, 
especially in developing countries; 

poverty reduction and progress towards the Millennium Development Goals.  

P5_TA(2002)0278. 
P5_TA(2003)0200. 

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3. 

MAKING EUROPE A POLE OF EXCELLENCE ON CSR 

Much  progress  has  been  made  on  CSR  since  the  Lisbon  Council  made  its  appeal  to 
companies’  sense  of  social  responsibility  in  March  2000.  A  Green  Paper  (2001)8,  a 
Communication (2002)9, and the setting up of an EU Multi-Stakeholder Forum on CSR (CSR 
Forum) marked important steps in this process. 

The CSR Forum brought together representatives of business, trade unions and civil society, 
with the Commission in a facilitating role. The Commission welcomes the Forum’s work and 
final report of June 2004, and agrees with stakeholders that the report’s recommendations, if 
fully  implemented  by  the  relevant  actors,  would  help  advance  CSR  in  Europe  and  globally. 
The  Forum  succeeded  in  achieving  a  measure  of  consensus  among  participants,  but  is  also 
revealed  the  significant  differences  of  opinion  between  business  and  non-business 
stakeholders.  A  common  European  understanding  of  what  CSR  means  has  emerged  on  the 
basis of the Commission definition of 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.  The  CSR  Forum  confirmed  this  definition  while  further 
exploring its scope and boundaries. The Forum also reached consensus on the need for further 
awareness-raising and competency-building activities. There was no consensus, however, on 
topics such as company reporting requirements or the need for European standards on CSR.  

Awareness, understanding and uptake of CSR have improved over the past few years, partly 
as a consequence of the CSR Forum and other actions supported by the Commission. At the 
same  time,  initiatives  by  business  and  other  stakeholders  have  moved  forward  the 
development of CSR in Europe and globally. Social dialogue, especially at the sectoral level, 
has  been  an  effective  means  for  promoting  CSR  initiatives,  and  European  Works  Councils 
have also played a constructive role in the development of best practice on CSR.  

Nevertheless,  the  uptake,  implementation  and  strategic  integration  of  CSR  by  European 
enterprises should be further improved. The role of employees, their representatives and their 
trade  unions  in  the  development  and  implementation  of  CSR  practices  should  be  further 
enhanced.  External  stakeholders,  including  NGOs,  consumers  and  investors,  should  play  a 
stronger role in encouraging and rewarding responsible business conduct. Public authorities at 
all  levels  should  further  improve  the  consistency  of  their  policies  in  support  of  sustainable 
development, economic growth and job creation. 

The  EU’s  vision  of  long-term  prosperity,  solidarity  and  security  also  extends  to  the 
international sphere. The Commission recognises the linkages between the uptake of CSR in 
the EU and internationally, and believes that European companies should behave responsibly 
wherever they operate, in accordance with European values and internationally agreed norms 
and standards. 

The Commission has reflected on how best to give a new impulse to make Europe a pole of 
excellence on CSR. It has considered the final report of the CSR Forum, as well as the views 
of  stakeholders  that  are  not  reflected  in  that  report.  The  challenge  has  been  to  find  a  new 
approach that inspires more enterprises to engage in CSR, since they are the primary actors in 
this field. 

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COM(2001) 366. 
COM(2002) 347. 

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4. 

A EUROPEAN ALLIANCE FOR CSR 

The Commission therefore backs the launching of the European Alliance for CSR, described 
in the document attached to this Communication. The Alliance is a political umbrella for new 
or existing CSR initiatives by large companies, SMEs and their stakeholders. 

The  Alliance  has  an  open  nature  and  European  enterprises  of  all  sizes  are  invited  to 
voluntarily  express  their  support.  It  is  not  a  legal  instrument  and  is  not  to  be  signed  by 
enterprises,  the  Commission  or  any  public  authority.  There  are  no  formal  requirements  for 
declaring  support  for  the  Alliance,  and  the  European  Commission  will  not  keep  a  list  of 
companies that support it. The Commission’s contribution to the Alliance will be the further 
promotion of CSR in line with the points mentioned under chapter 5 of this Communication. 
This does not imply any new financial obligations for the Commission. 

The Commission expects the Alliance to have a significant impact on the attitude of European 
enterprises to CSR and on their positive engagement with social and environmental issues. It 
should create new partnerships with and new opportunities for stakeholders in their efforts to 
promote  CSR,  and  is  therefore  a  vehicle  for  mobilising  the  resources  and  capacities  of 
European enterprises and their stakeholders. The voluntary commitment of European business 
to the Alliance and the supportive role of the Commission within its policies and instruments 
where  appropriate  will  strengthen  the  development  of  CSR  within  the  EU  and  abroad.  The 
results of the Alliance should be understood as a voluntary business contribution to achieving 
the  goals  of  the  relaunched  Lisbon  Strategy  and  the  revised  Sustainable  Development 
Strategy. However these results will also depend on the engagement of stakeholders, who are 
invited to make full use of the opportunities the Alliance offers. 

To  enhance  the  transparency,  visibility  and  credibility  of  CSR  practices,  the  Commission 
encourages  enterprises  that  support  the  Alliance  to  make  CSR  information  available  to  all 
stakeholders,  including  to  consumers,  investors  and  the  wider  public.  Large  companies  in 
particular should seek to present CSR strategies, initiatives and their results or best practices 
in a way that is easily accessible to the public. In addition, the Commission will continue to 
support stakeholders in developing their capacity to assess and evaluate CSR practices. 

The Commission recognises that without the active support and constructive criticism of non-
business  stakeholders,  CSR  will  not  flourish.  The  Commission’s  backing  of  the  Alliance  is 
not  a  substitute  for  further  dialogue  with  all  stakeholders.  The  Commission  remains 
committed  to  facilitating  such  dialogue,  including  through  regular  review  meetings  of  the 
Multistakeholder Forum. 

5. 

PROPOSED ACTIONS TO PROMOTE FURTHER TAKE-UP OF CSR PRACTICES 

In further promoting CSR, the Commission will emphasise the following aspects: 

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Awareness-raising and best practice exchange. The Commission will further raise 
awareness about CSR and promote the exchange of best practice as CSR continues to 
evolve, with an emphasis on SMEs and on Member States where CSR is a less well-
known  concept,  as  well  as  in  acceding  and  candidate  countries.  It  will  do  this  in  a 
strengthened  partnership  with  business  and  all  relevant  stakeholders,  including 
national  and  regional  authorities.  The  Commission  will  further  promote  voluntary 
environmental  instruments,  such  as  environmental  management  systems  and  the 

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Ecolabel  scheme.  Other 
to  make  citizens  aware  of  social  and 
environmental  issues  and  the  impact  of  their  consumption  and  investment  choices 
will also be promoted.  

initiatives 

Support  to  multi-stakeholder  initiatives.  Involving  stakeholders  enhances  the 
effectiveness of CSR initiatives, which is why the Commission will organise regular 
review meetings of the Multistakeholder Forum. To foster greater awareness of CSR 
and  further  enhance  its  credibility,  the  Commission  will  continue  to  promote  and 
support CSR initiatives by stakeholders, including social partners and NGOs, and in 
particular at sectoral level The European Platform for Nutrition is a good example of 
such  initiative.  The  sectoral  social  dialogue  committees  are  also  an  important 
mechanism in this regard.  

Cooperation with Member States. There is a broad consensus in Europe about the 
definition  of  CSR,  although  its  precise  nature  and  characteristics  vary  between 
different  national  and  cultural  contexts.  Moreover,  Member  States  have  at  their 
disposal a broad range of instruments to encourage CSR. Cooperation with Member 
States  and  acceding  countries,  in  particular  through  the  Group  of  High-Level 
National  Representatives  on  CSR,  is  therefore  an  important  aspect  of  Commission 
policy on CSR. Within Member States, the regional level can be an appropriate level 
for actions in support of CSR, especially as far as SMEs are concerned. 

Consumer  information  and  transparency.  Consumers  play  an  important  role  in 
providing incentives for responsible production and responsible business behaviour. 
They are expected to exercise critical choice and encourage good products and good 
companies.  At  the  moment  consumers  lack  clear  information  on  the  social  and 
environmental  performance  of  goods  and  services,  including  information  on  the 
supply  chain.  The  Commission  will  examine,  in  consultation  with  all  relevant 
stakeholders,  the  need  for  further  voluntary  actions  to  achieve  the  objectives  of 
transparency and information for consumers including on issues of public health. 

Research. There is a need for more interdisciplinary research on CSR, in particular 
on:  links  at  the  macro-  and  meso-levels  between  CSR,  competitiveness  and 
sustainable  development;  the  effectiveness  of  CSR  in  reaching  social  and 
environmental  objectives;  and  issues  such  as  innovation,  corporate  governance, 
industrial relations, and the supply chain. CSR as practiced by SMEs is an important 
research topic in its own right, but should also be adequately reflected in other areas 
of CSR research. Additionally, the Life Cycle Social Impacts of processes, products, 
and services deserve more investigation. Building on the four CSR research projects 
financed  under  the  6th  Research  Framework  programme,  the  Commission  will 
explore possibilities to support further research into CSR as part of the forthcoming 
7th Framework Programme. 

Education. For CSR to become a mainstream business practice, the right knowledge 
and  skills  need  to  be  developed  among  future  entrepreneurs,  business  leaders, 
company  managers  and  employees.  CSR  is  also  a  lifelong  learning  issue.  The 
Commission invites business schools, universities and other education institutions to 
incorporate  CSR  into  education,  as  a  cross-cutting  issue,  in  particular  into  the 
curricula of future managers and graduate students. 

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SMEs. The collective impact of CSR as practiced by SMEs is critical if the potential 
of CSR to contribute to growth and jobs and sustainable development in Europe is to 
be fully harnessed. The Commission recognises that a specific approach is needed to 
foster CSR amongst SMEs. Such an approach requires giving greater recognition to 
what  many  SMEs  already  do  in  the  field  of  CSR.  It  also  requires  the  active 
cooperation  of  mainstream  SME  intermediary  organisations  and  support  providers. 
The  Commission  will  facilitate  the  exchange  of  experience  about  how  best  to 
encourage CSR amongst SMEs in Europe.  

The  international  dimension  of  CSR.  The  Commission  will  continue  to  promote 
CSR  globally  with  a  view  to  maximising  the  contribution  of  enterprises  to  the 
achievement  of  the  UN  Millennium  Development  Goals.  The  ILO  Tripartite 
Declaration of Principles concerning MNEs and Social Policy, the OECD Guidelines 
for MNEs and the UN Global Compact, as well as other reference instruments and 
initiatives,  provide  international  benchmarks  for  responsible  business  conduct.  The 
Commission  is  committed  to  promoting  awareness  and  implementation  of  these 
instruments  and  will  work  together  with  other  governments  and  stakeholders  to 
enhance their effectiveness.  

The  Commission  will  continue  its  leadership  role  in  promoting  high  environmental 
standards  internationally.  The  Commission  aims  to  strengthen  the  sustainable 
development dimension of bilateral trade negotiations and to pursue the promotion of 
core  labour  standards  in  bilateral  agreements.  The  Commission  will  encourage  the 
inclusion  of  provisions  to  support  internationally  agreed  CSR  instruments  and  will 
seek  to  address  CSR  issues  in  bilateral  dialogue  between  the  parties.  The 
Commission is also committed to using trade incentives as a means of encouraging 
respect for the main international human/labour rights, environmental protection and 
governance  principles,  in  particular  through  the  new  EU  “Generalised  System  of 
Preferences  Plus”  that  entered  into  force  on  1  January  2006.  The  Commission  will 
strengthen its co-operation with the ILO to promote decent work, including through a 
pilot  project  on  trade  and  decent  work  indicators  in  developing  countries.  The 
Commission  will  also  present  a  communication  on  decent  work  in  the  course  of 
2006.  

The Commission will discuss with partner countries and relevant stakeholders how to 
promote CSR in the framework of the Cotonou Agreement and the New Strategy for 
Africa10, and will propose that this issue be discussed during the EU-Africa Business 
Forum to be held in autumn 2006. 

The Commission will follow other relevant international processes, such as the work 
of the UN Special Representative on Human Rights and Transnational Corporations 
and  Other  Business  Enterprises,  the  possible  development  of  an  ISO  guidance 
standard on social responsibility, and sectoral initiatives like the Kimberley Process 
Certification Scheme for rough diamonds. 

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6. 

CONCLUSION: THE NEED FOR A PARTNERSHIP AMONG ALL STAKEHOLDERS 

The  Commission  strongly  believes  that  CSR  matters  to  each  and  every  European,  since  it 
represents  an  aspect  of  the  European  social  model.  CSR  can  contribute  to  sustainable 
development,  while  enhancing  Europe’s  innovative  potential  and  competitiveness,  thereby 
also contributing to employability and job creation. Further promoting CSR is central to the 
new partnership for "growth and jobs" as well as for implementing sustainable development 
objectives. The Commission calls on all parties involved to contribute to the implementation 
of  this  ambitious  new  initiative.  The  Commission  offers  close  partnership,  with  Member 
States,  with  business  (through  the  Alliance  described  in  annex)  and  with  all  stakeholders 
involved to make Europe a pole of excellence on CSR since CSR mirrors the core values of 
the EU itself. The Commission will reassess the evolution of CSR in Europe in a year’s time 
following the discussion within the Multistakeholder Forum. 

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ANNEX  

MAKING EUROPE A POLE OF EXCELLENCE ON CORPORATE SOCIAL RESPONSIBILITY:  

THE EUROPEAN ALLIANCE FOR CSR 

CSR MATTERS TO ALL OF US 

Corporate  Social  Responsibility  (CSR)  matters  because  it  mirrors  the  core  values  of  the 
society  in  which  we  wish  to  live.  It  matters  to  individual  companies,  big  or  small,  who 
through  innovative  products  and  services,  new  skills  and  stakeholder  engagement  can 
improve their economic, environmental and social performance in the short and long term. It 
matters  to  those  who  work  in  and  for  companies,  for  whom  it  can  help  to  create  a  more 
rewarding and inspiring working environment. It matters to those who buy from companies, 
to  consumers  who  are  paying  more  and  more  attention  to  the  social  and  environmental 
credentials of the products and services they buy. It matters to the local communities where 
companies operate,  who  want  to  know that they are living amongst  organisations  that share 
their values and concerns. It matters to investors who feel that responsible business behaviour 
needs to be encouraged. It matters to people in other parts of the world who expect European 
based  companies  to  behave  in  accordance  with  European  and  international  values  and 
principles. And it matters to our children and future generations who expect to live in a world 
which respects people and nature. 

STRIVING FOR A SUSTAINABLE MARKET ECONOMY 

A  strong  business  commitment  to  CSR  as  well  as  an  overall  supportive  role  of  public 
authorities towards CSR has become particularly important over the last 15 years as regard its 
contribution  to  the  respect  for  human  rights  and  the  rule  of  law  as  well  as  the  sustainable 
functioning of democracy and market economy, be it on a local, national, European or global 
scale.  In  order  to  be  a  successful  economic  model,  the  market  economy  needs  to  build  on 
some  essential  prerequisites:  on  the  one  hand  an  effective  and  coherent  legislative  and 
regulatory  framework;  on  the  other  hand,  self  limitation  and  self  control  as  much  as  a 
proactive  climate  of  innovation  and  entrepreneurship,  fairness  and  trust:  all  these  are 
necessary  elements  to  combine  high  levels  of  economic  success,  environmental  protection, 
social  cohesion  and  welfare.  To  this  end,  leading  enterprises  in  Europe  are  more  than  ever 
undergoing  a  process  of  searching,  learning  and  innovating  as  regards  their  governance, 
management,  stakeholder  dialogue  and  product  development,  thereby  making  corporate  and 
product responsibility a natural part of their everyday business practice and competitiveness. 
Small  companies,  as  a  key  driver  for  growth  and  jobs  in  Europe,  have  as  much  to  offer  as 
large  companies  when  it  comes  to  corporate  responsibility,  even  though  they  often  adopt  a 
more  informal  and  intuitive  approach  to  CSR.  Against  the  background  of  globalisation  and 
the  associated  structural  changes,  companies  are  making  these  shifts  in  the  expectation  that 
the other stakeholders also commit and shoulder their share of the risks and opportunities of 
responsibility and innovation. Dialogue with stakeholders helps companies to anticipate and 
deal with social and environmental issues which may affect future competitiveness. 

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A EUROPEAN ALLIANCE FOR CSR 

In this context, the European Commission backs members of the business community that are 
laying  the  foundations  of  a  European  Alliance  for  CSR.  This  is  an  open  Alliance  for 
enterprises  sharing  the  same  ambition:  to  make  Europe  a  Pole  of  Excellence  on  CSR  in 
support of a competitive and sustainable enterprise and market economy. The essence of this 
initiative  is  partnership.  This  partnership  is  based  on  agreement  that  the  priorities  of  the 
European Strategy for Growth and Jobs fully respond to the challenges of increasing global 
competition, demographic trends and a sustainable future.  

The delivery of this strategy is crucial for securing Europe’s sustainable growth as much as 
the European way of life. The Alliance is built on the understanding that CSR can contribute 
innovative  potential  and 
to  sustainable  development,  while  enhancing  Europe’s 
competitiveness,  thereby  also  contributing  to  employability  and  job  creation.  The  Alliance 
seeks  to  promote  CSR  as  a  business  opportunity  creating  win-win  situations  for  companies 
and  society  and  recognises  that  CSR  is  a  voluntary  business  approach  which  reflects  the 
diversity  of  European  business.  While  enterprises  are  the  primary  actors  in  CSR,  public 
authorities at local, national and European level have a supportive role to play in promoting it. 
The  Alliance  initiative  builds  on  previous  discussions  with  business  and  stakeholders.  In 
particular, it draws the lessons from the European Multi-Stakeholder Forum on CSR, a major 
initiative  facilitated  by  the  European  Commission.  The  Forum  provided  a  platform  for 
European representatives of business, employers, trade unions and civil society organisations 
to engage in an innovative process of learning and dialogue and to agree recommendations for 
more and effective CSR practice. It will also capitalise on the European Campaign to promote 
CSR  among  SMEs  and  the  multitude  of  other  business  and  employer  driven  initiatives. 
Another key driver for this Alliance is the European Roadmap for Businesses on CSR - 2010, 
whereby leading companies and business networks have set out their vision and priorities for 
a competitive and sustainable enterprise from a European perspective.  

The  Alliance  lays  the  foundations  for  the  partners  to  promote  CSR  in  the  future.  It  evolves 
around the following three areas of activities: 

•  Raising awareness and improving knowledge on CSR and reporting on its achievements 

•  Helping to mainstream and develop open coalitions of cooperation 

•  Ensuring an enabling environment for CSR 

Raising awareness and improving knowledge on CSR and reporting on its achievements 

The Alliance will explore and support creative ways to exchange and disseminate CSR best 
practice, initiatives and tools with a view to making them relevant to business practitioners, 
policy  leaders,  consumers,  investors  and  the  wider  public  at  all  appropriate  levels  across 
Europe and abroad. Special attention will be paid to promoting CSR amongst enterprises of 
all sizes in a way that is better in tune with today’s and tomorrow’s realities and challenges.  

The Alliance reaffirms that, building on existing initiatives, there is a need to further promote 
multi-disciplinary  research  on  CSR  at  European  level,  in  particular  on  its  impact  on 
competitiveness  and  sustainable  development.  Closer  integration  with  universities  and 

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scientific  experts  as  well  as  continuous  dialogue  and  cooperation  with  civil  society  are 
essential in this respect.  

An important contribution to Europe’s future competitiveness and sustainability will depend 
on  education  taking  a  leading  role  in  the  CSR  agenda.  The  Alliance  will  encourage  the 
integration  of  CSR  and  sustainable  development  related  topics  in  traditional  courses,  in  the 
curricula  of  future  managers  and  graduate  students,  in  executive  education  and  in  other 
educational institutions. 

Helping to mainstream CSR and develop open coalitions of cooperation 

Considering  the  wide-ranging  nature  of  CSR  and  the  diversity  of  the  European  and 
international business landscape, the partners of the Alliance have identified several priority 
areas for action:  

•  Fostering  innovation  and  entrepreneurship  in  sustainable  technologies,  products  and 

services which address societal needs  

•  Helping SMEs to flourish and grow 

•  Assisting enterprises to integrate social and environmental considerations in their business 

operations, especially those in the supply chain  

•  Improving and developing skills for employability 

•  Better responding to diversity and the challenge of equal opportunities taking into account 

the demographic changes alongside the rapid aging of the European population  

•  Improving working conditions, also in cooperation with the supply chain  

•  Innovating in the environment field with a special focus on integrating eco efficiency and 

energy savings in the product and service creation process  

•  Enhancing pro-active dialogue and engagement with all relevant stakeholders 

•  Further  addressing  the  transparency  and  communication  challenge  to  make  the  non-
financial  performance  of  companies  and  organisations  more  understandable  for  all 
stakeholders and better integrated with their financial performance  

•  Operating  outside  the  borders  of  the  European  Union  in  a  socially  and  environmentally 

responsible way as companies do inside the European Union 

These priority areas will be addressed by “open coalitions of cooperation” bringing together 
interested companies ready to tackle these issues in the form of “laboratory meetings” in order 
to explore and to develop joint operational projects, in partnership with relevant experts and 
stakeholders and with the backing of the European Commission. 

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Ensuring an enabling environment for CSR 

With  the  new  European  Strategy  for  Growth  and  Jobs  and  through  its  initiative  on  better 
regulation, the European Commission and EU Member States have committed themselves to 
set up and strengthen a business-friendly environment in which entrepreneurs and enterprises 
can flourish and grow.  

In addition, the European Commission will step up its policy of promoting the voluntary and 
innovative  efforts  of  companies  on  CSR,  by  encouraging  good  practices  and  their 
dissemination in a strengthened partnership with business and all relevant stakeholders as well 
as the national authorities. It will do this also by being consistent across the policy areas and 
integrating  the  promotion  of  CSR  where  appropriate.  To  succeed  in  their  joint  mission,  the 
partners of the Alliance will capitalise on equivalent alliances developed at national level and 
will inspire and support similar initiatives in countries where there is interest in doing so. The 
Alliance supports the organisation of review meetings with all stakeholders, starting in 2006, 
to  take  stock  of  progress  made  in  relation  to  the  recommendations  of  the  European  Multi-
stakeholder Forum on CSR and of other trends, developments and innovations in CSR. 

CONCLUSION AND NEXT STEP 

Commitment, mutual trust and dialogue are vital for the success of this Alliance. The Alliance 
will be what its partners will deliver on the agreed initiatives and priority areas. The partners 
agree  that  for  coordination  and  communication  purposes,  the  Alliance  will  rely  on  existing 
business driven structures actively involved in the CSR domain. The partners of the Alliance 
agree to take stock through high level meetings and to also communicate the Alliance results 
in the context of the European Strategy for Growth and Jobs. 

Time has come to make Europe a Pole of Excellence on CSR. The Alliance is formed to make 
it happen.  

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