European Commission policy on CSR Brussels, May 22, 2012

Context Last “Communication” on CSR was 2006 Evolution of business approach to CSR Need to be consistent with new and updated international CSR instruments Crisis puts new focus on ethical performance

A modern understanding of CSR New definition: "The responsibility of enterprises for their impacts on society" Positive and negative impacts All enterprises have impacts, all have a social responsibility

How should a company meet is social responsibility? Legal compliance is a pre-requisite Process of integrating social, environmental, ethical, consumer and human rights concerns into business strategy and operations, in cooperation with stakeholders For more detailed guidance: refer to internationally recognised CSR guidelines and principles

What’s the aim? Maximise creation of shared value, for company and owners/shareholders, and for other stakeholders and society at large Identify, prevent and mitigate possible adverse impacts

Internationally recognised CSR guidelines and principles The core five: OECD Guidelines UN Global Compact ISO 26000 ILO labour standards UN Guiding Principles on Business and Human Rights

Invitations, expectations, monitoring (1) Invitation 1: large European enterprises to make a commitment by 2014 to take account of at least one of the following when developing their approach to CSR: the UN Global Compact, the OECD Guidelines, or the ISO 26000. Invitation 2: European multinational enterprises to make a commitment by 2014 to respect the ILO Tri-partite Declaration of Principles Concerning Multinational Enterprises and Social Policy.

Invitations, expectations, monitoring (2) Expectation: all European enterprises to meet the corporate responsibility to respect human rights, as defined in the UN Guiding Principles. Monitor: the commitments of European enterprises with more than 1.000 employees to take account of internationally recognised CSR principles and guidelines.

Conclusion A balanced approach, in the interests of enterprises, stakeholders and the good-functioning of our social market economy Enables Europe to play strong positive in global policy developments regarding CSR thomas.dodd@ec.europa.eu