Experiences from Denmark: Action Plan and Legislation on CSR by Carsten Ingerslev Danish Government Center for CSR Brussels, 23rd February 2010

2 The Danish Government Centre for CSR Who: Part of Danish Ministry of Economics and Industry Why: Giving Danish businesses a competitive advantage, by addressing the CSR agenda in a strategic manner What: Providing training, tools, inspiration and knowledge How: Staying abreast of latest international knowledge and developments, implementing it in a pragmatic way that’s at eye level with Danish SME’s 2 Carsten Ingerslev, Brussels, 23rd February 2010

3 3 Strategic CSR  Integrate CSR into the company’s core business concept.  Synergy between business demands and society needs.  Balancing the company’s chain of values against the competitive context to benefit society and the company the most. GOAL: To go beyond best practice, differentiating from rivals and attracting customers while serving society. (Ref. Porter & Kramer 2006)

4 4 Carsten Ingerslev, Brussels, 23rd February 2010 Three stages of CSR ComplianceMedium to High Strategic and Operational Impact Fundamental Strategic and Operational Impact Innovation Sustainable Business Models Provide funding and skills Little Strategic or Operational Impact Business-driven/strategic CSR CSR as Value Creation CSR as Risk Management CSR as Corporate Philanthropy

5 5 Carsten Ingerslev, Brussels, 23rd February 2010 An international perspective The challenges are on the international market International frameworks are needed –For businesses: UN Global Compact –For investors: ’Principles for Responsible Investments’ – PRI Both are: –International frames of reference –Widely recognized –Compatible with strategic CSR

6 The beginning: A large scale CSR-project Comprehensive training for more than employees in SME’s From 2005 – 2007 Budget: 3 million EURO Finance from The European Social Fund and The Danish Labour Market Authority Carsten Ingerslev, Brussels, 23rd February 2010

7 CSR-Compass – a responsible sourcing tool Target group: Companies, who 1) get demand about CSR from customers 2) want to demand CSR from their suppliers More than 5000 users per month Carsten Ingerslev, Brussels, 23rd February 2010

8 8 The Government’s Action Plan for CSR Launched in May 2008 Denmark and Danish businesses should be associated internationally with responsible growth Danish businesses should benefit more from their leading position within CSR  meet global challenges, while at the same time increasing Danish competitiveness and growth

9 9 Carsten Ingerslev, Brussels, 23rd February 2010 Initiatives in the Action Plan for CSR 30 initiatives within four action areas: 1.Propagating business-driven social responsibility 2.Promoting businesses’ social responsibility through Government activities 3.Corporate sector’s climate responsibility 4.Marketing Denmark for responsible growth

10 Carsten Ingerslev, Brussels, 23rd February 2010 Initiatives – some examples Encouraging businesses to take up CSR as a strategic activity Integration of Global Compact/UN PRI in state activities Conference on Socially Responsible Investing at Princeton University (November 2008) Setting up of a national Council for CSR (August 2009) Improving communication and developing web tools Mandatory reporting on CSR for large companies and investors (December 2008)

11 Carsten Ingerslev, Brussels, 23rd February 2010 New law: CSR reporting mandatory for large businesses It is mandatory to report about CSR for the 1100 largest companies and institutional investors – not to work with CSR They must report on their policies on CSR, how these are translated into action and the results of the work with CSR No CSR – must be also be disclosed Members of UN Global Compact or UN PRI can refer to their communication on progress instead

12 Carsten Ingerslev, Brussels, 23rd February 2010 Why make a law on CSR-reporting? Transparency is essential If a company wants to be publicly recognized If a company wants to reap the full benefit of its efforts If the company wants to engage its stakeholders

13 The law supports UN Global Compact & PRI Strong support to international framework for CSR – UN Global Compact and PRI Number of Danish members of Global Compact has more than tripled - from 54 to 163 companies Number of Danish member of PRI has tripled – from 4 to 18 investors Carsten Ingerslev, Brussels, 23rd February 2010

14 Carsten Ingerslev, Brussels, 23rd February 2010 More information Info and tools: Blog on CSR: CONTACT: Government Centre for CSR: Carsten Ingerslev: