1. Towards greater Corporate Responsibility in Europe Conclusions of EU funded research Albert Schram Ph.D., Maastricht University, School of Business and Economics aschram@yahoo.com

2. Overview ➲ Identify the lessons-learned of how the European Commission is stimulating CSR activities in Europe, and the role of research. ➲ Review of 4 large research projects sponsored by the European Commission ➲ Can the European experience inspire a regional IDB project on CSR for SMEs (PYMES)?

3. Contents 1.CSR concepts 2.Global trends 3.European developments 4.Tools and metrics for companies 5.Lessons learned in Europe

4. 1. CSR concepts Business in Society Source: McKinsey Valuing ESG

5. If your strategy is not right…. Should CSR be seen as a community relations, marketing, PR, public affairs, innovation or strategic management tool?

6. Five Concepts of Corporate Engagement Source: Klaus Schwab (2008) “Global Corporate Citizenship. Working with Governments and Civil Society” Foreign Affairs, Vol. 87, No. 1, pp. 107-118 Corporate Social Responsibility Voluntary, beyond compliance dealing with environmental and social impacts Corporate Governance Compliance with Law and Ethical Norms Corporate Global Citizenship Dealing with Global Challenges Corporate Philantropy Corporate Social Entrepreneur- ship

7. Community Involvement & Development ISO26000: 7 Key Topics Organizational Governance Human Rights Labour Practices Fair operating practices Consumer issues The Environment

8. CSR or ESG? CSR (corporate social responsibility) The limits of “responsibility” of companies and states is object of the political discussion Confusion with Corporate Social Reporting and other concepts Connotation of social policy and philantropy ESG (environmental, social and governance activities) Environmental: Climate change Water and energy efficiency Waste production Sustainable supply chain Social Labor practices Community Impact Recruitment, talent markets Governance Ethics Transparency and accountability Corruption

9. 2. Global Developments The Trust Divide 2009 Source: Edelman Trust Barometre

10. Trust in companies Source: Edelman Trust Barometre

11. 3. EU developments Social responsibility issues - corporate and public - can be discussed without ideological hang-ups. The European Union is getting larger with a more effective governance structure. Question: "How many people work at the European Commission?” Answer: “About a fourth of them."

12. Reality check BRIC and large economies Source: Worldbank 2007

13. Reality check Source: Worldbank 2007 EU27= 80% USA

14. Results of research projects 1.RESPONSE: alignment between stakeholders and management improves CSR performance. 2.RARE: typology of CSR policies to follow. 3.CSR Platform: CSR research and business education agenda. 4.ESTER: need for legal instruments. New project: IMPACT measuring wider impact of CSR activities.

15. European Diversity Typology of European Social Models Source: http://www.euractiv.com/ndbtext/innovation/sapirrport.pdf

16. Europe’s Different Socio-Economic Regimes Probability of Escaping Poverty and Employment Rate Source: http://www.euractiv.com/ndbtext/innovation/sapirrport.pdf

17. Typology of CSR state policies Stimulated CSR policy Implicit CSR policyExplicit CSR policy Regulated CSR policy Control and disincentives Incentives Low impact High impact Source: RARE Corporate Social Responsibility: Integrating a business and societal governance perspective. The RARE project’s approach, p. 28.

18. 4. Tools and metrics for companies for dealing with CSR/ESG Management Tool Usefulness for capital budgeting Multi period strategy support Ease of Life-cycle-assessment YesNoEnvironmental/SocialLow Full cost assessment YesNoEnvironmental/SocialLow Sustainability management systems No All three pillarsLow Sustainability balanced scorecards No Usually: FinancialHigh Total quality environmental management No EnvironmentalLow Sustainability key performance indicators No All three pillarsHigh Value-based environmental management Yes FinancialHigh Multi-targetCommuni- cationorientation From a company point of view, sustainable net present value approach produces reliable and valid information for strategic decision making Sources: http://www.sustainblevalue.com

19. 5. Lesson Learned in Europe 1.Governments can not mandate voluntary, beyond compliance activities. 2.CSR is an internally contested concept, therefore a process needs to be in place to assure it fits society and circumstance. 3.Governments can create conditions for CSR/ESG activities to flourish: Creating shared knowledge base, and, Using a common language. 4.Social and business research needs to be explicit about the policy context and vision for the future. 5.Research into CSR/ESG activities create a common knowledge base when there is a platform where academic, business, and policy representatives can meet (e.g. EABIS http://www.eabis.org)

20. Opportunities for Democratically Elected Centrist Governments

21. Regarding Europe Heaven The police are British, The cooks are French, The engineers are German The administrators are Swiss And the lovers Italian. Hell The police are German The cooks are British The engineers are Italian The administrators are French And the lovers Swiss

22. Gracias por su atención! Esta presentación http://www.albertschram.com/ My social responsibility Openwijs.nl: XO notebooks Nepal/India HET Foundation: materiales escolares Philipinas Funds for Hope: orphanage Mombassa, Kenya Albert Schram, Ph.D. aschram@yahoo.com

23. Links and references On CSR research: Schram, Albert (2009) “Towards greater corporate responsibility. Conclusions of EU-funded research” European Commission DG Research. http://ec.europa.eu/research/social-sciences/index_en.html Followed by conference in February 2010http://ec.europa.eu/research/social-sciences/index_en.html On the European Union: http://news.bbc.co.uk/2/hi/in_depth/europe/2003/inside_europe/default. stm On enlargement: DG Enlargement http://ec.europa.eu/enlargement/ On Sustainable Net Present Value tool http://www.sustainablevalue.com Course on Doing Business in Europe http://www.albertschram.com

24. FP6 Projects evaluated CSR-Platform http://www.eabis.org/csrplatform RESPONSE http://www.insead.edu/v1/ibis/response_proj ect/index.htm http://www.insead.edu/v1/ibis/response_proj ect/index.htm RARE http://www.rare-u.net/index.php?id=8.http://www.rare-u.net/index.php?id=8 ESTER http://ester.u- bordeaux4.fr/siteanglais/accueil.htmhttp://ester.u- bordeaux4.fr/siteanglais/accueil.htm