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Commissioner Verheugen hijacks EU process on CSR
Corporate Social Responsibility plan EU totally lacks substance
Brussels, 13 March 2006 - The EU Commission is planning an alliance with
the industry to promote Corporate Social Responsibility (CSR), but on a
cosmetic level with no serious impact on environmental or social issues.
The EU proposal on CSR, drafted by Industry and Enterprise Commissioner
Günter Verheugen, is geared solely towards improving the competitiveness
of the industry instead of seriously tackling the negative impacts of
business on the environment and society.
The EU proposal, a copy of which has been obtained by a new coalition of
Non Governmental Organizations (NGOs) working on corporate accountability,
came one and a half year after the Multi-stakeholders Forum on CSR in
Brussels in 2004. It is expected to be adopted on March 22 by the
Commission.
It proposes the creation of an open 'European Alliance.to make Europe a
pole of excellence on CSR in support of a competitive and sustainable
enterprise and market economy'. But CSR is mainly seen as 'a business
opportunity creating win-win situations for companies and society'(1).
In contrast, the Multi-stakeholders Forum called for a 'voluntary
integration of environmental and social considerations into business
operation over and above legal requirements and contractual
obligations'(2).
Emphasis in the EU proposal is put on growth and competitiveness: CSR is a
way 'to help SME (Small and Medium sized Enterprises) to flourish and
growth' instead of improving the responsibility, sustainability and
accountability of companies.
Paul de Clerck of Friends of the Earth Europe, one of the founding members
of the new NGO coalition(3), said: 'Commissioner Verheugen hijacked the
CSR process to his jobs and employment agenda. The paper we received is
not about improving the environmental and social impact of European
companies, but only on how companies can become more competitive and
profitable".
The EU proposal states that the Multi-stakeholder Forum in 2004 came to a
consensus on voluntary commitments of industry. This is wrong. NGOs have
consistently been arguing that binding legal measures are necessary to
establish a general incentive for responsible corporate behavior.
The Commission's proposal does not include NGOs recommendations like:
- ensuring accountability of companies to their stakeholders
- social and environmental reporting requirements
- using public policy measures such as public procurement and public
subsidies to stimulate responsible behavior
- Implementing international standards and principles
- involving stakeholders from the early stages of CSR strategy development
- ensuring independent monitoring/verification
Joris Oldenziel from the 'Foundation for Research on Multinationals'
(SOMO), also founding member of the new NGO Coalition, says 'Commissioner
Verheugen has organized secret meetings with business, excluding other
stakeholders, thereby neglecting the Multi-stakeholder approach adopted in
the past. Adopting his proposal would mean that all the time and resources
spent on the Multi-stakeholder Forum has been a complete waste of time for
those willing to come to a common understanding.'.
Contact:
Paul de Clerck at FoE Europe, 32-2-5426107
Joris Oldenziel at SOMO, 31-20-6391291
Notes
(1) Implementing the partnership for growth and jobs: Making Europe a Pole
of Excellence on Corporate Social Responsibility". The draft report can be
obtained from Friends of the Earth Europe, 32-2-5426107
(2) Final report of the Multi-stakeholders Forum, website of the
Commission:
http://forum.europa.eu.int/irc/empl/csr_eu_multi_stakeholder_forum/info/data/en/CSR%20Forum%20final%20report.pdf
(3) The Steering Group of the new NGO Coalition consists of Manitese from
Italy, the Dutch MVO platform (the Dutch NGO Coalition on CSR), CORE UK
(the UK NGO coalition on CSR), Germanwatch, Forum Citoyen pour la RSE
France (the French NGO coalition on CSR) and SETEM (the Spanish NGO
coalition on CSR)
Friends of the Earth Europe campaigns for sustainable and fair societies and for the protection of the environment,
unites more than 30 national organisations with thousands of local groups
and is part of the world's largest grassroots environmental network, Friends of the Earth International.