SPEECH/06/401
Vladimír Špidla
Member of the European Commission responsible
Employment, Social Affairs and Equal Opportunities
The European Market Place
Corporate Social Responsibility
for
on
The European Market Place on Corporate Social Responsibility
Conference
Brussels, 22 June 2006
Ladies and Gentlemen,
First of all I would like to thank you all for attending, and I’d like to extend my thanks
CSR Europe for organising this event. Your presence here today is testimony to
your commitment and that is very pleasing to see.
The diversity of the good practices which we have heard about this morning
demonstrates the extent to which the European strategy for Corporate Social
Responsibility is alive and kicking, and goes beyond mere declarations of principle.
It is clear that the road we have taken since the Lisbon Council of March 2000 has
really struck a chord with business’s sense of social responsibility.
Following the Green Paper of 2001 and its communication of 2002, just three
months ago the Commission launched a new partnership - an open alliance which
aims to give a new impetus to Corporate Social Responsibility projects.
I am therefore extremely grateful to CSR Europe for giving us the opportunity today
to observe the energy which is being dedicated to the subject and to see just how
far businesses have understood the need to integrate social concerns into their
commercial activities.
In my speech today, I would first of all like to remind you of the importance of
Corporate Social Responsibility, both within the European Union and on the
international scene. Then I would like to talk a little about the question of decent
work. Finally, I will conclude my speech on the theme of diversity.
The importance of Corporate Social Responsibility
Corporate Social Responsibility goes beyond business philanthropy. It involves a
recognition that businesses do not operate in vacuum, but have complex
relationships with the world around them. It is fundamental, therefore, to take into
account the needs of stakeholders whether they be employees, suppliers,
consumers of goods or services, or people living near to the business.
The theme of Corporate Social Responsibility is of increasing importance for the
harmonious functioning of the market economy. There are at least three reasons for
this:
- European business faces increasingly stiff international competition;
- This intense competition is forcing businesses to redefine their strategy and
responsibilities;
- In order to respond to international competition, as well as to the specific
challenges facing Europe, it is imperative that we stimulate a virtuous circle of
social responsibility.
Improving the climate and the environment in which business operate in the 25
member states implies a corresponding need for a commitment on the part of
business to act with greater responsibility. What is called for here is not a
legislative approach. The achievement of this commitment rests, therefore, on a
voluntary approach; although any voluntary code of conduct must, of course, take
into account national, European and international standards.
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Corporate Social Responsibility is one of the factors which are indispensable for the
preservation of our European social and societal model and for its dissemination to
other regions of the world. It is only with your support that we have the chance to
achieve the Millennium Goals and to bring about a more inclusive form of
globalisation.
The evaluation of the Lisbon strategy in 2005 and our action plan for the period up
to 2010 both illustrate that we need to mobilize all actors in order to maintain and
develop a model which is both competitive and sustainable.
The strong growth in offshoring, as much in manufacturing as in services, forces us
to better anticipate the changes and relocations which bring this about. It also
forces us to consider how to ensure respect for social standards by subcontracting
businesses from developing countries.
For all these reasons the European Commission supports the Alliance, which is an
open coalition. I am very pleased to note today the presence not only of several
businesses, but also of national and regional networks and sectoral professional
bodies.
It is through the exchange of experience, with the political support of the European
Commission, that you will help to make Europe the pole of excellence on
Corporate Social Responsibility which we all want it to be. And I hope, therefore,
that a great number of businesses and networks will choose to join the Alliance.
In this context the question of decent work is an essential issue. We should
remember, first of all, that the Lisbon strategy aims to create quality jobs. Secondly,
the European Commission has decided to enhance its cooperation with the
International Labour Organization in order to promote decent work around the
world.
Decent work
The European Commission has just adopted a communication on decent work, in
which it proposes initiatives to reinforce the European Union’s contribution to the
universal objective of decent work for all. In this communication the European
Commission underlines the role that European business has an important role to
play.
The global evolution of the world of work is marked by growing uncertainty, by the
acceleration of change and by growing inequalities at work. Decent work is founded
on an integrated approach resting on four key pillars: productive and freely chosen
work; labour law, including fundamental rights; social protection; and social
dialogue. In each of these four pillars the gender dimension must also be taken into
account.
The promotion of decent work through the open system of international trade which
we live in today, will contribute to strengthening economic performance and to
regional and global governance. If we do not pursue the objective of decent work
for all, the achievement of the objective of sustainable development will be seriously
threatened. Without decent work, poverty, inequality, uncontrolled migratory
movements and instability will only increase.
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We know that in many states mechanisms to compensate for the negative effects of
markets opening up are either non-existent or inadequate because of a lack of
capacity. However, in emerging and developing countries, businesses are also in a
position to promote respect for human rights, fundamental social rights and
international environmental conventions throughout the supply chain.
The European Commission’s approach aims to contribute to poverty reduction
through maximising the benefits of globalisation whilst seeking to minimise its costs,
both in Europe and the wider world.
Therefore, the Commission invites all stakeholders and the Alliance to develop
initiatives to promote decent work as an important element of their social
responsibility.
The Commission also invites all stakeholders to promote diversity, especially in
order to contribute to social cohesion within the European Union.
Diversity, Equal Opportunities, and the fight against Discrimination
I am very pleased to note that more and more European businesses are adopting
strategies to promote diversity and equality. The growth of such initiatives is to be
welcomed, not only for ethical reasons, but also because improving diversity in
recruitment and retaining a skilled workforce leads to the enrichment of a business’s
human capital.
An ability to draw on diverse and complementary competences and skills
contributes to economic and commercial success. An organisational profile which is
representative of the diversity of society helps a firm to better understand customer
needs and to improve customer service. This is a genuine competitive advantage.
Diversity is a motor for cultural change, a change which lies at the very heart of the
concept of Corporate Social Responsibility.
To give you an example, two surveys conducted in 2005 in firms across the 25
Member States show that 42% of businesses questioned have had internal diversity
policies for at least 5 years. The best performers were Germany, the Netherlands,
Denmark, and Poland.
According to these surveys, the benefits which businesses cite from having diversity
policies are:
- First, access to a broader potential workforce and the recruitment and retention
of qualified staff;
- Second, improved reputation and a better image;
- Finally, greater innovation and improved creativity at the workplace.
Socially responsible initiatives on diversity, as with so many subjects, can only be
sustained in the long term if they are shared by all internal and external
stakeholders. Certain large businesses have already resolutely engaged on this
route by piloting new forms of dialogue with trade union representatives at the
international level in order to formalise their commitment to Corporate Social
Responsibility.
It is important to recognise that the international framework agreements which exist
today have almost exclusively been signed by European businesses. In fact, 43 of
the 48 agreements were made by European firms.
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Certain major groupings of employers have also signed agreements on the
promotion of equal opportunities, diversity, anti-discrimination, and social cohesion.
A sectoral approach to the question of diversity can therefore be extremely fruitful.
To conclude on the subject of diversity, I would like to remind you that the
Commission adopted a roadmap for gender equality on the 1st of March 2006 which
covers the period up to 2010. The year 2007 will be the European Year of Equal
Opportunities for All.
Conclusion
Decent work and diversity are therefore two themes which could usefully be
explored by the laboratories which are being set up by the Alliance and by some of
the projects undertaken by individual members.
We will have several occasions to meet between now and 2007.
First of all, the Commission will reunite the multi-stakeholder forum on Corporate
Social Responsibility before the end of 2006 in order to review the progress of CSR
in Europe with all the interested parties.
We will also have a review with the Alliance and the other CSR networks in 2007.
So, I look forward therefore to meeting you all again in 2007 to review our progress.
Thank you for your attention.
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