Corporate Social Responsibility (CSR) in Europe

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1 Corporate Social Responsibility (CSR) in Europe Tobias Schiller Structure 1. Theory: What means CSR? Introduction to CSR About stakeholders Business & CSR: benefits for companies Consumers & CSR 2. CSR in Europe: Looking for a framework Important steps on the way to an European framework Key stakeholders in the debate 3. Certification: SA Good Practice I: The FairTrade Label 5. Good Practice II: Sustainability Report Deutsche Telekom AG 6. Résumé

2 1 Theory: What means CSR? Back to the Sustainability Triangle ecological Product Design Eco-Labelling LCA SCM Procurement Finance sustainable? economical social

3 About Responsibilities Sustainable companies have three kinds of responsibility: economic, environmental and social. Corporate social responsibility is an integral part. It is about integrating the issues of the workplace, human rights, the community and the marketplace into core business strategies. ( csrcampaign.org) About social responsibility You're confronted with corporate social responsibility every day, even without noticing it. It's everywhere: When customers enter a supermarket and choose products with a good reputation; when investors put money into a company with an exemplary record; or when companies invest in the future or training of their employees, and gain loyalty and commitment in return. ( csrcampaign.org)

4 Corporate Social Responsibility Definitions CSR is the alignment of business operations with social values. ( csrwire.com 2004) essentially a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. (DG Employment and Social Affairs 2001) a a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. (DG Employment and Social Affairs 2002) Corporate Social Responsibility Definitions CSR means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and the relations with stakeholders. (DG Employment and Social Affairs 2001) describes a company's commitment to be accountable to its stakeholders in its operations and activities. ( euractiv.com 2003) means treating stakeholders in an ethically responsible way. ( csrwire.com 2004) CSR is not a a substitute for legal regulations. a a substitute for existing social rights and standards. (after DG Employment and Social Affairs 2001)

5 CSR: Dimensions Internal Dimensions Human resources management Health and safety at work Adaptation to change Management of environmental impacts and natural resources External Dimensions Local communities Business partners, suppliers and consumers Human rights Global environmental concerns Examples for CSR practice Codes of Conduct / Ethical Guidelines European Sugar Industry Social Partnership Agreements Certifications, social labels SA8000 FairTrade Social Reporting / Sustainability Reports Management tools & guidelines Self-evaluation tools Step-by-step instructions how to integrate long-term unemployed Social Awards Preis Freiheit und Verantwortung Best Work Places in the EU

6 CSR: related concepts & terms Corporate Citizenship voluntary contributions to society, e.g. Sponsoring Foundations Corporate Volunteering Socially Responsible Investment (SRI) the way sustainable companies raise capital Corporate Governance the system through which a company s s objectives are set managing the relations and interactions between stakeholders About Stakeholders Primary stakeholders Management Shareholders / Owners Employees Consumers Contractors Secondary stakeholders Environment Government Community

7 Stakeholders and their interests IöW 2001 Benefits of CSR activities for companies Attracting and retaining good employees Increased productivity Better company reputation Easier access to capital Improved brand value Attracting consumers

8 Stakeholder relationships and Shareholder value: is CSR financially profitable? 68% of the results of more than 100 empirical studies: positive relationship between corporate social performance and financial performance 42 of 80 studies on CSR: positive impact,, 4: negative impact Examples: public commitment to ethics : : 18% higher profit on average stakeholder-balanced companies compared to shareholder-only focused companies: four times the growth rate eight times the employment growth Easier access to capital: CSR attracts more investment (SRI!) Better productivity More consumers Consumers and CSR Consumers more critical on sustainable production: 70%: company s s commitment to social responsibility is important when buying a product or service (CSR Europe 2000) 20% very willing to pay more for socially and environmentally responsible products (CSR Europe 2000) 86% more likely buy products from companies engaged in activities to help improve society (Fleishman Hillard 1999) ~16% frequently buy or boycott products because of manufacturer s reputation (Cowe and Williams) UK: 14 bn.. (2000) generated by ethical consumer purchases (Co-operative Bank UK)

9 Consumers and CSR ( csreurope.org) Consumers and CSR (IöW 2001)

10 2 CSR in Europe: Looking for a framework CSR in Europe Looking for a framework European summit in Lisbon (March( 2000) new strategic goal to "make Europe the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth,, with more and better jobs and greater social cohesion. Call for a European discussion on CSR Negative impacts of globalization Loss of confidence in global enterprises No common language in CSR No common CSR-tools Commission s Green Paper on CSR (July 2001)

11 Green Paper on CSR Main targets: launch a debate,, how the EU can promote corporate social responsibility on European and international level set up a European framework develop standards for social auditing and reports Emphasis on: Employees as major stakeholders CSR as a voluntary concept Consultation Process CSR in Europe Looking for a framework Commission s s Communication as follow-up to green paper (July 2002) Synthesis of Consultation Process (mostly positive) Call for more convergence and transparency of CSR practices and tools: Codes of conduct Management Standards Measurement, Reporting and Assurance Labels Socially Responsible Investment (SRI) EU Multi-Stakeholder Forum on CSR

12 EU Multi-stakeholder Forum an CSR Aims: Promotion, Innovation, Transparency and Convergence of CSR practice Acquisition of practical suggestions Composition: Chair: European Commission Employers Trade Unions Civil Society, NGOs (Amnesty International, Oxfam, ) Business Networks (CSR Europe, World Business Council on Sustainable Development, ) 2004: Presentation of results / report to the commission Certification: SA SA8000

13 Social Accountability International US-based, non-profit organization Advisory Board with expertise in: Human rights Child labour Labour rights SRI Auditing techniques Management of large supply chains SA8000 Certification: Key Facts independent, expert certification international labour rights involvement by all stakeholders,, including workers and trade unions companies socially responsible investors NGOs Governments public reporting targeting consumer and investor concerns

14 SA8000: Certification Criteria No Child Labour No Forced Labour Health and Safety Freedom of Association and Right to Collective Bargaining No Discrimination Discipline Working Hours Decent Compensation SA8000 Certified Facilities (Examples) Dole Philippines, Incorporated Chiquita Brands Honda Logistic Centre Italy S.p.A. Castrol Vietnam Ltd. Toshiba Information Equipment (Philippines), Inc. Randstad Belgium nv TNT Global Express (Italy) S.p.A

15 4 Good Practice I: The FairTrade-Label The FairTrade / TransFair Label FairTrade Labelling Organization (FLO, Bonn) 17 Partners in Europe, Japan and USA > 800,000 producers, workers and their dependants in more than 45 countries benefit from labelled Fairtrade Main Target: To improve the position of disadvantaged producers in the developing countries

16 FairTrade: : Products agricultural products: Cocoa, Coffee, Tea Dried Fruit, Fresh Fruit Honey Juices Nuts & Seeds Rice Sugar Wine Manufactured products: Footballs continuously being extended, e.g. to textiles and clothing FairTrade Certification: International FairTrade Standards Minimum Requirements decent wages right to join trade unions good housing provided where relevant Health, safety and environmental standards no child or forced labour Progress requirements encourage producer organisations to continuously improve working conditions and product quality increase the environmental sustainability invest in the development of the organisations and their producers/workers

17 FairTrade Certification (2) Trading standards: traders have to:. pay a price to producers that covers costs of sustainable production and living pay a premium that producers can invest in development partially pay in advance when producers ask for it sign contracts that allow for long-term planning and sustainable production practices product-specific standards: minimum quality price processing requirements FairTrade Auditing and Controlling

18 FairTrade: Examples for Licensees in Germany J. Darboven GmbH & Co.KG Karstadt Coffee GmbH Hermann Pfanner Getränke Ges.m.b.H. Gepa mbh Der Teeladen Teekanne GmbH 5 Good Practice II: Sustainability Report Deutsche Telekom AG

19 Deutsche Telekom: Nachhaltigkeitsbericht Deutsche Telekom 2001 Stakeholder der Deutschen Telekom Deutsche Telekom 2001

20 Deutsche Telekom: Kenngröß ößen der Nachhaltigkeit Ökonomie Einheit Konzern-Umsatz Milliarden Euro 34,5 35,1 35,5 40,9 Konzern-Überschuss Milliarden Euro 1,7 2,2 1,3 5,9 Anteil des Umsatzes im Ausland Prozent Umsatz pro Mitarbeiter Tausend Euro Ökologie Energieverbrauch Millionen kwh CO2-Emissionen Millionen Tonnen 2,19 2,15 1,96 1,67 Anzahl der im Unternehmen eingesetzten Zahl absolut umweltgefährdenden Stoffe Kraftstoffverbrauch Durchschnitt in Liter/100 km 8,4 8,3 7,6 7,7 Abfallaufkommen Tonnen Soziales Mitarbeiter Stellen insgesamt Beschäftigte in ausländischen Beteiligungen Stellen insgesamt k.a Ausbildungsplätze Stellen insgesamt Anteil Frauen in Führungspositionen Prozent 12,7 14,3 16,4 18,0 Deutsche Telekom 2001 Bsp: Arbeits- - und Gesundheitsschutz Change- und Stressmanagement Gesundheitstage Rückenschulung Massage am Arbeitsplatz arbeitsmedizinische Voruntersuchungen und Beratungen Gesundheitschecks fürf Führungskräfte reisemedizinische Betreuung bei berufsbedingten Auslandsaufenthalten 160 Sicherheitsingenieure / Fachkräfte für f r Arbeitssicherheit 52 Betriebsärzte rzte Deutsche Telekom 2001

21 Bsp: Soziales Engangement 160 Sozialarbeiter Erholungswerk Post Postbank Telekom kostenloser Urlaub für f r behinderte Kinder von Mitarbeitern Sozialfonds Arbeitsplätze tze fürf Schwerbehinderte + spezielle Betreuung Deutsche Telekom 2001 Bsp: Qualifikation Telekom Training Center : : Weiterbildung durch viele Qualifizierungsmaßnahmen nahmen Tarifvertrag über die berufliche Weiterbildung Insg h Umweltbildung (2000) Umweltbewusstsein Umweltrecht Gefahrgüter Abfall 8117 Ausbildungsplätze (2000) Telekom Business Academy Deutsche Telekom 2001

22 Bsp: Telekom als guter Nachbar Beteiligung und Initiierung von Unternehmensnetzwerken im Zusammenhang mit Lokaler Agenda 21 Beteiligung an Lokale Agenda 21-Prozessen in über 20 Kommunen Initiativen wie Frauen / Senioren / Schulen ans Netz Sozialtarife für f r Einkommensschwache, Studenten, Kostenlose Bereitstellung von 0800-Nummern für f r soziale Einrichtungen Spenden & Sponsoring Engagement für f r Solidarität t und Toleranz 6 Résumé

23 Corporate Social Responsibility: Zusammenfassung Soziale Verantwortung von Unternehmen als freiwillige Verpflichtung,, zu einer besseren Gesellschaft beizutragen Interne und externe Dimension von CSR Stakeholder-Konzept (Anspruchsgruppen) & Shareholder Value Vorteile für f r Unternehmen; Konsumenten & CSR Aktivitäten ten in der EU: Grünbuch Europäische Rahmenbedingungen für f r die soziale Verantwortung der Unternehmen Konsultationsprozess Mitteilung der Kommission Europäisches Multi-Stakeholder Forum Zertifizierung: Das Beispiel SA8000 Beispiele: FairTrade Label Nachhaltigkeitsbericht Deutsche Telekom AG