1.1.2.2 The EU first CSR Communication (2nd of July of 2002)

One year later on the 2nd of July of 2002, the European Commission published its first communication on CSR, titled “Corporate social responsibility: A business contribution to sustainable development”.12This communication resulted from the consultation process on the Green Paper from 18th of July of 2001. After the introduction, in the first section of this document the European Commission provides a summary of the outcome of the public consultation of the Green Paper. The second section, regarding the sustainable development strategy, explains the European Strategy for promoting and integrating CSR. The last four sections provide a description of the proposed future actions on CSR, namely, how to improve the knowledge about CSR and facilitate the exchange of experience and good practice, how to promote convergence and transparency of CSR practices and tools, how to launch a EU multi-stakeholder forum on CSR and finally, how to integrate CSR in all EU policies.3

More than 250 responses to the public consultation of the Green Paper were received. There was a large discrepancy between the responses. The corporate responses emphasized the need for a voluntary nature of CSR. attempts to regulate CSR at EU level would be “…counterproductive, because this would stifle creativity and innovation among enterprises which drive the successful development of CSR, and could lead to conflicting priorities for enterprises operating in different geographical areas;” On the side of trade unions and civil society’ organizations, the voluntary approach to CSR “is not sufficient to protect workers and citizens’ rights.” They called for “…a regulatory framework establishing minimum standards and ensuring a level playing field.” And for effective mechanisms to ensure a company’s accountability for its social and environmental impact;” The investors are looking for the improvement of the “disclosure and transparency of companies’ practices, rating agencies’ methodology and investment management of SRI (socially responsible investment) funds and pension funds;” As for the Council, the Economic and Social Committee, the Committee of the Regions and the European Parliament kept their support for a voluntary approach to CSR.

In this communication CSR is defined as voluntary, against what the European Commission had stated in the earlier green paper of 18th of July of 2001. The paragraph stating that CSR should not be seen as a substitute to regulation was deleted.4 Currently, “CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”5