The European Commissions Approach to Responsible Business Towards

The European Commission's Approach to Responsible Business: Towards a 2016 -2020 strategy on Corporate Social Responsibility

Giuseppe Cacciato, Senior Adviser, DG for Internal Market, Industry, Entrepreneurship and SMEs • • Policy areas (current): CSR, Tourism, Service Industries; Policy areas (past): Completion of the Single Market; Competition; Consumer Protection; Toy Safety; Trade Agreements

Albert Einstein : • 'It' easier to break an atom than a prejudice'

Why Corporate Social Responsibility? • European citizens do not feel informed about what companies do to manage their social and environmental impacts • Influential factor in strengthening the competitiveness and growth of European companies • Important for the European economy, CSR contributes to sustainable long-term economic growth, job creation and community engagement

The EC's Understanding of CSR • EC definition of CSR: The responsibility of enterprises for their impacts on society • Definition consistent and designed according to global instruments addressing responsible business • Positive and negative influences on society; all enterprises have impacts, all have a social responsibility • Legal compliance is a pre-requisite to being responsible • Process of integrating social, environmental, ethical, consumer and human rights concerns into business strategy and operations, in cooperation with stakeholders

Internationally Recognised CSR Guidelines and Principles

Cooperation Across the European Commission and EU Institutions • • • EEAS, Business and Human Rights DG Trade DG Employment and Social Affairs DG Development and Cooperation DG Justice Several other DGs - CNCT, ENV, etc.

THE APPROACH OF THE EUROPEAN COMMISSION OUR 2011 – 2014 STRATEGY

EC Communication on Corporate Social Responsibility (CSR) , 2011 -2014 AGENDA FOR ACTION 1. Enhancing visibility (Multi-stakeholder sectorbased platforms, and award scheme for enterprise-stakeholder partnerships) 2. Improve and tracking levels of trust in business (consider measures on green washing, and surveys of citizen perceptions) 3. Code of good practice for self- and coregulation 4. Enhancing market reward for CSR (consumption, investment, public procurement) 5. Legislative proposal on company disclosure of social and environmental information 6. CSR in education, training and research 7. Importance of national and sub-national CSR policies 8. Better alignment of European and global approaches on CSR

Activities: Guiding Material for Enterprises and the Public Ø For SMEs (My Business and Human Rights) Ø Five SME case studies Ø Sector guidance notes (ICT, Oil & Gas, Employment & Recruitment Agencies) Ø Corporate Social - Responsibility National Public Policies in the European Union Compendium 2014

Activities: National Action Plans on CSR / Business and Human Rights § The EU has endorsed the UN Guiding Principles in its 2011 CSR strategy and has made a commitment to support their implementation. § National Action Plans are designed and driven by EU MS themselves, according to individual needs and specificities (NAP on CSR, B&HR, etc. )

2014 Reviewing our 2011 CSR strategy A year of review, consultation, stocktaking, preparation 2016 Preparation of the Staff Working Document on the UN Guiding Principles on Business and Human Rights (Dec. 2014) Public consultation on the Commission's CSR achievements, shortcoming and future challenges (29 April – 15 August) Plenary meeting of the Multi. Stakeholder Forum – 450 participants, Charlemagne (3 - 4 February 2015) Technical Report with the results of the Public Consultation (Nov. 2014) Q 3 2014 Q 4 2014 Q 1 2015 New Commission strategy on Corporate Social Responsibility (tbc. , Q 1 2016) Q 1 2016

CSR-RELATED REGULATORY ACTIVITIES

Directive on Non-Financial Information Reporting § New disclosure rules for companies above 500 employees to report on non-financial information in their management reports – including human rights § Companies concerned will need to disclose information on policies, risks and outcomes as regards environmental matters, social and employee-related aspects § Respect for human rights, anti-corruption. bribery issues, and diversity key features of the directive

Procurement – New Provisions Regarding Social, Environmental Concerns • New procurement rules were adopted in January 2014 by the EP and Council • Social, labour and environmental concerns were included in the following areas: • • Award decisions (Art. 54 (2)) Exclusion grounds (Art. 55) Rejection of a tender (Art. 69 (4)) Conditions for the performance of contracts (Art. 70)