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CORPORATE SOCIAL RESPONSIBILITY is the ponderous term used by the EU Commission to bundle up a number of issues that they wish modern companies to address in Europe. In July they published a Green Paper on the subject. The paper advocates what it calls a 'triple bottom line' whereby companies add evaluation of environmental and social pluses and minuses to the usual economic profit and loss measure.Launching the Green Paper, the relevant Commissioners Anna Diamantopoulou and Erkki Liikanen, stated that: 'More and more firms are realising the link between profitability and best ethical and environmental practice. Conscientious firms not only attract and retain the best workers, they can also get ahead in the technology game, vital for that all-important competitive edge'.
Within companies corporate social responsibility concerns the handling of labour relations, investing in human capital, managing change and taking care of health and safety. There is also an environmental dimension within businesses in how they manage the natural resources used in production. However the concept extends 'beyond the doors of the company into the local community and [relations with] business partners and suppliers, customers, public authorities and non-governmental organisations ....as well as the environment', says the Green Paper.With regard to a company's relations with its work force the Green Paper is obviously influenced by the recent redundancies involving well known European firms, 'Few companies escape the need to restructure, often through downsizing, with the year 2000 seeing more mergers and acquisitions than any other year in history' and advises companies about 'seeking the participation and involvement of those affected through open information and consultation'. It also advocates life-long learning, work-life balance, equal pay and career prospects for women, profit sharing and share ownership, non-discriminatory recruitment practices and company involvement in health and safety beyond the legal minimum.
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Commissioners for the Enterprise and
Information Society, Erkki Liikanen |
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In recent years more and more multinational companies have signed voluntary 'codes of conduct'. Employers such as the Swedish-headquartered construction company Skanska, the Spanish-based telecommunications group Telefónica and the French-based commerce multinational Carrefour have agreed these with trade unions. While supporting these the Green Paper stresses that codes should never become a substitute for complying with national and international legislation.Other important practices mentioned in the Green Paper include ethical labelling, sometimes to assist in Health and Safety as in the Swedish TCO scheme (see Issue 14 page 7) or to guarantee labour standards among suppliers, and socially responsible investing where investors direct their funds only to companies that uphold socially responsible policies. The purpose of the paper is to stimulate debate and any comments will be gratefully received at the address below.
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European Commission, Corporate Social Responsibility Green Paper consultation, Rue de la Loi / Wetstraat 200, B-1049 Brussels |
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'Promoting a European framework for Corporate Social Responsibility'is available on the Internet at: |
http://europa.eu.int/comm/employment_social/news/2001/oct/socpolag/csr_communication.pdf |
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'Adobe Acrobat Reader' to view it can be downloaded at |
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THE EUROPEAN TRADE Union Confederation (ETUC) has produced a report about developments in the labour market for young people and their effect on trade union recruitment. It traces the decline of manufacturing and the rise of the service sector since the end of the post-war boom in the 1970s. This led to a decline in union membership in younger age groups, precipitous in the case of countries like Germany where the confederation (DGB) lost over 600,000 young members between 1988 and 1997. The report goes on to list the reasons such as more stress on individualism, shorter time in each job, lack of contact with trade unionists and dislike of the formal procedures of unions which result in young people not joining. Reasons for joining vary across Europe and are sometimes contradictory but the most often mentioned is 'Support if I have a problem at work'.
The authors describe how unions have tried to change to provide the benefits for which young workers are looking. They say that these efforts fall into three main categories: 'changing the image of trade unions, highlighting an agenda appropriate for young people and reforming union organisation to encourage membership and participation'. The initiatives such as sponsoring football teams and organising pop concerts are listed as well as financial benefits like discounted holidays and mortgages and alterations in procedures including more informal meetings and membership cards linked to the person rather than the company. In conclusion the report criticises trade unions for reacting slowly to changes in the labour market which left young people vulnerable and estranged from them. It warns that they do not form a single homogeneous group and must be targetted according to their needs at work.
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