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gcsr: context aim and perspective
Transcript of gcsr: context aim and perspective
A summary of the most important approaches to the action of the governments in promoting and developing CSR.
First part will serve as a point of departure for our proposal and analysis.
Second part of the chapter will discuss the analysis and debate on governments and CSR.
comparative study between european framework and american framework
implicit and explicit csr
By explicit CSR we refer to corporate policies which assume and articulate responsibility for some societal interest.
roles in the public sector in relation to csr
idea of the public sector adopting 4 roles:
tHE LITERATURE ON GOVERNMENT AND CSR: EUROPEAN FRAMEWORK
In European framework, the starting point is provided by the documents published by the European Commission (EC).
gcsr: context aim and perspective
The Green Paper "Promoting a European Framework for Corporate Social Responsibility "
This green paper aims to launched a wide debate on how the European union could promote corporate social responsibility at both the European and international level, to encourage the development of innovative practices, to bring greater transparency and to increase the reliability of evaluation and validation. (European Commission, 2001)
Commission Communication Concerning Corporate Social Responsibility: A Business Contribution to Sustainable Development
The implementation of this European strategy should be of benefit to enterprises, the acts concerned, and the sustainable development of the European Union. the economic success of the enterprises no longer depends solely on strategies to maximise profits in the short term but on taking into consideration the social and environmental objectives, including the interest of the consumers.
Principles of the European Strategy
The strategy to promote CSR promposed by the Commission is based is based on a series of principles:
the voluntary, transparent and credible nature of CSR activities.
the identification of areas where European action will add value.
a balance between the economic, social and environmental spheres and in relation to consumers' interest.
attention to the specific needs of Small and Medium-sized Enterprises (SMEs).
compatibility with existing international agreements (particularly of those of the International Labor Organisation(ILO) and the Organisation for Economic Cooperation and Development(OECD)).
These analyze the differences between the development and the acceptance among European based companies on the role adopted by European governments promoting CSR and the less favorable acceptance to be found in the US based companies in relation to US government initiatives.
CSR varies from continent to continent, country to country, sector to sector, and corporation to corporation. And CSR grows at different rhythms.
american and European CSR
According to Whitley(1999) there are four key features of historically grown national institutional frameworks for understanding comparative CSR:
Education and Labor System
These theoritical frameworks would help understand the differences in CSR among countries, and will be the basis of conceptualization of CSR as a dual construct, the implicit and the explicit.
political system: american vs european
The key distinguishing feature of American and European political systems is the power of the state. This has tended to be greater in Europe than in the USA (Lijphart, 1984) and European government have been generally more engaged in economic and social activity. Some have nationalized insurance systems for health, pensions and other social commodities and others have mandated corporations to assume responsibility in these areas.
While in America, there is greater scope for corporate discretion as government has been less active therein. Even where the governments have been active this has often been through the creation of incentives to employers to provide social benefits through negative tax expenditures.
FINANCIAL SYSTEM: AMERICAN VS EUROPEAN
In the USA the stock market is the central financial source for companies. Most of the larger, publicly owned companies obtained their capital there (Becht and Roell, 1999), with the stock market being the most important source of capital, corporations have to provide a high degree of transparency and accountability to investors.
In the European model of Capitalism, corporations tend to be embedded in a network of a small number of large investors, among which banks play a major role. Within this network of mutually interlocking owners, the central focus is the long term preservation of influence and power.
education and labor system: american vs european
In Europe there have been publicly-led training and active labour market policies in which corporations have participated according either to custom or regulation.
While in the USA this has been an area in which corporations themselves have developed strategies.
By implicit CSR we refer to the corporations' role within the wider formal and informal institutions for society's interests and concerns. Normally consists of values, norms and rules.
The main conclusion drawn from those frameworks is that in the US, more explicit CSR strategies hve been adapted by the companies, thus resulting in a weaker institutional framework.
In Europe, companies have adopted more implicit corporate strategies for CSR, among other reasons because institutional frameworks for socially responsible business action are more develop there.
10 key themes on the csr agenda:
1. Minimum standards
2. Public policy role of business
3. Good corporate governance
4. Socially resonsible investment
5. Philanthrophy and community development
6. Stakeholder engagement
7. Production and consumption
8. Certification and management systems
9. Transparency and reporting
10. International CSR guidelines
governance and csr
MOON'S (2004) ANALYSIS ON governance and CSR POLICY
UK government adopted its CSR policy as a response to the social governance crisis and the lack of legitimacy of the state
UK government saw CSR as a contribution by the business world towards meeting social issues challenges and incorporated it into the political agenda.
midttun's (2005) analysis
Development of CSR on the basis of a comparative study of 3 models:
Keynesian Welfare State Model
Embedded Relational CSR Model
Midttun analyzed each of the models adopted by the governments in political, commercial and regulatory exchange taking into accounts 3 players:
gribben's (2001), GUARANI AND NIDASIO'S (2003) analysis
Government's role in the creation of new models of social partnerships with a view to solving social problems, in coordination with companies, social organizations, and local government (Gribben, 2001).
The role of CSR in public-private partnerships incorporates an area of long-term consistency into the concept of political networks. The study concludes that public-sector players commit themselves in social and environmental needs, while the private sector commits itself in both the finding and the performance of projects (Guarani and Nidasio, 2003).
bendell and kearin's (2004) analysis
Political dimension of CSR and its application to business administration and management in relation to the demands of civil society:
Concept of voluntary compliance
Voluntary nature of CSR brought growing social awareness
Without major changes in public policies, efforts by companies in CSR may not be successful.
The basic element for the development of CSR is the growing importance given to the interrelationship between business, government and civil society.