European Competitiveness Report 2008 - Csr

European Competitiveness Report 2008

5.

Overview of the links between Corporate Social Responsibility and Competitiveness

Introduction

exist from competitiveness to CSR instead of (or as well as) from CSR to competitiveness; and that investors and shareholders have no interest in CSR. To date most of the key concepts and tools addressing CSR have been developed by and for large enterprises. Whenever possible, this chapter also considers the situation of SMEs. CSR as practiced in SMEs is usually less formal and more intuitive than in larger companies. It is often closely tied to the personal and ethical values of the SME owner-manager. As a general rule, the smaller the enterprise the greater the relative importance of personal and ethical values as a driver for CSR. In any case, SMEs are less likely than larger enterprises to make a conscious analysis of the costs and benefits of following a more socially and environmentally responsible course of action.

5.1.

Corporate Social Responsibility (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” (European Commission, 2001). In its Communication to re-launch the Lisbon Strategy in 2005, the Commission stated that CSR “can play a key role in contributing to sustainable development while enhancing Europe’s innovative potential and competitiveness” (European Commission, 2005). In March 2006 the Commission adopted a Communication on CSR which reaffirmed CSR as a business contribution to the Growth and Jobs Strategy and to sustainable development (European Commission, 2006). In the Integrated Guidelines for Growth and Jobs, the Council recommends that Member States should “encourage enterprises in developing their corporate social responsibility.” In recent years there has been a significant growth in the number of enterprises that have an explicit policy on CSR. At the same time,...