Institutional Framework

23/12/2011

The subject of CSR is growing in importance for business, especially for internationally active companies. Customers, investors, non-government organizations (NGOs), and finally the state are tuning in to activities of German companies abroad.

Special attention is paid to international supply chains and the social and ecological conditions, under which upstream products are manufactured. International standards for CSR such as the OECD guidelines for multinational companies or the Global Compact of the United Nations are gaining importance for the export industry. Legislative initiatives in the field of CSR are also increasing.

CSR has been part of day-to-day practice for many companies. Supply chain management, CSR reports, and systematic compliance with CSR standards are indispensable for publicly quoted companies. This subject is also of growing importance for medium-sized business, as revealed in the recent BDI medium- sized panel in fall 2011. The survey revealed that companies are now more aware of their responsibility to society than in 2006. In every third company sustainability standards have been laid down, and 86 percent of the companies surveyed contribute to social responsibility through donations. Meanwhile the vast majority of the companies focus on ecological and resource- conserving production methods. CSR is also being enjoyed inside medium-sized enterprises: Around 70 percent of the companies practice active personal development and have confidence in flexible work hours.

CSR has been an important topic for the BDI for many years. The BDI supports companies through up-to-date information about developments and trends in the area of CSR, e.g. through the CSR Internet portal CSR-Germany, which is operated jointly by the BDA, DIHK and ZDH.

The European Union opts for statutory regulation of CSR

On 25 October 2011 the EU Commission agreed to the CSR communication “A renewed EU strategy (2011-2014) for corporate social responsibility (CSR)”. The Commission proposes measures that support companies in their voluntary social commitments. This practice-oriented approach is being undermined, however, by a multitude of proclamations that contradict the voluntary character of CSR and would lead to additional bureaucratic burdens. The communication disputes not only the voluntary principle of CSR, but through additional political demands opposes the definition even further.

Among other things, obligatory reports of CSR activities are demanded from the companies, and the EU Commission requests all large European companies to implement the OECD guidelines for multinational corporations, the UN Global Compact, or the ISO 26000. Furthermore, the EU Commission wants to control whether companies with over 1,000 employees are complying with the obligations they have made. The BDI has critically commented this communication jointly with the other top commercial federations BDA, DIHK and ZDH. The aforementioned frameworks for CSR standards were not designed to be the basis for statutory regulation. The voluntary commitment of companies must never be damaged by obligatory reporting.