In response to a request from trade minister Stephen Timms, ePolitix.com Forum members have set out their views on corporate social responsibility.

Forum Response: Corporation of London

A spokesman for the Corporation of London told ePoltix.com: "The Corporation of London welcomes the increasing attention to and discussion of Corporate Social Responsibility (CSR) at a national, European and international level. The current debate reflects growing business and political interest in the social responsibilities of business and other organisations in the public or private sector to the communities in which they operate.

"The City of London is the world's leading international financial centre, but it should not be seen as an isolated island of prosperity. A large number of City organisations are engaged with CSR activities in their local communities and surrounding neighbourhoods, through a diverse range of activities and approaches - for example through employee volunteering schemes. On the basis of this experience, the Corporation of London believes that the City can make an important contribution to promoting knowledge and understanding of CSR, and it is taking a full part in the current debate.

"In July 2001, the EU Commission published a Green Paper on CSR, to which the Corporation of London responded in December 2001. The Corporation's response, which was reviewed by the Bank of England and the Financial Services Authority, was one of only two from UK local authorities and the only one from an English authority.

"It emphasised that CSR is and should remain essentially voluntary; the EU has a role in encouraging transparency and sharing best practice; more information is needed on the business case for CSR; public sector organisations should aspire to the same standards as those they expect from the private sector; the EU could establish key indicators as a basis for evaluating CSR practice; and core aspects of CSR should be an integral part of operations and policies in all sectors.

"During 2002, at the same time as the European Parliament and the Commission were developing their Communication on CSR, the Corporation of London was developing a draft Policy Statement on CSR. The draft was the result of a survey and consultation process with key actors in City organisations from a range of sectors: legal, financial, retail, professional services, insurance, commodities, local business and trade associations.

"The draft Policy Statement was published by the Corporation of London on behalf of the City in June 2002, just prior to the EU's Communication on CSR which was issued the following month. These parallel tasks produced very similar results with all of the issues raised by the Corporation being satisfactorily addressed by the EU Communication, most notably the recognition that CSR activities and reporting should continue to be of a voluntary nature. The Corporation of London is continuing to monitor developments in Brussels.

"Copies of the Policy Statement on Corporate Social Responsibility, published in January 2003 by the Corporation of London on behalf of the City of London, can be obtained by contacting the Community Affairs Team at the Corporation of London: 020 7332 3644."

Forum Response: Vodafone

Charlotte Grezo, director of Corporate Social Responsibility, at Vodafone Group Plc, told ePolitix.com: "While the Corporate Social Responsibility agenda has largely focussed on social and environmental risk management, it also presents an opportunity for companies to highlight their positive contribution to society.

"For example, Vodafone is proud to have developed products and services for people with special needs, which has helped address some of the issues surrounding the digital divide. In this way it is possible to see how a company can provide both a commercial and social benefit through its business activities.

"At Vodafone, we believe in the value of CSR. We believe it is possible to pursue our business interests in an ethical way.

"Our vision is to be 'the world's mobile communications leader, enriching customers' lives, helping individuals, businesses and communities be more connected in a mobile world'.

"We have recently embarked on an comprehensive CSR programme, which flows from our company's Vision and Values. Our objective is to deliver value to all our stakeholders including the environment and the communities in which we operate.

"While CSR is still in its infancy, Vodafone shares the Ministers optimism about what business and government could achieve by being innovative and forward thinking. This includes avoiding the constraints of a regulatory approach to CSR."

Forum Response: Pfizer

Polly Dryden, corporate responsibility manager, at Pfizer, told ePolitix.com: "How true that CSR, or CR as it is known within the Pfizer Corporation, is not just concerned with the "public image of business" - to Pfizer, it is definitely not a PR exercise but the way we do business.

"Pfizer's mission is to be the "most valued company to patients, customers, investors, business partners and the communities where we work and live" - all these stakeholders are very important to Pfizer and we are in the process of analysing the UK stakeholders and how we can engage with them proactively. It must be stressed that, as an organisation, we already have a long-standing commitment in the areas of health, education and science.

"In October 2002, Pfizer Inc signed up to the UN Global Compact and will be aspiring to report back on the Corporation's efforts across the world. By signing the UN Global Compact, and continuing to behave as an ethical corporation, we will strengthen our ability to create lasting and productive partnerships. That's critically important because, quite clearly, we cannot solve the world's problems alone.

"We would like to add our agreement that the voluntary approach is the correct one and the one that is more likely to gain support from British Business. We do not want legislation, as this may harm the huge efforts that many companies are currently making on a voluntary basis. We are keen to avoid a situation where many organisations only meet the basic legislative requirements, instead of developing their own innovative policies. It is also not feasible to develop a 'one size fits all' framework because each industry has its own unique approach and requirement.

"Corporate governance has always been of great concern to Pfizer and has been high on the agenda of many other corporations in the light of recent corporate scandals. In December, Pfizer was one of only five companies in the S&P 500 Index to earn a perfect "10" for corporate governance from Governance Metrics International."

Forum Response: Business Services Association

Norman Rose, director general of the Business Services Association, told ePolitix.com: "Environmental responsibility, concern for the local community and a focus on the well-being of those who work for a company are vital issues for any business which cares for its reputation. Members of BSA have identified this as one of their primary goals during the coming year. Outsourcing involves the local community and those who live in it in a direct way which impinges on a wide variety of decisions which have to be taken in entering and running contracts for public and private sector clients."Outsourcing companies are expected to work with their clients to achieve the client's goals in these important areas and to take responsibility for implementing and complying with them. The interests of the community and employees shape many decisions on grounds of wellbeing and environmental protection as opposed to cost. Leading companies in this sector are setting ground-breaking standards in conjunction with their clients which will form the benchmark for the future in a wide variety of areas."

Forum Response: Barclays

Martin Mosley, director of consumer and community affairs at Barclays PLC, told ePolitix.com: "Barclays success depends on including the interests of all stakeholders in our business: customers, employees, shareholders and the wider community. This is fundamental to our business philosophy of creating a 'virtuous circle' of satisfied stakeholders and taking our social responsibilities seriously.

"Barclays supports the promotion and development of the Corporate Social Responsibility (CSR) agenda, whether at the local or international level, and appreciates the current dialogue with business and stakeholders at the UK and EU level on the way forward for CSR. However, we caution against the imposition of prescriptive legislation which may lead to a 'lowest common denominator' approach, inhibit creativity and reduce incentives to promote continuous improvement in performance."CSR is an evolving agenda. Issues can be subjective, intangible and, we believe, are difficult to address properly through a 'one size fits all' framework. Companies should be allowed sufficient latitude to define the CSR issues most relevant to their own business and social/environmental context, and develop their own integrated CSR strategy and management systems.

"Market and peer group pressures for proactive, demonstrable CSR benchmarking are increasing and, we suggest, will drive forward positive change and demand improved performance more effectively than formal regulation. Formal regulation will encourage compliance rather than embed true commitment to CSR."Details of Barclays CSR activities are available in the Barclays Social and Environmental report, available in the ePolitix Forum."

Forum Response: Woodland Trust

A spokesman for the Woodland Trust told ePolitix.com: "We are keen that the prime minister's call in October 2000 for 'a new constructive partnership between government, business, the green movement and the public' is moved further forward than has been the case to date and we view Corporate Social Responsibility (CSR) as a key vehicle for doing so. We therefore welcome Stephen Timms' article on the subject and his desire to move it up the agenda.

"We have long believed that there is much scope for companies to help deliver significant environmental improvements to the communitieswithin which they operate through partnerships with the voluntary sector and this is a key aspect of CSR which we would like to see given a heightened emphasis by government. There are a number of initiatives around the country which show the contribution that such partnerships can make to the liveability of areas and we need to build upon these successes."

Forum Response: Rio Tinto

A spokesman for Rio Tinto told ePolitix.com: "Rio Tinto is a world leader in finding, mining and processing the earth's mineral resources, and because of the long term nature of our activities, we regard demonstrated social and environmental responsibility as essential to our long term success.

"By developing harmonious relationships with local communities and showing responsible stewardship of the environment we create a more stable environment in which to work.

"We have developed, and are currently updating a statement of business practice which guides our conduct to responsibily manage the difficult issues which face our business. The document sets out the Group's policies on health, safety and environment, communities, human rights, access to land, employees, business integrity and political involvement.

"It commits the Group to transparency consistent with normal commercial confidentiality, corporate accountability, and the application of appropriate accounting standards and internal financial controls."

Forum Response: The Guide Dogs for the Blind Association

Robin Hutchinson, head of communications and central fundraising at the Guide Dogs for the Blind Association, told ePolitix.com: "Corporate social responsibility is a vital element of 21st century business practice and has the potential for far greater impact than it has had to date. Many charities forge links with the private sector, but all too often these tend to be short-term and one-way, with business taking little back which affects the way it works.

"More encouraging are those partnerships where joint goals are identified and each partner both brings its expertise to bear and learns from the other. It is important to recognise that the corporate sector can learn much from the voluntary sector, just as voluntary can from corporate.

"Geraldine Peacock, Guide Dogs chief executive, has been a leading advocate amongst voluntary organisations of cross sector partnerships. Her commitment has led to the Association developing a series of joint projects with businesses, with a number of different levels of involvement - and that flexibility is an illustration of the almost limitless possibilities for partnerships across the sectors.

"It is in everyone's interests to see corporate social responsibility work well, and the onus is on all of us - government, business and the voluntary sector - to promote the concept, broadcast good practice and make it a success. Initially, government might offer support through financial incentives, business through investigation of new opportunities and approaches, and the voluntary sector through recognition of commercial as well as philanthropic aims, and by publicising successes.

"The message from all, though, must be that CSR is not a fad, burden or threat, but a great opportunity to combine resources and know-how to realise commercial opportunities and social change."

Forum Response: CIMA

A spokesman for CIMA told ePolitix.com: "Companies are discovering that sustainability is becoming inexorably linked to profits and the cost of capital. Ignoring this important issue will have major implications for the sustainability of businesses themselves.

"It is no coincidence that those companies putting corporate social responsibility on the map now are those who have been targeted in anti-capitalist riots and media campaigns in the past - Shell after negative publicity surrounding Nigeria and Brent Spar; Nike after the NoLogo campaign and the Seattle riots.

"Environmental and social responsibility is simply good business sense. Reporting risks is the first step, and companies such as Shell and Marks and Spencer's are rising to the challenge with highly publicised pledges to sustainability and corporate social responsibility. But it is crucial that this is more than simply a PR exercise to highlight the good points and overlook the bad.

"Good corporate governance means providing all relevant information to shareholders, including non-financial information such as risks and reputational issues. If investors do not trust the information they are given, they will not invest. Similarly, if company boards do not have information on all the risks faced by the company, they will be unable to make good quality decisions.

"Companies must focus on, and be seen to focus on, their corporate social responsibility issues. The alternative is a huge increase in their cost of capital in the future. There is also competitive advantage to be gained - the Co-operative Bank's ethical and environmental positioning contributed more than £20 million, or 20 per cent, of its pre-tax profit last year, according to its research that found that nearly a third of its current account customers chose to bank with the firm primarily because of its ethical policy.

"CIMA believes that voluntary reporting is not enough. A mandatory operating and financial review (OFR) must require public companies to report on risk related to environmental and social issues and the directors' approach to managing them. We see the OFR and increased transparency by companies as a route to achieving greater management credibility and investor support.

"Reporting via the OFR will allow Boards to judge the impact and relevance of the sustainability issues they face - draconian regulation will not improve the situation but simply add to the burdensome red tape faced by companies.

"Adopting an ethical approach can also highlight potential efficiencies for companies. A report from CIMA, in association with Forum for the Future, makes the key link between environmental and financial performance more visible, revealing how environmental costs and savings can be identified and reported through financial statements and other mechanisms.

"Baxter Healthcare Corporation, a US-based company that spent several years developing the environmental financial statement methodology, has seen significant savings that exceed its environmental related expenditure.

"The need for companies to assess their impact on the environment and local communities is huge; the need for boards to reassure investors whose confidence has been shaken by recent corporate collapses is undeniable. Good quality, full and clear reporting is essential, and OFR must surely be the logical place for it."

Forum Response: Depression Alliance

Jim Thomson, director of the Depression Alliance, told ePolitix.com: "For the minister to say that Britain is leading the world in the sphere of corporate social responsibility is, frankly, astonishing.

"Regardless of what indicator you employ - for example, in terms of public perception of the importance of CSR we lie just ahead of India and light years behind the USA, Japan and Germany - the story is the same. A lot is spoken about corporate social responsibility but when it comes to measuring outcomes, a different picture emerges. The minister talks of 'driving forward the agenda', and ''much discussion about how to build on public trust and awareness of CSR', but when the jargon is stripped away, what tangible outcomes remain?

"For example, how many companies meet the statutory requirements for employing people with disabilities (despite legislation being in place to compel them to do so)? How many have fully accessible premises (again despite standing legislation)? How many have a policy for training managers in mental health awareness in the workplace? How many go so far as to have 'mental health days', where employees can take a day off, without fear of recrimination, at very short notice, if they feel unable to attend work?

"Of course, a key indicator of CSR is the amount of money given by companies to society. Here again, the commitment is woeful. British companies give well under one half of one percent of their pre-tax profits to charity - even given the generous tax concessions. When non-financial support is factored in, there is only a marginal improvement.

"True, ethical investment is on the increase but most observers would agree that, in the final analysis, investment decisions will remain driven by corporate priorities. Indeed, it is the responsibility of directors to ensure that this is the case.

"Of course there are exceptions and many companies have a very real commitment to CSR. My own charity benefits from significant - and increasing - corporate support.

"However, make no mistake, we do so because we understand corporate imperatives and because we are 'businesslike' in our dealings with companies. We are also the exception to the rule in a society where the average company gives considerably less to charity than the average citizen.

"I do not seek to undermine the progress that has been made, and that continues to be made. We in the voluntary sector need to work together with the corporate sector to the benefit of society as a whole. When we do that, we may in time achieve pre-eminence in the field of CSR. Sadly, although it is a great soundbite, the claim that we are already there is well wide of the mark."

Forum Response: Institute of Directors

George Cox, director general of the IoD, told ePolitix.com: "Directors shouldn't treat CSR like a company logo or PR campaign. CSR only makes sense if it is 'soaked' into the culture of the business. Responsible behaviour starts at board level, but it doesn't end there; it has to involve every employee."

Forum Response: Chartered Institute of Marketing

Mike Johnston, international chairman of CIM, told ePolitix.com: "Corporate social responsibility is seen as an increasingly important business issue. Cause related marketing programmes that connect business and community for mutual benefit are gaining widespread approval as a means of promoting a responsible approach to the communities in which organisations operate.

"Good cause related marketing programmes are those that involve a sustained partnership between all of an organisation's stakeholders. The public responds well to programmes that are promoted honestly; enhancing an organisation's reputation while delivering a tangible benefit for the cause."

Forum Response: ACCA

Roger Adams, executive director of ACCA, told ePolitix.com: "Stephen Timms is perfectly correct to extol the merits of corporate social responsibility and to praise those British companies which are leading the way in engaging with their stakeholders, in reporting on their social impacts and in having these reports independently verified. What does not come across in the minister's thought piece, however, is any sense of the limits of voluntary action.

"ACCA (The Association of Chartered Certified Accountants) has been working to encourage more and better social and environmental reporting since the early 1990s. Our efforts have received widespread support, not least from Michael Meacher, UK Minister for the Environment. But what has voluntary action actually achieved over the twelve year period since ACCA, SustainAbility and others threw their hats into the ring and demanded greater corporate transparency?

"According to research published in 2002, of the FTSE 250 companies, 4 failed to report at all on their social and environmental impacts, 91 did nothing of substance, and 103 produced stand alone reports. That leaves another 52 which, presumably, fall between producing nothing of substance and producing a full-blown report.

"Outside the top 250 UK companies there are perhaps another 100 who report on a regular basis. Even being charitable, that leaves us about 95% short of Mr Meacher's original 1998 target of voluntary environmental reporting by all UK companies with over 250 employees - about 7,000 entities in all. The problem is that despite endorsing the voluntary reporting approach, the government has really done very little to encourage it.

"ACCA has always held back from demanding mandatory social and environmental reporting. We see only too clearly the danger of committing to statute a set of prescriptive rules which fail to recognise the evolutionary nature of the debate which they are intended to document. And we are quite sure that the recent social and environmental reporting legislation enacted in France will not lead to the degree of reliability, transparency and accountability in reporting that the authors of the original legislation had in mind.

"ACCA would prefer to see the UK government - and essentially that means Mr Timms and Mr Meacher - interacting in a constructive way with organisations such as the Global Reporting Initiative (GRI) and AccountAbility, organisations which have respectively developed robust CSR reporting and CSR assurance frameworks appropriate for the accountability challenge Mr Timms describes in his e-Politix piece.

"Interacting in a constructive way means, at a minimum, endorsing these frameworks, contributing to their on-going development, participating in national awareness raising workshops and co-badging training materials. The list of haphazard suggestions contained in Mr Timms article beggars belief. "ACCA, the GRI, AccountAbility and others would welcome the opportunity to work more closely with the Minister on embedding CSR awareness in UK Plc. Please call me on 020 7396 5971."

Forum Response: Association for Charities

Stewart Lawrie, founder member of the Association for Charities, told ePolitix.com: "It is tempting to follow politicians'and rich people's views thatCSR equals shelling out notable amounts of money (from declared profits) to easily-identified and uncontroversial 'good causes'. We should not allow the fact that a good cause is often a charity to lead us up that garden path.

"Individuals who benefit from cash surplus to needs (from the widow and her mite to the Sainsbury millions) can be as philanthropic as they wish. If 'good causes' are able to get over their messages convincingly there is every reason to encourage the growth of dividends, wages and bonuses.

"CSR is so much more than giving to charity. CSR that is effective is prescriptive of a corporate strategy that puts personal, community and environmental welfare on an equal footing with economic success. Charity has little to do with it. If Cadbury, Fry, Scott Bader and others could, of their own choice, do it in tangible form why doesn't everyone else make it a management imperative?

"'Giving to a chosen charity', a la Tesco fashion is a pre-profit marketing ploy. CRM (Cause Related Marketing) is not CSR. If anything - to a cynical journalist's mind - it uses 'good causes' as a smokescreen for a possible weakness in CSR policy. In some cases, measured pressure on suppliers ensures that the 'corporate donor' is required to contribute a nominal amount -maybe the printing of posters and a few million bags -in order to be lauded as a multi-million pound benefactor.

"Charities themselves - in practising CSR - might be advised to check the true CSR of the donor before grabbing the loot . Some brave - or daft - trustees have examined their deeds and the source of proffered cash and rejected it. That goes for National Lottery cash in some cases."

Forum Response: CARE

A spokesman for CARE told ePolitix.com: "CSR is about acknowledging that every action has an impact on all areas of life. It also depends on the understanding that there is such a thing as 'the common good', and that 'the good' cannot be defined by the values and paradigms of the market alone but by the dynamics of civil society, individual communities, the workforce, the environment and the well-being of the created human and well as those of business.

Steven Timms is right to debunk the 'public image' approach to CSR. Agencies seeking to promote the agenda and organisations seeking to adopt such an approach should be careful to ensure that it is done well. CSR policies too often exist only as a superficial, Public Relations 'bolt on' to existing company structures and practices. Until such a time as they begin to be created within an organisation's ethos, mission and philosophy - and installed as a the defining principles of an organisation's thinking - then stakeholders might be rightly suspicious.

"CARE also notes that Stephen Timms refuses to make a distinction between the business, voluntary and public sectors. We endorse this approach. Voluntary Sector organisations too often fall into the trap of lobbying only on behalf of their client group in pursuit of laudable aims but without recognising that those aims may have, for instance, an economic impact: this is just as 'corporately irresponsible' as for-profit businesses pursuing wealth but ignoring environmental consequences.

"In one respect the government's role here is, to a degree, limited. For example, CARE would counsel against legislation, for example, that simply enforced 'triple bottom line' accounting procedures: this may tend towards encouraging organisations to take a mechanistic, tick box approach to CRS.

"We suggest that there is a prima facie case for greater education and research and very much welcome the exciting proposals for an Academy. We hope that this will be based on discovering and maximising the different goods that different stakeholders value.

"The government also ought to consider how it can encourage broad-based employee and community ownership, particularly of medium sized businesses."

Forum Response: BUPA

A spokesman for BUPA told ePolitix.com: "Driving forward the CSR agenda is high on the list of priorities for BUPA.

"BUPA launched Community Connections in February 2001. This was a strategic business decision to galvanise the existing charitable donations, fundraising and community involvement activities across the business units into a focused plan, to create greater synergy and to inspire our people to get involved in their own local communities. It is also a recognition of the impact we have in communities across the UK as an employer, supplier, customer and neighbour.

"The key objectives were to develop employee volunteering schemes in their local communities and to encourage team fundraising activities. In 2002 the Guardian placed us 14th in their 'Giving List, a demonstration of how effectively Community Connections' first year has been.This fitted particularly with the culture and values of BUPA - seeking to provide the best service to all our customers by having a motivated workforce with high levels of employee satisfaction. Our culture and values can be described as "Taking Care of the Lives In Our Hands": Community Connections is an extension of this culture.

"We launched a range of innovative schemes including: BUPA Book Buddies; Mentoring; Give as You Earn (supplemented by additional contribution from BUPA); and the development of over 60 Sensory Gardens for disabled children and the elderly.

"The BUPA Foundation, an independent charitable organisation that provides funding for medical research, works in conjunction with Community Connections. The Foundation was established in 1979 and has since then awarded grants in excess of £8 m for medical research. BUPA also sponsors the Great Runs series - hugely popular community events where people from all over the country have raised over £30 m for a wide range of charities in the last 8 years.

"We work with a range of community partners in delivering these programmes and currently have activity in Brighton, London, Leeds, Salford, Brighton, Perth and Leicester. It is also important to monitor progress and outcomes and compare them with other organisations: sharing best practice and helping each other.

"BUPA has been a member of Business in the Community for several years as part of the Opportunity Now campaign and Race for Opportunity. These organisations have provided valuable support in developing BUPA's Diversity Strategy. It is also a Millennium Standard member of the Per Cent Club. We are National Members of the BITC Cares programme linked to five key cities where we have a significant presence as an employer. When we launched with Leeds Cares in June last year our Challenge was featured on local TV, as well as several of the local press.

"We also work with Business Action on Homelessness and other partners to enable homeless people to access work experience and employment. Clothes recycling by BUPA supports low income or homeless people when attending interview. Tools for Schools and medical equipment recycling is also under way.

"During our first year, Community Connections has delivered an innovative range of community opportunities for our people in their local communities. We have made a difference not only to our community partners but also to the many vulnerable and disadvantaged people they serve. BUPA has over 40,000 employees at 300 locations across the UK. It provides health and care services through its network of hospitals and care homes, and has over three million customers. Its turnover last year was in excess of £2 billion."