Westminster Scotland Wales London Northern Ireland European Union Local
ePolitix.com

 
[ Advanced Search ]

Login | Contact | Terms | Accessibility

Stephen Timms: Corporate Social Responsibility

I am delighted by the wealth of responses that my article generated. Clearly there are a large number of well informed and passionate people engaged in a wide variety of socially responsible activities.

The responses raised a number of important issues that I want to address in more detail.

Firstly, how can we claim that the UK is a world leader in CSR? The UK appointed the first ever dedicated minister for CSR back in March 2000 to co-ordinate the diverse range of CSR activities across government. The success of CSR, however, depends upon the involvement of business and the adoption socially responsible activities into the mainstream of business practices. They should not be just an "add-on" or a public relations exercise.

But CSR is still in its infancy. Different countries and cultures often have well established connections between business and society, but few have such a well defined framework for driving the relationship forward.

The UK is at the forefront of this co-ordinated approach, bringing government, business and NGOs together. What is unique about the UK is the creative dialogue between far-sighted international companies and imaginative and effective NGOs - and it is a dialogue that is nowhere near running out of steam.

More than half the responses to European Commission's Green Paper on CSR came from UK. The final document endorsed UK's broad approach, and we continue to remain at centre of developments in Europe and contribute to the multi-stakeholder forum discussions starting this year.

Europe is not alone in taking an interest in the UK's approach. The subject of the our experience featured very strongly in discussions on my recent visit to Japan and Canada. The Japanese, in particular, are keen to explore the UK approach, and raised prospect of an international conference.

CSR is much more than a philanthropic attitude or donating money. At its heart is the business driven agenda that creates a positive, two-way relationship. Establishing a sound business case for CSR activities is fundamental to its success.

The UK is continuing to increase its involvement in more straightforward charitable initiatives, like the Payroll Giving scheme, which last year reached £72 million, boosted by the government's 10 per cent tax rebate.

CSR goes beyond the legal requirements placed upon companies. And it should not be used as a diversion away from firms that fail to comply with the law. Engaging in CSR activities provides business the opportunity to be involved in tackling some of the most serious social and environmental challenges that we face.

One of the greatest debates in CSR is about reporting and evaluation. A strictly regulated regime runs the risk of making reporting a hollow box ticking exercise. But at the same time we must encourage business to report more fully.

The numbers of companies producing reports is increasing, and the OFR (Operating and Financial Review) proposed in the Company Law Review White Paper will be an important step to CSR activities being incorporated into the core business reporting process.

I am greatly encouraged by the progress of CSR in the UK, and the real driving force is the enthusiasm shown by all parties involved. The level of comment received shows the strength of debate that is essential for a healthy future for CSR.

Published: Thu, 13 Feb 2003 01:00:00 GMT+00