UK Government approach to CSR

1
UK Government approach to CSR

• Jane Leavens
• CSR Policy
• Department of Trade and Industry

2
What is CSR?

• Business contribution to sustainable development
• Lots of definitions key is about what business
  does to address environmental, social and
  economic impacts
• Not new agenda
• Wide ranging issues labour conditions, health
  safety, environment protection, regeneration,
  community investment etc
• Starts with compliance with law but what
  companies do over and above that baseline

3
Who does what in Government?

• Margaret Hodge current Minister for CSR acting
  for Government as a whole
• DTI lead on CSR policy approach coordinate
  across Government

4
Who does what in Government

• Inter departmental group of officials on CSR
• Includes key Depts covering both domestic and
  international issues

5
Why DTI lead?

• DTI vision creating conditions for business
  success and helping UK respond to the challenges
  of globalisation
• DTI objectives
• Successful businesses
• World-class science and innovation
• Fair markets
• CSR about companies adopting responsible practice
  in their own competitive interests not
  primarily about philanthropy

6
How can CSR contribute ?

• CSR can contribute to the key drivers of
  productivity
• Competition
• Skills
• Investment
• Innovation
• Enterprise

7
For example

• Cost savings to industry from waste minimisation
  techniques
• CSR can attract new staff CIPD survey of
  graduate indicated 2/3 say company ethical
  reputation will influence decision to apply
• CSR within the business can help with retention
  and motivation 82 of employees involved in
  company CSR would recommend their company
• Potential to identify new markets and products
  through dialogue with communities, customers,
  employees
• Improving trust and reputation with customers
• CIPD- Chartered Institute for Personnel
  Development

8
Reputational benefits

• Research shows continued decline in trust in
  institutions, Governments and companies
• High trust in NGOs compared with low trust in
  global companies
• Partnerships with trusted organisations can
  improve public opinion eg UNGC
• Globescan

9
CSR about business so what is role for
Government?

• Provide policy environment to
• Set decent minimum standards
• Stimulate companies to raise performance beyond
  those levels
• Target interventions

10
Voluntary v regulatory what is the Governments
approach?

• Not either/or
• CSR a broadranging term not feasible to
  regulate CSR
• Regulatory framework will evolve to reflect
  changing circumstances and expectations
• Any interventions should be well designed and
  targeted to the specific issue

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What is DTI doing? Companies Act 2006

• Enlightened shareholder value
• Business review quoted companies must disclose
  information on social and environmental matters
  to extent necessary for understanding of the
  business
• Directors duties must promote success of
  business in best interests of shareholders but in
  doing so have regard to wider factors such as
  employees and environmental impacts

12
Support for SMEs

• 2002 research on SMEs
• CSR not seen as a strategic issue
• Supported development of toolkit for SMEs
  www.smallbusinessjourney.com
• How to guides
• Case study example

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Skills for CSR

• CSR Academy launched July 2004to develop skills
  for CSR practice through
• CSR competency framework
• Signposting to Training and development
  opportunities
• 5000 users downloaded framework
• 900 large and 300 SMEs attended Academy
  masterclasses and regional events
• Academy now transferred to Business in the
  Community

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Final thoughts

• Responsible business should mean being more
  sustainable, more efficient and more profitable
• For all companies SMEs as well as large ones.
  But what/how will vary by type of business as
  well as size
• Government will promote, support and reinforce

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Related websites

• www. csr.gov.uk
• www.smallbusinessjourney.com
• UK SD Strategy - www.sustainable-development.gov.u
  k/