Public Policies on Corporate Social Responsibility: The Role of Governments in Europe Author(s): Laura Albareda, Josep M.

Lozano and Tamyko Ysa Reviewed work(s): Source: Journal of Business Ethics, Vol. 74, No. 4, Ethics in and of Global Organizations: The EBEN 19th Annual Conference in Vienna (Sep., 2007), pp. 391-407 Published by: Springer Stable URL: http://www.jstor.org/stable/25075478 . Accessed: 24/06/2012 07:16
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Journal of Business Ethics (2007) 74:391-407 DOI 10.1007/sl0551-007-9514-l

? Springer

2007

Public Policies on Corporate Social ? ? . .. ... _,. Responsibility: The Role of Governments

Laura

in Europe TamykoYsa

M Josep Uzam

Albareda

ABSTRACT. Responsibility
whereby better process society by

Over

the last decade, Corporate Social (CSR) has been defined first as a concept
decide cleaner voluntarily environment manage to contribute and, second, to a as a

Nowadays, ments' to act and

CSR agendas.

has This on

become has

priority

issue

on

govern capacity issues in

changed and

governments' environmental

companies and which

companies

their

relation

ship with

stakeholders (European Commission,

2001.

their relationship with companies, but has also affected the framework inwhich CSR public policies are designed:
governments are incorporating multi-stakeholder strate

impact

social

gies. This
European the EU-15 how

article analyzes the CSR

advanced countries, have democracies, and provides

public policies in
specifically on keys and imple

and more explanatory designed

aResearch Fellow at theInstitute Laura Albareda is currently for Social Innovation, ESADE, Universidad Ramon Llull URL. and manager of the She is principal researcher on Socially Responsible Investmentin Spain. Observatory
Her areas

governments

understood,

mented
into

public policies. The analysis has entailed the classification of CSR public policies taking
consideration were the actor This to which approach addressed. the governments' to the of analysis

their CSR

Social Responsibility, Business Ethics, Global Gover

nance and Public Authorites, Governments and Public

of research and

academic

interest are Corporate

policies

CSR

Policies on Corporate Social Responsibility ciallyResponsible Investment.

Josep M. Lozano is currently Professor &

and So
at

public policies in the EU-15 countries leads us to observe coinciding lines of action among the different
countries 'four ideal' analyzed, typology which model has enabled us to propose action on a for governmental

Senior Researcher

theInstitute Social Innovation, ESADE Business School for (URL). He isCo-founder ofEtica, Econom?a y Direcci?n EBEN) and member of the editorial (Spanish branchof the board ofEthical Perspectivesand Society and Business Re
was member and on Values, has Com Government's of the Catalan is member of the Spanish Ministry of commended in the

CSR

in Europe: Partnership, Business in theCommunity,

and Citizenship, and Agora. an of this article is to propose on the civil The main con frame analytical

Sustainability, tribution

work

view. He mission

to analyze CSR
and the

public policies, which provide a

between stakeholders, public on social and governments, us enable into to a

perspective businesses, incorporate broader

relationships society of CSR

Employment and Social Affairs'Commission ofExperts on

CSR. He been a

analysis focused

policies

European Faculty Pioneer Awards of the Beyond Grey

Pinstripes and is author Understanding Business Ethics of Ethics as and a Organizations. Process Learning

highly

runner-up

approach

governance.

KEY WORDS:
policies, state governance,

corporate social responsibility, public

public-private partnership, welfare

(Kluwer). Tamyko Ysa is anAssistant Professorof theInstituteofPublic

Management, ESADE. Her and areas the Department are of interest and of Business the management Policy of part at

on nershipsand theirimpact thecreation public value; the of

design, implementation between evaluation of public policies, She and is the the relations companies and governments.

Introduction Over have (CSR) the last decade we have seen how governments become Social Responsibility Corporate drivers adopting public policies to promote

Research Group for Leadership PrincipalResearcher of the and Innovation in PublicManagement (GLIGP). She is
coauthor of Governments and Corporate Social Responsibility

(Palgrave MacMillan).

392 Laura Albareda and encourage businesses and sustainable manner to behave in a responsible (Aaronson and Reeves,

et al.

and Sochaki, 1996; Zappal, 2003). 2002a, b; Moon In this sense, governments have been involved in a new type of political relationship with businesses and civil society stakeholders to promote responsible and sustainable business practices (Aaronson and Reeves, b; Albareda et al., 2006; Fox et al., 2002;

is defined as a voluntary framework in which CSR reflection of how governments' capacities to regulate the actions of businesses have been transformed in relation to social and environmental voluntary approach ernments' roles in relation business, This to CSR issues. changes gov to the promotion of social and environmental practices (Midt

2002a, Moon, The

2004). purpose of this article is to analyze the dif ferent CSR public policies adopted by European governments in order to promote responsible and

and Moon, tun, 2005; Matten 2005; Moon, 2004; to this,most of the research Related Roome, 2005). conducted

sustainable business practices. This research sets out from the initial hypothesis of establishing, how the

on governments and CSR suggests the of new roles adopted by governments in emergence CSR issues (Fox et al., 2002; Lepoutre et al., 2004; 2004). Fox et al. (2002) put forward new sector roles adopted by governments to public enable an environment for CSR: mandatory (legis lative); facilitating (guidelines on content); partner ing (engagement with multi-stakeholder processes);

Nidasio,

ronmental issues in their relationship with businesses. We mention that a unidirectional approach to the public policy analysis neither gives an answer to the

and implementation of public policies pro in governments' CSR reveals changes moting for action and impact in social and envi capacity design

needs of present-day societies (responsiveness), nor does it enable us to understand the new challenges in depth. As a result, it facing social governance seems Hmited The outmoded to analyze public policies approach of'hard power.' of the research has been from the to develop

and, endorsing tools (publicity). In paraUel, Lepoutre et al. (2004) review the strategic roles to be played institutional uncertainty by governments managing

and present (activate, orchestrate, and modulate) common tools for public action managing strategic information campaigns, organi uncertainty (public zational reporting, labeling, contracts, agreements, and incentives). This analysis of the role of govern
as a new approach has also promoting CSR,

mote CSR.

objective an analytical framework that enables us to under stand, through a more adequate methodology, the approaches and perspective of governments in designing and implementing public policies to pro From here on, the article is structured as follows. First, we present a review of specific research focused on governments and CSR. Second, we to build an introduce the methodology developed

ments

been analyzed by other authors under the new forms of public-private partnership linked to CSR (Grib ben et al., 2001; Nelson and Zadek, 2000) in order
to resolve social problems, to promote coordination

with

and local companies, organizations, in and also to analyze the role of CSR governments as models of governance public?private partnerships social (Guarini and Nidasio, Another approach 2003). to the understanding of CSR is the softpolicy approach introduced

analytical framework to map CSR public policies. Third, we propose a Tour ideal' typology model for based on analysis of governmental action on CSR the CSR Fourth,
research.

we

public

policies key

in

15 EU

countries.

present

elements

for

further

by Joseph (2003), inwhich the role of government is viewed as coUaborative and fac?itating through the use of soft tools and means - always in coUaboration with the private sector. Second, there is a common perception that CSR is a process through which companies manage their social and environmental impacts taking into acco

public polices

What

we

learn from

the literature

focused

on governments Over

and CSR has been defined as a decide

the last few years, CSR

ment

concept whereby companies voluntarily to a better society and cleaner environ contribute to (European Commission, 2001). This new

their relationship with stakeholders (European business ethics scholars Commission, 2001). Most have made important attempts to link CSR practices with stakeholder management 1998; Donaldson Clarkson, Freeman, 1998) (CarroU, 1989, 1991; and Dunfee, 1999; and the stakeholder approach has

unt

The Role been

ofGovernments inEurope 393 'Promoting a European Framework for Cor porate Social Responsibility' (2001), the Commu A nication Social 'Corporate Responsibility: to Sustainable Development' Business Contribution Paper 2002) and the Communi (European Commission, cation Implementing the Partnership for Growth on and Jobs: Making Europe a Pole of Excellence Corporate Other Social Responsibility' (2006). studies include research based of on geo

integrated as part of the concept of corporate

citizenship (Waddock, 2002). to this, some studies point to the devel Related in relation to the development of of CSR opment as an aspect of rela multi-stakeholder dialogues tionship building and organizational change (Kap stein and Von Tulder, 2003; Payne and Calton, is a cornrnon perception that 2002, 2004). There challenges created by corporate practices all over the world have to be solved through a multi stakeholder Commission, approach (European 2001). In recent years, we have seen the appearance of multi-stakeholder

new

government graphical comparative analysis behavior and CSR culture in European and North American and Reeves administrations. The work of Aaronson (2002a, b) and the comparative report of CBSR (2001) shed some light on the relevance of cultural differences and elements in the development of national CSR models. Aaronson and Reeves (2002a) analyze how, in the last decade, European range of public policymakers have taken a wide initiatives to promote CSR, in contrast with a lack of policies companies' compared U.S.-based difference business
pean-based

which

dialogue proposals. Among others, these have included the UN Global Com Initiative, and the pact, the Global Reporting on CSR, Forum Multi-Stakeholder European propose dialogue among the different agents aimed at mak involved as a working methodology

ing headway inmultilateral consensus proposals. is not a Third, other elements suggest that CSR new and isolated topic among the new challenges facing governments in a globalized context (Crane and Matten, 2004; Moon, and 2002). Responsible sustainable business practices form part of the current

in theU.S.

They analyze European-based acceptance of these CSR public policies with the less accepting attitude of companies. The authors argue that the is based on the countries' respective research reveals that Euro
"are more comfortable companies

debate on the role of companies within society in a (Frederick, 2006; Sch?lte, 2001). globalized world This enables us to understand why governments have

cultures. This

Most

on governments' CSR of the 20th century

to promote CSR in their adopted measures with the new social governance chal relationship lenges. The first documents to introduce the debate role date from the last decade

working with governments to improve social con ditions, and they aremore comfortable in a regulated
environment." "Businesses expect government to

of them and government does ask more of businesses. It seems that European business leaders seem to believe find theirway that CSR policies can help them in the chaotic, ever-changing global (Aaronson and Reeves, 2002a).

ask more

(Moon and Sochaki, 1996). of these texts put forward the need for gov as a response to ernments to actively promote CSR the social and environmental problems caused by economic

out

a globalized action within corporate context (Moon, 2004). Midttun (2005) views the of CSR within the context of changes development in the welfare state, basing his work on a compara tive analysis of three governance models. He points that a new societal emerging model could be governance of CSR-oriented as an analyzed to examine the

economy" These studies lead to the hypothesis that analysis of the different CSR approaches should take into consideration a series of different elements: political and institutional structure; political style and pro
cesses; social structure;

of state guidelines and acceptance approach control; local and national views of the role of and civil companies; the role and posture of NGOs associations in society; the kind of educational sys tem and the values it transmits; what is expected of their leaders; and historical traditions (Rome, 2005). All of this comparative analysis enables us to relate

or

emphasis

on

voluntary

theoretical perspective exchange distinctive characteristic of the relationship between civil society, business, and government. Relevant documents incorporating a new

gov ernment vision, with particular emphasis placed on include the official documents on CSR Europe, published by the European Commission: the Green

these cultural differences with and Moon European

the research ofMatten on the comparison between the (2005) CSR model and the U.S. model. For

394 Laura Albareda as a voluntary corporate policy is a fairly them, CSR recent and as yet scattered phenomenon within a context. The reason is derived from his European of trust and authority toricaUy different models contrast with themore liberal model relationships in in theU.S.

et al.

approach focused on the interrelation, collaboration, and partnership between the different actors: gov ernments, businesses, and civil society stakeholders. It has been suggested that, in a globalized world, public policies cannot simply be analyzed in the light value of self-sufficient governments, but that an added lies in exploring the intersections between

view

as opposed to a more European 'implicit CSR.' CSR refers to corporate policies that lead Explicit companies to assume responsib?ity answering con crete needs

As a consequence, the authors defend the that in the U.S. there is an 'explicit CSR'

public and private sectors (including the for-profit and non-profit sectors) and in broadening the areas between these three surrounding the boundaries sectors (Mendoza, 1996). use this relational methodology to analyze We to enabling an the new governmental approach in 15 European Union environment for CSR gov ernments

of society. In the U.S., this normaUy involves voluntary and self-interest-driven corporate In policies, programs, and strategies as part of CSR. contrast in Europe, refers to a coun implicit CSR try's formal and informal institutions through which

business

the social role of business. This normaUy consist of values, norms and rules which, in the course of the last century, have resulted in mostly mandatory requirements for corporations to address issues of social, political, and economic interest.Nevertheless, the authors argue that over the last years explicit the approach
influence of

responsibility for coUective society's needs are agreed and assigned to companies in relation to

in: Austria, Belgium, Denmark, France, the Greece, Finland, Germany, Italy, Ireland, Sweden Netherlands, Luxembourg, Portugal, Spain, are arguably and the United These Kingdom. the European countries with the most advanced democracies, where the development of social and environmental regulatory frameworks for corporate action and public CSR policies is strongest. We started out

CSR

has been gaining ground in Europe, changing to a more explicit CSR under the
a voluntary approach to CSR.

from the previous study con ducted by Fox et al. (2002), which analyzed the new public sector roles enabling an environment for
CSR, mostly in developing countries, based on non

the foUowing three elements Taking and gov which emerge from the analysis of CSR ernment we propose an analytical framework to analyze CSR The public policies:

into account

explicit CSR public policies. order to be able to conduct empirical unlike Fox et al. explicit CSR (2002), we have

In this research,

in

voluntary nature of the company's ini tiative; The emerging new roles and soft tools; Multi-stakeholder dialogue and new gover
nance chaUenges.

public policies of the 15 European governments. We compiled all the data: CSR public policies, programs, and instruments that governments have volved
each

analysis, and analyzed the

This in explicitly adopted to promote CSR. each country and building a researching database on the policies and instruments applied by
government. The data was

The

construction CSR

to understand approaches The

of an analytical governmental

model

to political structures find out how CSR policy was being We assimilated into government structures. compiled the following elements for each government: National vision, mission public policy on CSR: and objectives Government departments assuming responsibili ties for CSR policies

ces published by the governments or from official documents, reports, and governmental web pages. We also focused on an analysis of the contextsand

compiled

via

sour

CSR

public policies we have bu?t an analytical framework serves as a methodology. The design of this which on a relational is based framework analytical

the analysis of coun in 15 European Union public policies In order to be able to analyze and classifyCSR tries. objective

of this research was

Institutional and relational support from existing Nations international agreements. United

The Role Global in

ofGovernments inEurope 395

Compact: participation issues tional bodies on CSR in its diverse forms

interna

for CSR Organizational structure policies: cen tralized/decentralized; transversal/sectorial; creation of new agencies multi-stakeholder; Actors in the process Socioeconomic, political and cultural context, and administrative tradition This data was
government.

Regulation

then used to draw up a report for each

the data, we focused on the comp?ing classification of CSR public policies taking strategic and relational aspects into account. Here we intro After duced based account a relational and multi-stakeholder a triangulation approach the relationship among governments, busi nesses, and civil society stakeholders. This framework makes it possible to observe the three social agents of governments, businesses, and civil society stakeholders not as poles or opposites which repel each other, but as agents coUaborating in an interrelated area. Different areas of bilateral were observed: the first between on approach taking into

1. 2. 3. 4.

CSR CSR CSR CSR

ingovernments ingovernment-business relationships ingovernment-society relationships ingovernment-business and society relationships

Figure 1. Relational

model
analysis.

for CSR

public

policy

to gain a complete overview of the directionality of CSR public policies. This infor mation was grouped by country and incorporated allowed into specific reports drafted for each country ana lyzed. Subsequently, in order to obtain a general compar ative analysis of the 15 EU governments, we built a transversal scheme containing all the CSR public policies in Europe By combining (Figure 2). this data, we elaborated scheme tomap (see Table a detailed

us

coUaboration governments

governments framework of multilateral ments; businesses; and (Figure 1). We applied

and companies; the second between and civil society and the third a coUaboration: society civil govern stakeholders to map the

this analytical framework

comprehensive I) specific initiatives and programs implemented by govern ments through their public policies on CSR. As a result, we
programs

the actors tionality into consideration: are addressed: government policies 1. CSR ingovernments:CSR

government public policies compiled previ classified aU public policies taking direc ously. We to whom

CSR

produced
and the

a map

of CSR
that

public

policies,

action

governments

have taken to promote and develop CSR. This gave us a relational view of the actors who have been addressed by the policies and who attempted to involve. We have governments have

oped

by governments

public policies devel to improve their own social

responsib?ity, leading by example; 2. CSR in government-business relationships: CSR public policies designed to improve business CSR practices; 3. CSR in government-society relationships: CSR policies designed to improve civil society designed This

have

different stakeholders most

and programs in the four relational frameworks. As a that the European result, it can be deduced gov ernments have adopted public policies taking the into account. We have con

observed how European governments a considerable number of policies developed

public stakeholders' awareness, and finaUy; 4. Relational CSR: CSR public policies
to improve coUaboration between

governments,

These

firmed that, in general, for all 15 governments the significant number of policies lie in the rela tional framework between government and business. policies are intended to raise awareness of the business sector, promote, and facilitate voluntary

businesses

and

civil

society

stakeholders.

396

Laura Albareda

et al.

and PublicadministrationsCSR

<^Administrations"^> ^-??:

Company Public policies

Society

leadership by example (internal policies) CSR Linking spending public to socially responsible companies in Participation of Transferii_ on debate CSR tothe national local and context international Fostering instruments and agreements external trade policy, and development cooperation policy of Development technical how know for CSR in implementing companies Coordination of CSR in policies admini Public campaigns in ii of departments

_ML

and social issues policy employment Environmental policy Taxand funding policies and education training policies business Rural policy ?Agriculture, and development fisheries rural poli Consumer policy defence

Work intersectorial in partnership Facilitating ofsocially Promotion investment responsible ofactions Coordination civil between society the and ofresponsible Promotion consumption ofthe Promotion interests ofallstakeholders employees. (producers, Informand all educate actors social creatior encouragement, and of supervision for evaluatii mechanisms and accountability it Lr of of and change experiences practices good ofconvergence Promotion in andtransparency CSR and practices instruments

(compulsory) Legislation Regulation restriction) (by and Directives guidelines law) (soft framework Fiscal funding and and To promote convergence in CSR transparency instruments and practices To cataly/.eand voluntary facilitate CSR initiatives, of exchange and practices experiencesgood Promotion in of CSR companies: known make positive impact attitudes Toexport in CSR company internationally to needs of Policies attention and SMLsin of characteristics CSR To foster companyrelationships with market stakeholders the and on suppliers. (impactcustomers, employees, providers) capital To foster action the social by company To draw business up restructuring policies

(by Regulationrestriction) Directives guidelines law) and (soft the Todisseminate positive impact of CSR in society ii CSR To support promotion ofci icty actors all To informeducate social and about CSR Topromote facilitate and Responsible Consumption To promote facilitate and Socially Investment Responsible the Topromote facilitate and in interests particular ofallstakeholders CSR terms

Figure

2.

Implemented

public

policies,

programs

and

actions

promoting

CSR.

initiatives, capacity
ment, international transparency,

building,
standards, and

stakeholder manage
convergence accountability, tax and and

European governance The

models

fostering of

of public CSR

policy

evaluation

funding systems in addition

However, we also found

to legislation.
an important number of

application
us an

this analytical public

of governments

framework on CSR
changing

to

These

initiatives among the policies that governments have to increase their own social responsib?ity. developed CSR

European
gave

governments'
overview

policies

are aimed at leading by public policies example, creating internal departments, coordinating bodies, building, public government capacity in participating campaigns, expenditure, public international events, transferring international debate to the local context, international developing

capacities and strategies to favor the development of social and environmental corporate practices. Taking into account both the CSR public policies and the we have observed actors involved, that there is convergence between the governmental approaches and the action to develop CSR public policies in these countries. As a result ofthat analytical process,

instruments and agreements, and foreign trade policy and international development. We also found a considerable number of gov

we

built up a four-ideal typology model for Euro (see Table II). pean governmental action on CSR

ernment policies aimed at addressing the relationship with civil society. In addition, we found that the governments have also defined CSR public policies with of linking government-businesses to promote CSR. These initiatives and civil society are equaUy as important as other policies and the objective inmuch the same way.

The partnership model the 20th century, the countries in this Throughout and section (Denmark, Finland, the Netherlands, an extensive and comprehen Sweden) developed sive welfare policies have state. Since been the directed 1950s, their social towards improving

developed

The Role

ofGovernments inEurope

397

TABLE I
Classification of CSR Policies
1. CSR Internal in government

public policies in differentrelational perspectives

Programs

1. Leadership by example

Work-life
ical

Action Plan forGovernment Offices balance policies/equal opportunities/eth

investment/anti-fraud and corruption policies

Accreditation for good employer practices

2. Creation of internal departments Creation Creation systems 3. Coordinating government bodies of knowledge of monitoring centers organizations

and

control

CSR Minister responsible for coordinating activities

Cross-government CSR

CSR 4. Capacity bu?ding

feasib?ity studies for new legislation

for research assistance and innovation programs implementing CR for companies

programs

Funding Financial programs

Publication of guidelines and good practice docu

ments

5. Public expenditure

6. Public campaigns

Ethical purchasing and outsourcing CSR policies for public contracts

Social and environmental criteria in supplier policies

Promotion of positive impacts of CSR and society

Surveys on public opinion campaigns Awards, communication

in business

CSR

and media

influence
International 7. International issues events International European European 8. Transferring international to local contexts debate conferences Commission conferences

on CSR events on CSR

between national and local government Agreements on or thematic areas Seminars geographic

Consideration of CSR
Promotion of global of of evaluation

regional and local policies

frameworks certification certification

9. and

International agreements

instruments

regulatory and

Development Creation and

international

systems bodies

10. Foreign international

trade

policy

CSR

integrated into foreign affairs policies

markets of good (human environment and CSR international practice labor

for

development

international Promotion ations tion,

development in overseas oper anti-corrup

rights, etc)

standards,

Link CSR
national External

to foreign investment policy and inter

relations

Other

Laura Albareda

et al.

TABLE I
continued

Policies
2. CSR in government-business Raising awareness relations

Programs

Soft

Identify and promote companies leading in CR Promote CR throughwebsites, publications, specialist journals Offer CR services and support to CR initiatives in companies or
partnerships Undertake surveys and communication campaigns

Voluntary initiatives (facilitatingand promoting)

Promotion of uptake of CR
Encouraging Promotion consumption, volunteering, Promotion Promotion sharing of SRI, work-life employee of business and

policies, publication of CR
of good standards, equal practice fair trade,

reports
sustainable employee

promotion

environmental balance, conditions, networks

opportunities, learning or

life-long

of public-private research and innovation

partnerships

public-private-civil

society partnerships Capacity building

Finance Support practice, Develop Incentives programs programs (instruments, good business-university comparative guidelines for and on studies) and provide technical assistance research

Stakeholders

sustainability communication stakeholders

reports programs on the impact of CR

Evaluation programs

Market mechanisms
policies, investment

to favor CR
principles)

(price policies,

competition

Promotion of stakeholder dialogue

International Incentives for adopting international CR standards

Promoting CR
human Convergence and transparency Promote dards, Promote Encourage Promote of conduct Evaluation and accountability Accountability rights,

good practice in the south (labour standards,

CR management systems models, stan

anti-corruption) across standardization indicators labeling of and

reports,

auditing systems

fair trade

standardization inclusion

of SRI international

analysis CR agreements in codes

and

Triple bottom line reporting initiatives Social and environmental labeling

Tax incentives for CR life balance, (employment environmental creation, gender etc.) balance, initiatives

auditing

mechanisms

Tax

and

funding

systems

work-personal

Funding streams forCR (volunteering, social projects etc Promotion of SRI through fiscalmechanisms and investment funds)
companies regarding of to regarding socially responsible investment (pension

Legislation

Transparency

Obliging Regulation

public

reports sustainability produce contracts and selection processes to national standards

Hard

Environmental legislation
international agreements

Adaptation

The Role

ofGovernments inEurope

399

TABLE I
continued

Policies
Sector specific issues

Programs

SMEs

Promotion and incentives for good CR

Raising awareness of impact of operations

practice in SMEs
in the south

Support SMEs in impact assessment Research into the social and environmental impact of SMEs Promote the exchange of good practice and business cases forCR in SMEs Public campaigns directed at SMEs
Favorable Disseminating cooperation tax incentives good between for business and

Encourage Community action

large

companies networks

and

SMEs

in the community

Corporate

restructuring

Work with facilitators to promote CR

Encourage good practices and

practice

creating

in restructuringprograms

their dissemination

3. CSR

in government-society Raising awareness

relationships

Soft

Analysis and dissemination of good practices in business operations with high impact on the community (work-life balance, social
cohesion Tax incentives for civil society-government partnership programs

Knowledge dissemination of international agreements with civil society implications (human rights, labor standards)
Voluntary initiatives

(facilitatingand promoting)

Campaigns dissemination

for sustainable

consumption,

publications,

seminars

and

Ethical investment initiatives Support SRI

Support

initiatives
responsible press mechanisms to foster awards business-community consumption events,

socially and CR

Capacity building Stakeholders

Publications, Surveys Create dialogue Promote Promote

communication

transparency

mechanisms in them NGOs activities

International

Promote Participation

and participate partnerships initiatives with international in international labeling schemes civil

society

Convergence Evaluation and

and

transparency

Fair

trade

Social enterprise definitions

accountability Accountability and

Triple bottom line reporting initiatives Social and environmental labeling Support for government-civil initiatives

auditing

mechanisms

Tax

incentives

and

funding

streams

society partnerships for CR

Sector

specific

issues of social organizations Improve management and of social enterprise for public contracts to

Management

Enable SRI
Environmental social criteria

Hard

socially

financed

organizations

Laura Albareda TABLE

continued

et al.

Policies
4. Relational CSR: Government?business-society awareness

Programs

Soft

Raising

Sharing good practice and knowledge dissemination

Create National Resource Centers (e.g., National Contact Point,

HoUand) Capacity bu?ding

Multi-stakeholder Business support forums networks

Voluntary initiatives (facilitatingand promoting) Stakeholders

Sharing Round

and best practices experiences of conduct tables on codes research in promoting information on projects, innovation, supply promoting p?ot chain, dialogue projects, dialogue index

University-business Proactive Consumers; role

sustainab?ity

of products
Investors: pensions Evaluation and accountability Accountab?ity and information on RC policies mechanisms and expectations regarding

Triple bottom line reporting initiatives Social and environmental labelling

standards Codes of conduct

auditing

Convergence

and

transparency

Management

Promotion of simple and flexible indicators

International International Networks and partnerships alliances forums

Multi-stakeholder Sector specific issues action Urban Education Cross-sector partnerships Promoting New Local social regeneration

Community

projects areas in poor projects with CR networks public/private sectors

participation for urban

Stakeholder involvement in developing guidelines Bringing together different sectors

Socially and responsible investment Pension schemes with social, and environmental criteria fair trade

and common partnerships between different partnerships

frameworks regeneration

Transparency in definition of SRI

Selection, considerations retention realization of investment with CR

Hard

Consumer rights

this frame and services within provision work. Furthermore, during the final decade of the to twentieth century, these governments began the importance of economic actors acknowledge ? in addressing and resolving companies above all social social problems. governments movement towards CSR

in

attitude

unions,

It is therefore safe to say that, for this model, the identifying with mainly involves a change

all For these governments, employment market. new CSR actors are jointly committed to building policies and actions that will promote the growth of a fairer society.

assuming organizations) in the building of a more inclu co-responsibility a dynamic and sive and integrated society

by and

social social

actors

(companies,

trades

The Role

ofGovernments inEurope

401

TABLE II
Models Model
Partnership Business community in the Partnership for meeting Soft

of government action in the development of CSR-endorsing

Characteristics as strategy

public policies in 15 EU
Countries

counties

shared

between

sectors

Denmark,

Finland,

the Netherlands,

Sweden

socio-employment policies involvement

intervention

challenges to encourage chal

Ireland, theUnited Kingdom

company

in governance

lenges affecting the community (entrepre

neurship and voluntary service) Germany, Austria, Belgium, Luxembourg.

Sustainability and citizenship

Updated ment and

version

of the existing social agree on a strategy of sustain emphasis

Agora

able development Regulatory Creation of discussion groups for the different

social actors to achieve

France Italy, Spain, Greece, Portugal

CSR

public

consensus

on

expectations and demands (Morsing, 2005). National settings define a framework, where public and pri vate actors are directly involved in the process of creating public policies and establishing partnerships for social responsibility. Partnership is seen as an

Apart from this, for many companies already in volved in the social context, being socially respon sible is simply inherent to their way of doing business. Social initiatives are often implemented informally or implicitly, as a response to local

are viewed as part of the regular framework for social and employment practices. A considerable commit ment ismade by local governments who act as the channels
trations,

they should lead by example. Particularly in public made to promote tenders, for instance, every effort is use of goods or services produced in a the sociaUy manner. In short, CSR responsible pubUc policies

notion

for partnership bu?ding, favoring the of social co-responsibility between adminis

companies and social organizations.

innovative and sometimes even key tool for solving difficult social Local governments, problems. for channeling the creation of such responsible partnerships, are also heavily involved, thus fur thering the idea of social co-responsibility
companies, and social

between

characterized by the use of partnership as a tool, and In by the creation of a shared area of welfare.

linked to a long tradition of for cooperative agreements and consensus preference between different types of organizations, is largely The Nordic model,

administrations,

organizations.

Encouraging partnerships has thus become central to CSR public policies in these countries. In fact, in the
Danish context, cross-sector local partnerships

essence, the impetus towards the adoption of public private partnerships may be construed as an heir to Scandinavian political culture, in which research consensus, and par always highlights cooperation, the poHtical tradi (Gr?ve, 2003). Under ticipation tion of most Nordic countries over the last century, social

practically

incorporate

the CSR

concept

(Nidasio,

2004).
One

social issues. It is consumers most

avoid model

themselves who place on socially responsible production. In emphasis the Netherlands, for example, labels are used to confusion. Another is that public

of the policies common to all these countries insists that companies should provide adequate CSR information adhering to transparency principles on

are part of governments' core problems competences and, as such, are considered among the basic issues that their policies must resolve (Rosdahl, 2001), with these values underpinning cal-social philosophy. The their politi

countries in this section aU have considerable

differential factor in this

officials take the attitude that

in environmental management, which experience now also incorporates the CSR component. They

402 Laura Albareda also enjoy a tradition that historically favors social in which negotiation, relationships between gov ernment and companies are viewed as positive, and includes certain aspects of cooperation. We use the term 'partnership' to refer to the format used

et al. strategies for less favored areas' and to the community' to define their

'regeneration 'commitment contribution The

which

to design and implement CSR public policies in Scandinavian countries and Sweden, (Denmark, to which we have also added the Neth
erlands.

to social and community development. idea of corporate responsibility was first seen in the contribution of companies to sustainable development through new public social governance policies
agement,

(Moon,

2004).

In terms of corporate man

voluntary involve

Finland),

governments

advocate

ment

The The

'business in the community' model

of business in society, particularly as regards social challenges and its role in community development. In thismodel, we have included the United King

business in the community concept refers to how these governments and companies interpret the role

the government adopts what is known as Kingdom, 'soft intervention' to promote and endorse corporate action in CSR In both ernment action areas. and Ireland, gov Kingdom as developing, is conceived facili as well as and providing incentives for CSR, tating, encouraging public-private partnerships. In their role as facilitators, the governments seek mechanisms that provide incentives, whether through so-called 'soft regulation' to encourage corporate CSR actions the United

initiatives into Companies bring CSR on and corporate management practices a voluntary basis, quite from any legal apart requirements. However, particularly in the United commercial

in CSR.

first saw the light of day in the United Kingdom and Ireland during the final decades of the 20th century, as a response to a deficit in social CSR undergoing a severe crisis, forcing companies out of severe problems of social business and causing exclusion (Moon, 2004). Both societies had to deal governance when industrialized economies were

to themain framework. It links CSR political CSR in societal governance faced by developed challenges countries (DTI, 2001; 2003a, b).

dom and Ireland. The British government has been one of themost innovative in the development of a

partnership projects for the public and private sec tors, either together or with the third sector. This allows a joint grasp on problems linked to social exclusion, poverty, lack of social services and quality of life in economically depressed areas. Companies collaborate in partnership projects with local gov
ernments in staff

or through taxmeasures. Another important idea in is the building of these countries as regards CSR

with acute problems of social exclusion and growing poverty in urban and rural settings, coupled with environmental degradation. The crisis also affected

investment in deprived urban or rural areas.

To sum up, under this model, government actions

training,

company

set-ups

and

the welfare state, as seen in the decline of the social services offered by public administrations. The gov ernments began to look for innovative solutions to ? these problems through engaging all social actors primarily companies. They began to create corporate and public?private Firms were strengthen CSR.

on CSR
opment

focus on providing sector, facilitating economic

and economic

support to the private and sustainable devel

with the sup

regeneration,

networks

partnership projects to soon involved in social arose

port and collaboration of the private sector. These countries deal with social problems such as unem ployment and social exclusion through CSR policies

projects that invested in the community. The concept of 'business in the community'

from the idea that companies play a fundamental role in in the economic development of communities they operate as well as in fighting social and exclusion and poverty. In theUnited Kingdom it is now commonplace for governments Ireland,

involving companies responding to a crisis of gov ernance and creating the conditions for corporate action. Finally, governments base their application of measures on 'soft regulation.'

CSR

which

The sustainability and citizenship model The CSR tackles sustainability and citizenship model from a focused perspective, above all through

and companies to use concepts like 'investment in 'involvement in the community,' the community,'

The Role

ofGovernments inEurope 403 on sustainable development issues,which began long before the publication of the European Commission these govern Green Paper (2001). Nevertheless, ments began moving towards CSR after 2001. This

what companies considered as 'good citizens.' This is Frederick (2006), in his scholarly conclusions, clas sifies as 'public/social policy,' where the corporation these is analyzed as a poHtical actor, and where newer citizenship concepts of business rest on a firm theoretical foundation corporations society. For the governments of thismodel, Austria, the Belgium, France, Germany, and Luxembourg, of political science in which take their place as citizens in civil

experience of environmental public debate, essen initiatives as tially based on the 1990s, views CSR the coun part of long-term sustainability. Among tries included France deserves under this model, attention. In France, CSR iswell-established special in government-supported activities focusing on

concept of 'corporate citizenship' holds that com panies must not only be good citizens through the transparency of their activities and compliance with

tax obligations, but that they should go beyond this. It also refers to businesses' obligation to maintain a link with their local environments and to

sustainable development. So much so that, at times, such activities appear to be directed by the govern ment, revealing a more regulatory approach, in line with the apparently more centralist orientation of the French state. In recent years, these governments have devel strategies, oped national Sustainable Development the role of companies as fundamental considering points in sustainable development, innovation, and In Austria, for example DETE competitiveness. (2002) stresses the need for businesses to redefine

direct

to resolving social problems by forming partnerships with other actors in society. One of the main characteristics of the 'sustainab?ity and citi contribute zenship' model sociaUy contributes notion function is the value it aUocates to companies' undoubtedly responsible behavior, which to social

behind

to help companies assume their social responsibility. also The of 'social market concept economy'

citizenship as the strategy adopted to support their actions in this sphere. In this model, government action mainly promotes CSR and creates incentives

change. EssentiaUy, the key to is for companies this concept as genuine social agents, with corporate

their image as regards environmental social respon sibility and proposes that it is necessary to explore new forms of cooperation with governments and their stakeholders. In these countries, governments have promoted CSR through support for business organizations and through specific political initiatives on promotion
and awareness.

responds to the same principle, combining economic thus fea and personal freedom with social justice In these turing social responsibiUty components. the role of the corporation
societal goals and closer to agendas.

governments,
much

in society is

The Agora model We use the term Agora - a Greek word meaning a to refer to the public gathering place or forum used to implement and enforce CSR public in Mediterranean countries, including some Italy, Portugal, and Spain. Although

countries forming part of this 'sustainab?ity and citizenship' model generaUy enjoy relatively sound welfare states, which, in the 1990s, had to withstand increase the impact of a global economic crisis, an in social costs and the consequences of

The

model

population years, CSR

lack of competitiveness and welfare state renovation. Debate on CSR, therefore, often comes fromwithin

over the last few ageing. Consequently, has been added to the political debate surrounding growing concerns over their economy's

policies Greece, are still at an early stage, others, such as Italy, have their CSR govern already begun to consolidate mental project. We have named thismodel 'Agora' because, countries, political CSR arose from a series of discussion pro applications cesses in which governments sought to involve companies and inMediterranean

companies themselves. These companies may join forces and create platforms, where they can share experiences and express themselves with a single
voice.

countries explored in thisCSR model have a long-standing tradition of intense public discussion The

in society stakeholders, debating groups along with political representatives. These CSR relational initiatives work by seeking a con sensus that includes all social voices
government action.

and viewpoints

on

404 Laura Albareda The countries in this model were the latest to

et al. defined or made

policies and have only recently ex an interest in the issue, largely pressed following the of the European Commission Green publication In 2001, and Communication Paper (2001) (2002). introduce CSR of their governments took part in European Commission debates on the Green Paper. However, from 2002 onwards, most began to include CSR initiatives in none

specific through in Spain, initiatives, especiaUy tangible political seems that Greece and Portugal. In these countries, it the governments adopt a positive attitude towards CSR. The using a creation of commissions 'multi-stakeholder' or working groups to discuss the

action has been

focus

are their political agendas. These a less well-developed countries with welfare state, is less mature which if compared with the other countries in Europe. The origins of CSR in gov ernmental initiatives inMediterranean countries can linked

to seek consensual solutions and concept of CSR, to determine the role to be played by government, coun characterizes this process in Mediterranean

be

sustainability indexes). At the same time, CSR actions were beginning to be endorsed by large multinational companies that had invested in these financial were countries or companies from these countries, which In all these countries, starting to globalize. corporate CSR networks and research centers have created

promote due to the impact of various international public and private initiatives (OECD's guidelines for multi national the Global and companies, Compact

to European Commission initiatives to a European framework for CSR and is also

tries. In Spain, Greece, and Portugal, sirnflar pro cesses occur through the creation of expert groups, committees and forums. The Italian working government has

to aU thrown open the dialogue actors by creating an ItaUan multi intervening In short, the Agora stakeholder forum on CSR. model aUows space for discussion with a certain dimension. UnUke the EC's pubUc European Forum on CSR, Multi-Stakeholder these working groups or commissions are created by governments action, during the initial stages of government even before The frameworks countries for in action have been defined. have generaUy states than those in less-developed welfare northern Europe, particularly in terms of social services. But, like other European countries, they too have suffered the consequences of eco nomic
exclusion.

this model

to develop and incorporate the CSR within the national framework. It is in these concept CSR networks and organizations that theMediter ranean discourse is being built. Issues linked to CSR, been at least in Spain, Greece,
social in nature.

and Portugal,

are mainly

crises, increased unemployment

and

social

These approach
the

are countries whose is under

have not

governmental CSR construction. In these countries

been extremely innova

Governments for further

and CSR: research

implications

tive or proactive policies, adopted CSR. What

governments

in the development of CSR public in Italy, where the government has except specific projects and policies to promote

As we have seen, the analysis of CSR pubUc policies of these leads us to consider the multi-directionaUty

characterizes governmental action most of all here is that before taking decisions, the govern ments need to construct a social consensus and to have engaged This in dialogue with all the social agents. the CSR dialogue produces public policies In these countries, defined by these governments.

to whom in other words, poUcies: they are ad dressed. The new chaUenges of social governance in societies requires new methodological globaUzed instruments to analyze how companies contribute to society and how governments adopt new soft roles

action has been supported by the governmental of reports and studies on CSR, analyzing drafting the development of CSR and in more pean governments undertaken. These
provide consensus

the CSR

proactive Euro public

elements
on whether

of public
or not

policies dialogue

CSR

society stakeholders. AU thismeans that companies and governments must be increasingly aware of the to CSR. need to formulate their own approach no longer simply affects relationships between a way of businesses and society. It has become the role of companies in society, which rethinking

taking into account the new frameworks of coUab oration between governments, businesses, and civil

governmental

The Role

ofGovernments inEurope 405 this debate on government action on CSR must not to CSR public policies. Governments allow it a much wider approach of governance with and context, a framework

takes governance and sustainability as its core values and changes the focus of CSR public policies. As a this analysis highlights the following points for result,
future research.

be confined must

ment

influence of a country's First, the considerable cultural and political context on the develop social, of national CSR CSR public

governmental public corroborate this. Furthermore, any reader familiar with the literature on the evolution of the welfare state in Europe

of policies: models outlined here policies

fore not just amatter of concept but a political decision. This means that governments and businesses and also

governments, busi and society stakeholders. nesses, From these three points of view, drawing up and is there designing governmental approaches on CSR

embracing models for new relationships between

1999, 2000) will (Esping-Andersen, have detected the similarities between our models for public policies on CSR and other groupings normally found when analyzing different forms and experi ences of thewelfare state.These parallels should come

society stakeholders must be increasingly aware of the need to formulate their own approach toCSR in order welfare approach thatbest suits their state tradition and the existing relationships between government, business and society. Currendy, the role of CSR to adopt theCSR

and models of development of the welfare state is long overdue. This is essential, and not just for historical or academic reasons. A correct orientation of public policies on CSR will in the long term form a basic element in, and a symptom of, any forthcoming discussions on the redefinition of thewelfare state. in some countries CSR Second, while policies have been defined in relation to social issues, and an independent public policy has been created, others government action has simply incorporated CSR into national policies on sustainability.We feel that the latter approach, focusing on sustainability, ties inwith countries, where there is a long-standing tradition and intense public discussion on Sustainable in

as no surprise, particularly if we then take a closer look at the itinerary of European Commission proposals on the development of CSR policies. An in-depth study of the relationship between models of public policies on CSR

public policies has become away of rethinking the role of businesses in society that takes relational governance and sustainability as its core values.

Acknowledgments We would like to thank Dr. Thomas Maak

reviewers for their useful

and the
and

anonymous

comments

suggestions thathave helped to improve this article.

Notes possible thanks to the the Department of Economy and support Finance of theRegional Government of Catalonia. 2 This research was begun in 2004 when the EU was st?l composed of 15 Member States: Austria, This of France, Finland, Germany, Luxem Italy, Ireland, the Netherlands, and the United bourg, Portugal, Spain, Sweden, before the EU Enlargement of May Kingdom, Belgium, Greece, 2004 when Denmark, research was made

and 'green' policies. Conversely, the Development CSR in other countries ties inwith busi approach ness and society relationships, and CSR public pol icies are linked to social challenges and are closer to collective bargaining policies. there are other elements Third, considered when that must be

10 States joined the EU. For further information on the results for each

any analyzing and developing CSR government framework for endorsing CSR. must not be seen as being divorced from the great political
sometimes

and

economic

challenges.
response

In fact, it is
sometimes

as the result of, the new challenges created by eco nomic globalization. CSR is at once viewed as a

presented

as a

to, and

response to the crisis of thewelfare state producing a new model for social governance and as a framework linked to national competitiveness. We argue that

et al. (2003) suggest on partnership As Kjaer in thismodel of models, we include theNetherlands CSR due to the tendency of its poUcies to adopt co responsibility and dialogue with other key actors. to construct aUiances

et al. (2007). of the study object ? focused on governments the actions between the and non-profit sectors do not private, for-profit form part of this analytical framework.

country please see: Lozano 4 Given the definition

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