CSR

“Corporate Social Responsibility: A business contribution to Sustainable Development” – that’s how the European Commission describes it in a Communication from 2002. Since that time, more and more businesses have been committing themselves voluntarily to action geared to benefiting the environment and society.

But: What does this commitment really bring about? What added value does Corporate Social Responsibility (CSR) give society and the environment as a whole? In a nutshell: What is the impact of CSR if viewed not from the perspective of businesses but rather from the perspective of common good?

Corporate responsibility: How sustainable is the EU economy?
For years now Oeko-Institut has been addressing the issue of businesses and their responsibility towards sustainable development. The potential contribution of businesses to a more sustainable world is generally recognised today.

In its role as social challenger Oeko-Institut takes the goal – the goal of sustainable development – as the point of departure, urging businesses along their paths towards sustainability.
In relation to CSR we are advocating the precise examination and the evaluation of the actual impacts outside of businesses which voluntary corporate measures can have.

Already from 2004 to 2007 Oeko-Institut was analysing in its EU project RARE whether CSR contributes to the achievement of environmental and social goals of EU policy. In a new project entitled IMPACT, Oeko-Institut is specifically pursuing the question of the impact of CSR measures on environmental and climate targets, competitiveness, the quality of employment and working conditions.

Corporate Social Responsibility: The result matters!
Up to now CSR research has chiefly concentrated on the benefits that arise for businesses through a commitment to CSR. Together with well-known partners Oeko-Institut is now conducting research on behalf of the European Commission into the added value of CSR measures beyond company borders.

The IMPACT research project – entitled “Impact Measurement and Performance Analysis of CSR” in full – focuses on how CSR brings about impacts. From March 2010 to March 2013 we are developing and testing methods for examining and measuring corporate responsibility. Led by Oeko-Institut, sixteen partners from all across Europe are cooperating on this project – the largest one on CSR financed by the EU.

The project examines various dimensions relating to the sustainability of CSR activities (e.g. competitiveness, environmental protection and quality of employment) and describes their impacts on different economic levels: for particular businesses, within certain sectors, and on national and European levels.

As one of its main goals, the project develops and applies a method for measuring CSR impacts outside of businesses. Different research approaches, ranging from econometric analysis via case studies to network analysis and Delphi surveys, are being deployed to this end.
The IMPACT researchers are analysing five industry segments in detail: the retail sector, information and communication services, the automobile sector, the building and real estate sector, and textile manufacturers.

IMPACT is creating new knowledge which can be used particularly in policy and businesses, but also in civil society and within the scope of further research. In doing so, it aims to help CSR to contribute to more sustainability in the long term through work conducted by businesses and to help better support the social, economic and environmental and ecological objectives of the European Union.

Knowledge for sustainable business management
With its research on Corporate Social Responsibility Oeko-Institut is addressing a controversial but increasingly important area. There is wide consensus about the relevance of businesses to sustainable development today.

The question of what measures make a genuine contribution to sustainability and when corporate rhetoric is simply glossing over shortcomings is now publicly coming to the fore. Oeko-Institut is advocating a case-dependent and effective variety of instruments for attaining policy goals, the concrete application of which depends on whether governmental regulation, the initiative of the businesses themselves or a mixture of both is the most suitable approach.
Well-founded knowledge of the ways in which CSR functions is needed when dealing with such instruments. The declared goal of this three-year EU research project is to close this knowledge gap.
Businesses wanting to assume their social responsibility can learn through IMPACT how they can benchmark and evaluate their CSR activities. This can serve as a basis of decision-making so that suitable, and above all effective, CSR measures are implemented.
At the same time civil society and policy-makers have the opportunity to gain transparent knowledge about the political and social conditions under which CSR can produce an added value for society and the environment, and in what cases state regulation may constitute a better solution.

Further information
www.csr-impact.eu