The National Policy Association, an US organisation, has researched the CSR policy of some EU coutries. Europeans have sprung ahead of the United States in fostering an environment that has led to a plethora of innovative public policies.
In the last few years, European policymakers have taken a wide range of steps to promote CSR. These actions contrast with the lack of policies in the United States. The failure of American policymakers to promote CSR is surprising, because CSR pressures are so strong in the United States. What explains the difference? Some argue that public pressure might be a good
explanation. Europe, Canada, and the United States have all witnessed violent protests about globalization in recent years. Yet only European policymakers have responded to these protests by trying to find ways to encourage responsible foreign investment.
Market pressures might also be a good explanation. Yet companies on both sides of the pond face the same pressures on their reputation. If corporations dont act responsibility, they can be punished by consumers and shareholders (as Nike, Union Carbide and Total Fina learned). As noted
above, a growing number of European businesses seem ready to embrace CSR, including firms as diverse as Volkswagen, the car maker; Nokia, the Finnish telephone company; and H & M; the Swedish clothes retailer and producer.
These companies have not been forced by their consumers or stakeholders to change their behavior. Rather their managers have decided that adherence to CSR makes good business sense.
So if public concern and market forces dont explain a more activist role, what does? We would argue business culture. European firms are more comfortable working with government to
improve social conditions, and they are more comfortable in a regulated environment. Business expects government will ask more of them and government does ask more of business. Jim Baker, Director, Multinationals and Organising, International Confederation of Free Trade Unions, has argued that corporate social responsibility is accepted in countries like Sweden, the Netherlands, Germany or other countries where the laws are fairly strict, you discover that…there seems to be a
case for the argument that corporate social responsibility is monitored. He did not find this to be true in countries where, he claimed, the laws are not very strict (Malaysia, Bangladesh…or the U.S.)
In Bakers view, European companies… are model companies because they are forced to do it that way.
European acceptance of a government role in promoting CSR should not be misconstrued to face the same pressures on their reputation. If corporations dont act responsibility, they can be
punished by consumers and shareholders (as Nike, Union Carbide and Total Fina learned). As noted above, a growing number of European businesses seem ready to embrace CSR, including firms as diverse as Volkswagen, the car maker; Nokia, the Finnish telephone company; and H & M; the Swedish clothes retailer and producer.
The European public and a growing number of European businessmen and women support the current level of experimentation at the national and
multinational levels. And European business leaders seem to believe that CSR policies can help them
find their way in the chaotic ever-changing global economy.
