Corporate Social Responsibility as a Tool to Promote Sustainable Management Practices in Europe and the United States

At a Transatlantic Luncheon on 18 January 2008, Molly Hall introduced key aspects of sustainability management practices of two US and two EU companies that are recognised leaders in Corporate Social Responsibility (CSR). Drawing on the history of CSR as it developed on both sides of the Atlantic, she highlighted differences in their respective approaches. Molly Hall teaches environmental law at the University of Wisconsin-Parkside and is a consultant to the German Environmental Ministry.

In her initial remarks, Molly Hall pointed out differences in the general understanding of the concept of CSR in the USA and Europe. While CSR in the US traditionally includes voluntary corporate activities outside of a company’s core business, the European Commission has defined CSR as a concept where “companies integrate social and environment concerns in their business operations and their interaction with stakeholders on a voluntary basis.” In practice, CSR in the US derives from corporate philanthropy. In Europe, principles of CSR are promoted in all activities and every point of a company‘s operations. One of the reasons for this difference is the US tax law incentive for charitable donations and Europe’s focus on developing CSR standards (e.g. ISO 26000).
 
However, in a globalizing world, the two approaches are beginning to merge; the US model also seems to be adopting German/European ideas, especially as relates to the environment. Molly Hall emphasized that limited energy and resources have helped shift perception and pushed US companies to incorporate sustainability principles and practices into their core operations, often resulting in innovation that benefits the environment.

The subsequent discussion touched upon the following issues and questions:

• Potential differences in CSR between large corporations and small- and medium sized businesses
• Efficiency of CSR concepts in general, compared to legislative enforcement of environmental-  and social standards
• The interplay between company marketing and actually incorporating best practices for the specific goal of sustainability

Further Links:

• Ecologic Project: Dialogue Sustainability and CSR
• Ecologic Project: Sustainability Lounge