Politics of the European Union too often have damaging consequences for developing countries. Fair Politics EU wants to give developing countries a fair chance at development. - Fair Politics NOW!

Corporate Social Responsibility

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Topic: Corporate Social Responsibility

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An effective CSR policy is integral to a European Union that does not undermine development efforts and key to eradicating malpractice like child labour. With the EU looking to get the private sector more involved in development cooperation, the impact of companies on development must be considered and improved. Fair Politics therefore believes that CSR should no longer be voluntary, but that binding measures must be established in order to increase transparency and hold companies accountable for the impacts of their activities. That way we can be sure that companies walk the talk and positively contribute to development. The EU itself must also see that it only supports companies that uphold best practices.

Policy recommendations

  • Make the OECD Guidelines for Multinational Enterprises mandatory for all EU listed companies and put sanctions in place for companies that breach these guidelines by for instance being involved in child labour. This can be done through strengthening the current proposal on Non-Financial Reporting. (For more exact recommendations about the Non-Financial Reporting proposal see the CONCORD position paper on this.)
  • Only support companies that uphold best practices and are OECD Guidelines compliant. Only these companies must be eligible to receive support through the EIB and public procurement.