Memo: Corporate Social Responsibility (CSR)

Corporate Social Responsibility was defined in the Commission's last policy Communication on CSR ('Implementing the Partnership for Growth and Jobs: Making Europe a Pole of Excellence on CSR' in 2006) as 'a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis'.

It is essentially about companies being prepared to take the lead, and illustrate to the Commission and to their stakeholders voluntarily that they take CSR seriously. CSR is always about going beyond the law. Ideally, CSR is a win-win scenario, whereby companies increase their profitability and society benefits at the same time.

The EU's so-called Lisbon Strategy for Growth and Jobs aims to create a business-friendly environment, so EU CSR policy is consequently compatible with this. In the area of employment and social policy, the March 2006 Communication highlighted more integrated labour markets and higher levels of social inclusion as key elements of CSR.

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