The CSR Navigator

The CSR Navigator Public Policies in Africa, the Americas, Asia and Europe Forewords 1 Political, economic and social leaders need to join One of the central challenges of development coopera- together to meet the social, ecological and cultural tion today lies in developing suitable approaches and challenges of globalization. Whether in Europe, Africa, instruments in order to structure globalization-related Asia or the Americas, it is becoming more and more processes fairly. Many companies are investing in coun- important that all societal actors contribute to solving tries of the South and East that are frequently character- the complex problems we face. This means we must ized by inadequate social and environmental legislation redefine the rules determining how we live and work and a failure to implement and enforce existing laws. together. That is why corporate social responsibility (CSR) can be an important step on the way to fostering sustainable Businesses can be particularly effective in helping to development, reducing poverty and achieving socially improve living conditions for people throughout the just globalization. world. Thus, more than ever before, long-term entre- preneurial planning and action must be coupled with GTZ’s endeavors in the field of sustainable development a sense of social responsibility. This core conviction are not new. Our concept of sustainable development has always informed the Bertelsmann Stiftung’s and the values associated with it have characterized our project work. work worldwide for many years, and in this regard we attach key importance to environmental and social stan- The present international study – the first of its kind – dards. is a systematic analysis of CSR policy in 13 different countries, and it aims to demonstrate which policy tools Together with the Bertelsmann Stiftung and with are best able to promote corporate social engagement. support from the German Ministry for Economic It is with great pleasure that we present these results in Cooperation and Development (BMZ), we are proud cooperation with the Deutsche Gesellschaft für to present this practice-oriented overview of policy Technische Zusammenarbeit (GTZ). This collaboration instruments for implementing CSR in selected countries. proves the importance CSR has recently gained for pri- Our aim here is to expand the range of advisory services vate and public sector actors. Cooperation is both the provided by German development cooperation for basis of this study and the principle underlying CSR. developing and implementing CSR policies and then We are convinced that such cooperative efforts are the monitoring their results, while drawing on international key to shaping globalization in a sustainable way. experience and networking with the corresponding knowledge bearers. Liz Mohn Vice President of the Executive Committee of the Board Dr. Bernd Eisenblätter and of the Board of Trustees of the Bertelsmann Stiftung; Managing Director Chairman of the Board of the Bertelsmann Deutsche Gesellschaft für Technische Zusammenarbeit Verwaltungsgesellschaft mbH and Member of the (GTZ) GmbH Supervisory Board of the Bertelsmann AG Profiles 2 About Deutsche Gesellschaft für About Bertelsmann Stiftung Technische Zusammenarbeit (GTZ) GmbH As a globally active enterprise focusing on international cooperation and sustainable development, the federally owned Deutsche Gesellschaft für Technische Zusammen- arbeit und Entwicklung (GTZ) GmbH supports the German government in achieving its development-policy objectives. It provides a globalizing world with viable, forward-looking solutions that stimulate political, economic, ecological and social development. Working One of Germany’s leading foundations, the Bertelsmann under difficult conditions, GTZ promotes complex Stiftung is dedicated to serving the common good. It reforms and change processes. Its corporate objective is focuses on the fields of education, economy and society, to improve living conditions around the globe on a sus- health and international understanding and promotes tainable basis. the peaceful coexistence of cultures. With its commitment to society, the foundation encourages all citizens GTZ assumes responsibility for the ecological, social, to follow its lead and make their own contributions to cultural and political environment – responsibility it the common good. Founded by Reinhard Mohn in 1977, shares with its partner organizations. Efficiency and the Bertelsmann Stiftung is the majority shareholder in ethics play an important role in the implementation of Bertelsmann AG. It functions exclusively as a private its programs. For GTZ, respecting human dignity and operating foundation, remaining independent of the human rights is just as important as the responsible use company and politically neutral. of the environment and the globe’s resources. In 2004, this commitment inspired the company to become a The Bertelsmann Stiftung’s CSR Project focuses on the member of the Global Compact, the worldwide initiative contribution companies can make to develop solutions launched in 1999 by UN Secretary General Kofi Annan. for urgent societal questions. The project is motivated by the conviction that cooperation is the key factor when developing sustainable and robust solutions. Most of today’s challenges can only be solved if the business community, governments and civil society organizations come together to combine their competencies. The CSR Project is currently concentrating on three subjects: • Enhancing awareness for corporate engagement by contributing to the CSR discourse through confer- ences and publications GTZ is a federal corporation based in Eschborn near Frankfurt am Main. It was founded in 1975 as a compa- • Building up management competency by analyzing ny under private law. The German Federal Ministry for structures and processes for CSR management Economic Cooperation and Development (BMZ) is its through case studies major client. GTZ also operates on behalf of other German ministries, the governments of other countries, • Initiating new societal partnerships by developing private enterprises and international clients, such as formats that will help companies and civil society the European Commission, the United Nations and the organizations benefit from each others’ knowledge World Bank. GTZ works on a public-benefit basis. and experience All surpluses generated are channeled back into its own projects for international cooperation and sustainable development. Table of Contents Forewords 1 3 Profiles 2 Introduction 4 Methodology of Study 6 Key findings 9 Profiling and Navigating CSR public policies in Africa, the Americas, Asia and Europe Brazil 12 China 28 Egypt 42 France 54 Germany 70 India 84 Mozambique 96 Poland 108 South Africa 122 Sweden 138 United Kingdom 152 USA 166 Vietnam 182 Implementing CSR Experiences from the work of the German Technical Cooperation 194 The CSR Navigator Instruction Manual 204 The CSR Navigator Toolbox 208 Glossary 214 List of Abbreviations 218 Biographies 220 Imprint 223 Introduction 4 Growth, prosperity, political stability, justice, equal Global denominators – opportunity – shaping a fair and balanced process of Local focal points globalization is a challenge and a necessity. But how can the job best be done? To date, the consequences of globalization and the entailing conditions of production often meet with The Deutsche Gesellschaft für Technische Zusammen- disapproval in civil society and the political arena. A arbeit (GTZ) and the Bertelsmann Stiftung have jointly major criticism is the imbalance between cross-border explored how governments can contribute to shaping a business activities and territorially restricted laws. fair and balanced process of globalization by working The lack of global regulation and the implementation together with private and civil society actors. Incorpo- deficits of international conventions on labour and rating corporate social responsibility (CSR) into national environmental protection thus turn CSR into a negotia- policies can be seen as a first important step towards tion process that allocates new roles and responsibili- this new, shared governance approach. Of course, CSR ties, since, in a globalizing world, neither problems is not the solution to all of society’s problems. But we nor solutions know national boundaries. are convinced that it is a viable and integral concept for framing change management and problem-solving However, we take national public policies as the starting in societies that are increasingly embedded in the point of our study because we firmly believe that CSR processes stemming from economic globalization. The has to be seen in light of the relevant national context. combined perspective of a government-owned enter- After all, history, political systems, economic trends and prise, GTZ, and a private operating foundation, the cultural traditions have profoundly shaped the societies Bertelsmann Stiftung, on the subject of CSR has been in which CSR is taking place. As such, the reasons why a major resource in undertaking this study. governments want to strengthen CSR and the steps they take to apply the concept vary. We have therefore looked By investigating drivers behind national CSR policymak- at explicit CSR policies but have also taken policy activi- ing, analyzing existing instruments and highlighting the ties into account that belong to areas such as environ- respective maturity of CSR policies in selected contexts mental and labour policy, simply

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