Faced with growing criticism of corporate behaviour during the 1990s, the idea of Corporate Social Responsibility (CSR) became increasingly popular in companies, which wanted to restore their reputations without having to submit themselves to legislative controls. A number of producer and retailing companies today publish Corporate Social Responsibility or Corporate Responsibility reports to communicate their ethical and environmental achievements to their shareholders and the general public.

While CSR reports help to focus the attention of managers and workers on the Corporation’s impacts, such reporting is not subject to external controls. At best, CSR reporting can represent a genuine attempt to assess corporate performance, identify weak points and establish policies and targets to improve future performance. At worst, such reports are merely publicity efforts which cover up corporate misbehaviour and highlight a few show-case initiatives which make the corporation appear to be responsible.

The EU is considering legislation which could require such reports to be based on facts rather than a mere “public relations” exercise.  CSR reports may refer to charitable donations which do not impinge on core activities or to compliance with various standards which in principle should impinge on these activities. Some standards like Codes of Conduct are set by the companies themselves, while others involve environmental and/or social certification which are not under the corporations’ direct control.

Further Reading

Flagship Or Failure? The UK's Implementation of the OECD Guidelines and Approach to Corporate Accountability, Christian Aid, Amnesty International, Friends fo the Earth, London, 2005

Can Voluntary Standards Provide Solutions? by Anne Claire Chambron, EUROBAN,2005

Banana Companies: A Corporate Responsibility Survey, Stock at Stake/Ethibel, Belgium, November 2003