Fostering Corporate Social Responsibility Through Public Initiative: From the EU to the Spanish Case

Abstract

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries.

Configuration of External Influences: The Combined Effects of Institutions and Stakeholders on Corporate Social Responsibility Strategies

“…Thus, governments and international organizations fervently promoted CSR and encouraged firms to voluntarily address social problems and self-regulate (Cetindamar, 2007;González and Martinez, 2004). However, the last three decades of extensive promotion of CSR did not produce the anticipated outcome, but created a patchwork of divergent strategic stances on CSR.…”

Harmonious Society and Chinese CSR: Is There Really a Link?

“…Mandatory disclosure laws on social and environmental performance also encourage firms to engage in CSR by ameliorating the imperfect information problem. Cuesta Gonzalez and Valor Martinez (2004) finds that laws in Europe address gaps in social and environmental information disclosures, allowing consumers to use their purchasing power to reward CSR, but they also note that such market incentives are too weak in Spain to make a meaningful difference. Hence, such information measures depend on the social factor for their effectiveness.…”

The role of board gender and foreign ownership in the CSR performance of Chinese listed firms

“…Such pressures have perhaps intensified in the aftermath of the Global financial Crisis (González and Martinez, 2004). Corporate Social Responsibility (CSR) thus constitutes a major area of disclosure and compliance for publicly-listed entities.…”