CSR in Europe May 8, 2008 Hitachi Corporate Office, Europe Manager Yukako Kinoshita

1. CSR in Europe May 8, 2008 Hitachi Corporate Office, Europe Manager Yukako Kinoshita

2. European Policy Development on CSR 1995 European Business Declaration against Social Exclusion Mar. 2000 Lisbon Strategy 2010 "To make Europe the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion by 2010.“ 2001 Green Paper “Promoting a European Framework for CSR” Launch of a wide debate of “mandatory or voluntary” CSR 2002 1st Communication on CSR (White Paper) “Launch a Multi-Stakeholder Forum on CSR at EU level” Nov. 2004 Barroso Commission Focusing on the Competitiveness of EU Mar. 2005 Revision of the Lisbon Strategy “Growth and Jobs” 2004 Final Report of EMS Forum 22.03.2006 2nd Communication on CSR “Implementing the partnership for growth and jobs: Making Europe a pole of excellence on CSR” http://europa.eu.int/comm/enterprise/csr/policy.htm

3. Key points of the 2nd Communication • CSR is voluntary • Enterprises are the primary actors in CSR • Political priority on “Growth and Jobs” to the regulation • Shift of responsibilities on CSR agenda from DG Employment to DG Enterprise (business friendly) • Launch of the European Alliance on CSR

4. What is CSR in Europe? • Definition of CSR is : • "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. " • Voluntary concept • Social and environmental issues • Integrated in business strategy • Interaction with internal/external stakeholders

5. 10 priority areas • Fostering innovation and entrepreneurship • Helping SMEs to flourish and grow • Integrating CSR in business operations • Improving and developing skills for employability • Promoting diversity and equal opportunities • Improving working conditions, health and safety • Innovating in the environment field • Enhancing stakeholder dialogue and engagement • Improving transparency and communication • Operating responsibility outside the European Union

6. Who are the main players in Europe? • Members of European Alliance for CSR • Members of Laboratory Meetings of CSR • Members of CSR Europe

7. European Alliance for CSR • Alliance for CSR is a political umbrella for CSR initiatives by large companies, SMEs and their stakeholders launched by the European Commission. • 170 companies (HP, IBM, Nokia, Epson, Sony, Toyota etc.),11 European wide organisations and 64 National organisations • (List:http://www.csreurope.org/pages/en/supporters.html)

8. CSR Laboratory Meetings • Business-driven initiatives to address CSR solutions to business challenges on 10 priority areas. • Facilitated by CSR Europe, BusinessEurope UAEPME and other national organisations. • Currently 20 laboratories involving 200 businesses and stakeholders • http://www.csreurope.org/pages/en/laboratories.html

9. CSR Europe • Main felicitator of Laboratory Meetings (CSR Europe created 18 Laboratories with around 150 companies.) • CSR Europe member companies (non exhaustive) • Alcatel-Lucent, ArcelorMittal, BASF, Bouygues, BT Group, Canon, Cisco, Citigroup, Coca-cola, Enel, Epson, France Telecom, Grouop Danone, HP, Hydro, IBM, Intel, Johnson&Johnson, L’Oreal, Microsoft, Panasonic, Nestle, Nissan, P&G, Schneider Electric, Shell, Sony, STMicroelectronics, Suez, Titan, TNT, Total Toyota, Unilever, Vanntefall, Vodaphone, Volkswagen, Volvo. (6 Japanese parentage companies out of 70) • http://www.csreurope.org/members.php • Online database of over 600 CSR company best practices. • http://www.csreurope.org/pages/en/solutions.html

10. Examples of CSR activities- Hewlett-Packard • Central Europe Supplier Responsibility Project (CESR) • Capability building for suppliers in Czech Republic, Hungary and Poland • (launched in 2006) • Objective: To equip SMEs with the management tools needed to operate in a socially & environmentally sustainable way • To assist 1st tier suppliers in meeeting the standards and process required by HP and extend these standards to their own suppliers. • Tool: Training sessions faciliated by the Dainish Comerce and Compnaies Agency (DCCA) • Grant from the European Commission • Result: Provided training for 20 HP suppliers in Czech Republic, Hungary and Poland • 16 second-tier suppliers were assessed and followed tailored training workshops • Guidelines for Multinational Companies on how to work with SMES were developed. • http://www.csreurope.org/solutions.php?action=show_solution&solution_id=513

11. Examples of CSR activities- Vodafone • Community mobile phones in South Africa • Objective:To introducemore than 24,000 community phones into poor, rural and under-serviced areas, where there are few or no fixed line phones. • Tool: Vodafone provided business training and support to franchisees to help people make their business a success. • Free emergency call services. • Result: Around 5000 community phone shops have been established. • More than 20000 jobs have been created, boosting local economies. • The franchise system empower local (black) entrepreneurs and women (40% of franchise held by women).

12. List of Laboratories -1 (as of Mar. 2008) • Fostering innovation and entrepreneurship • New business models at the base of the pyramid (Group Danone, France Telecom, Microsoft, Nestle, P&G,Suez, Unilever, Vodaphone) • Financial inclusion: Sustainable services for underserved potential customers (Associazione Bancaria Italiana, Banks participating in the ABI Working group on CSR) • R&D innovation networks with universities and SMEs (STMicroelectronics, Confindustria, Bracco, Edison, Enel, Indesit Compnay, Pirelli, Telecom Italia) • Business' involvement to enhance social inclusion at local level (Banking institutions members of ESBG)

13. List of Laboratories -2 (as of Mar. 2008) • 2. Helping SMEs to flourish and grow • Stimulating an entrepreneurial mindset and promoting entrepreneurship education (Citigroup, Daimeler, European Commission, ExxonMobill, HP,Microsoft etc.) • 3. Integrating CSR in business operations • Responsible supply chain management (helping companies and suppliers to mature supply chain management initiatives) (TITAN, VW, HP, BASF, Bouygues, Payer, L’Oreal, Metro, Sony, Nestle etc.)

14. List of Laboratories - 3 (as of Mar. 2008) • 4. Improving and developing skills for employability • Skills for employability (Microsoft, State Street,Randstad, Cisco, Arcelor, KPMG, Suez, Cannon, Intel, VW, Shell Hellas, IBM etc.) • Enhancing science teaching in schools (IBM, BASF, Suez, Intel, Microsoft, Cargill, Solvay, Rolls-Royce, J&J, Noartis, Vattenfall, Pfizer, Dassault Systems, Toyota UK.) • Skills for employability enhanced through community engagement (Citi, KPMG, Freshfields Bruckahaus Deringer, Allen & Overy, DLA Piper and IBM) • Recruitment and ethical management of foreign workers (Obiettivo Lavoro, CMP Carpi, Coop Adriatica, Coop Ansaloni, De Cecco, Furla, Manutencoop, Trono Spa, ZML Industries) • Demographic change (perspectives and solutions) (BASF, Evonik ,SAP, BMW, Thyssen Krupp Steel, Metro Salzgitter, VW)

15. List of Laboratories - 4 (as of Mar. 2008) • 5. Promoting diversity and equal opportunities • Mainstreaming diversity in the company (L’Oreal, Danone, Total, Sodexho Alliance, Nissan, Starbucks, Sony, Randstad, BT, Adeco, Canon, Toyota, Suez) • Equality for men and women (IBM, Accor Italia, Autogrill, Bocco Unicersity, L’Oreal, Pirelli, Roche Diagnostics, Telecom Italia etc.) • Employment of people with disabilities (O2, AIB Group, Bord,Gais Eireann, Eircom, ESB, KPMG, Irish Life & Permanent, Microsoft Ireland, O2 Ireland) • 6. Improving working conditions, health and safety • Wellbeing in the workplace (J&J, Janssen Pharmaceutica, Unilever, Epson, BT, Vattenfall, EDF - Gas de France, IBM, Bouygues, Solvay, Accor, Suez, BASF )

16. List of Laboratories - 5 (as of Mar. 2008) • 7. Innovating in the environment field • Eco-efficiency (STMicroelectronics, ABB, Bracco, Coca Cola HBC, Edison, Indesit Company, Telecom Italia ) • Climate change (Activities will begin in the first quarter of 2008 ) • Environment and financial secotor (Cajasol,Bancaja,Caixa Galicia, Caja Círculo, Unicaja, CAI, Caja Madrid, CCM, CAM, Caixanova, Caixa Catalunya, Caja Navarra, IberCaja, Caja de Burgos,BBK ) • 8.Enhancing stakeholder dialogue and engagement • Proactive stakeholder engagement (Total, Suez, P&G, Intel, Nordea, Suez, Telecom Italia, Canon, Atlantis Consulting, Autogrill, Bausparkasse Schwabbisch Hall, British American Tobacco Hellas, Cosmote, DaimlerChrysler, Deutsche Bahn, Elefsis, Gruppo Falck, Holcim, Intracom, S&B Minerals, Shell Hellas, Toyota Hellas; interested/already active companies, Telecom Italia, KPMG, Autogrill, Hera, Manutencoop )

17. List of Laboratories - 6 (as of Mar. 2008) • Improving transparency and communication • Corporate responsibility and market valuation of financial and non-financial performance (Llyods TSB,Telecom Italia,Arcelor, P&G, Intel, Nordea, Suez, Foretica, Enel, Titan, France Telecom, KPMG, BITC Ireland, SNS, Unilever; EFQM members, PWC, Standard & Poor, HP, Canon, Shell, Rabobank, ING Bank; Rating agencies; members of GRI; audit specialists; interested or already active companies; BT; Akritas, Atlantis Consulting, Bausparkasse Schwabbisch Hall, BP, British American Tobacco Hellas, Deutsche Bahn, Holcim, Indesit, Interbeton, Toyota Hellas; Telecom Italia; Banca Popolare di Milano; Holcim; Vodafone; Amgen; Hera, Manutencoop) • Sectoral CSR reporting (Caja Granada, Caja Madrid, Caixa Galicia, Caja Círculo, Unicaja, Caixa Manlleu, Caja Granada, Caja CCM, CAM, Caixanova, Caja Extremadura, Caixa Catalunya, Caixa Tarragona, Caja España, Caja Sol, IberCaja, Caja de Burgos, Caja Astur, Caixa Sabadell, Caja Vital, Caja Segovia, Kutxa, Caja Murcia)