COSORE - Corporate Social Responsibility

Conclusion - Requirement Analysis:
CSR in small and medium enterprises (SME) in COSORE-Countries

Historical contextes and developement of CSR

The historical contextes and herewith the development frameworks of the current understanding of CSR which are seen by the autors of the different countries are different.
For example in the historical context of Belgium¹ it can be found especially the hint to the late eighties. There has been a persistent group of smaller companies for whom financial profit was only a medium to create social, human or ecological value. They are called "Human and Environmentally Friendly Companies" (Mens en Milieuvriendelijk Ondernemen), social economy or solidarity-based businesses. They were and still are the very important innovators and pioneers on CSR. Also a "greening trend" started in the mid-eigthies to reduce the companies environmental footprints.
For Germany and Italy² it can be said, that there is a long tradition in beeing social responsible among businessmen for example in working alongside politicans, scientists and representatives of charitable associations or by enhancing the quality of life of the employees in the communities where the companies operated (for example in terms of education, health). Also it can be said however, that the deep involement in the community was gradually reduced as a consequence ot the growth of an effective welfare state.
For Portugal³ it will be hold that there are two turning points in Portugal's recent history that are crucial for understanding CSR:

the political changes that began in 1974, with the institution of a democratic system and setting up of a Welfare State which was linked with discussion towards state reponsibility and action (not with the focus of individualism and civil and private policy).
the country's integration into the European Community after 1986, which strengthening the legal recognition of social rights and accelerating civil action by Portuguese citizens. On the economic side, the integration of Portugal into the competitive European and global markets has forced a traumatic restructuring by businesses for survival; this process continues in varying degrees throughout the country

In spite of the different developments, backgrounds and main focues shown by the different countries, it can be said, that all the themes and developments descriped can be found in the other countries too, only to different times and with an other emphasis. For all coutries it seems guilty that CSR in the broader sence (not "only" environmental protection and giving donations) have only become an issue in the last few years.

Definition and comprehension of CSR in the countries

It can be realized that there are particular different definitions of CSR within each country and between the different countries of COSORE. But the differences in the definitions are more expression of different historical contextes, of different main focuses or perspectives then realy differences in the objectives or intented or done activities in the context of CSR. For all countries it is to hold, that there is not existing a one and only definition, that CSR is up to now not a really established term and not commonly used by different persons and organisations. With regard to the Requirement Analysises of the partners of COSORE and some background information some basical common backgrounds and ideas of the CSR-discussion can be shown exemplary. CSR is linked with:

the view that enterprises have a responsibility not only to shareholders (if they have such one), but also to all stakeholders and broader society
the seen and demanded involement of the companies in solving social problems, above and beyond its actual business activities
the idea of corporate charity
the philantrophic interests and the corporate purpose that will be brought into line
the voluntary charakter of the activities

CSR in big and small and medium enterprises (SME)

Besides from organisations where the "social dimension" (nonprofit-organisations) is already part of the mission of the facility, it can be realized that the theme "Corporate Social Responsibility" at present will be more linked with big companies in all countries, the activities of them are more present in public. But that means not SMEs are not active, on the contrary the partners of COSORE agree that SME doing a lot in this area but do not see or call it as CSR or Corporate Citizenship respecitvely do not publish their engagement. Mostly the SME community activities are occasional and one-off, unrelated to the business strategy also. The following table shows to which extend SME are already involved in external (the internal dimension is not included) social activities.

employees	Belgium	Germany	Italy	Portugal
0-9	61	53	46	65
10-49	62	62	66	79
50-249	73	74	50	78
total	61	54	47	66

Percentage of SME involved in external social activities, by enterprize size and country⁴

The importance of discussing CSR, research and buidling instruments in a systematic way which refers to SMEs especially, will be evident with regard to different points:

The SME are recipients and user of CSR because CSR means also assistance (for example by big companies, policy) for the creation and sustainability of small/medium business
It is noticed that the social responsible behaviour in and from SME should receive high attention because the SME occupies the most employees in the countries
Because of the high amount of SME in the respective countries they are an important ressource and actor in the civil society
Beeing aware that a lot is done in the SME already, it is intended - and in some countries this process has been started already -, to find out what they are doing, to disseminate this information, to stimulate innovative pilot projects and to reward good practice.
The SME-entrepreneurs feel social responsible and want to do something, not ever they know how to do
The SMEs consider themselfs as a part of the society, especially as a part of the respective regions and want to be partners of their different stakeholders
If it is wanted that SME are social responsible actors the political and legal basic conditions should support this, a respective framework has to be built
The more public ways of doing CSR by big companies are mostly not suitable for SMEs

Why discussing CSR currently in general?

For the last years and at present all partners can notice a increasing interest for the theme CSR and linked isuess like Corporate Citizenship, Corporate Governance, Ehtical Investment. A lot of speeches, debates, interviews, an interest by media can be realized in all countries, also there are already existing different organizations which deal with CSR especially.
Exemplary reasons for the increased interest in CSR which are common for all COSORE-countries - including the perspective of the societies, the companies and the citizens - are:

To be part of the EU means to be part of the social development policy of the EU and part of the policy is Corporate Social Responsibility
CSR-Practises and -discussions of other countries (for example the angloamerican) will be an example and and something that should as an competitiv advantage be copied in order to survive in the global competition
The Welfare States should become Welfare Societies with more actors involved
The market economy has effects like unemployment, social inequality in the industrial nations, poverty and missing development perspectives in a lot of third-world countries, global environmental problems, the not assessable consequences of modern technolgies (nuclear technology, biotechnology, genetic engineering)
People see the enterprises as Corporate Citizens which have rights and duties towards the whole society
A growing interest in social responsible products in all branches (financial, food, technology…) by customers
CSR will become a question of the image and the survival of the enterprises
The kind of partnerships between the enterprises and the different groups of the society/stakeholder are changing: from occasional sponsorships and donnations to a longterm partnerships with different common work

Exemplary CSR-related issues which are seen by all partners

environmental protection
education, learning, training and activities related to employees promotion
entrepreneurship (self employment), assistance for the creation and sustainability of small/medium business
diversity and equal opportunities (immigration, gender disadvanteged persons)
Corporate Community Investment
Work-Life-Balance
Corporate Volunteering

The areas in which the different countries and especially their SME's are mostly social responsible involved are shown in the following table:

	Belgium	Germany	Italy	Portugal
1.	Sport	Sport	Sport	Culture
2.	Culture	Health and Welfare	Health and Welfare	Sport
3.	Health and Welfare	Culture	Culture	Health and Welfare
4.	Education & training	Education & training	Education & training Environment	Education & training

SMEs involved in external social activities, by type of social activity⁵

It can be noticed that there is a high correspondence in the activities of the different COSORE-Countries. Also in the ways of involvment, shown in the next table:

	Belgium	Germany	Italy	Portugal
1.	Sponsorships	Donations	Donations	Donations
2.	Donations	Sponsorships	Sponsorships	Sponsorships
3.	Employer involvement	Cause related marketing	Cause related marketing	Cause related marketing

SME´s main ways of involvement in external social activities⁶

Implying the social responsible activities done already by the SME, the future needs of SME and their leaders, the knowledgement of big companies, the experiences of different actors of business and society, COSORE can be an important and innovative part of discussing and developing "Corporate Social Responsibility in small and medium enterprises".

1 "Profile of Corporte Social Responsibility in Belgium": http://www.csreurope.org

2 "Profile of Corporte Social Responsibility in Italy": http://www.csreurope.org; Italy: "Corporate social responsibility (CSR) in Italy: policies, strategies and initiatives": http://www.europe.eu.int/comm/employment_social/soc-dial/csr/country/italy1.htm

3 "Profile of Corporte Social Responsibility in Porugal": http://www.csreurope.org

4 Observatory of European SMEs 2002/No. 4: European SMEs and social and environmental responsibility. European Commission

5 Observatory of European SMEs 2002/No. 4: European SMEs and social and environmental responsibility. European Commission

6 Observatory of European SMEs 2002/No. 4: European SMEs and social and environmental responsibility. European Commission