European Year of People with Disabilities

EDF Response to the

European Commission Green paper

on Corporate Social Responsibility

EDF 01/12 - December 2001

"States should recognise the rights of organisations of persons with disabilities to represent persons with disabilities at national, regional and local levels. States should also recognise the advisory role of organisations of persons with disabilities in decision-making on disability matters."

Rule 18 of the United Nations Standard Rules on the Equalisation of Opportunities for Persons with Disabilities

European Disability Forum > > Forum Européen des Personnes Handicapées square Ambiorix, 32 Box 2/a — B-1000 Brussels

T +32-2-282.4600 F +32-2-282.4609 E info@edf-feph.org W www.edf-feph.org

Doc EDF 01/12 "EDF response to the European Commission Green Paper

on Corporate Social Responsibility”

The draft document is available in English, and on diskette or in large-print upon demand from the EDF Secretariat, and on the EDF Website at: http://www.edf-feph.org

© Copyright European Disability Forum 2001. This document may be quoted and reproduced, provided the source is given.

List of contents

1. Introduction  

2. Corporate Social Responsibility and its role towards a more inclusive society for disabled people

2.1 General Principles 

2.2 Companies and CSR

3 The role for the European Union  

4 Main actors and stakeholders

5 Evaluation and effectiveness  

6 Actions to support Corporate Social Responsibility

ANNEX I: About EDF and other documentation  

1. Introduction

The European Disability Forum, EDF, was founded in 1996 and established in 1997 in Brussels to represent the independent voice of 37 million disabled people in Europe. EDF is currently composed of 17 national councils of disabled peoples' organisations, one from each EU Member State plus Norway and Iceland and has 79 European Non-Governmental member organisations representing different disability groups. EDF represents all categories of disabled people as well as parents' organisations for disabled people unable to represent themselves.

2 Corporate Social Responsibility and its role towards a more inclusive society for disabled people

2.1 General Principles

EDF recognises the growing role of Corporate Social Responsibility (CSR) in today's society. In line with the Gothenburg summit conclusions, we are convinced that, in order to achieve sustainable development, it is essential that economic performance be underpinned by social progress.
In the globalisation era, inequalities and social exclusion are dramatically increasing. It is clear that market forces must be balanced by policies that support and protect individual human and social rights, and that they must aim at the development and achievement of an inclusive society.
The European Council at Nice has recognised that disabled women and men are a particularly vulnerable group in our society, and are often confronted with social exclusion and poverty. The situation in developing countries is much more difficult and serious in this respect.
We therefore welcome socially responsible initiatives from companies that aim at contributing to overcoming social exclusion and discrimination, including of disabled people, at improving working relations and quality of work, at ensuring gender equality, at increasing worker's participation in decisions of the company, and at interacting positively with their environment and community.
Furthermore, EDF is convinced that companies can greatly contribute through a socially responsible behaviour to an increased participation and integration of people facing greater difficulties in accessing the labour market, such as disabled people.
However, we firmly believe that Corporate Social Responsibility, which is of a voluntary nature, cannot substitute for current or future legislation and regulation, as well as collective bargaining, nor can it be limited to the implementation of legal obligations, but must involve only actions that go beyond the minimum set legal requirements.
We believe that socially responsible practices cannot be the result of a patronising attitude, but must involve all the beneficiaries and all those who are part of the initiatives in their definition and evaluation, in order to be successful and effective. Transparency inside and outside the company is a fundamental pre-requisite for CSR.
In addition, an overall and consistent approach to social issues must be the basis of a socially responsible strategy. Social responsibility must seek to invest all sectors of the companies' activity, and it is essential that this must also apply to practices of subcontractors. Moreover companies must be aware that they bear responsibility beyond their environment, and should be committed to the promotion of social and human rights globally.
In order to promote CSR, we believe that a clear legal and policy framework must be put in place. This includes the existence of guidelines, evaluation indicators, and reporting systems.
Such a framework has to be defined in partnership with companies, social partners, public authorities, and civil society. European and National Disability Organisations must be involved in its definition and development.

2.2 Companies and CSR

According to data of the European Community Household Panel and as confirmed in research publications of several International Organisations, disabled people are two to three times more likely to be unemployed, and their level of inactivity is at least two times higher than that for non disabled people.
Moreover people becoming disabled during their career often lose their job and face great difficulties in re-entering the labour market.
Most of the barriers that disabled people face in access to the labour market are often the result of environmental barriers and social attitudes, rather than a real inability to work. An important contribution to a greater participation to work can come from initiatives from companies, in addition to non-discrimination legislation and positive action measures targeted at those most likely to be socially excluded.
Disabled People have a valuable contribution to make to most companies' performance. In addition such measures can contribute to an improved social climate and working relations in the company, and be beneficial to all the workers, and to their quality of work.
A practical example of the way in which companies can contribute to a greater integration of disabled people comes from the recently adopted code of practice on managing disability at the work place adopted by the International Labour Organisation in December 2001 . The code provides guidance to enterprises on how to recruit disabled people and maintain employment for workers who become disabled, in both industrialised and developing countries.
EDF welcomes in the Green paper by the European Commission references to the contribution of employers in designing non-discriminatory recruitment practices, to job retention measures for employees who are off work due to injuries or a disability, and to lifelong learning and vocational training.
We also welcome the fact that the Green Paper also underlines that "the principle of design for all (making products and services usable by as many people as possible including disabled customers) is an important example of corporate social responsibility". EDF would however like to point out that in order to develop products and services that meet a majority of needs, user involvement is fundamental, as part of the social, but also commercial responsibility of a company.
Good practices in this field have been widely documented in research undertaken by the European Union. The EU has also promoted since last year, in the framework of the European Day of disabled people, awards to companies promoting non-discriminatory practices in their policies, and products. Last year the award focused on employment, while this year it targeted companies manufacturing products and services complying with the principle of design for all.
Furthermore companies can also contribute to the development of their local community, by reinvesting their profits in social activities carried by or in partnership with civil society organisations, by promoting, for instance, training schemes for disabled people wishing to access the labour market.
However, it is necessary to ensure that CSR initiatives are consistent, well thought of, and that they are not isolated in time and space, or instrumental, but are part of an overall company plan.
In this sense EDF supports proposals, contained in the Green paper, for requirements to companies to provide an annual report on their social activities, in order to allow for transparency, and to foster good practices. The report should be prepared in cooperation with workers organisations and employees, as well as with all those that have been involved in these initiatives (for instance representatives from the community, civil society organisations etc.). It should
also cover a number of areas, which would include non-discrimination on different grounds, including disability, gender equality, training, education, workers' involvement, social dialogue, health and safety.

3 The role for the European Union

EDF is convinced that the European Union has an important role to play in setting a framework for the development and regulation of CSR. The existence of an internal market that is going to considerably widen in the future enlargement of the EU, as well as the growing impact of globalisation call for common measures at EU level.
Moreover the fact that trade agreements and representation in trade organisations have become EU competence, and the social implications of commercial and business activities in developing countries call for a coherent EU strategy in this field.
A European framework has to be defined in partnership with all relevant actors.
This includes companies, social partners, civil society (including European and National Disability organisations), and public authorities at all levels.
This framework should guarantee consistency, promote transparency of CSR practices, and provide tools for assessment, such as indicators, and allow verification of such practices. The European Union could use the open method of coordination to develop such a framework , setting common guidelines at EU level to be implemented through bi-annual national action plans.
In order to prevent proliferation of labels based on different methods, and unequally verifiable, in the EU, and at the global level, we believe that the EU should foster debate involving all relevant actors and stakeholders on a common EU framework. This should include an analysis of existing initiatives at International level, such as the SA8000, the O.E.C.D guidelines, and the ILO's
Tripartite Declaration of Principles concerning multinational enterprises and social policy.
However, as existing CSR codes provide minimum levels that are often exceeded by legislation in the Member States we believe that higher standards should apply in the EU. For instance, ILO's code contains provisions on equality of opportunities and treatment (art 21-23), however discrimination on the ground of disability is not covered by this text, while the fight against discrimination of disabled people is recognised in the EU treaties, and legislation on this important aspect is in place.
Moreover these schemes are limited to multinationals, while the great majority of companies, many of which are operating in several countries, are small and medium sized national enterprises. Therefore instruments developed by the European Union must on one hand include companies at all levels, but on the other hand be adapted to their dimension.
We support in this sense the resolution of the European Parliament of 1999 that calls for a European Model and code of conduct. This should be built taking into account existing international instruments, such as the ILO's core labour standards, UN declarations on human rights, the UN standard rules on the equalisation of opportunities for persons with disabilities, and the recent ILO's code of practice on managing disability at the workplace.
The European Union should also contribute to the strengthening and implementation of current international instruments.
Evaluation of label and codes must be done by independent bodies or agencies, and with the maximum level of transparency, on the model of what exists in certain countries for bio labels. We believe moreover that the involvement of civil society, including representative organisations of disabled people, as well as trade unions, and consumers in the definition and control of such instruments is fundamental.
While evaluation and reporting bodies should operate at National level, EDF is convinced that because of the existence of a EU market and of common competition rules, common guidelines should be set at European level on such labels, and on their control.
Furthermore the European Union could also greatly contribute to the exchange of good practices and implementation of CSR, through for example the development of a specific programme.

4 Main actors and stakeholders

EDF believes that companies' contribution to the employment and integration in the workplace of disabled people can be effective, if such programmes are carried in partnership with the involvement of disability organisations. This is very important for example in the definition of recruitment practices or for the adaptation of the workplace, working time, or training measures taking into account the diverse needs of disabled people. Moreover the involvement of workers' representatives, and of disabled workers already employed by the company, in designing and assessing measures, as well as ensuring greater integration at the workplace of disabled employees is also very important. For instance, a company that provides transport for its employees may decide to use only buses that are accessible for all.
EDF also considers that in order to have an impact, actions and measures to encourage CSR must not only be focused on the management of companies, but on changing attitudes of persons at all levels, contributing therefore to a change in attitudes in the whole population.
As companies are operating in a wider setting, cooperation and partnership with schools, universities, vocational training and rehabilitation centres must be encouraged.
The EU and member States should foster the development of those initiatives, also in the framework of the implementation of legislation on equal treatment in employment based on article 13.

5 Evaluation and effectiveness

The European Union should learn from the experiences of existing International code of practices for multinationals and on their effectiveness. A majority of them have been adopted over 20 years ago, but their impact seems rather limited.
This is often due to the lack of commitment from undersigning States to their implementation.
As a result, social reporting is often more a public relation exercise than a serious assessment practice. The use of external audits carried by consultants paid by the companies themselves has undermined the validity of these reports.
As a result consumers and civil society have grown sceptical over the reliability of CSR instruments. Moreover adherence to social values, due also to its broadness, is very difficult to measure.
While adherence to social labels as such is of a voluntary nature, once companies decide to join such a scheme, EDF takes the view that these must be submitted to clear requirements, and an independent audit system must be put in place.
EDF believes that there should be two types of labels: one based on the evaluation of corporate social responsibility practices within the company and in the community (covering the production process) and another on the social impact of the product (consumer impact).
In the case of consumer impact labels, EDF would support the creation of a design for all label of services and products. The development and control of such a label should be undertaken in cooperation with standardisation bodies, consumer organisations and representatives from disability and elderly organisations.
The establishment of "production process" label and of a social reporting mechanism should be based on guidelines, which should include:

- The development of a set of criteria for evaluation of the corporate social behaviour of a company, on the basis of EU guideline, at governmental level, in consultation of all the relevant stakeholders (social partners, companies public and private, and civil society representatives covering the different areas.
- These criteria should cover the following areas: working environment, participation of workers at all level in the management, information of workers, job retention for people who become disabled after an accident or an illness, employment of people currently excluded or discriminated from the labour market, adaptation of work place or work practices for people with disabilities, gender equality, and including concrete examples in each of the areas considered:
- A set of separate criteria could be determined for action in the EU and in developing countries;
- Fulfilment or partial fulfilment with these criteria must be quantifiable and leading to a score in each of the areas;
- Representatives of employers and personnel must be involved on an equal basis in the evaluation of the company (same decision making power and same number of representatives), as well as representatives of the civil society. The final evaluation must be agreed by all participants;
- All other employees must be informed of the work of the evaluation committee and must be consulted if they require so; - Goals of the evaluation process must be clear from the onset: whether the evaluation will be used as an internal development tool or for the general public;
- An independent agency should be set up in order to provide independent evaluation and would be responsible for issuing social labels;
- Such labels can be awarded to companies obtaining a high overall score and reaching a minimum score in all areas; EDF calls for a clear commitment from public authorities at European and National level to put in place common guidelines for reporting and assessment mechanisms, and to foresee adequate monitoring bodies, covering different aspects of the social policy of the company, and production sites.
In order to ensure reliability, it is important that complaint mechanisms open to the general public, leading to proper enquiries, are established.

6 Actions to support Corporate Social Responsibility

The European Union has already at its disposal a set of important tools that can be used in order to support Corporate Social Responsibility.
Support to exchange of good practices, research, and the establishment of European awards, have been widely mentioned in the Green Paper, and are certainly an important tool to the development of CSR. However, further measures can be envisaged.
The European Commission and Member States can also play an important role in the promotion of CSR, by giving advantage to social responsible projects funded by the structural funds. In this definition, the accessibility for disabled and other people with reduced mobility of premises built through EU funds should be included. Clear guidelines should be set at EU level, and a certification system should be developed.
The EU can further use the European Social Fund to foster projects realised in partnership with companies to develop workers' skills and apprenticeship schemes.
The European Commission points out in its Green Paper the growing development of procurement schemes supported by organisations and companies based on set requirements in the area of employment, and training, allowing for an independent certification system of the contractor.
EDF takes the view that public authorities at European, National, and local levels, must also apply principle of corporate social responsibility in their own activities, and in the award of public procurement contracts. We believe that companies that have an equal treatment policy going beyond legal requirements, employing and providing training to people with disabilities, should receive a supplementary rating in the procurement procedure.
Moreover public authorities should privilege purchases of "design for all" products and services. The example of the United States in this area (regulation 508 setting design for all requirements for purchases of federal administration of ICT products) has increased competition and innovation. This is a good example of how a regulation can contribute to the development of the market, while improving the life of many people. Inversely, the lack of provisions at EU level in this area risks to favour US products in the European market.
EDF calls on the European Parliament and the Council to foresee such a possibility in the current revision of the EU legislation on public procurement The European Union and Member States have a central role to play, in setting the legal and policy framework for allowing the development and availability of services such as vocational training and rehabilitation, placement, and technical
support to employers wishing to integrate or retain disabled people among their workforce, as well as the establishment of schemes for the development of design for all standards, and education curricula. In particular, the EU could foster such measures through the European Employment strategy, and the European Social Fund. Special provision could be made in the ESF for a scheme which would enable employers to provide reasonable accommodation in
order to make their premises or their practices accessible.
Moreover the European Commission should develop analysis on the establishment of a legal framework allowing also for implementation and accountability of international standards.
The European Union should also reflect on contributing to the establishment of an international legal framework through which companies can be accountable for their social practices. In this sense cooperation with the ILO and other organisations promoting code of conducts and social and human rights standards is essential.

ANNEX I: About EDF and other documentation

A.1 About the EDF

The European Disability Forum (EDF) is a European umbrella organisation with 70 European NGOs and 17 National Councils from all of the EU as members. EDF represents the interests of 37 million disabled citizens in the EU.
Our mission is to advance disabled people's human rights and promote equal opportunities in the EU Institutions and Member States in accordance with principles of non-discrimination.

A.2 Other relevant EDF documents:

EDF 01/8 Analysis of the EU Directive On Equal Treatment in Employment and Occupation (2001-06 – EN)
EDF 00/26 EDF Response to the European Commission proposal "Towards a Barrier-Free Europe for people with disabilities" (COM (2000) 284 final).
EDF 00/8 EDF position on the framework Directive on Equal Treatment in Employment and Occupation (2000-05 – EN)
EDF 00/4 EDF response: Community Action Programme to Combat Discrimination(2000-03 -EN)
EDF 99/13 How Article 13 can Combat Disability discrimination (1999-11 EN/FR)
EDF 99/6 EDF Guide to the 1999 NAPs: The Opportunity to improve employment levels of disabled people (1999-03 EN)
EDF 98/9 Principles at work - EDF proposals for the Employment guidelines 1999 (1998-10 EN/FR)
EDF 98/3 EDF Guide to the Amsterdam Treaty (1998-03 EN/FR/DE/ES)
EDF 97/9 Disabled people and employment in the EU - Jobs summit 1997 (1997-10 EN/FR)
EDF 97/5 Equal Opportunities Recruitment Handbook (1997-07 EN/FR/DE/ES)
EDF 97/2 EDF response to Living and Working in the Information Society - People First" (1997-01 EN)

A.3 Contact person at the EDF Secretariat:

Stefan Trömel, Director (T: +32-2-282.46.06 E-mail: director@edf-feph.org)
Carlotta Besozzi, Membership and Policy Officer (T: +32-2-286.51.81 E-mail: membership@edf-feph.org)
More information about EDF is available on the EDF homepage at : www.edf-feph.org Should you have any problems in accessing the documentation, please contact the EDF Secretariat.
Disability and Social Participation in Europe, Edition 2001, Eurostat, ISBN 92-894-1577.
Code of Practice on Managing Disability at the Workplace, International Labour Organisation, 2001, available at: www.ilo.org/public/english/employment/skills/disability

An interesting experience in this sense is the social index developed by the Danish  Ministry of Social Affairs.
European Disability Forum 2
EDF Response to the European Commission Green Paper on Corporate Social Responsibility – EDF 01/12
European Disability Forum

European Disability Forum > > Forum Européen des Personnes Handicapées
square Ambiorix, 32 Box 2/a — B-1000 Brussels
T +32-2-282.4600 F +32-2-282.4609 E info@edf-feph.org W www.edf-feph.org