EC rules out mandatory CSR legislation

The European Commission will not introduce legislation making it mandatory
for employers to intro-duce corporate social responsibility policies.

It has ruled out a regulatory approach in the short-term and has outlined
plans to introduce a multi-stakeholder CSR forum, which will include 40
representatives from business, trade unions and consumer groups. The forum has
been asked to draw up a code of conduct on corporate social responsibility
policies by 2004.

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European affairs adviser at the Engineering Employers Federation, Hilary
Jennings, is pleased that the European Commission appears to have listened to
the UK government’s views, and chosen not to introduce a CSR directive.

"The EC is trying to balance the business call for a voluntary
approach, with the call for legislation," she said.