Corporate Responsibility in Europe by Thomas Beschorner & Thomas Hajduk & Samuil Simeonov

Author:Thomas Beschorner & Thomas Hajduk & Samuil Simeonov
Language: deu
Format: epub
Publisher: Bertelsmann Verlag
Published: 2013-11-15T00:00:00+00:00

7.3 Comment

The Dutch approach of using mostly non-binding and soft regulations seems to work very well. In this context, however, it is important to notice the three basic conditions that apply to the two sectors discussed in the examples above. First, the level of business engagement heavily depends on the level of technological knowledge. The better the government knows how to prevent irresponsibility, the better it is able to enforce adherence to standards. The less it knows, the more dependent it is on the respective business partners to provide and develop knowledge in this field. In this case, collaboration—which has traditionally and historically been a key feature of Dutch society—is crucial, especially given the need for collective action in order to cope with the country’s unique geographical conditions.

Furthermore, the commitment of the respective businesses to CR makes or breaks the entire project. Given the outwardly oriented tradition of the Dutch economy, many businesses share the belief that CR is necessary for a common future. Paul Pohlman, for example, the current CEO of Unilever, told the Financial Times 347 in 2010 that only companies that promote sustainable production and consumption “have a right to exist.” “It’s not either results or responsibility,” he continued. “It’s doing good and doing well, which I don’t see as a trade-off.” In this case, a responsible and insightful top-executive is explicitly promoting CR issues. However, the shareholder orientation still is a dominant idea amongst managers who place profitability above societal interest. When thus dealing with less insightful businesspeople, more directive-based approaches appear more appropriate, especially when it concerns industries in which CR solutions are not being actively pursued.

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