What is CSR: definition, principles and regulations

According to the study “SMEs and CSR” conducted by Bpifrance Le Lab in 2018 among 1,150 French managers of VSEs, SMEs and ETIs, 50% of respondents say they have implemented a CSR approach. In recent years, CSR (corporate social responsibility, also known as corporate social responsibility) has become a major issue for many companies. We take stock of what CSR is, the main principles that define it and the regulations that govern it.

 

What is CSR?

The definition of CSR given by the European Commission is as follows: “a concept that refers to the voluntary integration by companies of social and environmental concerns into their business activities and their relations with their stakeholders”.

In other words, it is all the actions carried out by a company, beyond its legal obligations, to contribute to the challenges of sustainable development, on a social, environmental and economic level.

Who is concerned by CSR?

All companies can set up a CSR approach, regardless of their size (SMEs, large companies, groups, etc.), their sector of activity (retail, industry, banking and insurance, etc.) and their legal form (micro-enterprise, EIRL, SARL, etc.).

For the company, there are many advantages to implementing a CSR approach, such as: enhancing its brand image with its customers, candidates and partners; strengthening its competitive advantage; improving employee engagement; reducing costs related to water or energy resources; reducing its carbon footprint or consumption…

Do you want to integrate a social and environmental responsibility approach within your company? To find out more about the subject, see our article: ” Implementing a CSR approach “.

 

What are the principles of CSR?

Corporate social responsibility is governed by the ISO 26000 standard. This international standard defines 7 main CSR principles :

1. Demonstrate accountability to society: that is, being accountable for its impacts on society, the environment and the economy.
2. Be transparent in decisions and activities: the company undertakes to communicate on its actions and its CSR policy.
3. Ethical behaviour, based on honesty, fairness and integrity.
4. Ensure that the interests of stakeholders (suppliers, customers, partners, employees, etc.) are respected and respond to them.
5. Ensuring compliance with the principle of legality, i.e. complying with all applicable legislative requirements and regulations.
6. Ensure compliance with international standards of behaviour.
7. Ensuring respect for human rights.

The standard also defines 7 central questions that must frame all CSR approaches:

1. the governance of the organization;
2. human rights;
3. working relationships and conditions;
4. the environment;
5. the fairness of practices;
6. consumer issues;
7. communities and local development.

Many actions can be implemented in a CSR approach, whether they are environmental, social or economic commitments: environmental protection, respect for human rights, support for the local economy, etc.

The company will be able to monitor and improve its CSR policy by means of extra-financial reporting, and thanks to the CSR platform made available to companies by the government.

 

CSR: what regulations?

In 2019, France initiated the implementation of CSR regulations, with the adoption of the PACTE law (Action Plan for the Growth and Transformation of Companies) of 22 May 2019.

The law has put in place three main measures, voluntary or mandatory.

Taking into account social and environmental issues

The first mandatory measure of the PACTE law complements Article 1833 of the Civil Code : ” Every company must have a lawful purpose and be constituted in the common interest of the partners. The company is managed in its social interest, taking into consideration the social and environmental issues of its activity. »

All companies must therefore identify their social and environmental issues and ensure that they are taken into account in strategic decisions and in the organization’s daily actions.

With this measure, the PACTE law makes it mandatory to implement a CSR reflection and approach within a company.

The other two measures of the PACTE law are voluntary:

Formulate your purpose in your articles of association

Article 1835 of the Civil Code has been amended and now recognizes the possibility of having a purpose in its articles of association:

« The articles of association may specify A Purpose, constituted of the principles that society adopts and for the respect of which it intends to assign Means in the realization of its activity. »

The status of “company with a mission” has been created

The last measure of the PACTE law, the application of which is also optional, created the status of a company with a mission. It is therefore accepted that a company can publicly declare its status as a company with a mission, provided that it complies with the following conditions:

• “Its articles of association shall specify a raison d’être, within the meaning of Article 1835 of the Civil Code“;
• ” Its articles of association shall specify one or more social and environmental objectives that the company has set itself the task of pursuing in the context of its activity “;
• A mission committee must be responsible for monitoring and evaluation, with the presentation of an annual CSR report. He will have to “carry out any verification it deems appropriate and obtain any document necessary to monitor the execution of the mission“.

This recent regulation reflects the increasingly important place that CSR holds in the concerns of local authorities and companies.

 

At WAYDEN, aware of the challenges surrounding sustainable development, and wishing to act at our level, we have set up a CSR approach in this sense, and as such obtained the LUCIE label, thus becoming the first EMT (interim management company) to adopt a CSR policy.