Concern over EU proposals on CSR

The Malta Business Bureau has expressed its concern over aspects of the European Commission’s communication on ‘A renewed EU strategy for Corporate Social Responsibility covering the period 2011-2014’ saying Brussels is now “ditching the voluntary nature of CSR in favour of a more prescriptive approach”.

The Malta Business Bureau represents the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association in Malta and Brussels and focuses on the effect of EU policies and regulatory and legislative initiatives on Maltese businesses.

In its monthly bulletin published in The Times Business today (page 5), the Malta Business Bureau says: “It is a matter of concern for Maltese business that that the Commission is now ditching the voluntary nature of CSR in favour of a more prescriptive approach with the main concern being the announcement of further EU legislation on transparency and disclosure of non-financial information by companies related to social and environmental standards.

“It is the opinion of Maltese business that current EU legal requirements on disclosure of non-financial information by companies are more than adequately sufficient. Above all, companies should be able to decide the form and content of the non-financial information they opt to disclose.”

The Malta Business Bureau said the overall content and structure of the Commission’s new corporate social responsibility strategy is tuned to multinational companies which already deal with CSR on a global level through their adherence to international CSR frameworks.

“In this sense, the new CSR strategy does not bring any added value in terms of a European policy framework in so far as small businesses are concerned but rather these new initiatives could easily develop into costly and burdensome engagements for Maltese enterprises,” it says.

However, the Malta Business Bureau welcomed the Commission’s proposal of a new definition of corporate social responsibility whereby EU institutions recognise that the development of CSR practices should be company-driven and businesses should be given the flexibility to tailor-make its CSR approach.

“This is most appropriate in their circumstances, taking into account factors such as company size and budgetary means to carry out CSR activities,” it adds.