In the wake of the financial and economic crisis, a new political focus is developing in the EU on how business should be acting “responsibly”. A new policy framework known as the “Responsible Business Package” was launched in late October composed of four different legislative and policy initiatives, namely the proposed revision of the Transparency Directive, the proposed revision of the Accounting Directives and two separate communications on Social Business and Corporate Social Responsibility (CSR).

From a long-term perspective, the most important paper adopted by the Commission is the communication on a renewed EU strategy for CSR covering the period 2011-2014. The paper introduces a new definition of CSR, whereby the Commission is suggesting that EU institutions should recognise that the development of CSR practices should be company-driven and that businesses should be given the flexibility to tailor-make its CSR approach. This is most appropriate to their circumstances, taking into account factors such as company size and budgetary means to carry out CSR activities.

The Malta Business Bureau welcomes the Commission’s endorsement of a novel EU definition of CSR policies that moves away from the previous more dogmatic stance that CSR entails the integration of social and environmental concerns in business operations.

However, it is a matter of concern for Maltese business 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 view 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 overall content and structure of the Commission’s new CSR strategy is markedly tuned to multinational companies who already deal with CSR on a global level through their adherence to international CSR frameworks and guidelines. 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.