BATANGAS STATE UNIVERSITY

The National Engineering University

Graduate School

A REPORT ABSTRACT ON

THE INTEGRATING PUBLIC POLICIES ON CORPORATE SOCIAL

RESPONSIBILITY

A Written Report Abstract

On Social Responsibility and Good Governance (BA 503)

To Dr. Elroy Joseph C. Valdez

In Partial Fulfillment

of the Requirements for the Degree of

Master in Business Administration

By

Sander Paul S. Bautista

September 22, 2023

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Abstract of the Report

Over time, CSR has become more and more popular with businesses taking

initiatives to serve the society in any form they can. Now, the government has been

concerned and now supporting the CSR initiative. Creating policies, crafting strategies

and taking actions to its proper implementation.

To understand the government action on CSR, there are approaches to consider.

These approaches will open the idea on the context, scope of the program, and the

different actors involve in the policy making process. These approaches are an integral

part of the establishment of the analytical framework. The analytical framework would

transform the general concept of CSR into a more structured idea. A framework that

indicates its objectives, responsibilities, partnerships, roles, and processes how to

address social concerns through CSR. Basically, the analytical framework allows a

general overview of the government’s actions towards CSR.

CSR has taken different models across Europe. Each region has their own sets of

framework, approaches, strategies, and actions towards resolution of social concerns.

CSR models in Europe evolve through different historical social challenges the countries

have experienced.

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Objectives of the Report

This report aims to achieve the following objectives on the topics of the Integrating Public

Policies on Corporate Social Responsibility:

1. To understand the integration of different approaches to analyzing government

action on CSR.

2. To explain the distinct stages of the construction of the analytical framework.

3. To identify and examine the models of CSR public policies in Europe.

Definition of Terms

CSR. It refers to Corporate Social Responsibility. This refers to the idea of a company’s

commitment to create a positive impact on the society by providing programs that benefits

the people. It develops the company’s reputation of trust among its people, customers,

investors, and society.

Mission-Vision-Values. Mission refers to the purpose and actions of the company. Vision

refers to the long term goals of the company. Values refers to the founding principle on

how it will achieve the company’s goals and objectives.

Stakeholders. Refers to an individual or a group of people with certain interests and

concerns on a particular organization or business with varying influences.

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Accountability. Refers to the responsibility and answerability of an individual or

organization regarding their actions or decisions that would certainly make an impact. It

refers to transparency with proper understanding of the consequences of an individual’s

or organization’s decision.

Sustainable Tourism. Refers to the balance between the economic gain of tourism and

the environmental, and cultural preservation.

Legal Framework. Refers to the system of government laws that binds the nations with

guarantees of order, justice, and obedience to its people.

Enterprise Policy. Also known as the Corporate Policy. It refers to the set of rules and

regulations that binds the company’s operations, plans and objectives, and decision-

making processes.

Environmental Policy. Refers to the set of rules and regulations concerning the plans,

strategies, and actions to preserve, and protect the environment. It highlights the

government’s commitment towards the preservation of the natural environment.

Trade Policy. Refers to the government rules and regulations for trade, imports, exports,

procedures, tariffs, etc. The government is committed to protect the nation’s trade

interests.

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Consumer Protection Policy. Consumer protection laws depends from country to country.

It aims to balance the interest between the consumer and the overall market.

PPP. Refers to the Public-Private Partnership. It refers to the agreement between the

private sector and the public sector to undergo joint projects for the benefit of the general

public. The idea here is to capitalize on the resources of the private sector and drive it to

public service with government cooperation.

Nordic Countries. Refers to countries: Denmark, Finland, the Netherlands, and Sweden.

Anglo-Saxon Countries. Refers to countries: Ireland and the United Kingdom.

Continental Europe. Refers to countries: Austria, Belgium, Germany, Luxembourg, and

France.

Mediterranean Countries. Refers to countries: Greece, Italy, Spain, and Portugal.

Globalization. Refers to the interconnectedness of the countries in a global scale in terms

of business, economics, culture, technology, etc. It gradually blurs the national border

and opens opportunities to all.

Actors. Refers to the state, businesses and civil society which has direct involvement in

CSR. They share co-responsibility.

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Welfare State. Refers to the system in which the state plays a major role in safekeeping

the well-being of people. It provides program and systems that promotes economic and

social well-being of the people.

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Summary of the Report

Introduction

Government action on CSR is a complex subject. It discusses context, scope,

policies, socioeconomic benefits, cultural relevance, environmental impact, and so on. It

requires different stages of the process to have a proper understanding of what must be

done to address social concerns. There would be proper stages to create the structured

concept of the Analytical Framework. These stages will outline objectives,

responsibilities, processes, and strategies of CSR implementation. Moreover, there

various CSR public policy models across different countries in Europe that would help

give a more comprehensive understanding considering cultural and economic factors of

different countries.

Integrating Different Approaches to Analyzing Government Action on CSR

Themes and Instruments

It analyze the themes, policies and instruments that the government use in order to

promote the CSR. It focus on the contrast between voluntary compliance and the

legislation The CSR can also be viewed in connection into key areas of application such

as healthcare, safety at work, labor rights, costumer/client rights, socially responsible

investments, environmental concerns, policy that promotes enterprises, etc.

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Actors and Contexts

It considers with the connection between the actors that are engaged as well as the

interrelationships and co-responsibilities established to promote CSR in a modern

society. It includes an examination of the environment, cultural background, and

socioeconomic practices of a country in which the government framework for CSR is

being established. It studies the connection among the CSR policies, socioeconomic

practices, and key indicators. It highlights the need to identify the actors involved in the

policy development to properly determine connection between them.

Relational and Strategic Aspects

With this regard, CSR is a significant aspect in the political strategy. This plan aims to

enhance the government response towards CSR. The objective of this approach is to

determine the key factors that identify general orientation, the governments’ CSR

strategy, its manifestation into defined characteristic like government obligations, topic of

discussion, and institutional framework. Leadership functions are very important in this

strategy.

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Distinct Stages of the Construction of the Analytical Framework:

 Applying the CSR Matrix to Government Action

 Mission-Vision-Values

 Stakeholders

 Work

 Market

 Environment

 Accountability

Themes Instruments

1. Enterprise Policy 1. Legal Framework (pension funds,

2. Environmental Policy Social Labelling, etc.)

3. Consumer Protection Policy 2. Fiscal framework and financing

4. Trade Policy instruments for companies

5. Employee Training Policy 3. International instruments and

6. Human Rights agreements on CSR

7. Sustainable Tourism 4. International summits

8. Socially Responsible Investments 5. Exchange best practices

9. Employment Policy 6. Public-private-civil society

partnership

7. Public campaigns promoting CSR

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8. Create public departments

9. Leadership by example

 Applying the Relational Governance Approach to the Analysis of CSR Public

Policies

 Relational State

It highlights the changing role of the state with regards to globalization

of the economy. It focuses on the need for transition from government mistrust

to dialogue and collaboration between the state and society.

 Co-responsibility

The idea focuses on defined responsibilities to achieve common

objectives. It promotes the break away from the exclusive ownership of

collective ownership by the state, instead, encourages the active participation

of the society through non-profit organizations.

 Cooperation and Partnership

To achieve co-responsibility, the government opens its doors for

cooperation to interested parts of society such as NGOs. This approach

pave way to the new idea of subsidiarity to the new form of public services.

A form in which private business are involved to advance the collective

good.

 Addressing Complex Challenges

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Globalization present new social and environmental challenges in

which the old system cannot be met independently. Active collaboration with

the state, business, and society is needed in order address these social and

environment challenges.

 Joint Projects

The idea that all concerning parties the state, businesses, and

society have an agreement to pursue a shared objective and take

responsibility of its results.

 Allocation of Tasks

Allocating the task based on the capacity of each organization to

meet the social and environmental challenges.

 Collaborative Initiatives

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Areas of concern that intersect require collaborative effort, shared

programs, promotes Public-Private Partnership, and open communication

in conflict resolution.

 Legislations vs Voluntary Compliance

Legislation can only cover a small percentage of the possible policies

with regards to CSR. Some measures taken by the government into legal

frameworks are mostly in line to the transparency of businesses with

regards to their practices, pensions and investment funds, mandatory

publishing of sustainability report of listed companies, transparency in

public procurement, and inclusion of CSR on some commercial regulations.

Voluntary Compliance is self-initiative of companies with more concern to

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society in which agreed by concerned parties. No pressure or regulation

from the government.

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 Developing the Analytical Framework for Government profiles of CSR

By integrating the relational model to the CSR policies, it allows a general

overview of the government actions towards CSR considering different actors

involved in the context. The objective is to have an analysis profile based on the

CSR policies and actors involved in the process to provide a key in interpreting the

government plans towards CSR.

Index of Analyzing Government Action on CSR

COUNTRY:

ISSUE IMPLEMENTATION

Government CSR Policy  Vision

 Objectives, strategies, and

priorities

 Origin of the discourse

 Chronological evolution

Internal Government CSR Structure  Position of political figure

 Organizational structure

 Centralized or decentralized

Scope of CSR Policy  Domestic vs international

 Cross-sector or sector oriented

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CSR role of other organizations  Government agencies

 Intermediary organizations

 Multi-stakeholder organizations

 International organizations

According to the relational model, government policies towards CSR can be

classified into three.

 The debate on themes and instruments in CSR policy.

 The debate on which actors should be included in the CSR policy making.

 The debate on which how CSR should be integrated in every country with

regards to economic, social, and cultural aspects.

In context, the integration of the relational model to CSR policy making provides a

comprehensive perspective of the government action towards CSR.

Models of CSR Public Policies in Europe

To analyze the government actions towards CSR, relational and strategic

approach was used. This analysis to the creation of the four ideal models of government

action towards the creation of policies uplifting the CSR in the European Union.

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Government Action Model in the Development of Policies for Endorsing CSR in EU.

Model Characteristics Countries

Partnership Partnership as a shared Denmark, Finland, the

strategy between sectors Netherlands, Sweden

for meeting socio-

employment challenges

Business in the Community Soft intervention policies to Ireland, the United

encourage company Kingdom

involvement in governance

challenges affecting the

community

(entrepreneurship and

voluntary service)

Sustainability and Updated version of the Austria, Belgium,

Citizenship existing social agreement Germany, Luxembourg,

and emphasis on a strategy France

of sustainable development

Agora Creation of discussion Greece, Italy, Spain,

groups for the different Portugal

social actors to achieve

public consensus on CSR

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Partnership Model

European countries that focuses on this model are Denmark, Finland, the

Netherlands, and Sweden. These nations have deep foundation on its welfare state.

These countries already transitions from being the safe guard of social issues to a more

facilitating role. The governments in these countries are now participating in public-private

partnerships with different sectors of the society to address the growing social concerns.

These countries have a long history of dialogue with its people with regards to social

issues.

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Business in the Community Model

European countries that focuses on this model are the UK and Ireland. The

government here is the facilitator with regards to the implementation of CSR instead of

the imposing body. The state’s primary concern is the giving support to the private sector

towards its sustainable economic development through CSR legal framework. The

primary social issues that these countries face and determined to resolve are

unemployment and social exclusion through CSR policies on businesses. The

government take a soft approach in terms of dealing with the CSR measures.

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Sustainability and Citizenship Model

European countries that focuses on this model are Austria, Belgium, Germany,

Luxembourg, and France. The state’s primary concern revolves around encouraging

businesses to incorporate the CSR into their practices to move further into a sustainable

economic development. CSR is integrated to businesses to address major social needs

such as improving the working conditions and standard of living, active participation of its

work force to community programs and economic development, job creation, and fair

opportunities. These countries have a long history of adhering to social and labor rights

and open communication between unions and enterprises to address social concerns. In

this model, companies recognize the active role of the people with its rights and

responsibilities to society.

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Agora Model

European countries that focuses on this model are Greece, Italy, Portugal, and

Spain. It is the European Commission that pushed these countries promote and develop

its own CSR program for its people. These governments are now in the early stage of

developments on its own policies, plans, and action towards CSR. These Mediterranean

countries open discussions with companies, NGOs, academic institutions, labor unions,

etc toward CSR integration in their policies and social system.

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Conclusions

Different approaches must be integrated to properly analyze the government

action on CSR. It includes the themes and instruments whether it is voluntary compliance

or legislation. Actors and context must be defined to understand all parties and concerns

involved to properly correlate different concerns and define strategic approach.

In creating an analytical framework of CSR, there are distinct stages to it. Define,

understand, and apply the CSR matrix to government action. Apply the relational

governance approach to the analysis of CSR public policies. These relational governance

focuses on several characteristics that highlights the changing role of the state with

regards to globalization of the economy. The shared co-responsibility of actors to achieve

a common goal, create channels of dialogue, and solve complex social challenges. By

developing an analytical framework, it allows a general overview of the government’s

actions towards CSR.

CSR has taken different models across Europe. Each region has their own sets of

framework, approaches, strategies, and actions towards resolution of social concerns.

CSR models in Europe evolve through different historical social challenges the countries

have experienced.

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Recommendations

Government and businesses are now more involve in collaboration in developing

CSR policies for the benefit of the society. A policy that only started from philanthropic

initiatives of a few turned into a structured policy in cooperation with the government,

businesses entities, and society itself as it address complex social issues.

The objective of this study is to have a proper understanding of the integration of

public policies on CSR. How the government influence the CSR implementation through

its policies and programs in collaboration with various actors. The CSR as a whole aims

to improve the welfare of the society. Raise the standard of living and equal opportunities

for the society.

To achieve this, it is recommended to carefully understand the themes and

instruments of the CSR. The scope of the policy such as healthcare, work safety, labor

rights, and costumer rights, social responsibility, environmental concerns, socially

responsible investments, etc. After the establishment of its scope, actors and context

must be considered. Entities, organizations, or any group of the society with particular

interest in the policy development to properly determine the connections between the

strategies, implementation, and its beneficiaries. Environment, cultural background, and

socioeconomic practices must be thoroughly considered.

After the initial phase of the study, it is also recommended to follow the structured

stages of the analytical framework to create an outline of the objectives, responsibilities,

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partnerships, compliance, strategies, and implementation of the CSR policy. This way

there would be a more concise understanding of what must be done.

Mostly, as part of the learning process, case studies must be conducted on states

with structured CSR policy. There are several models of CSR public policies in Europe.

Each model has its own unique approach in dealing with major social issues that varies

depending on its economic situation, cultural relevance, and social welfare. These models

create a different perspective or have an understanding of the approach that can be made

from case to case basis.

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References

Lazano, J., Albareda, L., Ysa, T., Roscher, H., Marcuccio, M. (2008). Governments and

Corporate Social Responsibility: Public Policies beyond Regulation and Voluntary

Compliance. New York, Palgrave Macmillan.

Albareda L., Lazano., J., Ysa, T. (2007). Public Policies on Corporate Social

Responsibility: The Role of Governments in Europe. Journal of Business Ethics.

Springer.

Steurer, R. (2010). The Role of Governments in Corporate Social Responsibility:

Characterizing Public Policies on CSR in Europe. University of Natural Resources

and Life Sciences Vienna, Department of Economics and Social Sciences.

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