9 Instruments for strengthening corporate social responsibility
Figure 9.1
Providing knowledge and guidance about corporate social responsibility (CSR) is an important task for the authorities, social partner organisations and civil society. The Government will intensify its efforts in this area and emphasises the importance of close cooperation between various actors in order to support companies in their efforts.
Most of the Norwegian private sector consists of small and medium-sized enterprises. Small enterprises often have neither the resources nor the competence to work as systematically and thoroughly on CSR as larger ones. The Government will make active use of the instruments at its disposal to communicate information and provide guidance to small and medium-sized enterprises. CSR will increasingly be a criterion for receiving funding and other services.
9.1 Public instruments targeting the private sector
The Foreign Service
In connection with their international operations, companies frequently contact the Foreign Service for information about local conditions. This can be particularly important to companies operating in countries where there is significant economic or political risk. The Ministry of Foreign Affairs can provide information and guidance, but is in general cautious about giving any advice that has a direct bearing on financial decisions.
The diplomatic and consular missions have an important function as door openers to local authorities and key local actors. In some situations it will be natural to make on-site political visits in order to promote Norwegian economic interests and support CSR initiatives by Norwegian companies. In many cases this may be decisive in terms of gaining access to the market. When Norwegian authorities back the activities and interests of Norwegian companies in this way, they do so on the assumption that the companies will conduct themselves decently and comply with international guidelines for social responsibility.
In addition to assistance with purely commercial or financial aspects, companies can also obtain information about social and environmental conditions. The diplomatic and consular missions and Innovation Norway’s offices abroad can provide information about public institutions and relevant legislation in the host countries. They can also advise on how to establish contact with national and local authorities and potential local partners.
The missions can organise seminars and conferences about relevant issues for Norwegian companies seeking knowledge regarding local conditions. On request, they can also assist companies or industries in gaining better insight into their supply chains. Companies can use the diplomatic and consular missions as dialogue partners when dealing with challenges and dilemmas.
In order to make relevant information from the Foreign Service available to companies interested in setting up business in or trading with specific countries, a focal point will be established in the Ministry of Foreign Affairs to deal with queries, establish contact with or communicate information from the Foreign Service – both from sections within the Ministry and from the missions abroad. To make it easier for the Foreign Service to provide Norwegian companies with updated and relevant information and guidance, the focal point will also gather and systematise information on a general basis. It will work actively to enhance knowledge about CSR among Norwegian companies engaged in international operations, and to promote dialogue between companies and other interest groups.
The Government
will intensify efforts to provide information and guidance about CSR;
will set up a focal point in the Ministry of Foreign Affairs for dealing with companies’ CSR queries;
will request the Foreign Service to draw up country profiles tailored to the private sector’s needs in areas relating to CSR that are relevant to the situation in the countries concerned;
will provide arenas for discussing specific problems and challenges that companies encounter internationally;
will make active use of Norwegian diplomatic and consular missions to increase awareness and knowledge in the Norwegian private sector about the challenges and opportunities involved in doing business in developing countries.
The Ministry of Trade and Industry, and Innovation Norway
Innovation Norway was established to promote nationwide industrial development that is profitable to both the private sector and society in general. As a manager of public funds, Innovation Norway has particular responsibility for promoting sustainable business development that benefits the entire community. The company provides a wide range of services aimed at promoting innovation, internationalisation and reputation building. It has extensive experience of dealing with issues such as gender equality, sustainable restructuring in local communities, the development of environmental technology, tourism, including environmental tourism and geotourism, and the development of small-scale food production.
Innovation Norway has offices in all the counties of Norway and in more than 30 different countries. Its offices abroad cooperate closely with the diplomatic and consular missions and are, where possible, co-located with the embassy or consulate general.
Small and medium-sized enterprises are Innovation Norway’s main target group. Through advising, network-building and funding, Innovation Norway has an important role to play in extending CSR efforts to the full breadth of the Norwegian private sector. Innovation Norway encourages small and medium-sized enterprises to integrate social responsibility as a strategic tool into their operations.
Textbox 9.1 Client-oriented measures in Innovation Norway’s action plan
All clients who seek access to Innovation Norway’s funds will be systematically challenged about their attitudes to social responsibility.
Innovation Norway’s website will be used as a channel for informing companies and stakeholders about what is being done on the CSR front, providing advice about what companies can do and where they can find more information.
In 2009, CSR will be a compulsory part of all competence-building services provided by Innovation Norway.
An interactive dilemma-training tool, based on a StatoilHydro tool, will be developed and offered to small and medium-sized enterprises.
Seminars will be held for companies on issues such as CSR and corruption.
In consultation with other actors, the Ministry of Trade and Industry will initiate measures to strengthen social responsibility efforts in small and medium-sized enterprises. Innovation Norway will be given a special role in implementing these measures and will be encouraged to cooperate with business associations and other relevant partners at the regional level to reach out to their member companies.
Innovation Norway has implemented several measures to support social responsibility and combat corruption. It has drawn up guidelines for national and international advisory services in which CSR is an important element. A special CSR module has also been developed and included in the company’s competence-building services. Internally, dilemma training is used to increase knowledge and awareness about corruption. Innovation Norway’s sustainability reporting is in accordance with the Global Reporting Initiative (GRI) standard, and it is also certified in accordance with the Norwegian «Eco-lighthouse» environmental certification system.
The Government
will initiate efforts to improve CSR performance in small and medium-sized enterprises. The responsibility for this will lie with the Ministry of Trade and Industry, in consultation with other actors;
will establish a web-based overview of information and expertise regarding CSR prepared by authorities and organisations. The responsibility for this will lie with the Ministry of Trade and Industry;
will strengthen the efforts of the diplomatic and consular missions and Innovation Norway to provide information, guidance and dilemma training;
will require funding agencies to evaluate companies’ CSR performance in connection with advisory services and financial support.
The Norwegian Guarantee Institute for Export Credits (GIEK) and Eksportfinans ASA
GIEK is a central governmental agency offering long-term guarantees for export credits tailored to the needs of Norwegian export companies for risk coverage. GIEK’s clients export capital goods to countries all over the world. Most of the portfolio relates to the maritime sector and oil and gas. Eksportfinans administers the «108 scheme» of fixed interest (CIRR) loans to foreign buyers of Norwegian capital goods.
Together, GIEK’s guarantees and the 108 scheme administered by Eksportfinans constitute Norway’s officially supported export financing. It is regulated by the OECD «Arrangement on Officially Supported Export Credits».
Social responsibility is becoming an increasingly important issue in GIEK and Eksportfinans. Many of their commitments concern exports to or investments in countries whose social and environmental standards differ from those applied in Norway. In recent years, the OECD has been increasingly concerned with reaching agreement on common anti-corruption and environmental guidelines. Norway has been actively engaged in this work. GIEK and Eksportfinans cooperate closely on Norwegian implementation of the OECD guidelines for export credits and go somewhat further than the OECD minimum requirements in that they also evaluate maritime matters and minor matters.
The OECD Environmental Guidelines have been broadened in that they now also refer to the moving of people and the effects on vulnerable or ethnic groups and cultural heritage in addition to impacts on the natural environment. In 2007, working conditions were also incorporated into the guidelines through the reference in the agreement to the International Finance Corporation (IFC) Performance Standard 2 (Labour and Working Conditions), which, in turn, refers to the ILO conventions. In general, the OECD Environmental Guidelines refer to international environmental and social responsibility standards such as the World Bank Safeguard Policies, and the IFC Performance Standards.
So far, the revised guidelines of 2007 have shown that practical implementation of more wide-ranging social responsibility, in particular the ILO conventions, is challenging. Implementation will be a trial and error process and will be further discussed in the light of the export credit agencies’ experience. The guidelines will be revised again in 2010.
It is still unclear how the various export credit agencies view standards for working conditions, and meetings in the OECD have revealed great divergence as regards interpretation and implementation. The best way to implement the requirements in practice will be a topic for future discussions.
Efforts are also being made through the OECD to involve export credit institutions in countries outside the OECD, such as China, India, Brazil and South Africa, in CSR efforts. The goal is thereby to enhance awareness and understanding of the OECD Environmental Guidelines.
GIEK is in dialogue with its Nordic counterparts about ways of improving CSR efforts, including whether membership of the UN Global Compact would be advisable.
The Government is concerned that different countries should be able to compete on equal terms, and this is also the main rationale for international agreements on export financing. It would be a significant advantage if all export credit agencies were to implement the same guidelines and, as far as possible, have the same procedures and interpretation of the regulations.
The Government is also interested in having guidelines that are possible to realise in practice, so that actions can reflect policy. The OECD is the most important forum for institutions such as GIEK and Eksportfinans as regards developing common, realistic rules. The Government attaches great importance to this work in the OECD and wants Norway to be a driving force for increased efforts by export credit institutions to promote social responsibility.
The Government
wants Norway to be a driving force in the OECD’s export credit groups in their efforts to implement concrete guidelines for ensuring good working conditions;
will request Eksportfinans (as administrator of the 108 scheme) and GIEK to draw up a dedicated policy for social responsibility that can be tried out in 2009.
Norad – The Norwegian Agency for Development Cooperation
Norad administers various support schemes to promote Norwegian businesses’ activities in developing countries. These schemes are based on the principle that Norwegian businesses abroad can help to promote economic and social development through technology transfer, knowledge-building, employment, market development and access to international markets. The desired results can only be achieved if companies operate responsibly. The guidelines for these schemes stipulate inter alia that:
projects are to be based on the ILO core conventions;
measures must be in accordance with international environmental obligations and national environmental priorities;
if any corruption or attempted corruption is detected in a project funded by these support schemes, this will result in the immediate cessation of payments and/or a demand for the repayment of Norwegian funding.
Norad’s support schemes for the private sector include special schemes for social measures and measures targeting HIV/AIDS, and several Norwegian companies have established HIV/AIDS programmes with such support. Norad also provides support to companies that establish trade relations with and import from developing countries.
Norad administers grant schemes aimed at strengthening civil society. Norad’s guidelines for grants to civil society contain provisions that encompass social responsibility. They apply in particular to the natural environment and human rights, including the rights of workers, children, the disabled, indigenous peoples and minorities. There is now greater emphasis on effective aid, results and combating corruption in the dialogue with civil society organisations.
The Government
will place particular emphasis on social responsibility in connection with business activities in developing countries that receive support from Norad’s schemes for the private sector;
will impose environmental requirements on suppliers in connection with tenders for aid-funded projects;
will use respect for workers’ rights, in particular the ILO core conventions, as a criterion for the use of Norwegian aid funds;
will seek to consistently integrate social responsibility as a factor in the administration of aid.
Norfund – The Norwegian Investment Fund for Developing Countries
Norfund’s mission is to help to establish viable and profitable businesses that would otherwise not have been started because of the high risks involved. A well-functioning private sector and access to risk capital are important preconditions if a developing country is to achieve economic growth, make use of its advantages and become better integrated in the global economy. To this end, Norfund invests equity and other risk capital, provides loans and furnishes guarantees for the development of sustainable businesses in developing countries.
Norfund is a company established through special legislation and owned by the Norwegian state through the Ministry of Foreign Affairs. It operates in accordance with fundamental principles of Norwegian development policy. Norfund is allocated funds over the development assistance budget and is the most important national instrument for generating economic growth in developing countries through value creation.
Some of the investments are made directly in local companies along with industrial partners and others through investment funds and financial institutions that are set up in the countries concerned. Norfund helps to lower the threshold for Norwegian companies that are considering investing in developing countries. Its portfolio, which ranges from microfinance to renewable energy, local banks and fish farms, shows that it is possible to make profitable investments in challenging markets. Norfund gives priority to investments in the least developed countries (LDCs), particularly in Africa, and it promotes public-private partnerships on investments in clean energy. The largest single investment is a joint venture with Statkraft in the energy company SN Power.
Good corporate governance and zero-tolerance of corruption are central to Norfund’s investments. This is essential as the majority of the Norfund investments are in countries that are struggling with corruption and illegal capital flight, inadequate legislation and institutions, poorly developed and monopolised markets, poor infrastructure and unpredictable governance. There may also be political unrest and a risk of extreme situations such as civil war and expropriation. This calls for effective awareness-raising among local company managers, fund managers, partners and co-investors about acceptable business practice, as well as focus on the environment and social conditions, the quality of contracts and reporting procedures.
Positions on companies’ boards give Norfund an opportunity to ensure that progress is made in companies’ efforts regarding environmental standards and social conditions.
Like its sister organisations, Norfund makes investments in various ways. It invests in funds and individual companies, in addition to its banking activities. The possibility of controlling HSE conditions and actively contributing to improvement varies from one business area to another. Norfund’s responsibility and influence is greatest in relation to direct investments. Norfund’s holdings in funds vary from single units of just two or three per cent of the total capital to interests in fund management companies and lead-investor positions in the funds. Microfinance is an example of an investment where it is difficult to ensure that the standards are followed all the way to the end user.
Norfund can also invest in companies that do not meet the most stringent environmental and social requirements since bringing companies with an acceptable starting point up to international standard has a substantial development effect. This also applies to corporate governance. In such cases, an improvement programme is a central part of the contract between the company and Norfund, and therefore also one of the development effects of the investments.
The Government
wants Norfund to invest in profitable enterprises that also promote development goals and improve environmental and social conditions;
requests Norfund to exert its influence actively through directorships and investment positions in order to improve working conditions and social responsibility in the projects in which the fund invests;
calls on Norfund to play a leading role in attracting more private investors in order to raise capital for economic development and employment in poor countries;
encourages Norfund to make renewable energy a cornerstone of its portfolio.
9.2 Social partner organisations
Social partner organisations have engaged in various areas of national and international work on social responsibility. They have been driving forces in the development of guidelines and principles for social responsibility, and they participate actively in international forums. The organisations are working to strengthen independent sister organisations in partner countries. They play a central role in the provision of information and guidance about CSR.
The Confederation of Norwegian Enterprise (NHO)
NHO’s work on CSR is grounded in a long tradition of collaboration with trade unions and efforts to improve working conditions and ensure that companies take responsibility for the natural environment. In matters concerning the natural environment, NHO has been active in the promotion of non-financial reporting and environmental standards. As an employers’ association, NHO was quick to demonstrate how companies can take responsibility for human rights, and the confederation has been a driving force in Norway in its member companies’ work to promote social responsibility and combat corruption.
NHO participates in international forums relating to CSR, including through membership and involvement in the UN Global Compact, the World Business Council for Sustainable Development, the International Organisation of Employers, BUSINESSEUROPE and expert groups in the European Commission.
NHO’s Secretariat for Private Sector Development in developing countries has been engaged for several years in projects in selected developing countries aimed at strengthening the private sector. An example is a broad private-sector programme in Uganda, financed by Norad and managed by NHO and the Ugandan employers’ confederation, where several companies are working with Ugandan partners on business development and improving working conditions, among other things.
NHO’s Advisory Committee on Ethics and Sustainability is composed of union representatives and external experts, and it advises NHO’s management and working groups. NHO also has a network for persons in charge of CSR in its members companies, the NHO forum for CSR and sustainability, which meets twice a year to exchange information and experience. In addition, NHO has produced CSR guides and publications that have helped to raise the private sector’s ambitions with respect to social responsibility.
Textbox 9.2 World Business Council for Sustainable Development
As its name indicates, the World Business Council for Sustainable Development (WBCSD) is an international association of companies working for sustainable development. The WBCSD consists of about 200 companies and meets once a year at CEO level and twice a year at expert level. There is continuous activity in its focus areas of energy and climate, development, the business’s role and ecosystems, as well as various sector projects.
The WBCSD also has a regional network of partner organisations (Business Councils) in more than 50 countries. NHO is the Norwegian partner organisation. Norwegian companies and business leaders have been active in this network. The Norwegian members are Det norske Veritas, Grieg International, Leif Höegh & Co, Norsk Hydro, Norske Skog, Statkraft, StatoilHydro and Storebrand.
The Norwegian Confederation of Trade Unions (LO)
From the trade unions’ point of view, democracy and employee participation are central aspects of social responsibility efforts. The labour movement believes that active participation by employees, through their HSE organisations, works councils, trade unions and representatives on company boards, is a must when companies draw up their CSR policies and strategies. The content of systems and guidelines for CSR must be developed in cooperation with employees and their representatives.
Through collaborative projects, LO has helped to build stronger trade unions in developing countries. In addition, local union branches in some companies have formed partnerships with their colleagues in a number of countries to combat child labour.
LO will help the unions by producing a set of «aids» to enable employee representatives and members of boards to contribute to making the OECD Guidelines for Multinational Enterprises part of their companies’ value base and ensuring that they are made known through European Works Councils or are incorporated into global trade union agreements.
The Federation of Norwegian Commercial and Service Enterprises (HSH)
For many years, HSH has prioritised measures to promote social responsibility as an operational part of its members’ activities. Importers’ requirements with respect both to the conditions under which the goods they import are manufactured and to environmental considerations have been central, which is why HSH was one of the founders of the Ethical Trading Initiative. HSH has also prepared a practical guide for matters relating to values and organisational development for the whole of the service sector.
HSH works to promote sustainable production and consumption, and it has participated for many years in the development of environmental tools for the private sector. The Nordic eco-labelling (the Swan label) system and the «eco-lighthouse» environmental certification system are examples of this. HSH has also developed a web-based climate guide for the private sector.
At the request of its member companies, HSH also assists its suppliers to comply with the core ILO conventions and important environmental requirements. Such support involves collaboration with employers and manufacturers and often with LO, and it helps to clarify the requirements of Norwegian companies and consumers concerning manufacturing conditions and products.
Figure 9.2 Young boys and men working as shipbreakers on a beach in Bangladesh.
Source Corbis/Scanpix.
HSH has signed a five-year agreement with Norad aimed at increasing imports from poor countries to Norway. One of the measures employed is the training of manufacturers and exporters in developing countries to prepare them for the Scandinavian market, with social responsibility and the environment as central elements.
Textbox 9.3 CSR Europe
CSR Europe, the leading European business network for corporate social responsibility, counts approximately 80 multinational corporations and 25 national partner organisations (NPOs) among its members. Its goals are to link companies more closely together, enabling them to share CSR solutions, to set up new projects involving the companies and their stakeholders and to draw up an agenda for sustainability and a competitive Europe. Green Business Network Norway is the Norwegian partner in the NPO network.
The Norwegian Shipowners’ Association
The Norwegian Shipowners’ Association is an employers’ organisation for enterprises in the Norwegian international shipping and offshore industries. The association works actively to ensure good working and social conditions for seafarers, and it currently has collective agreements on wages and working conditions with seafarers’ unions from twelve different nations.
The Norwegian Shipowners’ Association is a driving force for stringent environmental standards, and it has adopted an environmental policy designed to reduce environmentally harmful emissions to the atmosphere and discharges to sea to zero. The industry is seeking to find good, cost-efficient solutions within the framework of the UN International Maritime Organisation (IMO) in close cooperation with Norwegian authorities and the shipping industry’s own organisations. A system of flag-state and port-state controls has been established to ensure that the IMO requirements are actually complied with.
The recruitment and training of seafarers is an important priority area for the Norwegian Shipowners’ Association. As well as its recruitment campaigns in Norway, the association currently runs training projects in collaboration with local educational institutions in the Philippines, China, Russia, Brazil and Vietnam. The association is also considering setting up a centre of excellence in West Africa.
The association has intensified its CSR information and awareness-raising efforts vis-à-vis its members. Among other things, it has collaborated with Det Norske Veritas and issued a guide that concretises CSR in the shipping industry. It has also produced a members’ anti-corruption guide, containing general advice, examples of recommended guidelines and an ethics test.
The Government
urges social partner organisations to assist companies in competence-building and dilemma training;
encourages industry-specific exchange of experience and development of guidance on social responsibility;
will cooperate with the social partners on the exchange of information and experience.
9.3 Non-governmental organizations
Non-governmental organisations (NGOs) play a key role in the promotion of socially responsible behaviour in companies. They act as drivers and watch-dogs in relation to various issues and sectors. They are engaged in the prevention of human rights violations in companies’ work and production, protecting the environment, ensuring better management of natural resources, and preventing and exposing corruption. They are often important partners for companies in connection with projects and training in developing countries.
The NGOs disseminate information about rights, targeting employees, employers and the local population. They influence and cooperate with local and central authorities to improve or establish adequate legislation and frameworks. They also offer services not provided by other actors.
NGOs are important spokespersons for local stakeholders, ensuring that their needs and views are communicated to national and international decision makers. The media also have an important role to play in ensuring that matters raised by NGOs gain more widespread attention.
The Norwegian Forum for environment and development (ForUM) is a network of more than 50 NGOs. The main objective of ForUM’s working group on CSR is to support and promote national and global binding agreements on CSR and ethical capital management. Among other things, ForUM has issued recommendations concerning investments and public ownership in a collection of articles entitled Næringslivets samfunnsansvar – hvilken rolle kan og bør norske myndigheter spille? (Social responsibility in the private sector – what role could and should Norwegian authorities play»)
Amnesty International Norway endeavours to ensure that the private sector fulfils its social responsibility, with the main emphasis on human rights. The organisation works to influence international and supranational bodies, national authorities and organisations, and it also targets companies directly. Amnesty also utilises various methods to hold accountable and influence authorities and the private sector, ranging from campaigns and lobbying to dialogue and cooperation.
Norwegian Church Aid is a co-founder and board member of Fairtrade Max Havelaar, The Ethical Trading Initiative Norway and Publish What You Pay (PWYP) Norway. The organisation emphasises companies’ independent duty to respect and actively promote human rights and sustainable development as expressed in international conventions. It also believes that knowledge about and familiarity with actual conditions and rights, and the will to use such knowledge, is an important prerequisite for responsible business.
Transparency International (TI) Norway is a driving force behind efforts to combat corruption. TI urges the authorities to implement effective legislation and policies against corruption, to increase awareness of corruption and promote transparency in international business transactions. TI cooperates with sister organisations in several African countries on projects to advance transparency, anti-corruption measures and ethical business conduct. The «Business Principles for Combating Bribery» is an important tool developed by TI in cooperation with the international private sector to prevent bribery in the private sector. TI has also compiled a user guide showing how the OECD Guidelines for Multinational Enterprises can be applied in combating corruption.
Publish What You Pay Norway (PWYP Norway) is the Norwegian chapter of an international civil society coalition mobilising around 400 organisations from about 70 countries in promoting transparency, accountability and the mandatory disclosure of payments, receipts and allocations of revenues from oil, gas and mining.
Future in Our Hands works to promote environmental responsibility, equitable global benefit sharing and ethical business. It runs Norwatch, a journalistic news service that monitors Norwegian businesses in poor countries.
WWF Norway (World Wide Fund for Nature) cooperates with a number of industries, companies and authorities to identify challenges and propose solutions for ways in which natural resource management, production, technology and trade can contribute to more equitable growth with a smaller ecological footprint. The WWF runs campaigns against illegal fishing and overfishing, and it cooperates with companies and authorities on innovation and the development of sustainable markets and products that demonstrate that this is possible. The WWF promotes the Stewardship Council and the Forest Stewardship Council certification schemes.
The Government
emphasises the importance of NGOs as drivers and monitors in relation to CSR, both in international processes and vis-à-vis companies and authorities;
regards NGOs as important partners in both national and international processes and in project work.
9.4 Research and education
The private sector, the authorities and public opinion need knowledge and empirical information about CSR. Strengthening the knowledge base in this area will necessarily involve research and the integration of the discipline into higher education and further and continuing education.
9.4.1 The need for research
Research is an important source of objective and legitimate knowledge about the effects of CSR. There is a need for research on methods for measuring the socio-economic effects of companies’ operations and methods for ensuring CSR. Research can also help identify instruments for stimulating the private sector to more actively exercise social responsibility.
A report prepared in 2003 by a working group under the Research Council of Norway resulted in a dedicated Research Council programme for CSR for the period 2006–2008. The programme was allocated a financial framework of NOK 7.5 million for the whole period, and funds were granted to three projects. The evaluations and recommendations of the working group are still relevant, and they should continue to be an important basis for further Norwegian research in the field.
The working group recommended setting up a research programme concentrating on the role of businesses in vulnerable communities where there is a considerable potential for exerting influence and the need for social responsibility is most urgent and challenging. The group recommended five priority areas:
CSR and the fight against poverty;
The development of democracy and good governance – corporate responsibility and legitimate freedom of action;
Mechanisms for access, disclosure and accountability;
Ethical capital management;
The role of Norwegian authorities: policy making and institutional instruments.
In addition to these areas, research relating to responses by the private sector and individual companies to climate challenges has become one of the main constituents of the CSR debate. In the Government’s view, these areas remain important subjects for research. The need for more knowledge about corporate responsibility and conduct in conflict zones and areas with particular challenges relating to human rights and weak governance is closely linked to the aforementioned topics. Legal research can further elucidate issues such as the scope of «complicity» in violations of international humanitarian law and human rights.
CSR is a relatively small field of research, both nationally and internationally, so the amount of research-based knowledge is limited. Much of the empirical knowledge in the field resides with private enterprises and consultancies. The research is often initiated and funded by various special interest groups (companies, other commercial actors, ministries and their administrative agencies and NGOs).
For Norwegian companies and authorities, it is important to find proficient Norwegian research environments in this field. The peculiarities of Norwegian society and Norwegian companies mean that international research findings are not always directly applicable to Norwegian conditions. Research into the conduct and experience of Norwegian companies may also be of international interest, both because Norwegian companies come in part from a different social tradition from that of many of their competitors and partners abroad, and also because several Norwegian companies have come relatively far in the area.
The Government is positive towards the increased interest in CSR shown in research environments. It is also important to develop environments with sufficient activity to ensure professional depth and breadth. This will make it possible to manage and further develop the knowledge base. In this context, it is important that Norwegian research environments participate in international research networks and obtain funding from international sources, such as the EU’s 7th framework programme.
9.4.2 Social responsibility and education
Integrating the CSR perspective into business-related higher education is essential in order to enhance knowledge about the issue among future managers and implementers of CSR in Norwegian companies. It is important that educational institutions develop further and continuing education programmes in which CSR is an integral element. It should also be a central component of educational programmes in management and management development.
In the Government’s view, it is important for educational institutions to collaborate with the private sector when drawing up their CSR programmes. This will help to ensure that the programmes meet the private sector’s actual needs and allows for individual companies’ experience to be included in the teaching. The quality of the teaching at these institutions will be improved if they also carry out their own research in the field and participate in national and international knowledge and research networks.
Several universities and university colleges currently include CSR modules in their Bachelor and Master’s degree programmes in economics and business studies, technology subjects and other business-related subjects. The Government encourages all relevant educational institutions to include the subject in their study programmes.
The Government
urges the Research Council of Norway to continue and strengthen its programme for the funding of CSR-related research;
encourages Norwegian research environments to join international CSR networks and apply for funding from international sources;
urges Norwegian educational institutions to include CSR in relevant educational programmes.
9.5 Dialogue and exchange of experience
The private sector, the authorities and civil society have different roles but a clear common interest in promoting social responsibility. Dialogue and exchange of experience will enable the various actors to come together to improve practice in the area of CSR. There is a need for reflection and debate about the challenges and dilemmas facing companies, the authorities and NGOs in relation to international activities.
Norway participates actively in a number of multi-stakeholder initiatives for social responsibility and transparency. Experience of what works and how to organise various initiatives can be useful in strengthening ongoing processes and developing new ones. This applies to participation in and support for the UN Global Compact, the Voluntary Principles for Security and Human Rights, the ongoing UN process on business and human rights and the Extractives Industries Transparency Initiative (EITI). The Government will build on experience from the various initiatives when assessing other partnership models for social responsibility and transparency in different industries. This will be a topic for discussion in KOMpakt and other forums in which the authorities participate.
KOMpakt – Consultative Body for Corporate Social Responsibility
KOMpakt was established as early as 1998 as the Government’s Consultative Body for Human Rights and Norwegian Economic Involvement Abroad. In 2006, its mandate was modified to include more aspects of CSR. Through the early establishment of KOMpakt, Norway has in many respects been a pioneer in the promotion of dialogue and exchange of experience regarding CSR. KOMpakt was established before the UN Global Compact was founded, which was in 2000.
KOMpakt’s overriding goal is to improve the Norwegian authorities’ decision-making basis. It also facilitates the exchange of information between Norwegian stakeholders. The dialogue within KOMpakt is also intended to increase motivation for exercising CSR. The dissemination of information about international social responsibility frameworks is a priority task. It was in KOMpakt that the Norwegian approach to corporate social responsibility was first formulated, in a working group report entitled «Sosialt ansvarlige bedrifter» (Socially Responsible Companies) (2000).
In March 2008, a separate working group under KOMpakt published a report on small companies and social responsibility. The report includes an overview of the expertise and tools available to Norwegian authorities, organisations and companies. The report also makes recommendations for further initiatives in relation to smaller companies. A working group has also looked more closely at greener supply chains, cf. chapter 3.4.3.
Textbox 9.4 Members of KOMpakt (The Government Consultative Body for Corporate Social Responsibility)
Amnesty International
Centre for Development and the Environment (SUM)
Chr. Michelsen Institute
Confederation of Norwegian Enterprise (NHO)
Confederation of Vocational Unions (YS)
Det Norske Veritas
DNB Nor ASA
Ethical Trading Initiative
Federation of Norwegian Commercial and Service Enterprises (HSH)
Innovation Norway
INTSOK (Norwegian Oil and Gas Partners)
KLP Kapitalforvaltning ASA
Mellomkirkelig Råd (Church of Norway Council on Ecumenical and International Relations)
Ministry of Children and Equality
Ministry of the Environment
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Labour and Social Inclusion
Ministry of Petroleum and Energy
Ministry of Trade and Industry
Norad – Norwegian Agency for Development cooperation
Norfund – Norwegian Fund for Investments in Developing Countries
Norske Skogindustrier ASA
Norsk Hydro ASA
Norwegian Centre for Human Rights (University of Oslo)
Norwegian Confederation of Trade Unions (LO)
Norwegian Church Aid
Norwegian Helsinki Committee
Norwegian P.E.N.
Norwegian People’s Aid
Norwegian Red Cross
Norwegian Shipowners’ Association
Orkla ASA
Research Council of Norway
Royal Norwegian Society for Development
SN-Power AS
StatoilHydro ASA
Storebrand ASA
Telenor ASA
Transparency International Norway
International conferences and dialogue meetings
To generate greater focus on and engagement in CSR, the Ministry of Foreign Affairs organised an international conference, Partnerships for Sustainable Development, in March 2007. The aim was also to create a cross-sectoral platform for discussing CSR. As a follow-up to this conference, the Oslo Agenda for Change was presented at the fifteenth session of the UN Commission on Sustainable Development (CSD).
The Ministry of Foreign Affairs has held a number of meetings on CSR with key actors. In February 2008, a dialogue meeting was held on human rights and business in which the Norwegian Minister of Foreign Affairs, the Special Representative of the UN Secretary-General on human rights and business, and 10 Norwegian business leaders participated. Meetings in KOMpakt with NHO’s network for CSR and sustainability, the trade union movement and central participants from civil society have also made valuable contributions to the authorities’ work on CSR.
Figure 9.3 Open debate on business and human rights in February 2008.
Source Gisle Nomme, StatoilHydro
The Government
will use KOMpakt to discuss key questions concerning social responsibility. Factors relating to the implementation of the principles of the UN Global Compact and the OECD Guidelines for Multinational Enterprises will be central.
will take steps to make KOMpakt an arena for exchanging experience and highlighting examples of best practice;
will use KOMpakt to further develop policy and governance regarding CSR;
will create new forums for discussing challenges and opportunities facing Norwegian companies in relevant markets.