STAGE 3: DEVELOPING THE ANALYTICAL FRAMEWORK FOR GOVERNMENT PROFILES OF CSR In applying the relational model to CSR public

policies, we can gain an overview of government action, taking into account the players involved and their contexts. This enables us to draw up a profile for government analysis, built on the vasis of the planning of CSR policies according to the players involved. The important thing here is to have a key to interpret political models through the analysis of government strategies on CSR. In this connevtion, there is a pattern for analysis that accounts for how CSR policy is inserted into the government structure and the framework of public policies. This enabled us to analyze the following: 1. The profiles and models of action adopted by governments 2. Actions and public policies 3. The discourses devised by governments in the concept of CSR, considering the dissemination. The means and the organizations used 4. The incorporation of CSR into the governmental structure In other words, there is an index for analyzing CSR policies that takes into account the fundamental elements for the construction and implementation of CSR strategies Index for Analyzing Government Action on CSR COUNTRY ISSUE 1. Government CSR Policy 2. Internal Government CSR Structure

3. CSR Responsibility at different levels of government 4. Scope of CSR Policy

5. CSR role of other organizations

IMPLEMENTATION Vision, objectives, strategies and priorities Origin of the discourse chronological evolution Position of political figure Organizational structure: centralized or decentralized Cross-cutting policies Regional/Decentralized government Local government Domestic vs. International Cross-sector or Sector-oriented Centralized or decentralized Government agencies Intermediary organizations Multi-stakeholde organizations International organizations

6. Players 7. Environmental Context (Socioeconomic, political tradition) 8. Welfare state evolution

Policies and programs are ordered according to the relationship among players in the relational model: 1. 2. 3. 4. CSR in the public administration CSR in the government-business relationship CSR in the government-societty relationship CSR in the governement-business-society interrelationship (relational CSR)

Government policies and programs are classified according to the rational model. From this perspective, the thematic and instrumental approach is totally integrated into a relational and strategic approach. These stages that we have gone through in our analysis enable us to identify clearly the fundamental aspects of the political debate on the development of CSR: 1. The debate on the themes and instruments inherent in a CSR policy 2. The debate on which players should participate in the design of a CSR policy, how they should be involved in their process and the interest of each of them in the process 3. The debate on how CSR should be understood (and the policy that matches it best), considering the economic, social and cultural context of each country. These three debates are not mutually inclusive. In fact, it is possible and desirable to conduct them in an integrated fashion. But it is important to note that each of them stands alone, with its own logic, criteria and priorities. Therefore, the debate on public policies and CSR may, likewise. Be difficult to piece together and to solve when interlocutors focus on their own aspect of the three debates, to the exclusion of those of the others. And all the more so, when the various players involved do not coincide in the priorities of their respective agenda and/or do not share some basic element in their respective ways of understanding CSR. MODELS OF CSR PUBLIC POLICIES IN EUROPE The application of this relational and strategic approach enabled us to analyze government initiative on the basis of the coincident profiles that we devised. This analysis concluded with the identification in the EU-15 countries of four ideal topoplogy of models of CSR governmental action in the area of the development of public policies for promoting CSR.

Models of Government Action in the Development of Public Policies for Endorsing CSR in the EU-15 MODEL 1. Partnership CHARACTERISTICS Partnership as a shared strategy among sectors for meeting socioemployment challenges Soft intevention policies to encourage company involvement in governance challenges affecting the community (entrepreneurship and voluntary service) Updated version of the existing social agreement and emphasis on a strategy of sustainable development COUNTRIES Denmark, Finland, The Netherlands, Sweden Ireland, The United Kingdom

2. Business in the community

3. Sustainability and Citizenship: Citizenship 4. Agora Regulatory

Austria, Germany, Belgium & Luxembourg France

Regulatory creation of discussion groups for the different social actors to achieve public consensus on CSR

Greece, Italy, Spain, Portugal

CSR PUBLIC POLICIES AND THE WELFARE STATE In the development of public policies on CSR, the social, cultural and political cntext of each country is of paramount importance. The models of public policies and CSR that we have outlined above corroborate this. Those readers who are familiar with the literature on the development of the welfare state in Europe will have detected similarities between the models of public policies and CSR that we have identified and the divisions that are usually made when analyzing the different forms and experiences of the welfare state. This parallelism is not surprising, especially if we take a close look at the path followed by the European Commissions proposals in the development of CSR policies. An in-depth study of the relationship between CSR public policy models and welfare state development models remains to be conducted. We consider such a study to be very necessary, and not for historical or academic reasons. Getting the right approach to CSR public policies will in the long run be a fundamental element and symptoms of the debate on the redefinition of the welfare state. ATTACHMENT TO THE GOVERNMENT PROFILE OF CSR Towards the Suppliers Business must ensure that terms of contracts with suppliers be clearly stated and honored in full. The abuse of economic power especially in dealing with smaller firms must also be avoided. Towards the Owners and Other Providers of Capital

Owners and providers of capital must be provided an adequate return on their capital to ensure the security of their investments. Hence, business must utilize the financial resources of the providers of capital with responsibility and efficiency. Towards the Local and National Government While it is agreed that the responsibility of government is to enact legislation and formulate implementing policies and progrms, it is the duty of business to involve itself in the discussion of proposed legislation and to propose sound policies in the use of human and material resources. Towards Society in General Realizing that business utilizes an important degree of the nations resources, it is the duty of nusiness to make sure that the resources are deployed in such a manner which will benefit society in general and which does not conflict with the needs and reasonable aspirations of the communities in the areas where they opertae. Proper regard to the environmental and social consequences of the business must be made, with special attention to the duty of renewing resources where possible and not sacrificing safety and efficiency for short-term profitability. The Businessmen and the Code An important element in the Code concerns the important understanding of the key role of the businessman and/or the professional manager in the succ success of all endeavors. As is widely recognized elsewhere in the world today, the entrepreneur and the manager are the prime movers of development. It is true that economic growth depednds upon the availability of capital, natural resources and labor, but these factors do not work in a vacuum nor by themselves produce results. They become productive only within organizations that are run by astute businessmen and managers. The Code recognizes this and has in fact been formulated on the basic premise that the modern manager is the strategist for human development. Moreover, the Code recognizes that ultimately, all business is essentially an expression of human relationships and that therefore the man or woman who brings all of these relationships together towards a common end must be guided by humanust, ethical principles in his actuations. The Code, therefore, devotes a section to such principles for the professional manager. Using the Code The Code seeks also to be pragmatic and not merely conceptual. Hence it includes a section outlining three simple steps- a way to use the Code. These steps hold true for any enterprise regardless of size, whether public or private, whether a proprietorship, partnership or a corporation 1. Understanding and acceptance of the Code by policy makers in the enterprise Assuming acceptance, the Code would then be adopted officially, as is or with suitable modifications,a s being a fundamental aspect of the operations of the firm and its principles should therefore be disseminated to all employees.

2. Development by policy makers of detailed guidelines and policies for use by their employees. 3. Evaluation and regular audit of the implementation of the Code and the attendant set of specific policies and guidelines The Code recommends this as possibly an annual procedure which serves to ensure adherence as well as to appraise performance pf the firm as a whole, its key officers and its employees.