Abstract
Spain is ranked seventh in the world for CSR implementation (KPMG. International survey of corporate responsibility reporting, 2011). Although the CSR phenomenon reached Spain later than it did the northern European countries, public and private institutions have embraced sustainable development since its introduction there in the late 1990s.
In 1999, the Spanish Association of Investment and Pension Funds (INVERCO), responding to the global CSR trend, introduced the concept of Responsible Social Investment in Spain. In order to include a Spanish company in a fund portfolio, its CSR status had to be known, and it had to meet ethical and transparency requirements. Since then, there have been different initiatives to promote CSR in Spain, such as the White Book (2006), the “Public Policies to promote and develop CSR in Spain” (2007), Good Governance Codes—Olivencia (1998), Aldama (2003) and Conthe (2006), Equality Law (2007) and the Sustainable Economy Law (2011).
In 2011, the number of Spanish companies committed to aligning their operations and strategies with the principles of the UN Global Compact in the areas of human rights, labor, environment and anti-corruption, and which presented the Communication on Progress, increased 115 %, reaching 973. Although small businesses represent 99 % of Spanish enterprises, they represent 36 % of this number.
This paper takes into account the differences in CSR across Europe and focuses on Spain, explaining its historical development of CSR, its initiatives to promote it, socio-economic factors that influence CSR, and the practice of CSR by Spanish businesses. In order to make proposals for CSR in the future, a better understanding of how businesses are developing CSR in each country, their motivations for doing so, how consumers value it, and whether CSR affects corporate performance is needed.
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Notes
- 1.
In 2013 the Edelman Trust Barometer showed 44 % trust in Spanish business while only 20 % trust in government (lower than previous years).
- 2.
The Ibex 35 is a Spanish stock index comprised of the exchange’s largest 35 companies in terms of market capitalization.
- 3.
The Observatory on Corporate Social Responsibility (OCSR) was launched March 31 of 2004. It is an independent association of fourteen organizations that represent civil society, NGOs, trade unions, and consumer organizations. Each year the OCSR issues an exhaustive report on CSR disclosures by Spanish Ibex 35 companies.
- 4.
Royal Decree 221/2008, 15 of February, by which the State Council on Corporate Social Responsibility (known as CERSE in Spain) is created and regulated.
- 5.
Initially there were five working groups: The role of CSR in the economic crisis; transparency, communication and standards of sustainability reporting; socially responsible consumption and investment; CSR and education; and diversity management, social cohesion and development cooperation. In 2011, three new working groups were created: CSR promotion; socially responsible investment in pension funds; management and operation of the SCCSR.
- 6.
It does not include initiatives carried out by private organizations, nor does it include laws addressing some specific issues such as environment, consumer protection,…
- 7.
Most governments favor socially responsible companies, those that have adhered to the UN Global Compact or OECD Guidelines, when approving loans or assigning public contracts. However, governments only require adherence to the standard not its compliance (De la Cuesta & Valor, 2004).
- 8.
Measured as an average of two items: CSR leadership and improved image.
- 9.
Measured as an average of five items: cost savings, productivity improvements, revenue growth, market access and access to capital.
- 10.
Confederación de Consumidores y Usuarios (Confederation of Consumers and Users).
- 11.
However, this information should be treated cautiously due to the so-called “consumer double moral standard”. The consumer may give a very different answer when responding for themselves than when responding in the name of a third party. When the Spanish consumer is asked how everyone else would respond to these questions, only 16 % believe that they would buy a responsible product if it were more expensive, while 21 % would buy it if it costs the same.
- 12.
European Commission (2012).
- 13.
On 5 April 2011, at European Union level, the European Commission published a Green Book regarding the standards for corporate good governance in the European Union. It confirms that the quality of information published by listed companies, as well as the public explanations they offer in cases of non-compliance with national codes of good governance are, in most cases, unsatisfactory.
- 14.
The GRI came into being in 1997 and in 2000 formulated the “Sustainability Reporting Guidelines” with the goal of creating a global framework for voluntary information on the economic, social, and environmental impact of companies. It has been continually improved.
- 15.
One was not categorized by size.
- 16.
Arevalo et al. (2013) mentioned the following shortcomings of the GC: it does not establish a formal code of conduct, does not establish a detailed reporting standard, nor does it provide a mandatory format to its signatories for communication of progress and there is no external verification of prior CSR activities.
- 17.
This certification is a difference between SGE 21 and ISO 26000 (Guidance on Social Responsibility) of the International Organization for Standardization published on 2010, which cannot be certified.
- 18.
See De la Cuesta and Valor (2004) for the pros and cons of greater regulation of CSR.
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Díaz Díaz, B., García Ramos, R. (2015). Corporate Social Responsibility: Current and Future Perspectives in Spain. In: Idowu, S., Schmidpeter, R., Fifka, M. (eds) Corporate Social Responsibility in Europe. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-13566-3_23
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