IRRI-KIIB COLLOQUIUM :

New ways of entrepreneurship: II "Corporate Social Responsibility. Less government with more results?"
The Royal Institute for International Relations, Brussels Von Mises Institute, Brussels 22/09/2004

 

Corporate Social Responsibility as a Means
to Improve the Law and the Community

 B. Gallop, BDG & Associates

As a lawyer in Brussels advising international NGOs and their donors (corporate and individuals) on relevant tax and legal issues, I will speak briefly on two main topics:

 

 

Topic 1:  Companies participating in NGOs as a way to help improve best practices and ultimately the law relevant in their industry.

 

Since the law usually lags behind practice, Corporate Social Responsibility can be used as a way for companies to take the lead in areas such as environmental and social sustainability and to inspire improvements in the regulatory framework that are important to them. 

 

By voluntarily doing more than is legal required of them, companies can improve their competitiveness and productivity as well as advance current best practices to reflect higher standards.  As other companies begin following their example, it may be wise for companies in the same industry to establish trade or professional associations that disseminate information about their practice, encourage others in the industry to adopt similar practices, and possibly even to encourage changes in the legal framework so that such practices apply to all actors in the industry. 

 

Many European professional or trade associations choose Brussels, as the capital of the European Union, as the seat of their association.  Associations establishing themselves in Brussels usually wish to have a voice on proposals made at the EU, as opposed to the national, level. 

 

 

Topic 2:  Companies donating to NGOs as part of their corporate philanthropy strategy.

 

Corporate Social Responsibility can also be in the form of donations (in-kind or financial) by a company to NGOs in the community.  In implementing its CSR strategy, an international company might need to consider the national rules applying to donations to NGOs so that they can decide:

• whether the donations should be in the form of a charitable gift or a business expense,
• whether the donations should be made by a European office or a national/local office, or
• whether the company should form its own charitable organisation (such as a foundation) or use an existing charitable organisation to implement its philanthropy strategy.