Written by Charles Klempay
Corporate Social Responsibility. A term that has become synonymous with giving back to our communities, protecting the environment, and promoting the making of moral and ethical choices on a company-wide scale. Regardless of whether it stems from the decree of some higher authority stating that a company must comply with new regulations, or simply increasing societal pressures and influences that are transforming the beliefs European companies have, CSR has been a steadily increasing factor in European companies over the past two decades. It has demonstrated a marked interest in protecting the factors that allowed these companies to start and thrive in the first place. The European Commission reported in 2017, that 112.9 million people, or roughly 22.5% of the then-EU population, were at-risk of poverty or social exclusion. This figure has been decreasing since its peak in 2012 following the 2008 economic recession. Some of the symptoms of this could include poverty, severe material deprivation, or very low work intensity, all factors that can eventually lead to homelessness. Despite the European Commission regarding Corporate Social Responsibility as a “voluntary” concept back in its 2011-2014 “A Renewed EU Strategy for Corporate Social Responsibility”, it has since taken a much stricter approach towards the role companies play in society, today deeming it a “responsibility” rather than a marketing or risk management tactic.
Since CSR Europe’s founding in 1996 by former European Commission President Jacques Delors, membership from companies involved in the Environmental Management and Audit Scheme, the Business Social Compliance Initiative, and those reporting sustainability reports according to the guidelines of the Global Reporting Initiative have risen drastically. Acting as a platform to connect companies, innovate new projects between businesses and stakeholders, and shape the modern-day business and political agenda on sustainability and competitiveness, CSR Europe works to promote a future with every member of the EU as the gold standard for other nations to emulate. While voluntary in nature, the increased membership of these groups represents the growing desire for socially responsible companies that respect not only their employees and customers but those which their products, services, and activities interact with. The attention paid towards CSR is also demonstrated in the “Towards a Sustainable Europe by 2030” Reflection paper, written by the European Commission in 2019. The paper focuses on the need for the EU to work as a whole to tackle a host of what they term “sustainable development goals”, or SDG’s. These goals have been monitored over a number of years to determine how and where each member-state is putting its efforts. On average, the most-improved upon goal of all in 2019 was poverty reduction. While current levels of unemployment have not dropped below 2008 levels – sitting at roughly 8.6% - the attention that has been given to the needs of people at-risk of income poverty has stifled what would otherwise be an epidemic of economic dis-empowerment.
In Spain, a new initiative called Competitive Social Transformation highlights the importance of promoting economic activity from a sustainable perspective without renouncing profitability. Jose Maria Torres, the Executive President of Numintec and Volunteer Director of UNICEF in Spain, has this to say regarding the role of CSR in Spain and what it would take to fulfill the 2030 agenda.
“Through Competitive Social Transformation we can measure the positive impact we generate, because what we measure, we can always improve with processes, tools and metrics that we have to incorporate into our companies to successfully face this evolution. Together we must be able to promote new jobs and business models, with creativity, innovation of social value as a source of competitive advantage, and social aspects being the greatest guarantee of continuity of any business activity.”
It has long been considered that CSR was a privilege that only large companies could afford – after all, it has traditionally been considered an expense and not a need. Most companies in Spain, as Torres puts it, are “micro-SMEs with less than 10 employees, with little financial muscle”. However, this does not decrease their desire to use CSR to strengthen their competitiveness. They are increasingly understanding that “sustainability and CSR are a differential factor, a guarantee of good management that can serve to distinguish themselves from competitors”.
Some companies have been quicker on the draw than others. We at Homeless Entrepreneur have partnered with a variety of forward-thinking companies who share our passion for ending homelessness by supporting our programs, thus allowing our Homeless Entrepreneurs to realize their dreams while giving their own employees a chance to volunteer on a personal basis. One example of this is Fundacion Telefonica, who provide their volunteer program for us. As an example, one of their volunteers is managing the Twitter account for our Homeless Helpline program, @HEhelpline. Their support improves the goal of the program, which is to collect real-time data from and about homeless people, or those about to become homeless, and connect them to available resources. IBM is another prominent example using their program SkillsBuild, which connects adult learners with a curated path of job-focused learning, supported by organizations that address their specific needs. The program’s online learning platform is further supported by in-person work through NGO partners such as Homeless Entrepreneur. Invoice Ninja, which was built to serve freelancers and business owners with a complete suite of invoicing & payment tools, as well as IEBS Business School, the Innovation and Entrepreneurship Business School, sponsor our HELP Program, while IEBS Business School offers additional training and full scholarships for our Homeless Entrepreneurs to promote entrepreneurship and innovation.
Despite increased awareness for the need for CSR in Europe and its rising popularity among younger generations, there is still far more to be done. That’s where NGOs like Homeless Entrepreneur have come in to do the work that many larger corporations have yet to contribute resources towards in earnest. For example, Mayte Miro, head of Professional Development at Homeless Entrepreneur, describes her past experience working with companies related to their perspective on CSR.
“The vision of companies regarding CSR has been changing over the years, going from just being entities to generate benefits to understanding the importance of sustainability and social action and, therefore, incorporating it naturally. ”
This change in social attitudes has been slow, and in Mayte’s opinion Homeless Entrepreneur and other NGO’s are “essential in a world that has become depersonalized and bureaucratized…solutions to social exclusion are more palliative than decisive”. This has left many to rely on NGO’s for support while corporations and governments shift gears and prepare larger, nationwide policy changes. Bob Grant, one of our organization’s Homeless Entrepreneurs, recalls his experiences while living in the streets of Barcelona.
“It was more comfortable than it might have been thanks to my friends. Without kindness, it is a horrible experience. ”
As a member of each program, Bob is focused on creating a more sustainable life for himself as an artist and as an active citizen.
Sandra Martinez Plaza is a human resource specialist with more than 15 years of experience in international companies supporting business to create environments of productive relations at all levels of the organization. Her goals, including CSR and sustainable business practices, have led her to speak at a multitude of events such as HR Disrupt Madrid, Workday, and Pearls of Wisdom. I asked her opinion of CSR and how it has changed in the minds of companies throughout her career. “The concept of CSR”, she states, “is much more popular, and both society and employees relate it to the purpose of the company. Externally, it generates reputation, and internally, CSR corresponds to acting in an ethical and coherent manner”. Previous studies have shown the rise in today’s youth in working for corporations that have an expressed interest in CSR initiatives. Corporations will have to pay close attention to these young adults as they enter the workforce, choosing to work for those companies who have placed more emphasis on CSR as a part of their identity.
“Agenda 2030 provides a coherent framework for all companies to fit their CSR, so there really are no more excuses.”
Corporate social responsibility in Europe is on the rise, as demonstrated by the many companies able and willing to support our programs. However, while countries and companies take necessary time to shift their resources towards a more sustainable future, Homeless Entrepreneur and many other NGOs will continue to act as the backbone for supporting Europe’s homeless and socially excluded population.
Marcus (left) and myself (right) in Oakland, Pittsburgh. Marcus has been homeless since 2013.