European Savings Banks Group

European Savings Banks Group "CSR Lab"on Business involvement to enhance social inclusion at local level European Savings Banks Group “CSR Lab” on Business involvement to enhance social inclusion at local level I. GENERAL BACKGROUND 1. The European Alliance on CSR At the occasion of the adoption of the Communication on CSR in March 20061, the European Commission launched the European Alliance on CSR. It invited enterprises to publicly express their support and commitment to CSR by joining the Alliance. More than 260 companies now formally support this initiative2. In the Communication, the European Commission also recommended that companies supporting the Alliance should set up “open coalitions for cooperation“ to “explore and develop joint operational projects, in partnership with relevant experts and stakeholders”. The objective should be to define concrete CSR solutions/projects, in a number of priority areas, such as innovation and entrepreneurship in sustainable technologies, products and services which address societal needs, CSR and SMEs, integration of social and environmental considerations in business operations, improving and developing skills for employability, diversity and equal opportunities, dialogue and engagement with all relevant stakeholders etc. These working groups are referred to as “laboratory meetings” (“labs”). 2. ESBG member banks’ commitment to CSR Savings banks embody a “stakeholder” model, seeking at the same time to be profitable, but also to bring value and return to the whole community of stakeholders which surround them -suppliers, customers, employees and the local community in which they operate. Community investment activities (improvement of living conditions, support to greater social cohesion, education projects etc) are therefore an integral part of savings banks’ identity throughout Europe and one of their distinctive features amongst retail banking institutions. It is nowadays only one of the pillars of their broader, balanced and comprehensive CSR approach, which increasingly include all the various CSR components –human resources, human rights, relations with suppliers and customers, corporate governance, environment, community and society- and cover a whole range of fields, such as financial literacy, proximity banking and access to finance, microcredit, transparency and corporate governance measures, workforce training and life-long learning, targeted actions to support SME clients business, CSR raising awareness activities, introduction of ethical criteria in financial products, etc. As genuine and long-standing socially responsible actors, European savings banks proved able to adjust and to innovate, to diversify their socially responsible initiatives to anticipate stakeholders’ needs and demands, in the evolving context and concerns of the society in which they operate3. 1 http://eur-lex.europa.eu/LexUriServ/site/en/com/2006/com2006_0136en01.pdf 2 http://www.csreurope.org/pages/en/supporters.html, or http://www.businesseurope.eu/content/default.asp?PageID=439 3 http://www.esbg.eu/uploadedFiles/News/2006-00688.pdf II. ESBG INVOLVEMENT WITH THE ALLIANCE 1. Public support to the Alliance On behalf of its member banks, the European Savings Banks Group (ESBG) expressed its public support to the Alliance at an early stage, reflecting their belief that initiatives led by the European Commission in partnership with market players will lead to further progress in CSR engagement and achievements4. As for its individual members, 15 Cajas de Ahorros in Spain, Lloyds TSB in the UK, Erste Bank in Austria, OTP Bank in Hungary, Banque et Caisse d’Epargne de l’Etat in Luxembourg, Montepio in Portugal, Groupe Caisse d’Epargne in France and a number of German Sparkassen officially became supporters. 2. Contribution to the High-Level meetings of the Alliance European savings banks were represented, at the highest level, at the 2007 and 2008 High-Level meetings of the CSR Alliance, convened jointly by European Commission Vice President Verheugen (Enterprise and Industry) and Commissioner Spidla (Employment, Social affairs and Equal opportunities). This was the opportunity to highlight some of the main CSR achievements of European savings banks and to renew their commitment to the EU CSR initiatives. It was specifically underlined at this occasion that ESBG and the European savings banks: - support the voluntary approach of CSR promoted by the European Commission and the creation of an EU enabling environment, rather than a binding framework. They are convinced that this approach will encourage EU companies, including savings banks, to integrate CSR principles in their strategy and implement CSR processes at their own pace and following their own priorities. Besides, this will avoid any costly and additional legal requirements imposed on companies, which could prevent development and innovation; - welcome the fact that the European Commission identifies companies as primary actors on CSR. But the CSR concept must mirror the diversity of business practices developed throughout the European Union, and put on an equal footing the achievements of multinational, listed companies and the contribution of all other business actors -SMEs, local companies, non-limited stock companies, publicly-owned companies, foundations, etc-. They are an integral part of and contribute to the dynamism, growth and competitiveness of the corporate European landscape. Diversity is also an asset as regards CSR and there is a need for a better EU recognition of the local, medium and small-scale dimension of CSR, as developed by savings banks. 4 For example of CSR initiatives developed by ESBG members: www.savings-banks.com/uploadedFiles/ESBG/CSR_Activities/study%20esbg%20november%202007screenview.pdf and specifically on the Environment: http://www.esbg.eu/uploadedFiles/Announcements/resolution%20screen%20view%20with%20UN%20logo%20. pdf and http://www.esbg.eu/uploadedFiles/Events/proceedings(1).pdf 2 On this basis, ESBG and European savings banks are convinced that CSR can be a key driver for social and economic development of the local communities and European regions, leading to job creation and sustainable growth, thus contributing to strengthening the EU competitiveness. III. DEVELOPMENT OF AN ESBG-LED LAB 1. Scope and objectives of the Lab With the support of its members and interested stakeholders, ESBG has decided to bring an active contribution to the Alliance, through the facilitation of a laboratory meeting around the theme “BUSINESS’ INVOLVEMENT TO ENHANCE SOCIAL INCLUSION AT LOCAL LEVEL”. This topic will fall under the EU priority “fostering innovation and entrepreneurship in sustainable technologies, products and services which address societal needs”. As part of their support to local and regional communities, European savings banks have a long-standing experience of developing solutions to contribute to greater social cohesion, in partnership with local stakeholders. Their involvement is directed to long-term, comprehensive and innovative schemes, which focus on providing means to encourage people’s autonomy and initiative, rather than simply giving out financial aid. They target people in fragile situations or who are seeking to attain self-reliance and benefit from long-term programmes with a specific mentoring along the various steps. Most of the projects combine the purely social dimension with other initiatives -e.g. support to small business launch or job seeking, social integration through the preservation of natural and cultural heritage etc, always aiming at a balanced, more equitable and enterprising society. Since social and financial exclusion are so closely connected, banking support and access to basic banking services are important components of the programmes developed, as well as financial education. Microcredit is also increasingly included, either for the benefit of microentrepeneurs or for social purposes. Microcredit in Europe – Experiences from savings banks Microcredit has become a key topic on the European social and economic agenda. It is increasingly recognized by European actors –EU institutions, National Governments, the financial sector and civil society organizations-, as one of the solutions to improve access to finance for micro and small enterprises and to fight social exclusion. Indeed, microcredit in Europe plays a significant role in expanding access to financial services of micro and small enterprises, but it also has a strong social component allowing people at risk of social exclusion to engage in an economic activity. In this sense, microcredit contributes to reaching the goals of the Lisbon agenda, tackling the issues of business development, job creation and social cohesion through the expanded provision of access to finance. European savings banks are important players in their regions both in providing access to credit to micro and small-sized companies and in putting in place social financial schemes that specifically target individuals at risk of financial exclusion. On their role towards micro and small enterprises, savings banks have - for more than a century -provided easily accessible small-scale loans ranging, for example, from a very small loan for a start-up needing hardware to develop its business, up to a larger amount for a migrant entrepreneur wishing to set up a shop. Thanks to their proximity, savings banks are close partners of these businesses, providing not only a 3 full range of financial services (credit, savings, payments and insurance) but also dedicated business support services to accompany the enterprise in its development or possible expansion. In this context, ESBG, as the European voice of savings and retail banking, fully supports and encourages the increasing development of microcredit initiatives in Europe. In particular, ESBG stands ready to share its members’ best practices and explore ways to collaborate with other microcredit providers, in order to further increase the level of access to financial services, for all European citizens and entrepreneurs. ESBG publication on Microcredit provides an overview of the current practice of microcredit within the European savings banks sector. The case studies presented show these types of interventions and are grouped in four main models: the microcredit subsidiary model, the balance sheet-based model, the agency-based model, the off balance sheet-based model5. Projects are developed on a local level, based on the banks’ close relationship with stakeholders and beneficiaries and their thorough understanding of the local socio-economic context. The multiplicity of these focused actions creates decisive input for local economic and social dynamism. Through the Lab, European savings banks wish to share with interested parties, stakeholders and other businesses the key success factors and lessons they have learnt when getting involved in local social projects, seeking to empower socially and financially excluded people. They hope they could serve as guidelines for other European savings banks, intending to get involved in social schemes or as references for those considering extending their existing programmes. They could also inspire other businesses interested to join and enrich existing schemes or to launch new ones, e.g. temporary employment agencies, insurance companies, services companies (telephone, gas, water) etc, as well as stakeholders e.g. social proximity networks, start up networks, local authorities etc. 2. Process and deliverable of the Lab An analysis was made on the basis of national social inclusion schemes/experiences developed or supported by European savings banks, at national or local level6: - Parcours Confiance (« Fresh Start » programme), Groupe Caisse d’Epargne (France). Mid 2006, Groupe Caisse d’Epargne launched a prevention of banking exclusion programme, Parcours Confiance. It temporarily supports individuals and professionals who face social or financial difficulties and cannot find solutions in the “conventional” banking system. It provides a two-year comprehensive support package, including tailored banking services that are essential to maintain social integration (account-keeping, means of payment) or to run microenterprises, and microcredit facilities. In addition, it offers personalised social support through the intervention of social workers and/or specialised voluntary organisations, and an educational dimension through workshop on budget management and banking products. 5 http://www.esbg.eu/uploadedFiles/Publications_and_Research_(ESBG_only)/brochure%20screen%20view.pdf 6 See Annex 1 for an overview of each the schemes analysed. 4 ... - tailieumienphi.vn