Toolkit for Competitive Sustainable Regions (CSR)

Business case for public authorities and CSR

Business is integral to society, and economic growth depends on our willingness to take advantage of business opportunities. In promoting sustainable growth, a key question for public authorities is how to drive business development while retaining a licence to operate through social and environmental stewardship. And public authorities achieve more in meeting local challenges when they can access all local resources, including the skill and drive of local business.
CSR addresses these issues and encourages business to engage with stakeholders, to learn together and build a more sustainable society and economy.
Responsible business behaviour already yields the following rewards and promises even wider gains in tomorrow's marketplace:

Investors are increasingly backing companies which manage their social and environmental risk and long term profitability.
Businesses are benefiting from lower costs through sound resource management.
The brightest young talent is eager to seek employment among responsible businesses.
Customers are demonstrating their demand for more sustainable products and services.

The six principal links between CSR and competitiveness - for businesses and regions:

Innovation

Closer cooperation with stakeholders (reaching even beyond owners, employees and customers, to include neighbours and suppliers) and attention to social and environmental issues are great routes to innovative ideas, new business models and markets. A business culture that demonstrates effective CSR contributes to the innovation that helps drive overall competitiveness in a region.

Skills development

Investing in skills development and training helps business to attract and retain employees and promote quality and innovation. It also serves a wider social and economic purpose, enabling regions to meet challenges of aging or mobile population and to tap the potential of any underutilized labour force, thus making a region more competitive.

Inclusion/diversity

Business needs to access and retain the widest pool of talent, and diversity among employees brings innovative ideas and knowledge of markets. Facilitating inclusive approaches to recruitment and development within a region ensures higher levels of engagement and a more positive and motivated workforce.

Resource management

CSR encourages business to set objectives and measure its social and environmental impacts, leading to efficiency gains, better resource management and significant cost savings. Achieving society’s wider goals relating to climate change and sustainability depends on such success at company level.

Generating Social Capital

A CSR focus on stakeholder relationships that benefit business and stakeholder groups alike helps to build social capital. Social capital, broadly equivalent to “trust” and to high quality relationships between different actors in society, is a significant element in regional competitiveness. It can reduce transaction costs, facilitate adaptation to change, and assist acquisition and sharing of knowledge, thus contributing to economic growth and well-being.

Attracting investment

By delivering healthy growth and CSR, companies as well as regions can increase their attractiveness as an investment location, through their positive impact on the risk analysis of potential investments.

For more on CSR and competitiveness, click here:

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Rationale	Examples	Success Factors	Taking Action	Support
Welcome Business case for public authorities and CSR Policy Goals & Benefits	Business case for public authorities and CSR Business is integral to society, and economic growth depends on our willingness to take advantage of business opportunities. In promoting sustainable growth, a key question for public authorities is how to drive business development while retaining a licence to operate through social and environmental stewardship. And public authorities achieve more in meeting local challenges when they can access all local resources, including the skill and drive of local business. CSR addresses these issues and encourages business to engage with stakeholders, to learn together and build a more sustainable society and economy. Responsible business behaviour already yields the following rewards and promises even wider gains in tomorrow's marketplace: Investors are increasingly backing companies which manage their social and environmental risk and long term profitability. Businesses are benefiting from lower costs through sound resource management. The brightest young talent is eager to seek employment among responsible businesses. Customers are demonstrating their demand for more sustainable products and services. The six principal links between CSR and competitiveness - for businesses and regions: Innovation Closer cooperation with stakeholders (reaching even beyond owners, employees and customers, to include neighbours and suppliers) and attention to social and environmental issues are great routes to innovative ideas, new business models and markets. A business culture that demonstrates effective CSR contributes to the innovation that helps drive overall competitiveness in a region. Skills development Investing in skills development and training helps business to attract and retain employees and promote quality and innovation. It also serves a wider social and economic purpose, enabling regions to meet challenges of aging or mobile population and to tap the potential of any underutilized labour force, thus making a region more competitive. Inclusion/diversity Business needs to access and retain the widest pool of talent, and diversity among employees brings innovative ideas and knowledge of markets. Facilitating inclusive approaches to recruitment and development within a region ensures higher levels of engagement and a more positive and motivated workforce. Resource management CSR encourages business to set objectives and measure its social and environmental impacts, leading to efficiency gains, better resource management and significant cost savings. Achieving society’s wider goals relating to climate change and sustainability depends on such success at company level. Generating Social Capital A CSR focus on stakeholder relationships that benefit business and stakeholder groups alike helps to build social capital. Social capital, broadly equivalent to “trust” and to high quality relationships between different actors in society, is a significant element in regional competitiveness. It can reduce transaction costs, facilitate adaptation to change, and assist acquisition and sharing of knowledge, thus contributing to economic growth and well-being. Attracting investment By delivering healthy growth and CSR, companies as well as regions can increase their attractiveness as an investment location, through their positive impact on the risk analysis of potential investments. For more on CSR and competitiveness, click here:
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