Article
Corporate Social Responsibility

CAN LOCAL AUTHORITIES INCREASE THE COMPETITIVENESS OF SOCIALLY RESPONSIBLE SMES? EVIDENCES FROM TUSCANY REGION

Date: 2011
Author: Massimo Battaglia, Lara Bianchi, Jessica Huntingford, Marco Frey
Contributor: eb™ Research Team

The decision made by the European Union to promote CSR - Corporate Social Responsibility principles among firms has two main drivers: on one hand the necessity to safeguard local communities and workers from social and environmental point of views; on the other hand the will to revive the European industrial system through a differentiation of services and goods offered toeing the sustainability line, in other words a new possible way to be competitive. The enterprises could indeed decide to invest in CSR for different reasons: philanthropy and moral obligation, safeguard of local communities, but also advantage to operate, good market reputation, saving and optimization of resources, development of human resources, effective management of stakeholders. Moreover, lately and increasingly, European markets encounter an extension beyond local supply chain boundaries in favor of an international scenario. In this sense, the opportunity given by CSR, through co-operation among firms, fair competition, equal treatment of labor force, and safeguard of local community and environment, represents one of the main motive which lead the European Union in the promotion of CSR. Spreading ethics among companies has relevant consequences both for the competitiveness of single firms and for the competitiveness of regions of productions and local communities. For these reasons, the European Union has arisen activities to promoting and supporting CSR at a multi-stakeholder level, and its action represented the stimulus to promotion of CSR by different Local Authorities.