Speech by Richard Howitt MEP introducing the debate on Corporate Social Responsibility, European Parliament, Brussels, 30 May 2002.

The European Parliament first called for action on Corporate Social Responsibility in 1999, we very much welcome the Commission Green paper and today we set out a series of concrete steps which will turn European debate into European action.

Let me highlight four in particular.

First, rules of disclosure of basic information about the company's social and environmental impacts. Although some companies now produce voluntary triple bottom line reports, too many don't. And of those that do, the OECD tells us the two-thirds ignore internationally recognised standards, avoid independent verification, or disown responsibility down their supply chain.

Such rights of disclosure would build on the new economic regulations law in France, similar legislation in Belgium, the occupational pensions scheme regulation in the UK.

For business, it's about levelling the playing field, reducing cost, simplifying procedures - and industry representatives from British Telecom, Eurosif, even an old bête noir like Chiquita have all said this must come in time.

For the European Commissioner, we ask you to learn the lessons of your own excellent public consultation. Nearly half the respondents challenged the basic definition of CSR as simply one of beyond compliance. Legislation and voluntary action are not mutually exclusive. The prospect of legislation spurs voluntary efforts, which in turn establish norms which legislation entrenches in future years. We must and should encourage both.

That's why the European Parliament will vote today for mandatory social and environmental reporting by companies; for new corporate governance rules including making Board members individually responsible for the social and environmental performance of the firm; and we will reaffirm our call for a new legal base for jurisdiction over European companies' operations world-wide.

President, we want to see CSR issues incorporated in the European Social Dialogue, but we support too the setting up an EU Multi-Stakeholder CSR forum. This will allow others with a legitimate interest in corporate performance to have a voice. A forum which should not replace or duplicate existing initiatives, but which will drive forward the debate at the EU level. A forum which will not be all mouth, but which all have real teeth.

Next, CSR really must be built into all EU policies and programmes. It is quite breathtaking that the European Commission and the European Investment Bank commit billions of euros of European taxpayers' money each year to the private sector - through contracts, regional aid, investment promotion - yet do not have simple contractual clauses to respect basic labour and environmental standards, nor clear monitoring and complaints procedures to enforce them. The Dutch government has shown the way by linking access to export credits to compliance with voluntary standards. The EU must follow suit.

President, we do want to encourage voluntary action by companies including the excellent Business Campaign led by CSR Europe. But we must balance our praise for good practice by the best of companies, with a recognition that we live in a world where there is also corporate irresponsibility.

Within Europe we have the devastation of mass closures on affected regions or the difficulties of accessing capital in the poorest communities where it is needed most. Yet the greatest public concern surrounds the abuses by European multinationals in developing countries.

It's about hundreds of people murdered each year for taking part in legitimate trade union activity. 250 million working children worldwide. Export processing zones set up specifically to evade minimum standards or the clothing sweatshops where they are simply ignored. Slave labour on West African cocoa plantations or building oil installations in Burma.

Amongst the victims are those killed in civil wars in Angola or Sierre Leone fuelled by trade in conflict diamonds or corrupt payments to exploit minerals extraction. Indigenous peoples like the Ogonis oppressed. 1.5 million babies dying every year because their mothers don't breastfeed, misled by marketing practices for infant formula.

European companies can knowingly or otherwise be part of these abuses - and they can be part of them ending too.

That's why the European Parliament will today vote to make CSR an active part of our trade agreements, development assistance, of our unparalleled network of Delegations in third countries. The EU itself must make a serious contribution to the implementation of the OECD guidelines on multinational enterprise, and should act as champion of new global standards in international institutions - standards which put investor responsibility on an equal footing to investor rights.

Full, comparable and verified corporate information; an inclusive dialogue for all stakeholders; consistent support across EU policies; genuine responsibility from Europe for the global supply chain of European business.

These are the elements that will truly forge a European framework for corporate social responsibility.