Unofficial translation Commissioner Anna Diamontopolou's reply to Richard Howitt MEP, debate on Corporate Social Responsibility, European Parliament, Brussels, 30 May 2002.

Commissioner Diamontopolou thanked Richard Howitt MEP for his "valuable work and effective cooperation" on the Green Paper on corporate social responsibility.

In reply to the European Parliament's call for mandatory social and environmental reporting by companies, she invited further consultation but warned companies that legislation could follow. "At the present point of time while consultation takes place, this should occur on a voluntary basis - but initiatives should be taken… so that we do see results, as good as we would expect from legislation… There will have to be verification of reports, and assessment and evaluation of what the companies are doing… I support (Mr Howitt's) report that there has to be transparency, and the ability to carry out comparisons on social and environmental performance between companies. Companies are already duty bound to do this in certain countries."

Commissioner Diamontopolou then specifically committed herself to certain paragraphs in Mr Howitt's report: the setting up of an EU Forum of Stakeholders on corporate social responsibility; the introduction of CSR principles in all European Commission policies and programmes, specifically including its development assistance programmes and in international negotiations. She said the Commission was considering Mr Howitt's proposal for appointing an ombudsperson responsible for European companies' activities in third countries.

The Commissioner finished by thanking MEPs once again: "It has not been an easy debate on your report, which is the last step in dealing with the consultation. Mr Liikanen and I will present our proposals to be agreed in the Commission in July."