Brussels, 16/04/2013 (Agence Europe) - The European Commission is taking action to enhance accountability on social and environmental matters on the part of the business world.
On Tuesday 16 April, the commissioner for the internal market, Michel Barnier, presented an amendment to the European accounts directives, which requires companies with more than 500 employees to clarify their environmental and social policies in their annual financial accounts. Almost 18,000 companies, whether stock exchange listed or not, will be affected, as compared to the 2,500 companies that are already providing this kind of information.
Barnier explained that “to win the competitiveness battle, we need social cohesion inside and outside companies. This idea guided us in our proposal on the transparency of major companies in all sectors. The proposal makes the annual publication of information on environmental and social protection and diversity compulsory for companies with more than 500 employees quoted on the stock exchange and those that are not”. Only companies quoted on the stock exchange will be affected by the rules on diversity, he said. These companies will be obliged to provide information on the age, gender, geographical origin and educational and professional backgrounds of the members on company management committees. Compulsory quotas are not being advocated.
The Commission is convinced that greater transparency on these matters is not harmful and, on the contrary, many major groups are developing their images by communicating this kind of information to their customers and suppliers. In an effort to ensure compliance costs, which should not be more than €5,000, are not too high, the Commission intends to leave the companies a certain degree of flexibility in on how this information should be provided'. Companies affected by this measure will be able to choose existing models at national level (e.g. sustainable development code in Germany) or internationally (e.g. the ISO 26000 standard).
With regard to social issues, information disclosed should include data about respect for workers' rights in the workplace and human rights in the world. Information regarding the fight against corruption and respect for diversity, particularly at a corporate group management level, will also be required. (MB/transl.fl)