Engagement by business in the parliamentary process is becoming increasingly transparent, although the pressure to make companies more accountable through legislation has not gone away
What’s the All Party Group on CSR?
The All Party Parliamentary Group is a forum in which parliamentarians can discuss different aspects of corporate responsibility. Very often companies like to be involved in that procedure and talk about what they are achieving. One of the most interesting debates, for example, was a discussion with Ken Clarke, representing British American Tobacco, about companies with intrinsically controversial products.
Why are you interested in CSR?
It’s an issue of social justice and the government’s role in promoting the best interests for all citizens. The CSR agenda enables government to offer a guiding hand to companies, which are essentially set up to serve the interests of shareholders rather than society more generally.
We’re not out to demonise company directors because of the obligations of their companies. What we’re out to do is subtly shift the obligations of companies to add a sort of moral compass to corporate guidance.
Are you happy with Labour’s business-friendly reputation?
There’s nothing wrong with being business friendly. One thing you have to do to get rid of poverty in this country is promote prosperity. Companies have their place in achieving that prosperity. We couldn’t have a minimum wage, for example, if companies weren’t going to execute it for us. We have to go forward in partnership. But that doesn’t mean being uncritical of business.
How should companies engage in lobbying responsibly?
I don’t think lobbying in itself is so bad. But because companies have more resources than charities or individuals, you have to make sure is that everything is more transparent – and today we’re seeing much greater transparency in corporate lobbying than ever before. For example, in the register of interests for All Party Groups you can see who is financially supporting these groups. Any MP that has an interest in a company must now register that interest.
The lobbying industry has cleaned itself up significantly and I’m glad that, as far as I can tell, the cash – in-brown-envelope era has passed. This is good for the public perception of politicians
as well.
Aren’t trade associations just about watering down legislation?
Trade associations are consensus bodies, so the furthest level of consensus that can be achieved is pursued. Often this is a lot lower level common denominator than would be achieved if they worked by majority, as in a democracy. There may be an argument for having more relationships between companies beyond their trade associations, much like Business in the Community. I’d like to see more progressive companies work together and wave a standard as pioneers in the CSR world. For example, look at pubs. You have a range of pub companies coming together to discuss how to protect their workforce against smoking.
Isn’t it still all about avoiding legislation?
I would think that progress by companies on CSR is a desire to show government that legislation is not necessary. But one way or another it doesn’t matter if progress happens through legislation or voluntary initiatives as long as that progress happens. I agree that it would be welcome if we didn’t need to legislate for CSR; if companies decided to act responsibly; but it may not happen that way; it may require a bit of legislation and a bit of voluntarism.
Are parliamentarians favourable to CSR?
No one is going to be critical of a company improving its behaviour. But still almost 300 MPs signed my Early Day Motion on CSR in 2002 [which called for mandatory reporting]. Why? Because there are still many companies that just don’t care or for whom CSR doesn’t matter.
Linda has represented her constituency since 1997 and is a member of the Select Committee on Trade and Industry.
She is the secretary of the All Party Parliamentary Committee on Corporate Social Responsibility, which is backed by Business in the Community. The Group’s establishment was prompted by a survey in 2001 of politicians’ attitudes, which revealed a lack of awareness and understanding about corporate social responsibility, despite the appointment of a CSR minister.
Since 2002, she has presented three Bills in Parliament on CSR and two Early Day Motions in the House of Commons and lobbied MPs and ministers to make mandatory the reporting of companies’ environmental and social impacts.
She is a former librarian and has two daughters with Ray, her husband of 32 years.
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