A subtle form of protectionism appears to be making its way on to Brussels’ agenda. In an exclusive interview, Stephen Hughes MEP told OUT-LAW that the concept of Corporate Social Responsibility could be used to stem the flow of jobs from the EU to India and elsewhere.

The European Commission issued a consultation paper in 2002 on Corporate Social Responsibility, or CSR, a concept whereby companies integrate social and environmental concerns in their business operations.

Among its proposals, the Commission was looking at ways to ensure that redundancies would be viewed as a last resort, that all other solutions should be exhausted first. “Downsizing,” explained the Commission, “must include the involvement and participation of those workers affected, to safeguard their rights and enable them to undergo retraining where necessary.”

It went further. If an operation is profitable, outsourcing should not be an option, reasoned the Commission. “That there must be immediate, real and serious economic grounds to justify job losses which are only envisaged after consideration of other less damaging options is widely acknowledged and observed in the Member States of the European Union,” wrote the Commission in a 2002 paper on corporate restructuring. “A clear explanation of the serious nature of the economic grounds underlying the need for job losses is essential.”

These proposals are almost two years old, but they have not been forgotten. Irish Prime Minister Bertie Ahern said in December 2003 that his country’s EU Presidency (which began in January) will make CSR a priority policy across Europe.

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