Businesses perform many different  actions to address CSR concerns. For example, a business may require or promote CSR  among its business partners. In their facilitating role,  governments enable or provide incentives to companies to engage in CSR  to obtain social and environmental improvements. Although No Broad Federal CSR Mandate Exists, Federal Agencies Conduct Many Activities Related to Global CSR

While the federal government does not have a formal role in global  corporate social responsibility, we identified over 50 programs, policies,  and activities at 12 agencies that are related to global CSR using a data  collection instrument completed by agency officials. To illustrate, USAID partnered with one U.S.  corporation operating in post-war Angola to build up the country’s business  sector and equip Angola’s workforce with necessary business skills. Many Federal CSR-Related Programs Are Recent, Focus on a Range of Countries and Sectors, and Have Small Budgets and Staffs

Many of the programs we identified started in the last 5 years. Federal programs and activities  assist U.S. companies with their philanthropic efforts, as well as with their  efforts to be socially responsible in their core business operations,  including their supply chains. None of the programs we identified were  specifically designed to monitor company CSR activities. Facilitating

The U.S. government facilitates CSR by providing information, funding or  incentives to companies and other players to engage in CSR-related issues. Perspectives on the Appropriate Government Role in CSR Vary with Views of CSR’s Connection to Business Profits

Based on our review of CSR literature, perspectives on the appropriate role  of government in CSR vary, but generally correlate with three major  perspectives on the connection of CSR to business profits: (1) free-market  economic, (2) “business case,” and (3) social issues. Those with a “business case” perspective view a major role of government  as supporting business’s voluntary CSR-related efforts. They  believe that business is primarily concerned with profit and thus should not  be trusted to develop solutions for important social issues on their own. Most respondents generally supported government assistance  with voluntary CSR efforts such as endorsing, facilitating, and partnering,  while some also expressed an interest in government-mandated CSR,  especially to increase disclosure of CSR-related information. For example, the Department of State’s involvement in  developing the Voluntary Principles on Security and Human Rights was  cited as an example of a positive effort by the U.S. government to convene  stakeholders to address a CSR-related issue. In general, these latter groups desired a government role in  mandating CSR, especially to increase disclosure and transparency of  company CSR activities. This  report describes (1) global corporate social responsibility (CSR), (2)  federal agency policies and programs relating to global CSR, and (3)  different perspectives regarding the appropriate U.S. government role and  views on the impact of current federal activities on corporate global CSR  efforts. Specifically, we  interviewed:  Fourteen U.S. multinational corporations that appeared on the Business  Ethics Magazine’s Top 100 Corporate Citizens list for each year from  1999 to 2004—Brady Corporation; Coors Brewing Company; Cummins,  Inc.; Deere & Company; Herman Miller, Inc.; Hewlett-Packard  Development Company, L.P.; International Business Machines  Corporation; Intel Corporation; Merck & Co., Inc.; Modine  Manufacturing Company; Motorola, Inc.; Procter & Gamble; The  Timberland Company; and Whirlpool Corporation;   Four business interest groups that have been active in CSR—Business  for Social Responsibility; the Conference Board; the U.S. Chamber of  Commerce Center for Corporate Citizenship; and the U.S. Council for  International Business;  Four investor groups—Calvert Group, Ltd.; Domini Social Investments,  LLC ; Dow Jones Sustainability Index; and the Interfaith Center on  Corporate Responsibility;   Six nongovernmental organizations—Coalition for Environmentally  Responsible Economies; Fair Labor Association; Human Rights Watch;  Social Accountability International; World Resources Institute; and  Worldwide Responsible Apparel Production; and  Four academic institutions—Center for Corporate Citizenship, Boston  College; Center for Responsible Business, the Haas School of Business,  University of California at Berkeley; the Corporate Social Responsibility  Initiative, John F. Kennedy School of Government, Harvard University;  the Frank Hawkins Kenan Institute of Private Enterprise, University of  North Carolina’s Kenan-Flagler Business School. Foreign  Governments,  workers and  employers. Foreign  governments.
Why GAO Did This Study

The trend toward globalization has intensified the debate about the proper role of business and government in global "corporate social responsibility" (CSR),which involves business efforts to address the social and environmental concerns associated with business operations. The growth in global trade and the dramatic increase in foreign direct investment in developing countries raise questions regarding CSR-related issues such as labor, environment, and human rights. U.S. firms with operations in many countries employ millions of foreign workers and conduct a range of CSR activities to address these issues. However, there is controversy as to the proper government role. GAO describes (1) federal agency policies and programs relating to global CSR and (2) different perspectives regarding the appropriate U.S. government role and views on the impact of current federal activities on corporate global CSR efforts.

What GAO Found

Although there is no broad federal CSR mandate, we identified 12 U.S. agencies with over 50 federal programs, policies, and activities that generally fall into four roles of endorsing, facilitating, partnering, or mandating CSR activities. Many of these programs have small budgets and staff and aim to accomplish broader agency mission goals, rather than being specifically designed to facilitate or promote companies' global CSR activities. The U.S. government endorses CSR by providing awards to companies, such as the Department of State's Award for Corporate Excellence. Federal programs facilitate CSR by such activities as providing information or providing funding to engage in CSR. For example, a Department of Commerce program facilitates CSR by providing training on corporate stewardship. Some agencies partner with corporations on specific projects related to their core mission. For example, the U.S. Agency for International Development (USAID) partnered with one U.S. corporation operating in post-war Angola to build up the country's business sector and workforce. Other agencies, such as the Overseas Private Investment Corporation, mandate CSR by requiring companies to meet CSR-related criteria to obtain their services. While perspectives on the government's role are tied to perspectives on CSR and its connection to profit, many we spoke with who are actively involved in global CSR desired a government role supporting business's voluntary CSR efforts. Those with a free-market economic perspective believe corporations should be primarily concerned with earning a profit and government should not promote CSR as it reduces profits. Those with a "business case" perspective often welcome government assistance with their voluntary efforts because they view their CSR efforts as increasing profits and business value. Finally, those with a social issues perspective believe that business should contribute to broader social goals but split on whether business action should be voluntary or mandatory. Most groups we spoke with at U.S. companies and others actively engaged in CSR were generally supportive of U.S. federal agency efforts to endorse and facilitate CSR and partner with companies voluntarily pursuing CSR actions. For example, several groups supported a government role in providing CSR-related information and convening stakeholders to address CSR-related issues.