ROMANO PRODI
President of the European Commission
Avrupa Birliği Komisyonu Başkanı
"Innovation and creativity". It would be hard to find two qualities more essential to any firm's success in the global marketplace. And if we want to build a strong Europe, capable of playing a leading role on the international stage, we need innovative, creative European businesses.

Iam glad to say that creativity is one of Europe's major assets. We have a wealth of creative and inventive people, from a wide variety of cultures, and one of the best ways to spark great new ideas is to bring such people together. One reason I am looking forward to the accession of new Member States is that it will increase the European Union's cultural diversity and thus enhance its creative potential. Creativity is what fuels innovation and innovation is the key to the new economy. In a fast-changing world, Europe needs not merely to keep abreast of the changes but to drive them. Moreover, the faster the pace of innovation the bigger the rise in productivity, growth and employment. That is why one of the central items on the Commission's new social and economic agenda is promoting innovation, and it was a key theme at the Lisbon Summit in March.

Europe can be justly proud of its past record of world-changing innovation. It was European scientists and inventors that spawned the first industrial revolution. European business succeeded in translating those scientific achievements and technological innovations into economic value, distributing wealth by creating new jobs.

Innovation does not come cost free. It involves risk, and enterprising people must be encouraged to take chances. "Nothing ventured, nothing gained" is as true today as ever. There is, however, one risk no firm can afford to take if it is to remain profitable in the medium and long term: the risk of ignoring the changing awareness and expectations of Europe's citizens. Citizens as workers still expect just remuneration and fair treatment in the workplace. Citizens as consumers still want the best products at the best price. But recent developments have shown they want more than that. This "more" is what I want to talk about today. This "more" embraces ethical values, democracy and justice, as well as environmental concerns and - more generally - sustainable development. The kind of society Europe's citizens are calling for today involves new kinds of relationship between employers, employees, the State and the environment. It requires both public authorities and business to show a new sense of social and environmental responsibility.

For the European Commission, it has meant re-examining both our action and our priorities. We have set ourselves new priorities in the fields of consumer protection, the environment, education, justice and home affairs. And we are re-thinking the whole question of governance in Europe, seeking new ways of giving the citizen a direct say in policymaking.

For European business, the new sense of responsibility that is needed goes well beyond mere compliance with the law, and well beyond philanthropy. What the European Council in Lisbon called for is a "corporate sense of social responsibility regarding best practices on lifelong learning, work organisation, equal opportunities, social inclusion and sustainable development." So what's new? Have there not always been tensions and conflicts in the relationship between employers, workers and the State? This has certainly been the case with the conflict now almost two centuries old between capital and labour. Historically, democracies have sought to resolve this conflict through regulatory legislation and collective bargaining. These imposed a certain order on the way business operated. The objective was not only to guarantee fair play between firms (as in the case of antitrust legislation) but also to protect other actors such as workers, customers, the population of a given territory and public institutions. At the same time, this gave companies the stability they need to be profitable and develop. To their great credit, a number of European firms went further, spontaneously taking upon themselves social and civil responsibilities. Examples range from the enlightened paternalism of the 19th and early 20th centuries to more recent models of worker participation, virtuous systems of industrial relations and the many cases in which companies voluntarily establish positive and loyal relationships with their employees. Today, however, something new is happening. Businesses and the Commission are recognising that regulation solely based on law is not always the best option that a more complex but also more effective method of governance and regulation is needed to enable them to remain stable and profitable in the medium to long term. We are therefore seeing the emergence of a new rationale a transition from State-imposed regulation to responsible self-regulation and co-regulation. Electronic commerce is a good example: for the vast majority of litigation, going to court is too costly both for businesses and for consumers. This is a field where the the business community, together with the Commission, is developing alternative instruments for resolving disputes. But these will not replace the law: the law is still needed to stop predatory players abusing the game.

Many factors are driving this move towards responsible self-regulation.

First, information technologies and the growth of the Internet are bringing huge amounts of information within reach of the citizen. Workers and consumers are much better informed about their rights. People are increasingly aware of how their health and environment are adversely affected when companies pursue pure short term profit objectives. Not only are European consumers becoming more demanding, but information technologies now give them access to a far wider range of suppliers and they can select those that meet their requirements. Second, globalisation multiplies world wide the harmful effects of unacceptable business practices. In response to this threat, NGOs too are growing in number and going global - mobilising citizens and governments all over the planet.

Third, privatisation has brought companies face to face with their social obligations. As governments disengage from many areas of civil life, businesses must help fill the gap. Fourth, as firms are increasingly exposed to global competition, they need a more business-friendly environment and call for lighter regulation. The counterpart to such flexibility is greater responsibility on their part. We thus see enterprises adopting codes of behaviour that are transparent and fair not only to their shareholders but also to the general public and even to other operators only indirectly involved in their activities. Nor must we forget the important experiments with new forms of labour relations such as worker co-operatives and worker participation schemes. Finally investors, and in particular pension funds, are more and more sensitive to the social and environmental achievements of the firms they invest in. We are therefore beginning to see a growth in the numbers of "responsible" and "socially responsible" companies. The more durable and genuine this process is the fewer rules and regulations will have to be imposed by the State and the European Commission and this is a trend we should all welcome. The successful firms of tomorrow will be the far-sighted and responsible enterprises that have responded to the demands of Europe's citizens as workers, as consumers, as investors and as inhabitants of their region and country, of Europe and of the world. I would like to say a little more about each of these aspects of citizenship and how business can respond to them. First, citizens as workers. The challenge for innovative enterprises today is to find talented workers and to keep them. To remain competitive, firms will have to treat these employees like stars. It will no longer be enough simply to ensure good working conditions, equal opportunities and a fair wage: companies must continually seek new and better ways of motivating their workers and giving them a meaningful share in the fruits of their success. One of the best ways to motivate workers is to give them new challenges and to provide them with frequent opportunities to acquire the new skills they need to meet those challenges. Continuous training is therefore essential. But businesses are not only users of knowledge: they are also fantastic producers of knowledge and, as such, they have a crucial role to play in the new Knowledge Society. In addition to training their own employees, business and industry should be actively working with the public authorities in a joint effort to improve public education. This is not an act of charity on their part: it is an investment in their own future. Second, citizens as consumers. In recent years, events such as the BSE and dioxin crises have made the public much more aware of food safety issues. In Europe, we need to re-build consumer confidence not only in our food but also in other areas such as electronic commerce. Again, this is something business can and must do in partnership with the public authorities. Consumers need to know that products are safe. They need to be assured that private data will not be used for other purposes, or be transferred to other operators without their consent. They have a right to the fair and quick settlement of disputes.

Better-informed consumers also want firms to adopt higher ethical standards, and are ready to change their spending habits accordingly. Even advertising is taking this into account. Third, citizens as investors. The trend towards ethical investment by pension funds, which started in the US, is now growing in Europe too. A firm's social and environmental achievements become part of its performance as listed on the stock exchange thus affecting the firm's success in the medium to long term. Fourth, citizens as inhabitants of their region, country, Europe and the world. The protests in Seattle have shown that we need dialogue not only between companies and their workers but also with civil society. People are obviously concerned about the direct effects of business on them and their health, as customers. But they are also increasingly concerned with broader issues such as the effect of business activity on the socio-economic situation of their region, on its environment, on the resources available for future generations and on the conditions prevailing in developing countries, such as child labour. One way in which business can respond positively is by providing infrastructure and facilities that help promote a local sense of community. Firms can also work together with public authorities to find innovative ways of protecting the environment, using energy more efficiently and managing risks. And there is plenty of scope for joint action to draw up responsible European and international rules.

Finally, a word about the specifically European dimension of corporate responsibility. Business and industry are confronted more immediately than the general public with the day-to-day reality of Europe. Europe is more tangible to entrepreneurs than to local or even national authorities. The use of a single currency is already giving the business community a real sense of being European. This, I am convinced, can act as a useful counterweight to national egoism. The business community has a key role to play in making citizens aware that Europe is useful something from which they all benefit. Similarly, I would like to see the business community becoming more actively involved in promoting and defending European values in the wider world. It is, after all, very much in your interests to promote the key values for which Europe stands justice, fair play, democracy, respect for human rights, sustainable development. They make for the kind of stable, peaceful and prosperous society in which you can do business. The world is changing fast, but fundamental values must endure and we must do everything in our power to preserve and promote them. The kind of corporate responsibility I have been describing will benefit business in two important ways. First, negotiation will take the place of conflict. There will be far less in the way of industrial action, environmental liability lawsuits, class actions and so forth. Secondly, it will facilitate the flow of information, avoiding costly errors and putting research and innovation on the right track. Today's responsible companies will be tomorrow's profitable companies. Their customers will trust them more. Their employees will feel a greater sense of commitment and motivation. Ethically aware investors will choose them. They will benefit from constructive co-operation with national and local authorities and from partnership with educational and research institutes as well as civil society. Finally, they will be helping promote European values and giving Europe a leading role in shaping international rules that are in everyone's interests. This concept of corporate responsibility is not just a new and fashionable piece of jargon. It is a hard reality, and one on which the survival of Europe depends. It is in the long-term interest of all of us business, public authorities and European institutions to put this sense of responsibility into practice.

ROMANO PRODI: "YENİLİK VE SORUMLULUK: DE/İşEN DÜNYADA VATANDAş VE İş YAşAMI"

…Yaratıcılık, Avrupa'nın hasletlerinden biridir…

Yaratıcılık yeniliği besler ve yenilik de yeni ekonominin anahtarıdır… Yenilik ne kadar süratlenirse üretim, büyüme ve istihdam da o kadar yükselir… Yenilik bedava değildir; risk almayı gerektirir… Kar etmek ve uzun vadede piyasada kalmak isteyen firmaların alamayacağı tek risk, Avrupa vatandaşlarının değişen bilinç ve beklentilerini yok saymaktır. Vatandaş, işçi olarak hala adil kazanç ve işyerinde iyi muamele bekliyor. Vatandaş, tüketici olarak hala en iyi ürünü en uygun fiyata almak istiyor. Ancak son gelişmeler, vatandaşın artık daha fazlasını da beklediğini gösteriyor.

Bu "fazlalık", ahlaki değerleri, demokrasiyi ve adaleti içerdiği kadar, çevresel değerler ve tahammül edilebilir bir büyümeyi de içeriyor…
Bu nedenler, Avrupa Komisyonunun etkinlik ve önceliklerini yeniden gözden geçirmesini gerektirdi… Avrupa iş çevrelerine gelince, artık yasalara uyma ve yardımseverliğin çok ötesinde bir sorumluluk duygusu idrak etmeleri gerekiyor…

İşçi, işveren ve devlet arasında hep gerginlik ve anlaşmazlık olmuştur… Ama bugün yeni birşeyler olmakta. İşdünyası ve Komisyon, yasaların dışında daha etkili bir yönetim metoduna gerek duyulduğunun farkındalar…Böylece devletin empoze ettiği kanundan sorumlu bir otoyönetim ve birlikte yönetime geçişe tanık olmaktayız…

Bugünün sorumlu şirketleri yarının karlı şirketleri olacak… Bu "sorumluluk" kavramı geçici bir moda değil, Avrupa'nın hayatta kalmasının kendisine bağlı olduğu katı bir gerçek…

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