Legal and regulatory frameworks shaping CSR in Europe

Abstract

This paper examines how legal and regulatory frameworks influence Corporate Social Responsibility (CSR) across Europe, namely in Germany, France and Sweden, as well as contrasts these with the US approach. European CSR is deeply integrated into corporate strategies through stringent EU directives, which enforce sustainability and social equity. These include mandates for comprehensive disclosure and ethical business operations. In contrast, the US model is more voluntary, driven by market forces, and focuses on aligning CSR with business profitability, which allows for greater flexibility but leads to inconsistent implementation. This study highlights the need for adaptable CSR regulations that balance strict oversight with the ability to respond to emerging global challenges, providing insights that could guide international policy and corporate strategy towards more cohesive and effective CSR practices worldwide.