CSR legislation in France and the European regulatory paradox: an analysis of EU CSR policy and sustainability reporting practice

Abstract

PurposeThe aim of this paper is to investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly‐listed companies.Design/methodology/approachThe approach is mostly exploratory and based on secondary literature review as well as empirical classroom work on reporting.FindingsThis exploratory paper provides findings about the relevance of the French law, thus highlighting some critical aspects of sustainability reporting practices. It also raises the broader issue of the consistency of the European CSR approach.Research limitations/implicationsThis research needs to be completed by field studies on sustainability reporting practices both in France and in all EU members.Practical implicationsThis paper may help firms improve their sustainability reporting practices.Originality/valueThere have been hardly any papers on the impact of the French NRE law so far. Another original feature is the issue raised about the somewhat unclear links between environmental legislation and CSR policy in the EU. The paper provides a case for regulation in CSR, showing the possible positive impacts on corporate behavior.