CSR in Austria: Exemplary Social and Environmental Practice or Compliance-Driven Corporate Responsibility?

Abstract

Austria, a nation in the heart of Europe, is recognized as a small country of good quality of living, stable economy development and social cohesion. Its post-war development is marked by a third way between socialism and capitalism, a social market economy. Corporations and organized workforce form part of a centralized social partnership organized in federations. A welfare state provides a social safety net. Austria is also known as a country that does well regarding environmental protection, green energy and sustainable development. When viewing CSR as a concept that is concerned with the protection of social and environmental interests in private business activity, it might appear as if Austria excelled in it. The concept of CSR has relatively late gained a foothold in Austrian public discourse, though. This contribution will put forward a deliberation how Austrian institutions and regulation may shape CSR practice toward compliance-driven engagement, whereas more advanced forms of CSR engagement may remain rare in the Austrian context. These propositions will be contrasted and complemented with findings of the only existent empirical study on CSR practice by Austrian companies, and an outlook for the future of CSR in Austria will be offered.