Investment in human capital

Social security extension and CSR.docx 23 The issue of territorial anchoring was also cited in interviews. In the context of public tenders, obtaining contracts is often conditioned by local authorities on investment in infrastructure utilities, such as health centres, for example, particularly in the areas of energy and infrastructure. This stems from the fact that the activities of foreign companies are sometimes perceived by the local population as having a negative impact for reasons of governance, environmental impact, etc.. Some companies therefore claim to improve their territorial anchorage as well as public and local government relations in order to foster their sustainable development on a given territory. CSR policy, of which social protection is one element, is then used to improve the “social acceptance” of sites in the words of Colas, a Bouygues subsidiary, “the licence to operate” as expressed by Lafarge, and “social” or “local acceptability” according to GDF Suez. Colas website, Bouygues Group 4 It is increasingly difficult to win acceptance of materials production facilities from local communities that fear various forms of nuisance odours, dust, noise, traffic, impact on the environment or health.The Colas Group has identified social acceptance as one of the key strategic challenges of responsible development. Such acceptance depends on dialogue with local residents and local authorities. GDF Suez Sustainable Development Report 2011 Beyond environmental issues, the challenge is also to develop a structured dialogue 
 with each stakeholder to ensure local acceptability of projects and facilities. This second pillar is intended to further strengthen industrial security and the safety of facilities, while preserving natural resources. Lastly, 
 to ensure the positive impact of activities on the local economy and enable the most disadvantaged people in society to access essential services, GDF SUEZ builds partnerships of trust with associations and NGOs, thus reflecting its humanitarian commitment. 5 Lafarge Each subsidiary, taking into account its stakeholders and the need to maintain the licence to operate, must become involved in at least one project education, clinics or dispensaries, road safety ... for the benefit of these communities and according to their needs. 3.2.2.2. Positioning vis-à-vis competitors The companies interviewed that are involved in a process of providing coverage to all their employees and where appropriate, their families and beyond and that promote their action in public communications, seek to position themselves as leaders, either in their industry sector or on the specific issue at stake. They wish to be seen as examples of social innovation in developing the social aspects of their sustainable development and CSR policies. 4 Available at http:www.colas.comensustainable-developmentindicators-and-certificationlocal- dialogue-940188.html [accessed on 5102012]. 5 Although the GDF Suez and Bouygues Groups did not participate in the survey, their reports were also analysed because the data they provide relevant to this study. The same is true for Carrefour, PSA Peugeot Citroën, EADS, Areva and Rhodia. 24 Social security extension and CSR.docx Danone The founding Chairman of Danone, Antoine Riboud, had already advocated the need for companies to take account of the human dimension and put employees at the heart of business concerns in a speech in Marseille in 1972. The Group has promoted his values by formalizing what he called its “dual economic and social project”. It is on the basis of this double project that Danones economic, environmental, social and societal strategy is rolled out. Danone positions itself as being engaged on all CSR issues and as such, a responsible company and employer. The Dan’ Cares programme launched in 2011, which is part of the dual economic and social project of the Group, aims to offer quality medical care to all its employees. This is also a question of institutional image. Approximately two-thirds of companies that have initiated an extension of social protection coverage to all their employees are operating in markets where the retention and attraction of employees is a serious issue. It is therefore a question of “employer branding”. Excerpt from the Areva Reference Document, 2009 E mployee benefits are one of the key components of the Group’s employer brand, regardless of the subsidiary or the country. They are the social dimension of the Group’s sustainable development plan and represent a form of solidarity in the management of the workforce as a whole. Corporate image and reputation are all the more important when companies are looking to expand into new markets, especially in countries where economic growth is high, such as China, Brazil and India. In addition, the issue of reputation becomes more important where the new host country is geographically remote from corporate headquarters.

3.2.3. A need to harmonize benefits

MNEs are currently subject to many pressures in the competitive international environment. In particular, there is a need for increased transparency through the implementation of new reporting requirements 6 that encourage firms to harmonize a number of policies, including social policy, at group level. Moreover, competitive pressure also pushes them to streamline their expenses. This double pressure may partly explain the need for some respondents to harmonize social security programmes for their employees. 3.2.3.1. An issue of non-discrimination Increased standardization of the coverage of all employees of an MNE can also respond to a policy of equal treatment of employees, regardless of the site where they work. 6 Among these other obligations, the International Accounting Standard IAS 19, developed in 1998 by the International Accounting Standards Board IASB, focuses on social commitments, or “Employee Benefits” and is intended primarily for listed companies, specifically: “how to identify, promote and recognize benefits granted to employees of a company and its former employees if applicable” Gautron, 2006, p. 2. Since this standard was adopted by the European Union in 2003, companies listed on a stock exchange in a Member State must respect it when preparing their financial statements Roger, 2009. This standard does not require the presentation of accounts by geographical branch but leaves companies free to choose to do so, according to the characteristics differentiating the systems it finances see European Commission, 2012.