Engaging the private sector for social good

Friends of Europe partnered with the European Forum Alpbach for its 2024 edition, held in the Austrian Alps under the theme ‘Moment of Truth’. On 25 August, Friends of Europe hosted a session focused on engaging the private sector as an active and responsible stakeholder—rather than merely a shareholder—in Europe’s social contract. This session falls wihting the broader framework of Friends of Europe’s Renewed Social Contract initiative, aligning with one of the 10 Policy Choices published in February 2024, ahead of the new European institutional cycle.

The discussion extended beyond traditional Corporate Social Responsibility (CSR), aiming to redefine the evolving responsibilities and expectations between various societal sectors amid the environmental, social and economic challenges underpinning Europe’s transitions. Friends of Europe advocates for the European Commission to adopt a public policy objective that fosters collaboration with the private sector to generate social, economic and community benefits for all. The session explored the necessary steps to ensure that the world’s largest corporations play a more significant role as co-creators of the European social contract.

Gabriel Felbermayr, Director of the Austrian Institute of Economic Research (WIFO) and Professor at the Vienna University of Economics and Business, provided a civil society perspective, framing the conversation within a market context. He warned against false dichotomies between the private and public sectors and cautioned against using the broad term ‘private sector,’ which encompasses both SMEs and large multinationals—the latter often being responsible for the trust deficit. Felbermayr emphasised that smart regulation requires collaboration between both sectors, with the public sector providing public goods such as health, education and infrastructure, while the private sector drives innovation to address specific challenges. For this division of labour to work, he stressed the need for adequate market conditions supported by robust competition policies and regulations.

Panellists from the private sector notably highlighted their pro-social business strategies focused on societal benefits through innovation. Ludmila (Lucy) Georgieva, Head of Government Affairs & Public Policy for Austria at Google, emphasised Google’s commitment to responsible AI and innovation, guided by its AI principles. She reiterated that sustainability and DEI are top priorities, noting that Google has been carbon-neutral since 2007 and aims to be carbon-free by 2030. Anita Orban, Director of Public Affairs & ESG at Vodafone Group, discussed how Vodafone contributes to enhancing lives and opportunities through greater connectivity, helping to close the digital divide and reduce costs in critical sectors such as health and education. However, Orban pointed out that Europe lags behind in 5G development, thus affecting its competitiveness, and stressed the importance of strengthening the European digital single market.

Mario Nava, Director-General at the European Commission DG-EMPL, emphasised that neither the private nor the public sector can or should operate in isolation. He addressed the evolving labour market, warning of growing labour and skills shortages, particularly in digital sectors, and urged public-private partnerships to tackle this challenge. Nava advocated for education reform that would include training and upskilling for emerging industries, with the private sector involved in curriculum design to ensure relevant skills are taught. He also pointed to the Migration Pact’s Talent Pool provision as a way to involve the private sector in identifying the profiles needed by European industries. Nava praised Debating Europe’s recommendation from its 2024 Voices – Citizens Speak Up! report, which calls for age quotas to ensure youth representation in policymaking.

Panellists recommended improving public-private partnerships through smart and coordinated regulations, legal clarity and shared and uninterrupted ownership of projects from inception to delivery. There was unanimous agreement on the need to deepen and enhance the Single Market as a key driver of European competitiveness.

Related content:

• Website | European Alpbach Forum
• Report | 10 policy choices for a Renewed Social Contract
• Report | 2024 Voices – Citizens Speak Up!

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PHOTO CREDIT: EFA / Matteo Vegetti