What is Corporate Social Responsibility? - InnoTrain CSR

Fields of action of CSR
5.9. CSR and Public Private Partnership
In short
The purpose of Public Private Partnerships (PPPs) is to realise public projects
more efficiently than to date through long-term collaboration between the
public authorities and the private sector. In the UK, PPPs are also called Public
Finance Initiatives (PFI). PPPs are used to realise public infrastructure projects
for example in the areas of social affairs, traffic, supply and waste
management, IT and safety. As public contracts, PPPs are usually subject to
public procurement law. Since the EU public procurement guidelines have
entered into effect, the consideration of social and ecological aspects for
awarding the contract has explicitly been permitted. In doing so, the award
procedure is supposed to provide an impulse for strengthening the Social
Corporate Responsibility (CSR) on a political level.
Learning targets
� Get to know advantages and criticism of PPP and explain the role of CSR
CSR learning contents
The following model of Public Private Partnerships (PPPs) is currently the most
common one in the practice: The public authorities are awarding a license for the
design, construction, financing, management and maintenance of an infrastructure
facility, business or service to a private consortium of companies. This is based on
the assumption that the finances of the public authorities will be disburdened, which
is set forth in a contract stating that private resources will be used for the financing
and the risk will be transferred to the private partner. In addition, potential strengths
of companies from the private sector are to be used. PPPs can for example produce
increased efficiency with the use of the latest technologies and management
experience as well as a better customer focus. The public authorities can benefit from
the relief under criminal and civil law, because significant responsibilities in
connection with the execution of the assigned task are transferred to the private
partner. In turn, the private actors expect the safe execution of essentially risk-free
projects and a long-term safeguarding of stakeholder interests.
However, PPP is exposed to growing criticism, hailing in part from non-governmental
organisations, unions, politics and small trade. Presumed reasons include the crisis
of the private banking sector, declining acceptance of privatisation and the
associated growing "faith in government". The accusations of the critics range from
The project "InnoTrain CSR" is organized by GILDE GmbH and has been funded with support from the European Commission. This publication reflects the
views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. 12/2010
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