Corporate Social Responsibilities

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• Corporate Social Responsibilities
• Business and human rights
• Lecture 23.10.2006
• Radu Mares
• Email radu.mares_at_jur.lu.se

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TRANSNATIONAL CORPORATIONS

• Ownership-based (parent company subsidiary)
• ex. Shell
• Network-based (buyer supplier/contractor)
• ex. Nike

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Areas of concern

• Extractive industries (oil, diamonds, gold)
• Labour-intensive ind. (clothes, toys, carpets,
  Ipods)
• Pharmaceuticals (access to vital medicines)
• Agricultural commodities (coffee, cocoa, bananas)

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Extractive industries

• OIL in Nigeria

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Labour-intensive industries

• Sweatshops

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OECD Guidelines for Multinational
Enterprises1976/2000

• Employment and Industrial Relations
• Environment
• Combating Bribery
• Consumer Interests
• Science and Technology
• Competition
• Taxation

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OECD Guidelines

• Respect the human rights of those affected by
  their activities consistent with the host
  governments international obligations and
  commitments.

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Coverage

• Investment link - YES
• Contractual relationship - MAYBE
• Encourage, where practicable, business partners,
  including suppliers and subcontractors, to apply
  principles of corporate conduct compatible with
  the Guidelines.

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National Contact Points

• Adhering countries shall set up National Contact
  Points for undertaking promotional activities,
  handling inquiries and for discussions with the
  parties concerned on all matters covered by the
  Guidelines

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Powers of NCPs

• 1. Make an initial assessment of whether the
  issues raised merit further examination.
• 2. Offer good offices to help the parties
  involved to resolve the issues.
• 3. Make recommendations as appropriate, on the
  implementation of the Guidelines.

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ILO Tripartite Declaration of Principles
concerning Multinational Enterprises and Social
Policy(1977/2000)
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ILO Declaration

• EMPLOYMENT
• Employment promotion
• Equality of opportunity and treatment
• Security of employment
• Training
• CONDITIONS OF WORK AND LIFE
•  Wages, benefits and conditions of work
• Minimum age
• Safety and health
• INDUSTRIAL RELATIONS
• Freedom of association and the right to organize
• Collective bargaining
• Consultation
• Examination of grievances
• Settlement of industrial disputes

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Procedure for the Examination of Disputes

• The purpose of the procedure is to interpret the
  provisions of the Declaration when needed to
  resolve a disagreement on their meaning, arising
  from an actual situation, between parties to whom
  the Declaration is commended.

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European Union

• EU Committee on Development and Cooperation EU
  Standards for European Enterprises Operating in
  Developing Countries Towards a European Code of
  Conduct (1999)
• Commission - Green Paper Promoting a European
  framework for CSR (2001)
• Commission - White Paper - Communication on CSR
  A business contribution to Sustainable
  Development (2002)
• Commission - White Paper - Implementing the
  Partnership for Growth and Jobs Making Europe a
  pole of excellence on CSR (2006)

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United Nations

• Norms on the Responsibilities of Transnational
  Corporations and Other Business Enterprises with
  Regard to Human Rights (1999-2004)
• Global Compact (1999 - )

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UN Norms

• Non-discriminatory treatment
• Right to security of persons
• Rights of workers
• Respect for national sovereignty and human rights
• Obligations with regard to consumer protection
• Obligations with regard to environmental
  protection

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UN Norms

• Transnational corporations and other businesses
  enterprises shall be subject to periodic
  monitoring and verification by United Nations,
  other international and national mechanisms
  already in existence or yet to be created,
  regarding application of the Norms. This
  monitoring shall be transparent and independent
  and take into account input from stakeholders
  (including non governmental organizations) and as
  a result of complaints of violations of these
  Norms.

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Global Compact

• Human Rights
• Principle 1 Businesses should support and
  respect the protection of internationally
  proclaimed human rights and
• Principle 2 make sure that they are not
  complicit in human rights abuses.
• Labour Standards
• Principle 3 Businesses should uphold the freedom
  of association and the effective recognition of
  the right to collective bargaining
• Principle 4 the elimination of all forms of
  forced and compulsory labour
• Principle 5 the effective abolition of child
  labour and
• Principle 6 the elimination of discrimination in
  respect of employment and occupation.

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UN Agencies participating in the Global Compact

• Office of the High Commissioner for Human Rights
  
• United Nations Environment Programme
• International Labour Organization
• United Nations Development Programme
• United Nations Industrial Development
  Organization
• United Nations Office on Drugs and Crime

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Mechanisms of the Global Compact

• Policy Dialogues
• Learning (sharing of good practices)
• Country/Regional Networks
• Local projects (partnerships).

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Global Compacts Integrity Measures

• Use of the GC logo
• Communication of Progress (COP) (sanction
  non-communicating -gt inactive removal from
  the list of participants)
• Complaint procedure for systematic or
  egregious abuse (sanction inactive -gt
  exclusion).