Geen diatitel

1
GOVERNING CSR The responsibility of states to
apply CSR standards to trade
SOMO Centre for Research on Multinational
Corporations Joris Oldenziel London, May 22, 2006
2
Introduction SOMO

• Analysis of trade and investment regulations

• Research coporate behaviour in the South

• Analysis of sectoral trends and issues

• Corporate Social Responsibility/accountability

• Voluntary (multistakeholder) codes of conduct

• International guidelines and standards

• Coordinating CSR networks (CSR Platform, OECD
  Watch, European Coalition for Corporate Justice)

3

• CSR is a process in which corporations take
  responsibility and are accountable for the
  social, ecological and economic impacts of their
  activities

• CSR should focus on the core activities of
  companies and their production processes
  throughout their supply chains

• CSR should be based on internationally agreed
  standards, conventions and agreements

• CSR may include voluntary activities but should
  have at its starting point compliance by minimum
  standards

4

• Imbalance between binding rights for MNEs (WTO)
  versus voluntary rules for MNE behaviour (OECD
  Guidelines, Global Compact)

• Trends towards outsourcing Supply and
  production chains are becoming increasingly
  global and complex

• Race to the bottom between developing countries
  to produce competitively and attract foreign
  investments

• The further down the supply chain, the more
  labour, human and environmental rights violations
  can be seen

5

• Limits to what can be expected from consumers
  regarding ethical shopping

• CSR initiatives only work for the
  well-intentioned companies, usually those that
  have a brand name to protect

• No incentives for production processes with no
  clear link to consumers

• WTO rules (non-discrimination) undermine
  governmental efforts to promote CSR through
  labelling

• International standards and Guidelines (ILO, OECD
  Guidelines) apply only to investment

6

• WTO members should adopt interpretations that
  allow governments to introduce labelling, CSR
  criteria in procurement and to ban products

• The scope of the OECD Guidelines should be
  extended from investment to trade

• OECD Governments should apply the OECD Guidelines
  to their own procurement policies, export credits
  and other governments subsidies

• The UN should work towards the development of
  internationally binding human rights framework
  and clarify the concept of spheres of influence