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CSR Frame of Reference 2002

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CSR Frame of Reference 2002 CSR Frame of Reference Coalition of Dutch CSOs & Trade Unions actively promoting CSR Keizersgracht 132 1015 CW Amsterdam The Netherlands T: +31 (0)20 639 12 91 F: +31 (0)20 639 13 21 [email protected] www.mvo-platform.nl July 2003 Design:Clementien Heim Print:Offsetdrukkerij Peco BV,Amsterdam CONTENTS I. Introduction 2 II. CSR standards 5 1. Human rights 5 2. Labour 6 3. Environment 7 4. Consumer protection 8 5. Health 9 6. Fighting corruption 10 7. Other CSR aspects 10 III. Condition for compliance with CSR standards 11 IV. Operational aspects of CSR 11 1. Supply chain responsibilities 11 2. Stakeholder involvement 12 3. Transparency and reporting 12 CSR 4. Independent verification 13 Frame of Reference 2 CSR Frame of Reference I. Introduction call on CSOs to provide a coherent vi- sion for CSR This Frame of Reference for corporate social • to guide the members of the CSR responsibility (CSR) has been developed by Platform – individually as well as col- the “CSR Platform”, a coalition of Dutch lectively – in developing their strate- Civil Society Organisations (CSOs) actively gies and launching fresh initiatives promoting CSR. The CSR Frame of Reference with a view to promoting CSR. lists the relevant standards, agreements and operational aspects involved in CSR interna- The Dutch “Social and Economic Council” tionally. This is done on the basis of treaties, (SER) has issued recommendations on CSR guidelines and instruments enjoying broad in a document entitled “Corporate Social international support and leading, either di- Responsibility – A Dutch Approach”. In this rectly or indirectly, to corporate social ac- document, the SER (an overarching policy- countability and responsibilities. setting body representing trade unions, employers and the government) has stated The CSR Frame of Reference has the follow- that CSR should be a core concern for all ing goals: companies and should be part and parcel of • to identify the relevant internation- its operations. According to the SER, CSR al treaties, guidelines and instru- should focus on the three main dimensions ments of value creation: Profit, People and Planet. • to help standardise the way in which As such, CSR is much more than a mere in- CSR concepts are expressed and de- volvement in social affairs (for example fined through neighbourhood improvement • to promote the vigorous application projects) and charity – no matter how of internationally recognised CSR praiseworthy such causes may be. Such ac- standards; tions cannot be seen as an alternative for • to respond to the business world’s responsible economic, social and ecological CSR Frame of Reference 3 behaviour in a company’s core business. such corporate obligations internationally Corporations should do everything within has yet to be created. their power to enable and promote CSR throughout the value-creation chain that Several developments currently unfolding they are part of. CSR is a process in which could help bring about this legal frame- corporations take responsibility for the so- work. Of major importance in this respect cial, ecological and economic consequences are the “Norms on the Responsibilities of of their actions – throughout their product Transnational Corporations and other Busi- and service delivery chains –making them- ness Enterprises with regard to Human 1 Norms on the Responsibilities of selves accountable, and engaging in a dia- Rights”1 developed by the United Nations Transnational Corporations and Other Busi- logue with all those involved. Sub-Commission on the Promotion and Pro- ness Enterprises with Regard to Human tection of Human Rights. This draft docu- Rights (U.N.Doc. In this CSR Frame of Reference, Dutch CSOs ment is based on international treaties and E/CN.4/Sub.2/2003/12/Rev.2 (2003). Ap- further specify their definition of corporate guidelines as well as model codes of con- proved August 13, 2003, by U.N. Sub- Com- social responsibility. This specification is duct developed by CSOs, trade unions and mission on the Promotion and Protection based, where possible, on international corporations. In addition, major initiatives of Human Rights resolution 2003/16, U.N. treaties, guidelines and instruments– in- to define and enforce corporate responsi- Doc. E/CN.4/Sub.2/2003/L.11 at 52 (2003)) { cluding ILO labour conventions, the Uni- bilities have been taken by the European HYPERLINK "http://www1.umn.edu/hu- versal Declaration of Human Rights, the U- Parliament. manrts/links/norms-Aug2003.html" } nited Nations Conference on Environment http://www1.umn.edu/humanrts/links/ and Development (UNCED; Rio de Janeiro, The voluntary OECD Guidelines for Multi- norms-Aug2003.html 1992), and the Copenhagen Declaration on national Enterprises provide an important Social Development (2000). While agreed to new standard, though these guidelines can- by national governments, these and other not be a substitute for legally binding na- treaties also lead to corporate responsibili- tional and international regulations. ties and obligations. An internationally binding legal framework for enforcing Individual corporations and industries have 4 CSR Frame of Reference their own dynamics, implying that the vari- hand in hand with governments. Examples ous elements of this Frame of Reference will of such initiatives are the international ne- not be equally relevant to each business or gotiations between trade unions and busi- economic sector. Companies should engage nesses on fundamental labour standards, – individually or in groups – in a construc- multi-stakeholder dialogues such as the tive dialogue with stakeholders to identify Round Table discussions with Dutch multi- the social and environmental impacts of nationals, initiated by Amnesty Internation- their actions. Policies for CSR should, in al, and initiatives such as the Fair Wear part, be developed and implemented on the Foundation, Max Havelaar and Fair Trade. A basis of such dialogues. It is very important number of principles listed in this Frame of to develop industry-specific guidelines, Reference have already been included in standards and instruments for implementa- model codes of conduct such as the ICFTU tion that should complement the general Basic Code of Labour Practice and industry- principles of this Frame of Reference. Initia- specific codes such as those developed by tives covering entire sectors or (production) the Clean Clothes Campaign. Such initia- chains would help bring about a systematic tives contribute to improving the quality of implementation of standards and guide- norms, their implementation, their moni- lines and the development of ‘best prac- toring and independent verification. They tices’ based on these guidelines. may also help adjust existing standards or even contribute to the development of new The development, interpretation and imple- standards. mentation of CSR will be influenced by ex- Given the dynamic nature of CSR theory perience gained and by the ongoing debate and practice, the CSR Platform regards this in society, and thus will be dynamic in char- Frame of Reference as a ‘living document’, acter. This dynamic nature is evident in the to be adjusted as and when major develop- various initiatives launched by civil society ments with regard to CSR occur. Intergov- and corporations, on occasion working ernmental co-operation, international leg- CSR Frame of Reference 5 islation and regulation, and CSR initiatives II. CSR standards by corporations and CSOs will contribute to the ongoing elaboration of this CSR Frame 1. Human rights of Reference. Corporations have an obligation to observe, respect and promote human rights. This re- sponsibility is set out in the preamble to the Universal Declaration of Human Rights 2 Universal Declaration of Human Rights, (UDHR).2 The Universal Declaration of G.A..res.217A (III),UN Doc A/810 at 71 (1948) Human Rights, which was adopted on 10 http://www.un.org/Overview/rights.html December 1948, is based on the notion that 3 The UNDHR comprises 30 articles speci- a recognition of the inherent dignity and of fying the fundamental human rights, in- the equal and undeniable rights of all cluding the right to life, security, freedom, members of the global community of peo- food, shelter, education, development, and ple constitutes the basis for freedom, jus- the freedom of thought, conscience and re- tice and peace across the world.3 The ligion, of expression and publicly voicing UDHR’s articles have been specified in sep- one’s opinion,and a ban on torture and arate UN treaties.4 slavery (the examples specified in this foot- note do not represent the Declaration’s arti- The preamble to the UDHR calls on “every cles in full). organ of society” to guarantee “by progres- 4 Examples of these are: sive measures” that human rights be recog- The right to security:the UN Basic Principles nised and complied with. Corporations, as on the Use of Force and Firearms by Law En- organs of society, are under the obligation forcement Officials and the UN Code of Con- to comply with internationally accepted duct for Law Enforcement Officials human rights and to promote respect for (http://www.hri.ca/uninfo/treaties/42.shtml) these rights and freedoms in their respec- The rights of indigenous people: ILO Con- tive spheres of activities and influence. 6 CSR Frame of Reference Consequently, corporations have the fol- other international human rights ventions 107 and 169, and the UN Draft De- lowing obligations: treaties in a code of conduct in which claration of Indigenous Rights • Corporations must do whatever they compliance with human rights is gua- (http://www.unhcr.ch/html/menu2/ind_ma can to promote human rights in ranteed. This code of conduct should in.htm) those countries where they operate. uphold the human rights of employ- The right to development:International In areas of conflict, where gross vio- ees and protect the human rights of Covenant on Economic,Social and Cultural lations of human rights occur, extra all members of the community in rights care should be taken with respect to which the corporation operates.
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