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. involvement 12 3. 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- . 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 . 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 . 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 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. (http://www.unhcr.ch/html/menu3/b/a_cesc the (supervision of) compliance with r.htm),the UN Declaration on the Right to De- fundamental human rights. 2. Labour velopment (Art.1.1) • Corporations should investigate how The International Labour Organisation (http://www.unhcr.ch/html/menu3/b/74.htm human rights might be affected by (ILO), a tripartite UN organisation founded ),the Copenhagen Declaration on Social De- the various types of business opera- in 1919 and representing governments, velopment. tions in a given country before businesses and workers, has set up a legal Women’s rights: UN Convention on the Elim- launching business activities there. and policy framework for Labour issues.5 ination of All Forms of Discrimination a- • Within the security of both property Since its inception, the ILO has issued al- gainst Women (www.un.org/women- and personnel corporations need to most 200 conventions on working condi- watch/daw/cedaw ,notably Art.11 and Art. make sure that all security person- tions. Eight of these ILO conventions speci- 14 ) and the Beijing Declaration and Plat- nel, whether or not part of national fy the four fundamental labour rights6. form for Action. (The Platform for Action authority, respect Human Rights and These four labour standards are as follows7: was founded at the Fourth World Confer- comply with the principles of the UN • Freedom of association and the right ence on Women ; http://www.un.org/wom- Code of Conduct for Law Enforce- to collective bargaining (ILO conven- enwatch/daw/beijing/platform/declar.htm ). ment Officials and the Basic Princi- tions 87, 98, complemented by 135) 5 A number of the workers’rights listed ples on the Use of Force and Firearms •A ban on forced labour (ILO conven- are also specified in the UNDHR, for exam- by Law Enforcement Officials. tions 29 and 105) ple the UNDHR’s Art.20 and 30 (freedom of • Corporations should include an ex- •A ban on (ILO conven- organisation), Art.4 (ban on forced labour), plicit reference to the UDHR or to tions 138 and 182) Art.23 (life-sustainable wages). In addition, CSR Frame of Reference 7 children’s rights are covered by the UN con- •A ban on discrimination in the lines (Chapter IV, Employment and Labour vention on the rights of the child workplace and in professions (ILO Relations) include important clauses on (http://www.unhchr.ch/html/menu3/b/k2cr conventions 100 and 111)8 employment policy in general, namely: c.htm) • Training (Tripartite declaration, Art. 6 Conventions of the International Labour The ILO conventions focus in particular on 29-32) Organisation (ILO) governments’ responsibilities with respect • Handling of complaints (Tripartite (http://ilolex.ilo.ch:1567/english/con- to labour rights. The Tripartite declaration declaration, Art. 57-58) vdisp1.htm) of Principles Concerning Multinational En- • Prior notice and maximum mitiga- 7 Also refer to the ILO Declaration on Funda- terprises and Social Policy extends the ILO tion in cases where changes in oper- mental Principles and Rights at work (1998). conventions, listing corporate responsibili- ations, such as lay-offs and dis- 8 This has been extended recently by the ties with regard to labour issues and also in- missals, have major effects on the adoption of ILO conventions specifically ad- cluding a number of additional labour livelihood of employees (OECD dressing women’s rights:Maternity Protec- standards falling under the specific respon- guidelines IV, Art. 6) tion at the workplace (ILO convention 183) sibility of corporations:9 • No threat of transferral for exercis- and the Convention on homeworking (ILO • The right to security of employment ing the right to organise (OECD convention 177) (Tripartite Declaration, Art. 24-28) Guidelines, IV, Art. 7) 9 Along with the fundamental labour • The right to a living wage (ILO con- • No practice of double standards standards, these standards constitute the ventions 26 and 131) (OECD Guidelines, IV, Art. 5) basic criteria in the “SA 8000 standard”,the • The right to safe and sound working • Employing and training staff locally “ICFTU/ITS Basic Code of Labour Practice”,de conditions (ILO convention 155) as much as possible (OECD Guide- ETI and de “CCC Code of labour practices for • Compliance with the maximum lines, IV, Art. 5) the apparel and sportswear industry”. number of working hours (48+12) • Allowing workers’ representatives to (ILO convention 1) negotiate and confer with decision makers (OECD Guidelines, IV, Art. 8) The 1976 ILO Tripartite Declaration of Prin- ciples Concerning Multinational Enterpris- 3. Environment es and Social Policy and the OECD Guide- The United Nations first recognised sus- 8 CSR Frame of Reference

tainable development as a universal goal at effects on safety and the environment: 10 Sustainable development:“develop- the Earth Summit in Rio de Janeiro in • The principle of preventive action ment that meets the needs of the present 199210. This Summit meeting adopted the (Art. 174 (130 R, section 2) EC Treaty) without compromising the ability of future Rio Declaration on the environment and • The precautionary principle (Rio De- generations to meet their own needs.”As s- development, and Agenda 21. There are claration, Art.15 and Art. 174 (130 R, tated in the 1997 Brundtland report, also several other important treaties and con- section 2) EC Treaty)19 known as “Our Common Future”. ventions specifying the responsibilities of • Tackling environmental damage at 11 Convention on Biological Diversity corporations with regard to the effects of the source (Art. 174 (130 R, section 2) (http://www.biodiv.org/). their processes, products and services on EC Treaty) 12 Cartagena protocol on biosafety the quality of air, water, soil, climate, bio- • The polluter pays’ principle (Rio Dec- (http://www.biodiv.org/biosafety/).This diversity and bio-safety and health. These laration, Art. 16, Art. 174 (130 R, sec- protocol is a supplement to the Convention include the Convention on Biological Di- tion 2) EC Treaty)20 on Biological Diversity and involves a “pre- versity (1992),11 the Cartagena Protocol on cautionary approach”,as stated in Principle Bio-safety (2000),12 the Kyoto Protocol,13 4. Consumer protection 15 of the Rio Declaration. the Stockholm Convention on Persistent The UN Guidelines for Consumer Protec- 13 Kyoto Protocol: http://unfccc.int/re- Organic Pollutants (POPs; 2001),14 the Rot- tion, revised in 1999, provide international source/conv/index.html terdam Convention on Prior Informed Con- legitimacy to consumer interests. These 14 The Stockholm Convention on Persis- sent (PICs; 1998)15 and the OECD Guide- guidelines are based on the eight principles tent Organic Pollutants: lines for Multinational Enterprises.16 The for consumer protection.21 Consumers and http://www.chem.unep.ch/sc/ Aarhus Convention (1998) was the first to their organisations expect corporations to 15 The Rotterdam Convention on the Prior link human rights with environmental respect consumer values, to comply with Informed Consent (PIC), Procedure for Cer- rights. This Convention includes impor- legal standards, and to take the initiative in tain Hazardous Chemicals and Pesticides in tant clauses on stakeholder participation, making themselves accountable for their International Trade (http://www.pic.int/) transparency and access to justice.17 Final- actions in the light of these standards. The 16 By now, there are some 200 multilateral ly, a number of general principles have following standards are relevant: treaties on the environment, defining the been stated in the EC treaty18 and the RIO • The right to access to necessary policy and legal framework for the environ- Declaration, designed to prevent adverse goods and services (III.D.) ment. These treaties date back to before CSR Frame of Reference 9 and after the 1992 Rio Earth Summit. • The right to safety (III.A, C, H.)22 Specifically, this means that “it is particu- 17 UNECE Convention on Access to Infor- • The right to information (III.B.)23 larly incumbent on State parties and other mation, Public Participation in Decision- • The right to choose (III.B.) actors in a position to assist, to provide ‘in- making and Access to Justice in Environ- • The right to be heard (III.E.) ternational assistance and co-operation, es- mental Matters (Aarhus Convention; • The right to appeal and lodge a com- pecially economic and technical’ which en- http://www.unece.org/env/pp/).This con- plaint (III.E.) able developing countries to fulfil their vention specifies “Principle 10”of the Rio • The right to consumer education core and other obligations” (paragraph 45). Declaration:“Environmental issues are best (III.F.) handled with the participation of all con- • The right to sustainability (III.G.)24 This implies that corporations have an obli- cerned citizens,at the relevant level. At the gation to contribute to the following obli- national level, each individual shall have ap- 5. Health gations, including: propriate access to information concerning The universal right to optimum health im- • No discrimination in ensuring the the environment that is held by public au- plies that every human being has a right to right to access to health facilities, thorities, including information on haz- the highest possible standard of health. goods and services, especially for ardous materials and activities in their com- This right is derived from the Universal De- vulnerable and marginalized groups munities, and the opportunity to participate claration of Human Rights (Art. 25) and the in society in decision-making processes. States shall international treaty on economic social • Ensure access to a minimum of food, facilitate and encourage public awareness and cultural human rights (or ESC rights, a basic level of shelter and sanitation and participation by making information Art. 12). In its “general comment Nr. 14”25 and an adequate supply of safe widely available. Effective access to judicial the UN Committee on ESC Rights discusses drinking water and administrative proceedings, including the obligations of both states and non-state • Provide education and access to in- redress and remedy, shall be provided.” actors, such as corporations. In paragraph formation on the community’s main 18 The principles of taking precautionary 42, the Committee notes that while only s- health issues, including methods for measures and preventing and fighting pol- tates are parties to the treaty and hence - preventing ill health and checking lution at the source as well as the principle timately accountable, all members of soci- whether appropriate measures are that the “polluter pays”are the basic princi- ety, including the business world, have an taken ples of the European Union’s policy on the obligation to enforce the right to health. In addition, corporations have a special obli- 10 CSR Frame of Reference

gation with respect to the right to a sound changes in social interaction and will be dy- environment.Cf.www.europarl.eu.int/fact- work environment as part of their employ- namic in character. Certain topics relating sheets/4_9_1_nl.htm. ees’ right to health (Art. 12.2b of the ICESCR). to CSR have been expressed in guidelines, 19 “Principle 15”of the Rio Declaration s- According to the Committee, this right in- but are still a matter of public debate. In tates as follows:“In order to protect the en- cludes: view of the ‘living’ nature of this CSR Frame vironment, the precautionary approach • The obligation to prevent work-related of Reference, this section lists the topics shall be widely applied by States according accidents and illness that will play an important role in the fur- to their capabilities. Where there are • Minimising the causes of health ther specification and elaboration of corpo- threats of serious or irreversible damage, risks inherent in the work environ- rate social responsibility. The following lack of full scientific certainty shall not be ment CSR aspects are involved: used as a reason for postponing cost-effec- • Creating safe and hygienic working • Competition (OECD Guidelines, tive measures to prevent environmental conditions Chapter IX, and the set of multilater- degradation.” ally agreed equitable principles and 20 “Principle 16”of the Rio Declaration s- 6. Fighting corruption rules for the control of restrictive tates as follows:“National authorities should Corporate responsibility in the field of cor- business practices)28 endeavour to promote the internalisation of ruption is covered by the 1992 OECD Con- • Taxation (OECD Guidelines, chapter environmental costs and the use of econom- vention on Combating Bribery of Foreign X)29 ic instruments, taking into account the ap- Public Officials in International Business • Science and technology (OECD proach that the polluter should, in principle, Transactions.26 This convention prohibits Guidelines, chapter VIII) 30 bear the cost of pollution, with due regard the bribing of foreign public officials by • Respect for national sovereignty and to the public interest and without distorting corporations: local communities international trade and investment.” • Ban on bribing foreign government 21 Cf. officials (Art. 1)27 http://www.un.org/esa/sustdev/cpp1225.htm .Consumer rights are also incorporated in a 7. Other CSR aspects number of treaties:The EC Treaty of Maastricht As already stated, the further specification and the EC Treaty of Amsterdam include and elaboration of CSR is subject to clauses saying consumer interests should be CSR Frame of Reference 11 taken as principles governing European Union III. Condition for compliance with accountable, corporations honour the pub- decision-making. CSR standards lic’s right to be informed of the ethical, so- 22 Corporations should identify new risks cial and environmental effects of a corpora- and developments that could have adverse tion’s operations, products and services. As consequences for consumers, and collabo- Trade and supply conditions, such as a result, the public will be able to make an rate with other parties in the industry as prices, supply deadlines and supply condi- informed assessment of companies’ CSR per- well as with governments while doing so, tions, should at least enable compliance formance. Introducing social responsibility and they should also engage in a dialogue with international treaties and national and implies adhering to the with consumers and other stakeholders legislation throughout business value following principles: with respect to this issue. chains. These conditions are established in 23 Corporations should inform the public – discussions with key stakeholders.31 1. Supply chain responsibilities on request or instruction, but also on their CSR should be a key concern of all corpora- own accord – about the price, quality and tions, and should be part and parcel of production aspects throughout the chain, so IV. Operational aspects of CSR their operations. A corporation’s social re- as to uphold consumer interests and remove sponsibility should cover all of its suppli- consumer concerns. Cf.the OECD Guidelines, Companies are expected to live up to their ers, subcontractors, licensees, alliances and Chapter VII, Consumer interests, notably Art. social responsibilities by adhering to the anyone serving the company, irrespective 1, 2 and 4. Also important in this regard is aforementioned internationally agreed stan- of the formal relationship, the nature of the 1981 WHO Code of Marketing of Breast- dards and treaties. This responsibility im- the product or service concerned, or the ge- milk Substitutes (www.who.int/nut/docu- plies that corporations develop specific poli- ographic location. The chain’s definition ments/code_english.PDF). cies for adopting, implementing and pro- and the delineation of the exact scope of a 24 Corporations should help implement moting international treaties and guide- given chain should be determined on the the principles of sustainable production and lines, while guaranteeing that these policies basis of stakeholder participation. Corpo- consumption, in accordance with national are put into practice in every aspect of their rations are expected to do everything with- and international regulation and treaties. operations. Social responsibility also im- in their power to enable, promote and im- Consumer’s rights to sustainable production plies that corporations should be account- plement CSR practices throughout their and consumption are explicitly respected, able for their actions. By making themselves chain(s) of operation.32 12 CSR Frame of Reference

2. Stakeholder involvement greement about norms, values, mutual among others, by the Rio Declaration, the Allowing oneself to be held accountable re- rights and obligations. The dialogue should UN (UNEP), the Brundtland report and the quires a readiness to engage in a dialogue involve the companies’ ultimate decision- European Union. with stakeholders. These might be individ- makers. Companies should be accountable 25 General Comment No.14 (2000) The right uals or groups who could affect, or be af- for the stakeholder process by means of re- to the highest attainable standard of health fected by, corporate actions, decisions, poli- porting and independent verification. (article 12 of the International Covenant on cies, practices or goals. Such effects might Economic, Social and Cultural Rights) be indirect or direct. Corporations should, The stakeholder process aims to give shape (http://www.unhchr.ch/tbs/doc.nsf/(Sym- in their social dialogue, address all stake- to the CSR policy of a company through the bol)/40d009901358b0e2c1256915005090b holders, including workers, suppliers and joint development of objectives, implemen- e?Opendocument) the local population, consumers, social or- tation plans, and indicators. Stakeholder 26 This treaty has been legally-binding in ganisations and public authorities. Such di- involvement will help develop an under- the Netherlands since 1 February 2001. Cor- alogues and consultations should at least standing of the dilemmas faced by corpora- ruption is one of the three criteria consid- be governed by national and international tions. At the same time, corporations de- ered by the Dutch government in the appli- standards for consulting workers, their rep- velop a clear awareness of the concerns of cation of its instruments for promoting ex- resentatives, work councils and trade u- the stakeholders with regard to the conse- ports and investments. Article 1 of the nions. quences of company behaviour. Treaty states the following:“The Offence of Bribery of Foreign Public Officials: Each The stakeholder process is characterised by 3. Transparency and reporting Party shall take such measures as may be an ongoing exchange of information, dia- Corporations are expected to be open and necessary to establish that it is a criminal logue, consultation and structural involve- transparent in their policies, and must ac- offence under its law for any person inten- ment in a company’s CSR policies, includ- count for their social conduct. Reporting tionally to offer, promise or give any undue ing issues not yet covered by treaties or leg- plays a crucial role in this respect. At the pecuniary or other advantage, whether di- islation. moment, the guidelines of the 1997 Global rectly or through intermediaries, to a for- Reporting Initiative (GRI) are the most fre- eign public official, for that official or for a Companies are expected to participate in a quently cited stan- third party, in order that the official act or stakeholder dialogue on the basis of an a- dards.33 Reporting has the function, refrain from acting in relation to the per- CSR Frame of Reference 13 formance of official duties, in order to ob- among others, of informing stakeholders. mation meetings and training. Companies tain or retain business or other improper Stakeholders should obtain sufficient rele- should live up to their supply chain respon- advantage in the conduct of international vant information on the effects of a compa- sibilities by informing all relevant stake- business.”(http://www1.oecd.org/daf/no- ny’s conduct and the consequences of these holders about their CSR policies, for exam- corruption/20nov1e.htm) effects for the various stakeholders, so as to ple by distributing a code of conduct, by 27 Principles with respect to the fight a- enable them to make informed choices. translating standards in local languages, gainst corruption are also stated in the fol- and by providing information. lowing guidelines: Corporations will account for their actions UN Declaration against Corruption and transparently, by providing relevant, clear 3. Publication of data and consultation Bribery in International Commercial Trans- and reliable information (of their own ac- In order to inform themselves about specif- actions (1996; http://www.un.org/docu- cord and on request) in a regular and time- ic CSR risks (related to specific projects), ments/ga/res/51/a51r191.htm ) ly manner. This information may be made corporations should inform stakeholders Chapter VI, Combatting Bribery, in the OECD available by the following means: about their plans at an early stage. Social Guidelines for Multinational Enterprises. and environmental impact reports should 28 The “set of multilaterally agreed equi- 1. Regular public reports inform stakeholders in advance about the table principles and rules for the control of Companies should provide adequate infor- possible environmental effects of corporate restrictive business practices” mation in a timely manner, on the social, plans. (http://www.unctad.org/en/subsites/cpoli- ethical and environmental policies and/or cy/docs/CPSet/cpset.htm) and the OECD other codes of conduct they subscribe to, 4. Independent verification Guidelines (Chapter IX, on competition) and should specify their performance with The quality, use and credibility of a corpo- state non-binding rules for fair competition respect to such criteria. ration’s reports and the underlying man- to be adhered to voluntarily. The following agement systems and processes will be en- principles are involved: 2. Provision of information hanced by independent verification. An in- Corporations should refrain from entering Companies should provide stakeholders dependent process of verification is the key into agreements that would limit competi- with relevant information, for example by to effective implementation. This starts tion, particularly when these would hurt means of impact assessment reports, annu- with internal monitoring by the company developing countries’international trade al reports, labelling, quality labels, infor- on CSR policy compliance (implementa- 14 CSR Frame of Reference

tion plans, goals and indicators). Corpora- question should be corrected and improve- and economic development. tions do so by setting up internal monitor- ment plans should be drafted and imple- Corporations should refrain from engaging ing systems aligned with other actors in the mented. in activities whereby they would abuse supply chain. Compliance with CSR policies their dominant market position, or from ac- must also be verified independently. This quisitions with adverse effects on develop- verification should be carried out by organ- ing countries. isations not linked to the companies in 29 OECD Guidelines (Chapter X): question, and should have the full trust of Corporations should refrain from transfer the stakeholders involved. Finally, the out- pricing, i.e.the practice of manipulating come of the verification procedure must be prices in cross-border transfers with the aim made public in a reliable manner. of avoiding income or trade taxes. Corporations should not engage in tax eva- Ultimately, the goal of corporate social re- sion. sponsibility is to bring about a real change 30 With respect to science and technology, for the better in the lives of both current this involves (for example) the debate on and future stakeholders. This is why it is health risks, bio diversity (emergence of important – as part of the monitoring and gentech crops) and patents. verification processes – that workers and 31 Consider the Fair Trade criteria other stakeholders be provided with oppor- (www.fairtrade.net) criteria, for example: tunities to lodge complaints when their A fair price should cover all production costs, rights are violated. Providing information including social and environmental costs on a corporation’s social conduct should A fair price should offer a decent standard not lead to disciplinary measures, dis- of living to producers charge or discrimination. In addition, com- A fair prices guarantees a margin allowing panies should offer fair compensation in investments for the future. the case of breaches of CSR policies. In 32 Chain responsibility is increasingly in- cases of non-compliance, the mistakes in cluded in international guidelines, treaties CSR Frame of Reference 15 and codes of conduct, including the OECD This CSR frame of reference is subscribed to Netherlands Committee for IUCN guidelines (Chapter II, paragraph 10) and by the following members of the CSR Plat- Netherlands Institute for Southern Africa the UN draft “Norms on the Responsibilities form:34 Novib (Oxfam Netherlands) of Transnational Corporations and Other Pax Christi Netherlands Business Enterprises with Regard to Human Amnesty International Netherlands Plan Netherlands Rights”; http://www.business-human- CLAT Netherlands Clean Clothes Campaign rights.org/UN-Draft-Principles.htm ). CNV (National Federation of Christian Trade Unions in SOMO (Centre for Research on Multinational Corpora- 33 Global Reporting Initiative: the Netherlands) tions) http://www.globalreporting.org/GRIGuide- Consumentenbond (Dutch Consumers Union) Max Havelaar Foundation lines/. Cordaid (Catholic Organisation for Relief and Develop- Netherlands Society for Nature and Environment 34 For more information on the CSR Plat- ment) VBDO (Dutch Association of Investors for Sustainable form and its members, refer to www.mvo- DISK (national bureau of industrial mission in the Development) platform.nl Netherlands) Wemos – Health For all Evert Vermeer Foundation South-North Federation Fair Trade Organisation FNV (Netherlands Trade Union Confederation) Goede Waar & Co Hivos (Humanistic Institute for Development Co-oper- ation) ICCO (Interchurch Organisation for Development Co- operation) IRENE (International Restructuring Education Network Europe) Coffee Coalition India Committee of the Netherlands (ICN) National Association of World Shops Friends of the Earth Netherlands 16 CSR Frame of Reference