2. Describes companies’ responsibilities vis-
à-vis’ society in the areas of environment,
social issues and economy.
Its essential feature is that it is voluntary
and goes beyond compliance with
statutory requirements.
It often becomes a difficult issue when
companies build and maintain production
facilities in emerging and developing
countries.
Corporate Social Responsibilty (CSR)
3. Internationally Agreed Principles:
A. OECD Guidelines for Multinational
Enterprises
– Governments of OECD countries
set out general recommendations
for CSR. They relate exclusively to
foreign investments and not – as
often claimed by trade unions and
NGO’s to trade relations .It
explicitly do not set out to take
the place of a national law. Rather,
they encourage companies to
contribute – on a voluntary basis-
to the economic, social and
ecological development of the
countries where they are active.
4. • Respect of human rights
• Enhancement of human capital
• No discriminatory or disciplinary
measures against employees
• No demands for exemptions from
ecological or social standards
• No improper involvement in political
activities
• Punctual payment of tax debts
• No anti-competitive agreements
• Combating corruptions
Themes of OECD:
5. It is an instrument negotiated
and adopted by governments,
workers and employer organizations,
and is therefore based on broad
consensus.
Unlike the OECD Guidelines, it
only deals with social policy themes.
B. ILO Tripartite Declaration
6. • Increasing and promoting equality
of opportunity on employment
• Ideal working and living conditions
• Appropriate labor relations
The political significance of this lies
in the fact that, unlike other CSR
instruments, it does not lay down
any minimum requirements or
require specific actions. It clarifies
the division of tasks and the specific
responsibilities of the players
involved: state-social partners-
company.
Themes of ILO Tripartite Declaration:
7. Its objective is to strengthen
cooperation between the UN,
business and other groupings in
society and thus making a worldwide
contribution to more sustainable
growth. It set out to give closer
consideration to the core values in
the field of: human rights, labor
relations, environment and
combating corruptions.
C. UN Global Compact
8. What are International Framework Agreements
(IFAs)?
These are concluded between a
multinational enterprise (active) and an
international sectoral trade union.
For trade unions, IFAs are a way of
promoting recognition of their organization
and worker rights at global level. It
strengthen corporate identity.
