Corporate Social Responsibility

Appendix 3 Key international CSR instruments

United Nations Global Compact Ten Principles

The Global Compact's 10 principles (www.unglobalcompact.org) in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from the following sources:

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption.

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.

Environment

Principle 7 Businesses should support a precautionary approach to environmental challenges;

Principle 8 Undertake initiatives to promote greater environmental responsibility; and

Principle 9 Encourage the development and diffusion of environmentally friendly technologies.

Anti-corruption

Principle 10 Businesses should work against all forms of corruption, including extortion and bribery.

The Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises (2000 revision)

Extract from part 1, section II, General Policies

Enterprises should take fully into account established policies in the countries in which they operate, and consider the views of other stakeholders. In this regard, enterprises should:

Contribute to economic, social and environmental progress with a view to achieving sustainable development.
Respect the human rights of those affected by their activities consistent with the host government's international obligations and commitments.
Encourage local capacity building through close co-operation with the local community, including business interests, as well as developing the enterprise's activities in domestic and foreign markets, consistent with the need for sound commercial practice.
Encourage human capital formation, in particular by creating employment opportunities and facilitating training opportunities for employees.
Refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory framework related to environmental, health, safety, labour, taxation, financial incentives, or other issues.
Support and uphold good corporate governance principles and develop and apply good corporate governance practices.
Develop and apply effective self-regulatory practices and management systems that foster a relationship of confidence and mutual trust between enterprises and the societies in which they operate.
Promote employee awareness of, and compliance with, company policies through appropriate dissemination of these policies, including through training programmes.
Refrain from discriminatory or disciplinary action against employees who make bona fide reports to management or, as appropriate, to the competent public authorities, on practices that contravene the law, the Guidelines or the enterprise's policies.
Encourage, where practicable, business partners, including suppliers and subcontractors, to apply principles of corporate conduct compatible with the Guidelines.
Abstain from any improper involvement in local political activities.

Sections III to X of part 1 cover disclosure, employment and industrial relations, the environment, combating bribery, consumer interests, science and technology, competition and taxation.

International Labour Organization Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy

This declaration was first adopted in 1977 by the International Labour Organization's governing body and was revised in 2000. It offers guidance to multinational enterprises, governments, and employer and worker organizations in areas such as employment, training, conditions of work and life, and industrial relations. As a declaration, it is not an international treaty or convention, but rather a part of international "soft law." One of the most significant aspects of the declaration is its understanding that although ILO conventions and recommendations address the behaviour of governments and are intended to be ratified by governments, the underlying principles of many of these instruments could be applied to other parts of society, including business.

Millennium Development Goals

World leaders agreed to the following Millennium Development Goals at the Millennium Summit in September 2000:

eradicate extreme poverty and hunger
achieve universal primary education
promote gender equality and empower women
reduce child mortality
improve maternal health
combat HIV/AIDS, malaria and other diseases
ensure environmental sustainability
develop a global partnership for development.

For further information, go to Millennium Development Goals

For a framework of action on how firms can help achieve these goals, see United Nations Development Programme and The Prince of Wales International Business Leaders Forum, Business and the Millennium Development Goals: A Framework for Action, 2003 (pdf file size 372kb).

Voluntary Principles on Security and Human Rights

In 2000, a group of resource extraction companies, working with non-governmental organizations, a trade union and CSR organizations, agreed on a set of principles for the provision of security consistent with human rights guidelines. This initiative was instigated by the American and British governments and is supported by the Dutch and Norwegian governments. The principles cover providing of security by public sector bodies and by private actors, and conducting risk assessments concerning security and human rights.

Equator Principles

The Equator Principles are a voluntary set of environmental and social screening criteria and guidelines that provide a framework for banks to manage environmental and social issues in project financing. The principles are based on the shared environmental and social standards of the International Finance Corporation and the World Bank, and apply globally to development projects in all industry sectors with a capital cost of US$50 million or more. Several Canadian banks have adopted the principles.

Draft Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights

Written in consultation with businesses, non-governmental organizations and unions, the draft norms were adopted by the United Nations Sub-Commission on the Promotion and Protection of Human Rights in August 2003. Although the draft norms do not have legal standing, they provide an indication of the possible human rights responsibilities of companies. On April 20, 2005, the United Nations Commission on Human Rights approved a resolution that would for the first time appoint a special representative with a mandate to identify standards of corporate responsibility with regard to human rights.

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