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Henri-Bernard Solignac Lecomte OECD Development Centre

Corporate Social Responsibility (CSR), global governance and sustainable development: what is at stake?. Henri-Bernard Solignac Lecomte OECD Development Centre. EU-LDC Network Conference ‘ Global Governance for Sustainable Development: Issues and Instruments ’ Chiang Mai, December 8-10, 2002.

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Henri-Bernard Solignac Lecomte OECD Development Centre

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  1. Corporate Social Responsibility (CSR), global governance and sustainable development:what is at stake? Henri-Bernard Solignac Lecomte OECD Development Centre EU-LDC Network Conference ‘Global Governance for Sustainable Development: Issues and Instruments’ Chiang Mai, December 8-10, 2002

  2. Outline 1. The CSR concept: shareholders & stakeholders 2. CSR and development: what are the links? 3. Vehicles for CSR: firms, governments, standards 4. Issues for debate

  3. The CSR Concept • Shareholder accountability • Stakeholder accountability • From opposition ... • … to a win-win situation? • by compliance • by choice • by moral obligation?

  4. CSR and Development (1) The development case • (+) the current of business on society is sub-optimal • (-) the scope for ‘bad’ corporate governance is greater than in developed countries

  5. CSR and Development (2) The business case(s) • Human resource retention, brand recognition, reputation insurance • Cost-saving and better market access • Mitigation of negative impacts • Social license to operate

  6. Vehicles for CSR (1) Firms • Normal operations • Social welfare and risk management • Re-alignment of core business competencies with development priorities (partnerships) There is evidence of success, but how do we scale it up?

  7. Vehicles for CSR (2)Governments • Minimum standards • Facilitate business going beyond compliance • Philippines CSR Week • Taiwan Green Business Award • Thailand Office on Labour Standards Development • Challenges

  8. Vehicles for CSR (3)Standards • Reporting (end-of-pipeline, NGOs) • Certification standards (financial sector) • ‘Aspirational’ / non-binding principles (IGOs) • UN Global Compact • OECD Guidelines on Multinational Enterprises

  9. CSR as an instrument for global governance? • How far is long term? • Who defines society’s expectations? • Is there a risk of a bias towards public opinion in the North? • Can shareholders afford CSR in bad times? • PR pressure or strategic shift? • How far into public governance? • What role for the EU? (Cotonou, …)

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