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Main Argument

Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg University of California, San Diego Tamar Benzaken Koosed MANAUS Consulting. Main Argument.

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Main Argument

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  1. Creating an Enabling Environment for Responsible Labor Practices Richard FeinbergUniversity of California, San DiegoTamar Benzaken KoosedMANAUS Consulting

  2. Main Argument • It is fully appropriate for the public sector, acting on behalf of the common welfare and the formation of a public good, to establish a framework of incentives to advance responsible labor practices (RLP) • Business must be persuaded and have evidence that responsible labor practices are in their self interest • Governments have a strong role when the mutuality of interest is not self-evident Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  3. Methodology • Conducted field consultations with public, private, and civil sector experts on labor standards • Assessed state of labor issues, characteristics of legal architecture, and institutional capacity to implement a public incentive structure enabling responsible labor practices • In Costa Rica, a total of 95 people were interviewed, belonging to 57 organizations • In the case of El Salvador, 80 people were interviewed from 49 organizations in total Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  4. The Public-Good Case for RLP • The promotion of RLP as a non-rival, non-excludable good • Government investment in improved labor conditions do not prevent others from benefiting from the virtuous cycle • Society as a whole, even those members who did not contribute to RLP, benefit from having a prosperous local economy, with an educated workforce and a competitive business sector • Free-rider problem can be partially solved through incentive structures that force individual firms to contribute Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  5. A Whole-of-Government Approach • National and international efforts have generally been focused through departments of labor – typically among the weaker ministries • Narrow view of government forgoes a wide array of powerful policy instruments • RLP as the responsibility of the state should incorporate a whole-of-government (WoG) approach • Positive incentives should be the primary thrust Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  6. Examples from Costa Rica 1. Public procurement guidelines and the government supplier system 2. National banking institutions and compliance with labor laws 3. Building construction permits through the National Institute of Housing 4. Immigrant labor quota system and promotion of workers’ rights Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  7. Examples from Costa Rica 5. The inclusion of CSR in the agenda of a national competitiveness commission 6. Promoting the creation of a market for social auditors 7. Creating a regional training institution for social sustainability 8. The National Training Institute and incorporation of basic concepts of CSR into professional courses Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  8. Examples from El Salvador 1. Public procurement requirements 2. Public-private partnerships and the maintenance of the country’s infrastructure 3. Free trade zone laws and enforcement of labor laws 4. The mining law Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  9. Examples from El Salvador 5. Income tax exemptions and philanthropy 6. The Salvadoran Institute for Professional Training and CSR in the labor force 7. Recognizing responsible companies through the Institute of Social Security and the Consumer Protection Agency 8. The Ministry of Agriculture and the promotion of responsibly produced exports Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

  10. Recommendations • Governments should adopt a whole-of-government (WoG) approach to promoting responsible labor practices (RLP) • National tripartite mechanisms should review the range of government incentives to select the most cost-effective instruments to promote RLP • International organizations (ILO, IFC) should assist in evaluating efficiency of WoG instruments, diffusion of best practices Creating an Enabling Environment for Responsible Labor Practices Richard Feinberg and Tamar Koosed rfeinberg@ucsd.edu/tamar@manausconsulting.com

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