Multinational enterprises and social policy

1. Multinational enterprisesand social policy International instruments and Corporate Social ResponsibilityUnions and GlobalisationTurin 9 November 2008

2. What is CSR? "…a way in which enterprises give consideration to the impact of their operations on society and affirm their principles and values both in their own internal methods and processes and in their interaction with other actors. CSR is a voluntary, enterprise-driven initiative and refers to activities that are considered to exceed compliance with the law"

3. International frames of reference on CSR • ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration) • United Nations’ Global Compact • OECD Guidelines for Multinational Enterprises

4. ILO & CSR • MNE Declaration • Declaration on Fundamental Principles & Rights at Work • Global Compact • In-Focus Initiative on CSR

5. International Labour Conventions and enterprises Member State ratification National Legislation International Labour Conventions Binding Principles Non-binding Enterprise

6. The MNE Declaration • Key instrument on labour aspects of CSR • Adopted by the Governing Body of the ILO in 1977 (last update: 2006) • Non-binding character • Recommendations to enterprises, governments, employers and workers • Applies to multinational and domestic companies

7. MNE Declaration Content • General policies • Employment promotion and security • Equality of opportunity and treatment • Skills training • Conditions of work: Child and forced labour, wages and benefits, occupational safety and health • Industrial relations: freedom of association and collective bargaining

8. MNE Declaration Follow up • MNE Subcommittee of the Governing Body & Multinational enterprises team • Periodic surveys • Interpretation Procedure • Promotional activities, research, technical cooperation

9. The UN Global Compact • An international framework for corporate social responsibility • Based on internationally accepted principles: • Universal Declaration of Human Rights • ILO Declaration on Fundamental Principles and Rights at Work • Rio Declaration on Environment and Development • UN convention against corruption • A Multi-stakeholder network of business, labour, governments, UN agencies, NGOs and others

10. The Global Compact is NOT • A regulatory instrument • An instrument which “polices”, enforces or measures the behaviour or actions of companies • A code of conduct nor a label • A mechanism for financing companies engaged in social activities

11. Ten Principles Businesses should: • Support and respect the protection of international human rights within their sphere of influence • Make sure their own corporations are not complicit in human rights abuses • Uphold freedom of association and the effective recognition of the right to collective bargaining • Uphold the elimination of all forms of forced and compulsory labour • Uphold the effective abolition of child labour

12. Ten Principles Businesses should: • Eliminate discrimination in respect of employment and occupation • Support a precautionary approach to environmental challenges • Undertake initiatives to promote greater environmental responsibility • Encourage the development and diffusion of environmentally friendly technologies • Work against all forms of corruption, including extortion and bribery

13. How to participate • Send a letter to the UN Secretary General • Inform stakeholders of participation • Set in motion changes to business strategy and operations • Submit annually a communication on progress made in implementing the ten principles

14. Local Networks and actors • Global Compact Country Activities • The Global Compact relies on the actions of those involved: • Companies • Employers’ organizations • Workers’ organizations • NGO’s (human rights, environment, development) • Academic Institutions • United Nations system

15. OECD Guidelines • Recommendations from Governments to enterprises • Adopted 1976, amended in 2000 • Part of the OECD Declaration on International Investment and Multinational Enterprises

16. OECD Guidelines - Main features • Legally binding for Governments but not for companies • Primarily addressed to multinational enterprises but also to small and medium-sized enterprises • Not an alternative to national laws and regulations, but represent complementary principles of behaviour

17. OECD Guidelines Content • General policies • Disclosure • Employment and industrial relations • Environment • Bribery • Consumer interests • Science and technology • Competition • Taxation

18. Content related to labour • General policies: respect the human rights of those affected by their activities • Employment and Industrial relations • Freedom of association and collective bargaining • Child labour • Forced labour • Non-discrimination • Employment promotion and security • Skills Training • Environment • Health and Safety

19. Implementation: National Contact Points (NCPs) • Adhering countries set up NCPs to: • Carry out promotional activities • Handle enquiries • Contribute to the solution of problems that may arise from alleged non-compliance with the Guidelines • NCPs should cooperate among them • NCPs meet annually to share experience and report to the Investment Committee

20. NCP Specific Instances procedureIf a company is believed to be in breach of the Guidelines: A trade union, an NGO or another interested party can raise a case with the appropriate NCP NCP can seek advice from relevant authorities, employers’ organizations, trade unions, the OECD Investment Committee and other relevant experts Initial assessment to decide if case merits further examination Second phase of investigation: a forum for discussion for the parties concerned, allowing conciliation or mediation Impossible Resolution Possible Resolution Public statement which can include recommendations to the company

21. Implementation: Investment Committee • Periodically hold exchanges of views on matters covered by the Guidelines • Examines NCPs’ requests for assistance and annual reports • Responsible for clarifications of the guidelines consults with TUAC, BIAC and NGOs • Holds exchanges of views among adhering and non-adhering countries • Reports to the OECD Council

22. International instruments compared