Corporate Social Responsibility and Ethics

Corporate Social Responsibility and Ethics Linda F. Golodner, President National Consumers League December 2005

National Consumers League • Consumer research, education and advocacy since 1899 • www.nclnet.org • Network of consumer groups throughout U. S. and abroad • Mission: economic and social justice for consumers and workers here and abroad

Consumer Advocacy in the United States National consumer groups • Consumers Union • Consumer Federation of America • Public Citizen • Public Interest Research Group (PIRG) • National Consumers League • National Association of Consumer Agency Administrators

Every consumer is unique and should have basic rights • Information • Education • Choice • Health and Safety • Right to be heard • Redress

Healthcare Safety Consumers in control Risk communication Fraud – fraud.org ID Theft Internet Fraud Fraud Against Seniors Counterfeit, including drugs and products Food Safety Contamination Technology to make processed food safer Corporate Social Responsibility Child Labor stopchildlabor.org Sweatshops International Standards LifeSmarts for teenagers lifesmarts.org National Consumers League Programs 2005-6

NCL Relationship with Government • Federal Trade Commission • Deceptive and misleading Advertising • Transborder and e-commerce • Truth in labeling • Food and Drug Administration • Safe and Effective Drugs • Food Safety • Department of Justice • Fraud • Counterfeit Goods

Relationships with Industry • Partnerships on issues of mutual concern • Open discussion about consumers and the marketplace • Joint efforts to oppose fraud and deception in the marketplace

NCL and the Direct Selling Education Foundation • Foundation supports consumer and academic programs • Consumer Advocates on Campus • Consumer Programs on Technology, Fraud, Women’s Health • International Programs on transborder consumer protection and e-commerce • Consumer advocates on DSEF Board of Directors – a unique relationship

Illegal pyramid scheme Take money from new investors to pay off earlier investors Leads to collapse Promoters disguise plan by making it look complicated How to protect yourself: Anyone guaranteeing a profit on an investment is likely a scam artist Look out for “highly complicated” investment Don’t be pressured to do something NOW Ponzi Schemes

Global Consumer Advocacy • Consumers International • Transatlantic Consumer Dialogue • Organization of Economic and Cooperative Development (Consumer Policy Committee) • International Standards Organization Consumer Policy Committee • Direct Selling Education Foundation International Programs/Outreach

Corporate Social Responsibility and Ethics • ISO-COPOLCO (International Standards Organization Consumer Policy Committee) • Consumers want to be able to trust marketplace • Ethical businesses • Social responsibility of all organizations

ISO 26000 – Guidance on Social Responsibility • Scope of standard • Assist organizations/corporations • Guide on identifying and engaging stakeholders (those impacted by your business) • Increase customer satisfaction and confidence

Working Group – three year project • 42 countries involved • Experts – one from each of the impacted stakeholders: industry, consumer, labor, nongovernmental organizations (NGOs), government, and Other (academic and CSR consultants) • Basic design has been established this year

Design Specification of Guidance Standard • Terms and definitions • Social Responsibility Principles Relevant • Guidance on Core Subjects/Issues • Guidance on Implementation • Bibliography

Linda GolodnerNational Consumers Leaguelindag@nclnet.orgwww.nclnet.orgwww.fraud.org202-835-3323

Corporate Social Responsibility and Ethics