RESPONSIBLE MANAGEMENT WEEK 2

UNITED NATIONS GLOBAL COMPACT

Normative path of corporate responsibility is.

OECD- ORGANIIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT: international organization

that works to build better policies for better lives.

Was build in 1960.

It is composed of ambassador’s from member countries 38 and the European commission and is chaired
by the secretary-general.

OECD MEMBERS

India is a partnership

Mainly covering the rich income countries.

OECD guidelines for multinational enterprises

- The most comprehensive international standard on responsible business conduct.

- Recommendation from governments to business operating in or for adhering counties.
- Reflect evolving expectations
- Reflect evolving expectations
- Endorsed by business, trade unions and civil society
- Include the implementation of a mechanism called National contact points- committee that is
formalized towards whom the victims of multinational can approach ( non-legal binding)
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- Redraft in 211
- Open to non- OECD MEMBERS

SCOPE AND THEMES OF THE OECD GUIDELINES

Expect the companies behave responsibly by identifying avoiding and addressing negative impacts that
they:

- Cause
- Contribute to
- Directly linked to through a business relation

Key tool: is supply chain and due diligence ( analyzing the issues)

ALIGEMENT WITH OTHER INTERNATIONAL STANDARDS

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THE GUIDELINES ARE RELATES TO UN GUIDING PRINCIPLES AND ILO

OECD DUE DILIGENCE

At least lest a policy- that contributes to change the business culture

Potential harm is different depending on the company( marketing skinny models used as reference).

Track performance- I am doing it right? I need to openly tell what did you do ( actions)

Companies should carry out due diligence to identify, avoid and address adverse impacts that they
cause, contribute to or to which they are directly linked through their business operations.

NATIONAL CONTACT POINTS- VIDEO

2- ACCES TO REMEDY

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3- GOVERNMENT DIALOGUE

HOW NCP HANDLE CASES?

Every country can structure the organization as they want.

The procedure is public.

Guidelines for Multinational enterprises

 The most comprehensive international standard on resistible business conduct
 Recommendations egotism governments to businesses operating in or from
adhering countries
 Reflect evolving expectations 
 Endorsed by business, trade unions, and civil society
 Include implementation mechanism: National Contact Points
 Open to non-OECD members 

ILO
ILO- international labour organization: united nations agency dealing with labour issues

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1919

A large majority of UN members states are members of the ILO

They work in conventions ( are stronger) and recommendations

Some communities need child labour to survive – we need to look what is forced and what is cultural

ILO INTERNATIONAL LABOUR STANDARDS

 Conventions 
o Freedom of association and protection of the right to organize a
convention
o Right to the organize and collective bargaining convention 
o Forced labor convention 
o Abolition of forced labor convention 
o Minimum age convention 
o Worst forms of child labor convention 
o Equal remuneration convention
o Discrimination (employment and occupation convention)
 Recommendations

ILO FUNDAMENTAL POLICIES

1. The right of workers to associate freely ad bargain collectively 

2. The end of child labor
3. The end of forced and compulsory labor 
4. The end of unfair discrimination among workers

HOW ARE ILS CREATED?

 Tripartite legislative process

o Government 
o Workers
o Employees 

ILO STANDARDS- tripartite legislative process ( governments/ employers / workers)

They are legally binding for the countries.

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BENEFIT CORPORATION-D

Business that is legally taking the responsibility not only to pursue profit but also emission towards
planet, people…

It comes from the same idea of B-corp ( certification)

Patagonia is an example.

HISTORY OF BENEFIT CORPORATION

2006 B Lab- students of Stanford.

B-lab is the association that is behind the B-corp certification.

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The idea is to stay responsible in a long run- so they created this term.

First country was US ( Maryland) it is a state law ( only some certain states accepted).

Italy benefit corporation law ( second country) 2016 fist country outside the us

COMMITMENTS OF THE BENEFIT CORPORATION

- Purpose ( towards the public wealth/ society…)

- Accountability (legally)
- Transparency

EXAMPLES

Patagonia

Danone

COUNTRIES WITH BENEFIT CORPORATION LAW

- United states of America

- Italy
- British Columbia, Canada
- Colombia
- Ecuador
- Rwanda

INTERNATIONAL TREATY ON BUSINESS AND HUMAN RIGHTS

Treat because they say that the SDG’S are not strong enough.

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In June 2014, the UNHRC adopted Resolution 26/9, in which it decided ‘to establish an open-ended
intergovernmental working group on transnational corporations and other business enterprises with
respect to human rights’ (OEIGWG).

Since 2018, the OEIGWG has annually released a draft version of a potential BHR ( Business human
rights. Treaty.

REGULAR HUMAN RIGHTS TRITES BHR

outline rights that all individuals or particular
vulnerable groups, such as women or children,
are entitled to, and impose obligations on States
to respect, protect, or realize these rights.
focus on the regulation of a specific class of non-
State actors, meaning businesses, to ensure that
they do not harm human rights and that they
potentially play their part in contributing to the
realization of human rights.

Why a trendy
 UNGP’s failure to achieve access to justice
 The necessity to adopt legally binding standards governing corporate conduct
toward human rights
 The philosophical shift in international legal order vis-a-vis unchecked global
capitalism and corporate power
 An international instrument appropriate for addressing Ryan’s national nature
of human rights abuse involving MNEs
Why not a trendy?
 May weaken the consensus reached with the UNGPs and undermine the
implementation
 Not trumpet effectively in dealing with the web of complex interrelationships
between business and human rights 
 The process with lack of consensus building 

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 Imposing obligations on businesses under international human rights law

would raise complex normative issues and would be difficult to enforce
The aim of the trade is to improve victims’ access to justice 
Problematic aspects of the treaty 
1. All types of business enterprises? Only MNEs?
2. Cover all international human rights? Only settled, such as gross violations of
human rights?

PRO BHR
The most prominent argument in favour of a BHR Treaty is the necessity to adopt legally binding
standards governing corporate conduct towards human rights.4

A BHR Treaty would ‘provide a clear recognition and articulation of the important normative position
that fundamental rights under international law impose legally-binding obligations upon businesses’

BHR Treaty is needed ‘to fill certain governance gaps left by existing regulatory initiatives, including the
[UNGPs]’

AGAINST BHR

The role of businesses in human rights abuse in treaty negotiations may weaken the consensus reached
with the UNGPs and undermine their implementation.6

Should the treaty apply to all types of business enterprises (ie transnational and domestic ones) or
should it be limited to transnational corporations only?

It has been argued that imposing obligations on businesses under international human rights law would
raise complex normative issues and would be difficult to enforce.

Finally, there have been concerns about the lack of political adherence to the BHR Treaty project.

THE ADDED VALUE OF BHR

The future instrument must therefore include provisions to enable victims to obtain corporate
accountability and redress. This section sets out provisions that should be included in a future instrument
in order to guarantee access to justice in the context of litigation against MNEs in the home State.
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What is a benefit corporation?

A benefit corporation is a legal tool to create a solid foundation for long term mission alignment and
value creation. It protects company missions through capital raises and leadership changes, creates
more flexibility when evaluating potential sale and liquidity options, and prepares businesses to lead a
mission-driven life post-IPO.

HOW?

Existing companies can elect to become benefit corporations by amending their

governing documents. 

SINCE 1919 ILO- INTERNATIONAL LABOUR STANDARDS

RESPONSIBLE BUSINESS CONDUCT

Responsible business conduct (RBC) sets out an expectation that all businesses – regardless of their legal
status, size, ownership or sector – avoid and address negative impacts of their operations, while
contributing to sustainable development in the countries where they operate.

The OECD Centre for Responsible Business Conduct uses RBC standards and recommendations to shape
government policies and help businesses minimize the adverse impacts of their operations and supply
chains, while providing a venue for the resolution of alleged corporate, social, environmental, labour or
human rights abuses. Through RBC, businesses can make a positive contribution to economic growth and
development and become a powerful driver for achieving the SDGs

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