Module 02

MODULE 02
Framework of Social Orientation

PROGRAM: MBA SEMESTER: II
COURSE CODE: 2T6 COURSE TYPE: CORE
COURSE: CORPORATE NAME OF THE FACULTY: PROF. DEEPIKA SONI/DR.
SOCIAL RESPONSIBILITY DHANASHREE KATEKHAYE
CO2 Given a chance, the future manager will be able to frame and
recommend the CSR policy according to sustainable
development.
1. MANAGEMENT AND SOCIAL THEORIES
Management theories are concepts surrounding recommended management strategies, which

may include tools such as frameworks and guidelines that can be implemented in
modern organizations. Generally, professionals will not rely solely on one management
theory alone, but instead, introduce several concepts from different management theories that
best suit their workforce and company culture.
Actively involving employees in decision-making process

Participative management Style
Building connections and lines of communications between

Network Management Style teams and trusting them to work collaboratively
Shifting between hands-on and hands-off approach to

Mentor Management Style management to develop employees' skills & lead them to be
autonomous.
Hands-on and directive about the pace of work that is set,

Pacesetting Management Style but hands-off about how the work will be completed
Autocratic style of management, more aptly known as

Authoritative Management Style micromanagement
Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)
RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

A. MI(I) Managers
i. Driven by excessive self-interest and hard approaches.
ii. Prefer hard data, and tight control orientation.
iii. Authoritarian systems.
iv. Rule-bound methods.
v. Believes in modern management theories.
vi. Reduces every aspect of life to measurements.
vii. Tend to operate on the mechanical metaphor mostly.
viii. Treat human beings as resources.
ix. Inherent exploitation orientation.
x. Tend to operate on the mechanical metaphor mostly
xi. Inherent exploitation orientation
xii. Tend to adopt a highly mechanistic approach to manage the organization. (Taylor &
Weber provide an intellectual basis to MI managers.
xiii. Metaphor (Cowboy)
B. FI(III) Managers
i. Driven by self-interest.
ii. Cares more for the feminine side of the organizations.
iii. Display empathy orientation.
iv. Approach to management is different from MI.
v. Metaphor: Tribal Chief
C. MC(II) Managers

i. Takes group and team-oriented approach.
ii. Have ability to involve people, and carry them along with them.
iii. Relatively more authoritarian.
iv. Tend to have an authoritarian style of management.
D. FC(IV) Managers
i. Softness oriented.
ii. Caring and sharing is the priority.
iii. Takes a highly humanistic approach to management.
iv. Greater ability to inspire people.
v. Sympathetic to fellow workers and others.
vi. Takes care of subordinates.
vii. Able to ensure high achievement from them.
viii. Tend to reject the mechanistic control mechanisms
ix. Able to convert the place of place of work into a place of worship.
x. Infuse spirituality in work places.
xi. Help orientation is the key characteristic.
xii. Creativity oriented, organizations need such managers.
xiii. Metaphor: Mother
E. PC(IV) Managers
i. Combines the muscularity-feminity factors in organisation.

ii. Tend to make organizations homely.
iii. Make the place highly humanistic.
iv. Takes balanced views rather than extreme views related to humans.
v. Employees are not mere resources for them, but members of a joint extended family.
vi. More likely to use Kutumbh (Family Theory).
vii. Touch of Parentalism helps in organisations.
viii. More humanistic.
2. A FRAMEWORK OF SOCIAL ORIENTATIONS
Yin
(giving)
Feminity III IV
A Framework of
Yang Social Orientation
(Grabbing)
Yin+Yang
Masculanity
I II (Masculanity
+ Feminity)

Individualized (Ego Collectivistic (Eco-
driven self-interest) driven)
2.1 Orientations:
Social orientation designates how a person is aware of, relates and adapts to other people.
It helps managers understand how to manage people.
i.When people seek to maximize their gains, they are said to be proself.
ii.When people are concerned with others’ gains and losses, they are said to be prosocial.
iii.Individualistic Orientation: These are concerned with their own outcomes.
iv. Competitive Orientation: Like individualistics, these too strive to maximize their own
outcomes, but in addition they seek to minimize others’ outcomes.
v. Cooperative Orientation: These tend to maximize their own as well as others’
outcomes.
vi. Altruistic Orientation: Altruists are motivated to help others who are in need.
Example:
A person would choose the option on the circle that
maximizes the own outcome, this would refer to an
angle of 00 indicating a perfectly individualistic
social orientation.
An angle of 450 would indicate a perfectly
cooperative (maximizing joint outcomes) social
orientation.
An angle of -450 would indicate a perfectly
competitive (maximizing relative gain) social
orientation.
2.2 Management and Social Theories

4. INTERNATIONAL FRAMEWORK FOR CORPORATE SOCIAL
RESPONSIBILITY
UN
MDGs UNGC
International
Framework
for CSR
SDGs OECD
ILO
4.1 United Nations

The United Nations, referred to informally as the UN, is an intergovernmental
organization . It is the world's largest international organization. The UN
is headquartered on international territory in New York City, and the organization has other
offices in Geneva, Nairobi, Vienna, and The Hague. The United Nations, which started with
51 founding members, today has 149 members and has developed into the most universal of
international organizations.
The UN was established after World War II with the aim of preventing future world wars, and
succeeded the League of Nations, which was characterized as ineffective. On 25 April 1945,
50 nations met in San Francisco and drafted the UN Charter, which was adopted on 25 June
1945. The charter took effect on 24 October 1945, when the UN began operations.
4.1.1 Main objectives of the United Nations
 Maintenance of international peace and security.

 Promotion of the well-being of the people of the world.
 International cooperation.
 Development of friendly relations among nations.
 Serve as a centre for harmonizing the actions of nations.
The U.N. conducts peace-keeping activities despite the absence of any explicit provisions
for them in its Charter and prevents the recurrence or expansion of disputes in the Middle
East and on Cyprus, and the U.N. has come to play an increasingly important economic
and social role as the North-South problem has acquired greater importance as an
international issue.
4.2 United nations Global Compact
The United Nations Global Compact is a non-binding United Nations pact to get

businesses and firms worldwide to adopt sustainable and socially responsible policies, and
to report on their implementation. The organization solicits commitments to specific
sustainability and social responsibility goals from CEOs and highest-level executives, and
in turn offers training, peer-networks and a functional framework for responsibility. The
UN Global Compact is the world's largest corporate sustainability and corporate social
responsibility initiative, with 13000 corporate participants and other stakeholders over 170
countries.
The organization consists of a global agency, and local "networks" or agencies for each
participating country. Under the Global Compact, companies are brought together with
UN agencies, labor groups and civil society. Cities can join the Global Compact through
the Cities Programme.

The UN Global Compact is a ‘principle-based framework’ for businesses, stating ‘ten
principles’ in the areas of human rights, labor, the environment and anti-corruption, that
should define a company’s value system and approach to doing business. These principles
were collectively founded in the Universal Declaration of Human Rights, the International
Labor Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio
Declaration on Environment and Development, and the UN Convention Against
Corruption. Member companies are expected to engage in specific business practices that
benefit the people and the planet while pursuing profitability with integrity.
4.2.1 Member Company Responsibilities of the UN Global Compact

Member companies of the UN Global Compact are expected to act in environmentally
responsible ways with regard to climate change, water and sanitation, energy, biodiversity,
and food and agriculture. They are also expected to recognize the link between
environmental issues, and social and development priorities.
Member companies must also be focused on social sustainability, particularly human
rights as they apply to labor, women’s empowerment and gender equality, children,
indigenous peoples, people with disabilities, and people living in poverty. The compact
believes that protecting human rights is primarily a government responsibility
but businesses should contribute or, at a minimum, avoid harm.
Ways in which businesses can contribute to human rights include creating jobs,
developing goods and services that help people meet their basic needs, promoting public
policies that support social sustainability, partnering with other businesses to have a
greater impact, and making strategic social investments.
4.2.3 Incentives for Businesses to Support the UN Global Compact

Companies might choose to join the compact because of the importance of corporate codes
of conduct for developing and maintaining positive relationships with customers,
employees, and other stakeholders, and to avoid regulatory and legal problems. Businesses
may support the compact for the greater good but also because operating in environments
associated with poverty and inequality where the rule of law is weak can harm the
company’s reputation and bottom line.
Further, companies that commit to sustainability may have an advantage in accessing
untapped markets, attracting and retaining business partners, developing innovative new
products and services while operating in a lower-risk environment, and encouraging
employee satisfaction and productivity.
An example of sustainable activity by a member company is to support inclusive,
equitable quality education and promote lifelong learning opportunities for all. A company
might partner with governments and other companies to create open-source technology.
This technology can deliver education to hard-to-reach communities and develop low-cost
learning materials for under-resourced schools.

4.2.4 Ten Principles of the UN Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights.
Principle 2: make sure that they are not complicit in human rights abuses.
Labour
Principle 3: Businesses should uphold the freedom of association and the effective recognition
of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and
bribery.
Principle One:
Human Rights: Businesses should support and respect the protection of internationally
proclaimed human rights.

What does it mean?
This Principle sets out the UN Global Compact’s overarching expectation of business on
human rights, namely, to respect and support human rights, which means a business should
use due diligence to avoid infringing human rights (“do no harm”) and should address
adverse human rights impacts with which they are involved. Businesses must also support
human rights. This means seeing the opportunity to take voluntary action to make a positive
contribution towards the protection and fulfillment of human rights whether through core
business, strategic social investment/philanthropy, public policy engagement/advocacy,
and/or partnerships and other collective action. Special attention should be paid to the rights
of vulnerable groups, including women, children, people with disabilities, indigenous
peoples, migrant workers, older persons etc.
Why should companies care?
Respect for human rights is the right thing to do, but it is also a business issue. Not respecting
human rights poses a number of risks and costs for business including putting the company’s
social license to operate at risk, reputational damage, consumer boycotts, exposure to legal
liability and adverse government action, adverse action by investors and business partners,
reduced productivity and morale of employees.
Respecting and supporting human rights also strengthens a business’ relationships with its
stakeholders. For example, workers who are treated with dignity and respect are more likely
to be productive and remain loyal to an employer. New recruits increasingly consider the
social, environmental and governance record of companies when making their choice of
employer. Human rights and inclusive business models can also be a source of innovation for
new products or services, access to new markets, help strengthen the social license to operate
and to make the business a valued member of the community and society.
What can companies do?
 Companies should look to the International Bill of Human Rights and the core International

Labour Organization (ILO) Conventions.
 Business must comply with all applicable laws and respect internationally recognized human
rights, wherever they operate.
 In the rare situation that national law directly conflicts with international standards,
companies should seek ways to honour the principles of internationally recognized human
rights”.

Determining the scope of their responsibility
Companies should consider three sets of factors in determining the scope of their
responsibility to respect human rights or, in other words, the risk of potential negative
impacts on human rights in connection with the conduct of their business:
 The first is to consider the country and local context in which it is operating for any
human rights challenges that context might pose. Information about these is available
from NGOs, Government, international trade unions and international organizations.
There are also services that seek to bring such context specific risks together in
formats more easily digested for business, for example, Danish Institute Country Risk
assessments and Maplecroft Maps of Human Rights risks.
o The second set of factors involves considering whether the company is

causing or contributing to adverse human rights impacts through their own
activities within that context — for example, in their capacity as producers,
service providers, employers and neighbours ("activities" is understood to
include both actions and omissions).
 Companies should then address those impacts by adjusting their policies and practices
to prevent the infringement from occurring. An illustrative list of activities with direct
impact might include the production process itself; the products or services the
company provides; labour and employment practices; the provision of security for
personnel and assets; and the company’s lobbying or other political activities.
 The third set of factors is an analysis of the company’s relationships with

Government, business partners, suppliers and other non-State actors to consider
whether they might pose a risk for the company in terms of implicating it in human
rights abuse. Look particularly at the provision or contracting of goods, services and
even non-business activities, such as lending equipment or vehicles. Consider the
track records of those entities your company deals with to assess whether the
company might contribute to or be associated with abuse caused by those entities. The
responsibility to respect human rights also includes the Global Compact commitment
to avoid complicity, that is, being involved in human rights abuse that another
company, government, individual, group etc. is causing.
Policy Commitment
Companies should adopt a statement of policy as a public commitment to fulfill their

responsibility to respect human rights, approved by their board or equivalent. It can be a

stand-alone statement or integrated into a broader corporate sustainability policy or code of
conduct. The policy should stipulate the
company’s human rights expectations of personnel, business partners and those directly
linked to the organization’s operations, products or services. As such, it should be
communicated to these parties, as well as be publically available.
The policy should be informed by internal/external human rights expertise. Developing a

human rights policy can also be an important opportunity for stakeholder engagement on the
topic of human rights, which can be almost as important as the policy that results from the
process. View sample Human Rights policies. Once prepared, the policy should be reflected
in operational policies and procedures in order to embed it throughout the business functions.
Human rights due diligence
In order to ensure and demonstrate (i.e. to know and show) that a company is meeting its
responsibility to respect human rights it should undertake due diligence. Human rights due
diligence is the ongoing process taken to identify, prevent and mitigate and account for
negative human rights impacts which the company may cause or contribute to through its
own activities or which may be directly linked to the company’s products, operations or
services by a business relationship. Human rights due
diligence will vary in complexity with the size of the business, the risk of human rights
impacts, and the nature and context of the business operations. The process should draw on
internal and/or independent external human rights expertise and involve appropriate and
meaningful consultation with potentially affected stakeholders. Tools and guidance materials
are very helpful in this process. Comparable processes are typically already embedded in
companies to assess and manage financial and related risks. Explore our library.
Some particularly important elements of a comprehensive management approach to human

rights include:
 Assessing human rights impacts: Many corporate human rights issues arise because
companies do not consider the potential implications of their activities and
relationships within their operating context. Companies should take proactive,
ongoing steps to understand how existing and proposed activities may cause or
contribute to human rights impacts, as well has how the company’s operations may be
directly linked to such impacts. The scale of the review will depend on the industry,
company size and national and local context and should be commensurate with the
risk of severe human rights impacts. The process should draw on internal or external
expertise and involve meaningful consultation with stakeholders, as appropriate.

Based on the information uncovered, companies should refine their plans to address
and avoid potential negative human rights impacts on an ongoing basis
 Integration of human rights policies throughout a company: The integration of

human rights policies throughout a company may be the biggest challenge in
respecting human rights. If awareness of human rights issues and their importance is
not fully integrated across relevant internal functions and processes, inconsistent or
contradictory actions can result. For example, product developers may not consider
human rights implications; sales or procurement teams may not know the risks of
entering into relationships with certain parties; budgets may not be properly allocated;
and company lobbying may contradict commitments to human rights. Leadership
from the top is essential to embed respect for human rights throughout a company,
including by assigning responsibility for addressing impacts to the appropriate level
and function within the business and developing an oversight process. It is important
to train personnel to ensure consistency, as well as foster their capacity to respond
appropriately when unforeseen situations arise
 Taking action: The appropriate action for a company to take will vary depending on
whether (a) the company has caused or contributed to an impact, or (b) it is directly
linked to that impact through its business relationships. In the case of (a), the
company should cease or prevent the impact. In the case of (b) it should utilize
available leverage to prevent or mitigate the impact
 Tracking performance: Monitoring and auditing processes permit a company to

track ongoing developments. The procedures may vary across sectors and even among
company departments, but regular reviews of human rights impact and performance
are crucial. Tracking generates information needed to create appropriate incentives
and disincentives for employees, ensure continuous improvement and to make
necessary adjustments in priorities and approaches. Tracking should draw on
feedback from both internal and external stakeholders. Confidential means to report
non-compliance, such as hotlines, can be a useful source of feedback
 Communicating/reporting on performance: Reporting is a driver for change,

externally as well as internally: It fulfils companies’ obligations to account for how
they address human rights impacts; shapes stakeholders’ perceptions of a company
and helps to build trust; and is increasingly acknowledged as a stimulus for internal
development with a positive impact on business decisions and outcomes.
Communications should be of a form and frequency that reflects the company’s
human rights impacts, be accessible to the intended audience and provide enough
information for stakeholders to evaluate the adequacy of the company’s response to
impacts. Global Compact participants are required to communicate their progress on

an annual basis. The Global Compact has developed a Human Rights Supplement to
Communication on Progress Guidance to give practical guidance to businesses of all
sizes wherever they are located on how to improve reporting on their implementation
efforts, especially within the context of their annual Communication on Progress
 Remediation: A company should have in place or participate in remediation

processes. This allows the company to address adverse human rights impacts that it
has caused or contributed to. Effective company-level grievance mechanisms ensure
that employees, contractors, local communities and others can raise their concerns and
have them be considered. This can help companies to identify risks of negative
impacts and avoid escalation of disputes
Supporting Human Rights
In practice, respect and support for human rights are often closely interlinked in terms of the
management steps that are taken to enable and ensure respect and support for human rights.
For example, corporate policies on human rights often make positive commitments to support
human rights, especially rights that may be strategically relevant to their business. Analyses
of context, activities and relationships are likely to yield opportunities to promote human
rights as well as possible risks of infringing rights. And companies often include in their
reports information about the positive contribution they are making to human rights.
Supporting human rights involves making a positive contribution to human rights, to promote
or advance human rights. Socially responsible organizations will typically have a broader
capability and often desire to support the promotion of human rights within their sphere of
influence especially in ways that link strategically to their core business activities. The
business case for supporting human rights can be as strong as the business case for respecting
human rights. Likewise, stakeholder expectations often extend to the belief that organizations
can and should make a positive contribution to the realization of human rights where they are
in a position to do so.
There are at least four ways business can support or promote human rights:
 Through their core business activities in support of UN goals and issues
 Strategic social investment and philanthropy
 Advocacy and public policy engagement
 Partnership and collective action

These are elaborated in the Blueprint for Corporate Sustainability Leadership, which was
adopted by the Global Compact participants at the Leaders Summit in June 2010. It makes
clear that to be a corporate leaders on sustainability, business must not just avoid negative
impacts, along with all other actors, but also make a positive contribution to society and do its
part especially in ways relevant to its business in helping to overcome the most acute and
chronic challenges.
Here are some examples of how companies are supporting and respecting human rights
through their daily activities:
In the workplace:
 by providing safe and healthy working conditions,
 by guaranteeing freedom of association,
 by ensuring non-discrimination in personnel practices,
 by ensuring that they do not use directly or indirectly forced labour or child labour,
 by providing access to basic health, education and housing for the workers and their
families, if these are not provided elsewhere,
 by having an affirmative action programme to hire victims of domestic violence, and
 by making reasonable accommodations for all employees' religious observance and

practices
In the community:
 by preventing the forcible displacement of individuals, groups or communities,
 by working to protect the economic livelihood of local communities,
 by contributing to the public debate. Companies interact with all levels of government
in the countries where they operate. They therefore have the right and responsibility to
express their views on matters that affect their operations, employees, customers and
the communities of which they are a part,
 through differential pricing or small product packages create new markets that also
enable the poor to gain access to goods and services that they otherwise could not
afford

 by fostering opportunities for girls to be educated to empower them and also helps a
company to have a broader and more skilled pool of workers in the future, and
 perhaps most importantly, a successful business which provides decent work,

produces quality goods or services that improve lives, especially for the poor or other
vulnerable groups, is an important contribution to sustainable development, including
human rights.
 If companies use security services to protect their operations, they must ensure that
existing international guidelines and standards for the use of force are respected
Fostering Respect for Human Rights
The topic of human rights can sometimes be challenging for a company to talk about with its
managers and employees and/or those outside the company. However, promoting
understanding about what human rights are, their relevance to business and what, in practical
terms, business can do to address human rights issues can help to make action to respect
human rights easier.
Some businesses find that looking at opportunities to support human rights as well as the
risks of infringing human rights helps to motivate managers and staff to address risks too.
Another approach some businesses find helpful is to start by looking at what the business is
already doing to respect and support human rights, such as by having good human resources
policies and practices, implementing policies on non discrimination and promoting diversity
in the workforce, respecting the
privacy of customers and workers, undertaking efforts to make essential products more
accessible to the poor and implementing effective occupational health and safety policies and
practices. This helps to demystify human rights by showing that respecting human rights does
not require starting from the very beginning. Nor does it need a whole new management
system. Human rights can be integrated into existing business processes and procedures.
Some companies find it helpful to look for the right entry point and language to discuss risks
and opportunities with managers and staff. Sometimes it might be easier to begin the
discussion by talking about familiar concepts like respect, dignity, fairness and equality, and
specific scenarios with which managers and employees may be confronted. Companies
investing in emerging economies may find it useful to discuss challenges to implementing
Principles 1 and 2 in the Global Compact’s Human Rights and Business Dilemmas Forum.
Principle Two:
Human Rights: Businesses should make sure that they are not complicit in human
rights abuses.

What does it mean?
Complicity means being implicated in a human rights abuse that another company,
government, individual or other group is causing. The risk of complicity in a human rights
abuse may be particularly high in areas with weak governance and/or where human rights
abuse is widespread. However, the risk of complicity exists in every sector and every
country.
The requirement to respect human rights, pursuant to Global Compact Principle 1 and the UN
Guiding Principles on Business and Human Rights, includes avoiding complicity, which is
another way, beyond their own direct business activities, that businesses risk interfering with
the enjoyment of human rights. The risk of an allegation of complicity is reduced (though not
eliminated) if a company has a systematic management approach to human rights, including
due diligence processes that cover the entity’s business relationships. Such processes should
identify and prevent or mitigate the human rights risks with which the company may be
involved through links to its products, operations or services.
Accusations of complicity can arise in a number of contexts:
 Direct complicity — when a company provides goods or services that it knows will
be used to carry out the abuse
 Beneficial complicity — when a company benefits from human rights abuses even if
it did not positively assist or cause them
 Silent complicity — when the company is silent or inactive in the face of systematic
or continuous human rights abuse. (This is the most controversial type of complicity
and is least likely to result in legal liability)
 Globalization: The growth in private investment has witnessed companies expanding

operations to countries previously untouched by global markets. In some instances,
these countries have poor human rights records and/or the capacity of the state to
address these issues is limited. In these cases the role of business in respecting and
supporting human rights is particularly important
 Growth of civil society: In some instances, the capacity of the state to address human
rights issues has diminished. As a result, a steady alienation of people has occurred
towards the public institutions that were established to serve them. Non-governmental

organizations of all types and sizes have grown to fill the void, progressively
influencing both public policy and the market agenda. They include new human
rights, labour and corporate accountability organizations
 Transparency and accountability: The need for transparency in business practice

has been highlighted both by globalization, the growth of civil society interests and
some recent problems in the corporate sector. Advances in information technologies
and global communications mean that companies can ill afford to conceal poor or
questionable practices
 Crime: Where an international crime is involved, complicity may arise where a

company assisted in the perpetration of the crime, the assistance had a substantial
effect on the perpetration of the crime and the company knew that its acts would assist
the perpetration of the crime even if it did not intend for the crime to be committed
 State-owned enterprises: State-owned enterprises should be aware that because they

are part of the state, they may have direct responsibilities under international human
rights law
An effective human rights policy and conducting appropriate human rights due diligence will
help companies address (though will not eliminate) the risk of being implicated in human
rights violations, by knowing and showing that they took every reasonable step to avoid
involvement.
Companies may wish to consider the following:
 Has the company made a human rights assessment of the situation in countries where
it does, or intends to do, business so as to identify the risk of involvement in human
rights abuses and the company's potential impact on the situation?
 Does the company have explicit policies that protect the human rights of workers in
its direct employment and throughout its supply chain?
 Has the company established a monitoring/tracking system to ensure that its human
rights policies are being implemented?
 Does the company actively engage in open dialogue with stakeholder groups,
including civil society organizations?

 Does the company utilize its leverage over the actor committing the abuse? If the
company does not have sufficient leverage, is there a way to increase this leverage
(e.g. through capacity building or other incentives or by collaborating with other
actors)?
 Does the company have an explicit policy to ensure that its security arrangements do
not contribute to human rights violations? This applies whether it provides its own
security, contracts it to others or in the case where security is supplied by the State
 Ramifications of ending a business relationship, given the potential adverse human

rights impacts of doing so
Actions that may be particularly helpful in avoiding complicity include:
 ...respect international guidelines and standards for the use of force (e.g. the UN Basic
Principles on the Use of Force and Firearms by Law Enforcement Officials and the
UN Code of Conduct for Law Enforcement Officials);
 ...if financial or material support is provided to security forces, establish clear

safeguards to ensure that these are not then used to violate human rights and make
clear in any agreements with security forces that the business will not condone any
violation of international human rights laws;
 ...privately and publicly condemn systematic and continuous human rights abuses;
 ...continually consult within and outside the company with relevant stakeholders, as
part of a human rights due diligence process, during both pre-investment and post-
investment stages;
 ...raise awareness within the company of known human rights issues within the
company’s sphere of influence;
 ...identify those functions within the firm that are most at risk of becoming linked to
human rights abuses, possibly even at the pre-investment/project exploration and
planning stage, and where there might be opportunities to advance human rights;
 ...conduct a human rights impact assessment consisting of an analysis of the functions

of a proposed investment and the possible human rights impacts (intended and
unintended) they may have on the community or region; and

 ...identify internal ‘functional risks’ in the post-investment situations. This may
involve looking at such functions as purchasing, logistics, government relations,
human resource management, HSE (health, safety and environment), sales and
marketing
Principle Three: Labour
Businesses should uphold the freedom of association and the effective recognition of the
right to collective bargaining.
What does it mean?
Freedom of association implies respect for the right of all employers and all workers to freely
and voluntarily establish and join groups for the promotion and defence of their occupational
interests. Both workers and employers have the right to set up, join and run their own
organizations without interference from the State or any other entity. All, including
employers, have the right to freedom of expression and opinion, including on the topic of
unions – provided that the exercise of this right does not infringe a worker's right to freedom
of association. As a voluntary initiative, the UN Global Compact does not and cannot require
that employers adopt or express any particular opinion. To be able to make a free decision,
workers need a climate free of violence, pressure, fear and threats.
"Association" includes activities of rule formation, administration and the election of

representatives. The freedom to associate involves employers, unions and other workers
representatives freely discussing issues at work in order to reach agreements that are jointly
acceptable. These freedoms also allow for industrial action to be taken by workers and
organizations in defence of their economic and social interests.
Collective bargaining is a voluntary process or activity through which employers and

workers discuss and negotiate their relations, in particular terms and conditions of work and
the regulation of relations between employers, workers and their organizations. Participants
in collective bargaining include employers themselves or their organizations, and trade
unions or, in their absence, representatives freely designated by the workers. An important
part of the effective recognition of the right to collective bargaining is the "principle of good
faith". This is important for the maintenance of the harmonious development of labour
relations. This principle implies that the social partners work together and make every effort
to reach an agreement through genuine and constructive negotiations, and that both parties
avoid unjustified delays in negotiations. The principle of good faith does not imply a pre-
defined level of bargaining or require compulsory bargaining on the part of employers or
workers and their organizations.

Businesses face many uncertainties in this rapidly changing global market. Establishing
genuine dialogue with freely chosen workers' representatives enables both workers and
employers to understand each other's problems better and find ways to resolve them.
Freedom of association and the exercise of collective bargaining provide opportunities for
constructive rather than confrontational dialogue. This harnesses energy to focus on solutions
that result in benefits to the enterprise, its stakeholders, and society at large and is often more
flexible and effective than state regulation. It can thus help in anticipating potential problems
and advance peaceful mechanisms for dealing with them. A number of studies indicate that
the dynamic resulting from freedom of association can set in motion a "decent work" cycle
that increases productivity, incomes and profits for all concerned. Moreover, the guarantee of
representation through a "voice at work" facilitates local responses to a globalized economy,
and serves as a basis for sustainable growth and secure investment returns. The results help
bridge the widening representational gap in global work arrangements, and facilitate the input
of those people, regions and economic sectors — especially women and informal sector
workers — who otherwise may be excluded from participating in processes that build decent
work environments.
In the workplace
 Respect the right of all workers to form and join a trade union of their choice without
fear of intimidation or reprisal, in accordance with national law;
 Put in place non-discriminatory policies and procedures with respect to trade union
organization, union membership and activity in such areas as applications for
employment and decisions on advancement, dismissal or transfer;
 Provide workers’ representatives with appropriate facilities to assist in the

development of effective collective agreement; and·
 Do not interfere with the activities of worker representatives while they carry out their
functions in ways that are not disruptive to regular company operations. Practices
such as allowing the collection of union dues on company premises, posting of trade
union notices, distribution of union documents, and provision of office space, have
proven to help build good relations between management and workers, provided that
they are not used as a way for the company to exercise indirect control.
At the bargaining table

 Recognize representative organizations for the purpose of collective bargaining;
 Use collective bargaining as a constructive forum for addressing working conditions

and terms of employment and relations between employers and workers, or their
respective organizations;
 Address any problem-solving or other needs of interest to workers and management,

including restructuring and training, redundancy procedures, safety and health issues,
grievance and dispute settlement procedures, disciplinary rules, and family and
community welfare;
 Provide information needed for meaningful bargaining; and
 Balance dealings with the most representative trade union to ensure the viability of
smaller organizations to continue to represent their members.
In the community of operation
 Take into account the role and function of the representative national employers’
organizations; and
 Take steps to improve the climate in labour-management relations, especially in those

countries without an adequate institutional and legal framework for recognizing trade
unions and for collective bargaining
Principle Four: Labour
Businesses should uphold the elimination of all forms of forced and compulsory labour.
What does it mean?
Forced or compulsory labour is any work or service that is exacted from any person under the
menace of any penalty, and for which that person has not offered himself or herself
voluntarily. Providing wages or other compensation to a worker does not necessarily indicate
that the labour is not forced or compulsory. By right, labour should be freely given and
employees should be free to leave in accordance with established rules.

Forced labour not only constitutes a violation of fundamental human rights, it also deprives
societies of the opportunity to develop skills and human resources, and to educate children
for the labour markets of tomorrow. So the debilitating consequences of forced labour are not
only felt by individuals, and in particular children, but also by society and the economy at
large. By holding back the proper development of human resources, forced labour lowers the
level of productivity and results in less secure investments and slower economic growth. The
loss of income due to disruption of regular jobs or income-generating activities reduces the
lifetime earnings of potential breadwinners and is thus likely to lead to the loss of food,
shelter, and health care of whole families.
While companies operating legally do not normally employ such practices, forced labour can
become associated with enterprises through their business links with others, including
contractors and suppliers. As a result, all employers should be aware of the forms and causes
of forced labour, as well as how it might occur in different industries.
Both state and private agents have been implicated in the use of forced labour. State-imposed
labour includes compulsory participation in public works, and the imposition of forced labour
for ideological or political purposes. Forced labour exploitation by private agents can take the
forms of slavery, bonded labour or debt-bondage, and other types of coercion. Situations of
forced labour are generally characterized by a lack of consent to work (the route into forced
labour) and the menace of a penalty (the means of keeping someone in forced labour).
Employers need to be aware that forced labour can take a number of forms:
 Slavery (i.e. by birth/ descent into “slave” or bonded status)
 Bonded labour or debt bondage, an ancient practice still used in some countries where
both adults and children are obliged to work in slave-like conditions to repay debts of
their own or their parents or relatives
 Child labour in particularly abusive conditions where the child has no choice about
whether to work
 Physical abduction or kidnapping
 Sale of a person into the ownership of another
 Physical confinement in the work location (in prison or in private detention)

 The work or service of prisoners if they are hired to or placed at the disposal of
private individuals, companies or associations involuntarily and without supervision
of public authorities
 Labour for development purposes required by the authorities, for instance to assist in
construction, agriculture, and other public works
 Work required to punish opinion or expression of views ideologically opposed to the

established political, social or economic system
 Exploitative practices such as forced overtime
 The lodging of deposits (financial or personal documents) for employment
 Physical or psychological (including sexual) violence as a means of keeping someone

in forced labour (direct or as a threat against worker, family, or close associates)
 Full or partial restrictions on freedom of movement
 Withholding and non-payment of wages (linked to manipulated debt payments,

exploitation, and other forms of extortion)
 Deprivation of food, shelter or other necessities
 Deception or false promises about terms and types of work
 Induced indebtedness (by falsification of accounts, charging inflated prices, reduced

value of goods or services produced, excessive interest charges, etc.)
 Threats to denounce workers in an irregular situation to the authorities
Organizations need to determine whether forced labour is a problem within their business
sector and for their operations. It is important to mention that, although high profile cases are
typically reported as occurring in developing countries, forced labour is also present in
developed countries and should be viewed as a global issue. Understanding the causes of
forced labour is the first step towards taking action against forced labour. Where forced
labour is identified, the concerned individuals should be removed from work and facilities
and services should be provided to enable them to make adequate alternatives. In general, a
comprehensive set of interventions, including both workplace and community actions, is
needed to help ensure the eradication of forced labour practices.

Here are some actions that companies can take:
In the workplace
 Have a clear policy not to use, be complicit in, or benefit from forced labour;
 Where adherence to forced labour provisions of national laws and regulations is

insufficient, take account of international standards;
 Ensure that all company officials have a full understanding of what forced labour is;
 Make available employment contracts to all employees stating the terms and
conditions of service, the voluntary nature of employment, the freedom to leave
(including the appropriate procedures) and any penalties that may be associated with a
departure or cessation of work;
 Do not confiscate workers’ identity documents;
 Prohibit business partners from charging recruitment fees to workers;
 Write employment contracts in languages easily understood by workers, indicating

the scope of and procedures for leaving the job;
 Be aware of countries, regions, industries, sectors, or economic activities where

forced labour is more likely to be a practice;
 In planning and conducting business operations, ensure that workers in debt bondage
or in other forms of forced labour are not engaged and, where found, provide for the
removal of such workers from the workplace with adequate services and provision of
viable alternatives;
 Institute policies and procedures to prohibit the requirement that workers lodge
financial deposits with the company;
 If hiring prisoners for work in or outside prisons, ensure that their terms and
conditions of work are similar to those of a free employment relationship in the sector
involved, and that they have given their consent to work for a private employer;·
 Ensure that large-scale development operations do not rely on forced labour in any
phase; and
 Carefully monitor supply chains and subcontracting arrangements.

 Establish or participate in a task force or committee on forced labour in your

representative employers’ organization at the local, state or national level;
 Work in partnership with other companies, sectoral associations and employers’

organizations to develop an industry-wide approach to address the issue, and build
bridges with trade unions, law enforcement authorities, labour inspectorates and
others;
 Support and help design education, vocational training, and counseling programmes
for children removed from situations of forced labour;
 Help develop skills training and income-generating alternatives, including micro-

credit financing programmes, for adults removed from situations of forced labour;
 Encourage supplementary health and nutrition programmes for workers removed from
dangerous forced labour, and provide medical care to assist those affected by
occupational diseases and malnutrition as a result of their involuntary work; and
 Where use is made of prison labour, ensure that the terms and conditions of work are
beneficial to the prisoners (particularly with regard to occupational health and safety),
and that they have given consent to work for a private employer.
Principle Five: Labour
Businesses should uphold the effective abolition of child labour.
What does it mean?
The term “child labour” should not be confused with “youth employment” or “student work.”
Child labour is a form of exploitation that is a violation of a human right and it is recognized
and defined by international instruments. It is the declared policy of the international
community and of almost all Governments to abolish child labour. While the term "child"
covers all girls and boys under 18 years of age, not all under-18s must be removed from
work: the basic rules under international standards distinguish what constitutes acceptable or
unacceptable work for children at different ages and stages of their development.

ILO conventions (Minimum Age Convention No. 138 and the Worst Forms of Child Labour
Convention No. 182) provide the framework for national law to prescribe a minimum age for
admission to employment or work that must not be less than the age for completing
compulsory schooling, and in any case not less than 15 years. Lower ages are permitted for
transitional periods – in countries where economic and educational facilities are less well-
developed the minimum age for regular work generally is 14 years, and 12 years for “light
work”. The minimum age for hazardous work is higher, at 18 years for all countries.
Minimum Age for Admission to Employment or Work
Type of Work Developed countries Developing countries
Light Work 13 Years 12 Years
Regular Work 15 Years 14 Years
Hazardous Work 18 Years 18 Years
ILO Convention No. 182 requires Governments to give priority to eliminating the worst
forms of child labour undertaken by all children under the age of 18 years.
They are defined as:
 All forms of slavery — including the trafficking of children, debt bondage, forced and
compulsory labour, and the use of children in armed conflict;The use, procuring or
offering of a child for prostitution, for the production of pornography or for
pornographic purposes;
 The use, procuring or offering of a child for illicit activities, in particular the
production and trafficking of drugs; and
 Work which is likely to harm the health, safety or morals of the child as a
consequence of its nature or the circumstances under which it is carried out.
Convention 182 is explicitly complementary to Convention 138 and must not be used to
justify other forms of child labour.

Association with child labour will likely damage a company's reputation. This is especially
true in the case of transnational companies who have extensive supply and service chains,
where the economic exploitation of children, even by a business partner, can damage a brand
image and have strong repercussions on profit and stock value.
Child labour is damaging to a child’s physical, social, mental, psychological and spiritual
development because it is work performed at too early an age. Child labour deprives children
of their childhood and their dignity. They are deprived of an education and may be separated
from their families. Children who do not complete their primary education are likely to
remain illiterate and never acquire the skills needed to get a job and contribute to the
development of a modern economy. Consequently, child labour results in under-skilled,
unqualified workers and jeopardizes future improvements of skills in the workforce.
Children have the same human rights as adults. But by virtue of their age and the fact that
they are still growing and gaining knowledge and experience, they have some distinct rights
as children. These rights include protection from economic exploitation and work that may be
dangerous to their health, safety or morals and that may hinder their development or impede
their access to education. The complexity of the issue of child labour means that companies
need to address the issue sensitively, and must not take action which may force working
children into more exploitative forms of work. Nevertheless, as Principle 5 states, the goal of
all companies should be the abolition of child labour within their sphere of influence.
2021 is the International Year for the Elimination of Child Labour
The UN Global Compact 2021 Action Pledge on eliminating child labour reflects our
commitment to work with our participants and engage actively with all relevant stakeholders
to step up efforts to help end the scourge of child labour and forced labour.
Central to this is our call to companies to step up their due diligence on human rights and to
identify, prevent, mitigate and account for all adverse human rights impacts in their
operations and value chains, which will help tackle child labour and forced labour. Making a
real impact will require adopting a holistic approach and collaborating with all stakeholders.
Your company can make a difference by taking action to end child labour for good.
What else can companies do?
Developing awareness and understanding of the causes and consequences of child labour is
the first step that a company can take toward action against child labour. This means
identifying the issues and determining whether or not child labour is a problem within the

business. Companies sourcing in specific industry sectors with geographically distant supply
chains need to be particularly vigilant. However, child labour also exists less visibly in
developed, industrialized countries where it occurs, for
example, in some immigrant communities.
Discovering if child labour is being used can be difficult, for example in the case where
documents or records are absent, and companies may consider using local non-governmental
organizations, development organizations or UN agencies to assist in this process.
If an occurrence of child labour is identified, the children need to be removed from the
workplace and provided with viable alternatives. These measures often include enrolling the
children in schools and offering income-generating alternatives for the parents or above-
working age members of the family. Companies need to be aware that, without support,
children may be forced into worse circumstances such as prostitution, and that, in some
instances where children are the sole providers of income, their immediate removal from
work may exacerbate rather than relieve the hardship.
Here’s what companies can do:
In the workplace
 Be aware of countries, regions, sectors, economic activities where there is a greater

likelihood of child labour and respond accordingly with policies and procedures
 Adhere to minimum age provisions of national labour laws and regulations and,
where national law is insufficient, take account of international standards.
 Use adequate and verifiable mechanisms for age verification in recruitment

procedures
 Avoid having a blanket policy against hiring children under 18, as it will exclude
those above the legal age for employment from decent work opportunities
 When children below the legal working age are found in the workplace, take measures
to remove them from work
 Help to seek viable alternatives and access to adequate services for the children and
their families

 Exercise influence on subcontractors, suppliers and other business affiliates to combat
child labour
 Develop and implement mechanisms to detect child labour
 Where wages are not determined collectively or by minimum wage regulation, take
measures to ensure that wages paid to adults take into account the needs of both them
and their families
 Work in partnership with other companies, sectoral associations and employers’

organizations to develop an industry-wide approach to address the issue, and build
bridges with trade unions, law enforcement authorities, labour inspectorates and
others
 Establish or participate in a task force or committee on child labour in your

representative employers’ organization at the local, state or national level.
 Support and help design educational/ vocational training, and counseling programmes
for working children, and skills training for parents of working children
 Encourage and assist in launching supplementary health and nutrition programmes for
children removed from dangerous work, and provide medical care to cure children of
occupational diseases and malnutrition
Principle 6: Labour
Businesses should uphold the elimination of discrimination in respect of employment and

occupation.
What does it mean?
Discrimination in employment and occupation means treating people differently or less

favourably because of characteristics that are not related to their merit or the inherent
requirements of the job. In national law, these characteristics commonly include: race, colour,
sex, religion, political opinion, national extraction, social origin, age, disability, HIV/AIDS
status, trade union membership, and sexual orientation. However, Principle 6 allows
companies to consider additional grounds where discrimination in employment and
occupation may occur.

Discrimination can arise in a variety of work-related activities. These include access to
employment, to particular occupations, promotions and to training and vocational guidance.
Moreover, it can occur with respect to the terms and conditions of the employment, such as:
 Recruitment
 Remuneration
 Hours of work and rest/paid holidays
 Maternity protection
 Security of tenure
 Job assignments
 Performance assessment and advancement
 Training and opportunities
 Job prospects
 Social security
 Occupational safety and health
In many countries, additional issues for discrimination in the workplace, such as age, HIV
status and sexual orientation, are growing in importance. It is also important to realize that
discrimination at work arises in a range of settings, and can be a problem in both rural
agricultural business or in a high technology city-based business.
Non-discrimination in employment means simply that employees are selected on the basis of
their ability to do the job and that there is no distinction, exclusion or preference made on
other grounds. Employees who experience discrimination at work are denied opportunities
and have their basic human rights infringed. This affects the individual concerned and
negatively influences the greater contribution that they might make to society.
Discrimination can take many forms, both in terms of gaining access to employment and in
the treatment of employees once they are in work. It may be direct, such as when laws, rules
or practices explicitly cite a reason such as sex or race to deny equal opportunity. Most
commonly, however, discrimination is indirect and arises where rules or practices have the
appearance of neutrality but in fact lead to exclusions. This indirect discrimination often
exists informally in attitudes and practices, which if
unchallenged can perpetuate in organizations. Discrimination may also have cultural roots
that demand more specific approaches.
From a business point of view discrimination does not make sense. It leads to social tensions
that are potentially disruptive to the business environment within the company and in society.
A company that uses discriminatory practices in employment and occupation denies itself

access to talents from a wider pool of workers, and thus skills and competencies. The hurt
and resentment generated by discrimination will affect the performance of individuals and
teams in the company.
Increasingly, graduates and new employees alike assess companies on the basis of their social
and ethical policies at work. Discriminatory practices result in missed opportunities for
development of skills and infrastructure to strengthen competitiveness in the national and
global economy. On the positive side, diversity and inclusion in the workplace can produce
positive outcomes for business, for individuals and societies. For business, it can improve
productivity, be a source of innovation, facilitate better risk management, enhance customer
and business partner satisfaction, and open the door to or help maintain business
opportunities.
First and foremost, companies need to respect all relevant local and national laws. Any
company introducing measures to promote equality needs to be aware of the diversities of
language, culture and family circumstance that may exist in the workforce. Managers and
supervisory staff, in particular, should seek to develop an understanding of the different types
of discrimination and how it can affect the workforce. For example, women constitute a
growing proportion of the world's workforce, but consistently earn less than their male
counterparts. Employees with disabilities may have particular needs that should be met,
where reasonable, in order to ensure that they have the same opportunities (e.g. for training
and advancement) as their peers.
Companies can take specific actions to address discrimination and eliminate it within the
workplace. Some examples are:
In the workplace
 Institute company policies and procedures which make qualifications, skill and
experience the basis for the recruitment, placement, training and advancement of staff
at all levels
 Assign responsibility for equal employment issues at a high level, issue clear
company-wide policies and procedures to guide equal employment practices, and link
advancement to desired performance in this area

 Work on a case by case basis to evaluate whether a distinction is an inherent
requirement of a job, and avoid application of job requirements that would
systematically disadvantage certain groups
 Keep up-to-date records on recruitment, training and promotion that provide a

transparent view of opportunities for employees and their progression within the
organization
 Conduct unconscious bias training
 Where discrimination is identified, develop grievance procedures to address

complaints, handle appeals and provide recourse for employees
 Be aware of formal structures and informal cultural issues that can prevent employees
from raising concerns and grievances
 Provide staff training on non-discrimination policies and practices, including

disability awareness. Reasonably adjust the physical environment to ensure health and
safety for employees, customers and other visitors with disabilities.
 Establish programs to promote access to skills development training and to particular

occupations
 Encourage and support efforts to build a climate of tolerance and equal access to
opportunities for occupational development such as adult education programs and
health and childcare services
 In foreign operations, companies may need to accommodate cultural traditions and

work with representatives of workers and governmental authorities to ensure equal
access to employment by women and minorities
Principle Seven: Environment
Businesses should support a precautionary approach to environmental challenges.
What does it mean?
Introducing the precautionary approach, Principle 15 of the 1992 Rio Declaration states that

“where there are threats of serious or irreversible damage, lack of full scientific certainty

shall not be used as a reason for postponing cost-effective measures to prevent environmental
degradation”.
Precaution involves the systematic application of risk assessment, risk management and risk
communication. When there is reasonable suspicion of harm, decision-makers need to apply
precaution and consider the degree of uncertainty that appears from scientific evaluation.
Deciding on the "acceptable" level of risk involves not only scientific-technological

evaluation and economic cost-benefit analysis, but also political considerations such as
acceptability to the public. From a public policy view, precaution is applied as long as
scientific information is incomplete or inconclusive and the associated risk is still considered
too high to be imposed on society. The level of risk considered typically relates to standards
of environment, health and safety.
The key to a precautionary approach, from a business perspective, is the idea of prevention
rather than remediation. In other words, it is more cost-effective to take early action to ensure
that environmental damage does not occur.
Companies should consider the following:
 While it is true that preventing environmental damage may entail additional

implementation costs, environmental remediation often costs much more, for instance
in the form of treatment costs, or in terms of company reputation.
o Investing in production methods that are not sustainable (i.e. methods that
deplete resources and degrade the environment) has a lower, long-term return
than investing in sustainable operations. In turn, improving environmental
performance means less financial risk, an important consideration for insurers.
 Research and development related to more environmentally friendly products can

have significant long-term benefits
Companies can support a precautionary approach by communicating potential risks for the
consumer and providing complete information on risks to the consumer and the public.

Supporting the precautionary approach includes obtaining prior approval before certain
products, deemed to be potentially hazardous, are placed on the market.
Steps that a company could take in the application of this approach include the following:
 Develop a code of conduct or practice for its operations and products that confirms
commitment to care for health and the environment
 Develop a company guideline on the consistent application of the approach

throughout the company
 Create a managerial committee or steering group that oversees the company

application of precaution, in particular risk management in sensitive issue areas
 Establish two-way communication with stakeholders, in a pro-active, early stage and

transparent manner, to ensure effective communication of information about
uncertainties and potential risks
 and to deal with related enquiries and complaints. Use mechanisms such as multi-
stakeholder meetings, workshop discussions, focus groups, public polls combined
with use of website and printed media
 Support scientific research, including independent and public research, on related

issues, and work with national and international institutions concerned
 Join industry-wide collaborative efforts to share knowledge and deal with the issue of
precaution, in particular in regards to production processes and products around which
high level of uncertainty, potential harm and sensitivity exist
Principle Eight: Environment
Businesses should undertake initiatives to promote greater environmental

responsibility.
What does it mean?
In Chapter 30 of Agenda 21, the 1992 Rio Earth Summit spelled out the role of business and
industry in the sustainable development agenda as: "Business and industry should increase
self-regulation, guided by appropriate codes, charters and initiatives integrated into all
elements of business planning and decision-making, and fostering openness and dialogue
with employees and the public."

The Rio Declaration says that business has the responsibility to ensure that activities within
their own operations do not cause harm to the environment. Society expects business to be
good actors in the community. Business gains its legitimacy through meeting the needs of
society, and increasingly society is expressing a clear need for more environmentally
sustainable practices.
Cleaner and more efficient processes mean increased resource productivity, which translates
to needing fewer raw material inputs and lower costs. More environmentally responsible
companies are also benefiting from tax incentives or permit programmes because they are
more advanced than their peers. Additionally, employees and consumers are increasingly
interested in doing business with responsible companies.
The challenge for companies is developing an environmentally responsible strategy that

keeps them ahead of the pack, helping them maintain an advantageous position in the
marketplace. Companies must truly innovate in terms of how they manage their relationship
with the environment.
Steps that the company could take to promote environmental responsibility would be the
following:
 Define company vision, policies and strategies to include sustainable development —

economic prosperity, environmental quality and social equity;
 Develop sustainability targets and indicators (economic, environmental, social);
 Establish a sustainable production and consumption programme with clear

performance objectives to take the organisation beyond compliance in the long-term;
 Work with product designers and suppliers to improve environmental performance

and extend responsibility throughout the value chain;
 Adopt voluntary charters, codes of conduct and practice internally as well as through
sectoral and international initiatives to reach responsible environmental performance;
 Measure, track and communicate progress on incorporating sustainability principles

into business practices, including reporting against global operating standards. Assess
results and apply strategies for continued improvement; and

 Ensure transparency and unbiased dialogue with stakeholders.
In doing the above, the existence of appropriate management systems is crucial in helping the
company to meet the organizational challenge.
Key mechanisms or tools for a company to use include:
 Assessment or audit tools (such as environmental impact assessment, environmental

risk assessment, technology assessment, life cycle assessment);
 Management tools (such as environmental management systems and eco-design); and
 Communication and reporting tools (such as corporate environmental footprinting and

sustainability reporting).
Principle Nine: Environment
Businesses should encourage the development and diffusion of environmentally friendly

technologies
What does it mean?
Environmentally sound technologies, as defined in Agenda 21 of the Rio Declaration, should

protect the environment, are less polluting, use all resources in a more sustainable manner,
recycle more of their wastes and products and handle residual wastes in a more acceptable
manner than the technologies for which they were substitutes. They include a variety of
cleaner production processes and pollution prevention technologies as well as end-of-pipe
and monitoring technologies. Moreover, they include know-how, procedures, goods and
services and equipment as well as organizational and managerial procedures. Where
production processes that do not use resources efficiently generate residues and discharge
wastes, environmentally sound technologies can be applied to reduce day-to-day operating
inefficiencies, emissions of environmental contaminants, worker exposure to hazardous
materials and risks of environmental
disasters.
The key benefits of environmentally friendly technologies include:

 Implementing environmentally friendly technologies helps a company reduce the use
of raw materials leading to increased efficiency;
 Technology innovation creates new business opportunities and helps increase the
overall competitiveness of the company; and
 Technologies that use materials more efficiently and cleanly can be applied to most
companies with long-term economic and environmental benefits.
At the basic factory site or unit level, improving technology may be achieved by:
 changing the process or manufacturing technique;
 changing input materials;·
 making changes to the product design or components; and
 reusing materials on site.
Strategic level approaches to improving technology include:
 Establishing a corporate or individual company policy on the use of environmentally

sound technologies
 Making information available to stakeholders that illustrates the environmental

performance and benefits of using such technologies
 Refocusing research and development towards ‘design for sustainability’
 Use of life cycle assessment (LCA) in the development of new technologies and
products
 Employing Environmental Technology Assessments (EnTA)
 Examining investment criteria and the sourcing policy for suppliers and contractors to
ensure that tenders stipulate minimum environmental criteria
 Co-operating with industry partners to ensure that ‘best available technology’ is

available to other organizations

Principle Ten: Anti-Corruption
Businesses should work against corruption in all its forms, including extortion and
bribery.
What does it mean?
The tenth principle against corruption was adopted in 2004 and commits UN Global Compact
participants not only to avoid bribery, extortion and other forms of corruption, but also to
proactively develop policies and concrete programmes to address corruption internally and
within their supply chains. Companies are also challenged to work collectively and join civil
society, the United Nations and governments to realize a more transparent global economy.
With the entry into force of the UN Convention Against Corruption (UNCAC) in 2005, an
important global tool to fight corruption was introduced. The UNCAC is the underlying legal
instrument for the 10th Principle. Corruption can take many forms that vary in degree from
the minor use of influence to institutionalized bribery. Transparency International's definition
of corruption is "the abuse of entrusted power for private gain". This can mean not only
financial gain but also non-financial advantages.
The OECD Guidelines for Multinational Enterprises define extortion in the following way:
"The solicitation of bribes is the act of asking or enticing another to commit bribery. It
becomes extortion when this demand is accompanied by threats that endanger the personal
integrity or the life of the private actors involved."
Transparency International's Business Principles for Countering Bribery define bribery in the
following way: "Bribery: An offer or receipt of any gift, loan, fee, reward or other advantage
to or from any person as an inducement to do something which is dishonest, illegal or a
breach of trust, in the conduct of the enterprise's business."
There are many reasons why the elimination of corruption has become a priority within the
business community. Confidence and trust in business among investors, customers,
employees and the public have been eroded by recent waves of business ethics scandals
around the globe. Companies are learning the hard way that they can be held responsible for
not paying enough attention to the actions of their employees, associated companies, business
partners and agents.

The rapid development of rules of corporate governance around the world is also prompting
companies to focus on anti-corruption measures as part of their mechanisms to express
corporate sustainability and to protect their reputations and the interests of their stakeholders.
Their anti-corruption systems are increasingly being extended to a range of ethics and
integrity issues, and a growing number of investment managers are looking to these systems
as evidence that the companies undertake good and well-managed business practice.
Businesses face high ethical and business risks and potential costs when they fail to
effectively combat corruption in all its forms. All companies, large and small, are vulnerable
to corruption, and the potential for damage is considerable. Business can face:
 legal risks: not only are most forms of corruption illegal where they occur but it is
also increasingly becoming illegal in a company’s home country to engage in corrupt
practices in another country;
 Reputational risks: companies whose policies and practices fail to meet high ethical
standards, or that take a relaxed attitude toward compliance with laws, are exposed to
serious reputational risks. Often it is enough to be accused of malpractice for a
company’s reputation to be damaged even if a court subsequently determines the
contrary;
 Financial costs: there is clear evidence that many countries lose close to $1 trillion
due to fraud, corruption and shady business transactions and in certain cases,
corruption can cost a country up to 17% of its GDP, according to the UN
Development Programme in 2014. This undermines business performance and diverts
public resources from legitimate sustainable development;
 Erosion of internal trust and confidenceas unethical behaviour damages staff loyalty
to the company as well as the overall ethical culture of the company.
The UN Global Compact suggests that participants consider the following three elements
when fighting corruption and implementing the 10th principle:
 Internal: As a first and basic step, introduce anti-corruption policies and programmes
within their organizations and their business operations;

 External: Report on the work against corruption in the annual Communication on
Progress; and share experiences and best practices through the submission of
examples and case stories;
 Collective Action: Join forces with industry peers and with other stakeholders to
scale up anti-corruption efforts, level the playing field and create fair competition for
all. Companies can use the B20 Collective Action Hub to create a company profile,
propose projects, find partners and on-going projects as well as resources on Anti-
Corruption Collective Action. Learn more on Collective Action and see our Uniting
against Corruption: A Playbook on Anti-Corruption Collective Action to understand
how to apply the Collective Action methodology to address identified corruption
challenges and mitigate potential business risks;
 Sign the “Anti-corruption Call to Action”, which is a call from Business to

Governments to address corruption and foster effective governance for a sustainable
and inclusive global economy. Your company’s participation in this Call to Action
underscores your continued efforts to integrate anti-corruption into your strategies and
operations
Organisation for Economic Cooperation and Development
The Organisation for Economic Co-operation and Development (OECD) is a 60-year-old

international organisation that works to build better policies for better lives. Their goal is
to shape policies that foster prosperity, equality, opportunity and well-being for all.
Together with governments, policy makers and citizens, they work on establishing
evidence-based international standards and finding solutions to a range of social,
economic and environmental challenges. From improving economic performance and
creating jobs to fostering strong education and fighting international tax evasion, they
provide a unique forum and knowledge hub for data and analysis, exchange of
experiences, best-practice sharing, and advice on public policies and international
standard-setting. In its 60 years of existence, the OECD has assisted both Members and
non-Members in fostering good governance and in informing, reforming and improving
their public policies. A trusted multilateral actor, the OECD has a vital role in the global
governance architecture. The OECD strengthens, within its mandate, the rules-based
international order by developing standards promoting wellbeing for all. OECD standards
have become global references for capital flows, taxation, anti-bribery and anti-corruption
frameworks, responsible business conduct, corporate governance, development assistance,
education and, most recently, artificial intelligence.
THE OECD GUIDELINES AND OTHER CORPORATE RESPONSIBILITY

INSTRUMENTS
1. Introduction The OECD Guidelines are recommendations by governments to

multinational enterprises (MNEs) operating in or from the 33 countries that adhere to the
Guidelines. The Guidelines help ensure that MNEs act in harmony with the policies of
countries in which they operate and with societal expectations. They are the only
comprehensive, multilaterally endorsed code of conduct for MNEs. They establish non-
binding principles and standards covering a broad range of issues in business ethics. The
basic premise of the Guidelines is that internationally agreed principles can help to
prevent misunderstandings and build an atmosphere of confidence and predictability
among business, labour, governments and society as a whole.
2. Companies use these instruments as guidance understand their responsibilities and to
formulate public commitments -- often called codes of conduct -- related to various
aspects of business conduct. An OECD study of codes of conduct and related
management and reporting systems (OECD 2001b) notes that most large multinational
enterprises have issued such codes. However, it also notes, that while such practices are a
global phenomenon, there is significant variation among companies in their commitments
and management practices that cannot be easily explained by differences in their business
environments. These findings suggest that now is a particularly promising time for global
instruments to have a major impact on international business behaviour and to play a
prominent role in the public debate about the respective roles of companies, governments
and individuals in ensuring that a broad cross section of the world’s people can enjoy
improved economic, social and environmental welfare.
Vision of OECD for next decade
i. Addressing the challenges posed by the Covid-19 pandemic, viz. climate change,
bio-diversity loss, decreased social mobility, rising share of migrants in world
population, inequality in terms of income, wealth and opportunity within and
between countries.
ii. Decreased social mobility.
iii. Changed demographic composition.
iv. Rise in global debt.
v. Trade and geopolitical tensions.
vi. Climate resilience.
vii. Acceleration of development of policies to close the gaps between countries,
genders and generations.
viii. To be a leader in working on economic policy, structural reform and productivity.
ix. Working on science, digitalization and innovation for economic development.
x. Advancing responses to the challenges of digitalisation, including the necessity to
develop new skills, the evolution of the traditional model of work and modes of

business, the need to update competition policy, the need to guard against threats to
democracy, digital security and privacy and to combat disinformation online. To
support this work, the OECD will also continue to seek out initiatives that enhance
and promote data free flow with trust.
xi. Playing a leading role in supporting tax policies and reforms that build and
strengthen a global tax system that is stable, efficient, equitable and equipped to
meet the needs of the 21st century global economy.
xii. Providing high quality research to support open markets, achieving a global level
playing field, defending human rights and guarding against disruptions in global
supply chains which are key to sustainable and inclusive growth.
xiii. Engaging with the future of work, resilient labour markets, quality jobs and the
importance of social dialogue. Job availability and the quality of jobs are crucial,
especially to the younger generation. The OECD will put more focus on resilient
health systems. The OECD will support the transition of the agri-food sector to a
resilient sector that secures nutritious food, income for farmers and a sustainable
environment. The OECD will continue its important work on science and
technology, corporate governance, responsible business conduct, artificial
intelligence, education, lifelong learning and skills, on SMEs, cities and regions.
3.3 International Labor Organisation
International Labour Organization (ILO) – History

The ILO was established as an agency for the League of Nations following World War I.
 It was established by the Treaty of Versailles in 1919.
 Its founders had made great strides in social thought and action before the
establishment of the organization itself.
 It became the first specialised agency of the United Nations (UN) in the year 1946.
 The ILO has played a significant role in promoting labour and human rights. It had
held a significant position during the Great Depression (1930s) for ensuring labour
rights.
 It played a key role in the decolonization process and in the victory over apartheid in
South Africa.
 The organization got the Nobel Peace Prize in 1969, for its efforts to improve peace
amongst the classes, and for promoting justice and fair work for the workers.
International Labour Organization (ILO) Objective

The ILO is the only tripartite U.N. agency. The ILO is a meeting point for governments,
workers and employers of ILO’s member States to set labour standards, improve upon
policies and create programs that promote decent work for people. The four strategic
objectives at the heart of the Decent Work agenda are:

 To develop and effectuate standards, fundamental principles, and fundamental rights
at work.
 To ensure that men and women have equal access to decent work while enhancing
opportunities for the same.
 To magnify the coverage and effectiveness of social protection for everyone.
 To strengthen Tripartism and social dialogue.
International Labour Organization (ILO) – Structure

The basis of the ILO is the tripartite principle. The ILO comprises the International Labour Conference,
the Governing Body, and the International Labour Office.
 International Labour Conference:
 The progressive policies of the ILO are set by the International Labour Conference.
 The Conference is an annual event, which happens in Geneva, Switzerland. The
conference brings together all the representatives of the ILO.
 Function: It is a panel for the review of the important issues regarding labour.
 Governing Body:
 The Governing Body is the executive body of the International Labour Organization.
 The governing body meets in Geneva. It meets three times annually.
 The Office is the secretariat of the Organization.
 It is composed of 56 titular members, and 66 deputy members.
 Functions:
 Makes decisions regarding the agenda and the policies of the International
Labour Conference.
 It adopts the draft Programme and Budget of the Organization for submission to
the Conference.
 Election of the Director-General.
 International Labour Office:
 It is the permanent secretariat of the International Labour Organization.
 Functions: It decides the activities for ILO and is supervised by the Governing Body and
the Director-General.
 The ILO member States hold periodically regional meetings to discuss the relevant
issues of the concerned regions.
 Each of the ILO’s 183 Member States has the right to send four delegates to the
Conference: two from government and one each representing workers and employers,
each of whom may speak and vote independently.T
To know more headquarters of the Important Organisations of the World, visit the linked article.
International Labour Organization (ILO) Functions

The ILO plays an important role in the formulation of policies which are focussed on solving labour issues.
The ILO also has other functions, such as:
 It adopts international labour standards. They are adopted in the form of conventions. It also
controls the implementation of its conventions.
 It aids the member states in resolving their social and labour problems.
 It advocates and works for the protection of Human rights.
 It is responsible for the research and publication of information regarding social and labour issues.
 The Trade Unions play a pivotal role in developing policies at the ILO, thus the Bureau for
Workers’ Activities at the secretariat is dedicated to strengthening independent and democratic
trade unions so they can better defend workers’ rights and interests.
 The ILO also assumes a supervisory role: it monitors the implementation of ILO conventions
ratified by member states.
 The implementation is done through the Committee of Experts, the International Labour
Conference’s Tripartite Committee and the member-states.
 Member states are obligated to send reports on the development of the implementation of
the conventions they have approved.
 Registration of complaints: The ILO registers complaints against entities that are violating
international rules.
 The ILO, however, does not impose any sanctions on the governments.
 Complaints can also be filed against member states for not complying with ILO
conventions that have been ratified.
 International Labour Standards: The ILO is also responsible for setting International Labour
Standards. The international labour conventions which are set by the ILO are ratified by the
member states. These are mostly non-binding in nature.
 But once a member state accepts conventions, it becomes legally binding. The
conventions are often used to bring national laws in alignment with international
standards.
 ILO Global Commission on the Future of Work: The formation of an ILO Global Commission
on the Future of Work marks the second stage in the ILO Future of Work Initiative.
 The Commission outlines a vision for a human-centred agenda that is based on investing
in people’s capabilities, institutions of work and decent and sustainable work.
 It also describes the challenges caused by new technology, climate change and
demography and appeals for a collective global response to the disturbances being caused
in the world of work.
To know more about the World Confederation of Labour, visit the linked article
International Labour Organization – Mission

The ILO’s mission is to promote decent work for all workers. This is accomplished by promoting social
dialogue, protection, and employment generation.
 The ILO provides technical support along with the support of development partners to multiple
countries in order to achieve this mission.

International Labour Organization – Declaration on Fundamental
Principles and Rights at Work
The Declaration was adopted in 1998, and it mandates the member states to promote the eight fundamental
principles and rights. The Fundamental Principles and Rights are categorized into four classes. They are:
 Freedom of Association and the Right to Collective Bargaining (Conventions 87 and 98)
 Elimination of forced or compulsory labour (Conventions No. 29 and No. 105)
 Abolition of child labour (Conventions No. 138 and No. 182)
 Elimination of discrimination in respect of employment and occupation (Conventions No. 100 and
No. 111).
 As part of the Follow-up to the Declaration, the ILO Director-General also submits a Global
Report on one of the four categories of fundamental principles and rights at work to the tripartite
International Labour Conference.
International Labour Organization – Core Conventions
The eight fundamental conventions form an indispensable part of the United Nations Human Rights
Framework, and their sanction is an important sign of member States’ commitment to human rights.
Overall, 135 member States have ratified all eight fundamental conventions.
 The eight-core conventions of the ILO are:
 Forced Labour Convention (No. 29)

 Abolition of Forced Labour Convention (No.105)
 Equal Remuneration Convention (No.100)
 Discrimination (Employment Occupation) Convention (No.111)
 Minimum Age Convention (No.138)
 Worst forms of Child Labour Convention (No.182)
 Freedom of Association and Protection of Right to Organised Convention (No.87)
 Right to Organise and Collective Bargaining Convention (No.98)
 The conventions are highly relevant due to the economic challenges faced by workers all around
the world.
International Labour Organization and India

India is a founding member of the ILO. It became a permanent member of the ILO Governing Body in
1922. The first ILO Office in India was inaugurated in 1928.
 India has ratified six fundamental conventions.

 India has not ratified Freedom of Association and Protection of the Right to Organise
Convention, 1948 (No. 87) and Right to Organise and Collective Bargaining Convention,
1949 (No. 98).
 As the two conventions involve the granting of certain rights that are prohibited under the
statutory rules for government employees.

Labour Movement in India
The growth of the trade union movement in India was an organic process. It started towards the tail end of
the nineteenth century and has had a parallel development to India’s industrial development. The
difficulties of the workers’ lives came into light during the 1850s. The labour movement in India can be
categorized into two phases: the first phase lasting from the 1850s -1918, and the second from 1918- till
Independence.
 The origin of the labour movements in India can be traced back to the 1860s, however, the first
agitation occurred only in 1875.
 The actions of the working class in the earliest stage were sporadic and disorganized in nature and
hence were mostly futile.
 It was only from the second decade of the twentieth century in Bombay, that serious attempts were
made for the formation of associations that could lead an organized form of protests.
 The second phase witnessed the sporadic protests obtain an organized form. During this phase,
Trade Unions were formed on modern lines.
 The first labour tumult occurred in Bombay, 1875 under the leadership of S.S Bengalee.
 It concentrated on the plight of workers, especially women and children.

 This agitation led to the appointment of the first Factory Commission, 1875.
 The first Factories Act was passed in 1881 consequently.
 In 1890, M.N Lokhande established Bombay Mill Hands Association. This was the first
organized labour union in India.
 The 1920s was significant in this regard. Congress and the Communists made serious attempts to
mobilize and establish a connection with the working class.
 The first attempt to form an all-India organization was also made in the 1920s.
 Features of the labour movements in this era:
 Leadership was exemplified by social reformers and not by the workers themselves.
 The movements in this era mainly concentrated on the welfare of workers rather than
asserting their rights.
 They were organized, but there was no pan India presence.
 A strong intellectual foundation or agenda was missing.
 Their demands revolved around issues like that of women and children workers.
International Labour Organization and CSR

From an ILO perspective, the social responsibilities of business and their contribution to the
decent work agenda is, and has always been, a central part of ILO efforts to promote economic
and social progress.
Corporate Social Responsibility is one of the important ways today in which enterprises affirm
their principles and values, both in their own internal processes and operations and in their
interaction with other actors.

While enterprises are increasingly reflecting the principles that underpin international labour
standards in their CSR policies, for the ILO it is important to emphasise the voluntary nature of
CSR.
During 2006-07, the ILO is implementing an InFocus Initiative (pdf 408KB) which seeks to
advance the ILO’s leadership in this area by promoting the principles laid down in the MNE
Declaration as the foundation for good CSR policy and practice. This Initiative builds on and
complements the ILO’s role in respect of governments of member States, setting, implementing
and supervising labour standards, promoting social dialogue and assisting countries to implement
good policies in this regard.
The InFocus initiative supports the constituents and seeks to inform the diverse ways in which
enterprises can give effect to the MNE Declaration through CSR by:
 developing knowledge on the different aspects of CSR

 facilitating dialogue in the ILO to clarify issues and share views on what constitutes good
CSR practice
 developing and providing training to support the constituents and other actors to give
effect to the MNE Declaration
 developing models of good practice on how enterprises, including within their supply
chain architecture, are giving effect to the MNE Declaration in a particular country
context through their CSR activities
 collecting and disseminating information by upgrading the business and social initiatives
database (BASI), publishing working papers and case studies, and supporting the
activities of the ILO constituents
 building dialogue with international intergovernmental organizations and engaging with
other international initiatives related to CSR.
Sustainable Developmental Goals
The Sustainable Development Goals (SDGs), also known as the Global Goals, are a set of

seventeen interconnected objectives aimed at promoting sustainable development across

economic, social, and environmental dimensions. They were formulated in 2015 by
the United Nations General Assembly (UNGA) as part of the Post-2015 Development
Agenda, which sought to create a future global development framework to succeed
the Millennium Development Goals, a similar set of eight goals adopted in 2000 to address
poverty, health, education, gender equality and other issues, which ended that year. In
September 2015, 193 countries came together at the United Nations to adopt and commit
to a long-term, comprehensive strategy to tackle the world’s greatest challenges related to
global sustainable development. The result was the SDGs, a list of 17 goals to achieve a
better and more sustainable future for all by 2030.
WHY ARE THE SDGS IMPORTANT?

While each goal matters on its own they all interconnect, incorporating social, economic
and environmental sustainability, or as the UN puts it, a global blueprint for dignity,
peace and prosperity for people and the planet, now and in the future. According
to Professor Jeffrey Sachs, Director, The Earth Institute, Columbia University,
adopting global goals is important for the following reasons:
 Encourage social mobilization
 Create peer pressure among political leaders
 Spur networks of expertise, knowledge and practice into action
 Mobilize stakeholder networks across countries, sectors and regions, coming
together for a common purpose
Here is the agenda for 2030:

 Eliminate Poverty
 Erase Hunger
 Establish Good Health and Well-Being
 Provide Quality Education
 Enforce Gender Equality
 Improve Clean Water and Sanitation
 Grow Affordable and Clean Energy
 Create Decent Work and Economic Growth
 Increase Industry, Innovation, and Infrastructure
 Reduce Inequality
 Mobilize Sustainable Cities and Communities
 Influence Responsible Consumption and Production
 Organize Climate Action
 Develop Life Below Water
 Advance Life On Land
 Guarantee Peace, Justice, and Strong Institutions

 Build Partnerships for the Goals
Listing of 17 goals with their targets and indicators
Goal 1: No poverty[edit]
SDG 1 is to: "End poverty in all its forms everywhere". [27] Achieving SDG 1 would end extreme
poverty globally by 2030. One of its indicators is the proportion of population living below
the poverty line.[27] The data gets analyzed by sex, age, employment status, and geographical
location (urban/rural).
This section is an excerpt from Sustainable Development Goal 1.[edit]
The goal has seven targets and 13 indicators to measure progress. The five outcome targets are:
eradication of extreme poverty; reduction of all poverty by half; implementation of social
protection systems; ensuring equal rights to ownership, basic services, technology and economic
resources; and the building of resilience to environmental, economic and social disasters. The
two targets related to means of implementation[28] SDG 1 are mobilization of resources to end
poverty; and the establishment of poverty eradication policy frameworks at all levels.[29][30]
Goal 2: Zero hunger (No hunger) [edit]
Sufficient and healthy foods should be made available to everyone
SDG 2 is to: "End hunger, achieve food security and improved nutrition, and promote sustainable
agriculture".[31] Indicators for this goal are for example the prevalence of undernourishment,
prevalence of severe food insecurity, and prevalence of stunting among children under five years
of age.
SDG 2 has eight targets and 14 indicators to measure progress. [32] The five outcome targets are:
ending hunger and improving access to food; ending all forms of malnutrition; agricultural
productivity; sustainable food production systems and resilient agricultural practices; and genetic
diversity of seeds, cultivated plants and farmed and domesticated animals; investments,
research and technology. The three means of implementation targets[33] include: addressing trade
restrictions and distortions in world agricultural markets and food commodity markets and their
derivatives.[32]

Goal 3: Good health and well-being [edit]
Mothers with healthy children in rural India
SDG 3 is to: "Ensure healthy lives and promote well-being for all at all ages". [34] Important
indicators here are life expectancy as well as child and maternal mortality. Further indicators are
for example deaths from road traffic injuries, prevalence of current tobacco use, suicide mortality
rate.[34]
SDG 3 has 13 targets and 28 indicators to measure progress toward targets. The first nine
targets are outcome targets. Those are: reduction of maternal mortality; ending all
preventable deaths under five years of age; fight communicable diseases; ensure reduction of
mortality from non-communicable diseases and promote mental health; prevent and
treat substance abuse; reduce road injuries and deaths; grant universal access to sexual and
reproductive care, family planning and education; achieve universal health coverage; and reduce
illnesses and deaths from hazardous chemicals and pollution. The four means of implementation
targets[35] are: implement the WHO Framework Convention on Tobacco Control; support
research, development and universal access to affordable vaccines and medicines; increase
health financing and support health workforce in developing countries; and improve early warning
systems for global health risks.[36]
Goal 4: Quality education[edit]

School children in Kakuma refugee camp, Kenya
SDG 4 is to: "Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all".[37] The indicators for this goal are for example attendance rates at primary
schools, completion rates of primary school education, participation in tertiary education and so
forth. In each case, parity indices are looked at to ensure that disadvantaged students do not

miss out (data is collected on "female/male, rural/urban, bottom/top wealth quintile and others
such as disability status, indigenous peoples") . There is also an indicator around the facilities
that the school buildings have (access to electricity, the internet, computers, drinking water,
toilets etc.).[37]
SDG 4 has ten targets which are measured by 11 indicators. The seven outcome targets are:
free primary and secondary education; equal access to quality pre-primary education; affordable
technical, vocational and higher education; increased number of people with relevant skills for
financial success; elimination of all discrimination in education; universal literacy and numeracy;
and education for sustainable development and global citizenship. The three means of
implementation targets[38] are: build and upgrade inclusive and safe schools; expand higher
education scholarships for developing countries; and increase the supply of qualified teachers in
developing countries.
Goal 5: Gender equality[edit]

SDG 5 is to: "Achieve gender equality and empower all women and girls".[39] Indicators include for
example having suitable legal frameworks and the representation by women in national
parliament or in local deliberative bodies.[10] Numbers on forced marriage and female genital
mutilation/cutting (FGM/C) are also included in another indicator. [40][10]
Through the pledge to "Leave No One Behind", countries have committed to fast-track progress
for those furthest behind, first.[41]: 54 SDG 5 aims to grant women and girls equal rights,
opportunities to live free without discrimination including workplace discrimination or any
violence. This is to achieve gender equality and empower all women and girls.
Goal 6: Clean water and sanitation [edit]
Example of sanitation for all: School toilet (IPH school and college, Mohakhali, Dhaka, Bangladesh)
SDG 6 is to: "Ensure availability and sustainable management of water and sanitation for all".
[42]
The Joint Monitoring Programme (JMP) of WHO and UNICEF is responsible for monitoring
progress to achieve the first two targets of this goal. Important indicators for this goal are the
percentages of the population that uses safely managed drinking water, and has access to safely
managed sanitation. The JMP reported in 2017 that 4.5 billion people do not have safely
managed sanitation.[43] Another indicator looks at the proportion of domestic and industrial
wastewater that is safely treated.

The six outcome targets include: Safe and affordable drinking water; end open defecation and
provide access to sanitation, and hygiene, improve water quality, wastewater treatment and safe
reuse, increase water-use efficiency and ensure freshwater supplies, implement IWRM, protect
and restore water-related ecosystems. The two means of implementation targets[44] are to expand
water and sanitation support to developing countries, and to support local engagement in water
and sanitation management.[45]
Goal 7: Affordable and clean energy [edit]
Solar panels on house roof
SDG 7 is to: "Ensure access to affordable, reliable, sustainable and modern energy for all".
[46]
One of the indicators for this goal is the percentage of population with access to electricity
(progress in expanding access to electricity has been made in several countries,
notably India, Bangladesh, and Kenya[47]). Other indicators look at the renewable energy share
and energy efficiency.
The goal has five targets to be achieved by 2030. [48] Progress towards the targets is measured by
six indicators.[48] Three out of the five targets are outcome targets: Universal access to modern
energy; increase global percentage of renewable energy; double the improvement in energy
efficiency. The remaining two targets are means of implementation targets[49]: to promote access
to research, technology and investments in clean energy; and expand and upgrade energy
services for developing countries. In other words, these targets include access to affordable and
reliable energy while increasing the share of renewable energy in the global energy mix. They
also focus on improving energy efficiency, international cooperation and investment in clean
energy infrastructure.
Goal 8: Decent work and economic growth

SDG 8 is to: "Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all". [50] Important indicators for this goal include economic
growth in least developed countries and the rate of real GDP per capita. Further examples are
rates of youth unemployment and occupational injuries or the number of women engaged in the
labor force compared to men.[50]
SDG 8 has twelve targets in total to be achieved by 2030. Some targets are for 2030; others are
for 2020. The first ten are outcome targets. These are; "sustainable economic growth; diversify,
innovate and upgrade for economic productivity", "promote policies to support job creation and
growing enterprises", "improve resource efficiency in consumption and production",
'full employment and decent work with equal pay', 'promote youth employment, education and

training', 'end modern slavery, trafficking, and child labour', 'protect labour rights and promote
safe working environments', 'promote beneficial and sustainable tourism', universal access to
banking, insurance and financial services. In addition, there are also two targets for means of
implementation[51], which are: Increase aid for trade support; develop a global youth employment
strategy.
Goal 9: Industry, Innovation and Infrastructure [edit]

SDG 9 is to: "Build resilient infrastructure, promote inclusive and sustainable industrialization,
and foster innovation".[52] Indicators in this goal include for example the proportion of people who
are employed in manufacturing activities or who are living in areas covered by a mobile
network or who have access to the internet.[10] An indicator that is connected to climate change is
"CO2 emissions per unit of value added".
SDG 9 has eight targets, and progress is measured by twelve indicators. The first five targets
are outcome targets: develop sustainable, resilient and inclusive infrastructures; promote
inclusive and sustainable industrialization; increase access to financial services and markets;
upgrade all industries and infrastructures for sustainability; enhance research and
upgrade industrial technologies. The remaining three targets are means of
implementation targets[53]: Facilitate sustainable infrastructure development for developing
countries; support domestic technology development and industrial diversification; universal
access to information and communications technology.
Goal 10: Reduced inequality[edit]

SDG 10 is to: "Reduce income inequality within and among countries". [54] Important indicators for
this SDG are income disparities, aspects of gender and disability, as well as policies for migration
and mobility of people.[55] One major rising threat to this SDG is the development of artificial
intelligence (AI) specifically in regards to economic, political, and social achievements in
concentrated areas of wealth and knowledge. [56]
The Goal has ten targets to be achieved by 2030. Progress towards targets will be measured by
indicators. The first seven targets are outcome targets: Reduce income inequalities; promote
universal social, economic and political inclusion; ensure equal opportunities and
end discrimination; adopt fiscal and social policies that promotes equality; improved regulation of
global financial markets and institutions; enhanced representation for developing
countries in financial institutions; responsible and well-managed migration policies. The other
three targets are means of implementation targets[57]: Special and differential treatment for
developing countries; encourage development assistance and investment in least developed
countries; reduce transaction costs for migrant remittances.[58]
Goal 11: Sustainable cities and communities [edit]

SDG 11 is to: "Make cities and human settlements inclusive, safe, resilient, and sustainable".
[59]
Important indicators for this goal are the number of people living in urban slums, the proportion
of the urban population who has convenient access to public transport, and the extent of built-up
area per person.[10]

SDG 11 has 10 targets to be achieved, and this is being measured with 15 indicators. The
seven outcome targets include safe and affordable housing, affordable and sustainable
transport systems, inclusive and sustainable urbanization, protection of the
world's cultural and natural heritage, reduction of the adverse effects of natural disasters,
reduction of the environmental impacts of cities and to provide access to safe and inclusive
green and public spaces. The three means of implementation targets[60] include strong national
and regional development planning, implementing policies for inclusion, resource efficiency,
and disaster risk reduction in supporting the least developed countries in sustainable and
resilient building.[61][62]
Goal 12: Responsible consumption and production[edit]

SDG 12 is to: "Ensure sustainable consumption and production patterns". [63] One of the indicators
is the number of national policy instrument to promote sustainable consumption and production
patterns.[10]: 14 Another one is global fossil fuel subsidies. [10]: 14 An increase in domestic recycling and
a reduced reliance on the global plastic waste trade are other actions that might help meet the
goal.[64]
Sustainable Development Goal 12 has 11 targets. The first 8 are outcome targets, which are:
implement the 10-Year Framework of Programs on Sustainable Consumption and Production
Patterns; achieve the sustainable management and efficient use of natural resources; reducing
by half the per capita global food waste at the retail and consumer levels and the reduction of
food losses along production and supply chains, including post-harvest losses; achieving the
environmentally sound management of chemicals and all wastes throughout their life cycle;
reducing waste generation through prevention, reduction, recycling and reuse; encourage
companies to adopt sustainable practices; promote public procurement practices that are
sustainable; and ensure that people everywhere have the relevant information
and awareness for sustainable development. The three means of implementation targets[65] are:
support developing countries to strengthen their scientific and technological capacity; develop
and implement tools to monitor sustainable development impacts; and remove market
distortions, like fossil fuel subsidies, that encourage wasteful consumption.[66]
Goal 13: Climate action[edit]

SDG 13 is to: "Take urgent action to combat climate change and its impacts by regulating
emissions and promoting developments in renewable energy". [67] In 2021 to early 2023,
the Intergovernmental Panel on Climate Change (IPCC) published its Sixth Assessment
Report which assesses scientific, technical, and socio-economic information concerning climate
change.[68]
SDG 13 has five targets which are to be achieved by 2030. They cover a wide range of issues
surrounding climate action. The first three targets are outcome targets: Strengthen resilience
and adaptive capacity to climate-related disasters; integrate climate change measures into
policies and planning; build knowledge and capacity to meet climate change. The remaining two
targets are means of implementation targets[69]: To implement the UN Framework Convention on
Climate Change (UNFCCC), and to promote mechanisms to raise capacity for planning and
management. Along with each target, there are indicators that provide a method to review the

overall progress of each target. The UNFCCC is the primary international, intergovernmental
forum for negotiating the global response to climate change.
Goal 14: Life below water[edit]

SDG 14 is to: "Conserve and sustainably use the oceans, seas and marine resources for
sustainable development".[70] The current efforts to protect oceans, marine environments and
small-scale fishers are not meeting the need to protect the resources. [10] Increased ocean
temperatures and oxygen loss act concurrently with ocean acidification and constitute the deadly
trio of climate change pressures on the marine environment. [71]
Nusa Lembongan Reef
This section is an excerpt from Sustainable Development Goal 14.

The first seven targets are outcome targets: Reduce marine pollution; protect and
restore ecosystems; reduce ocean acidification; sustainable fishing; conserve coastal and marine
areas; end subsidies contributing to overfishing; increase the economic benefits from sustainable
use of marine resources. The last three targets are means of implementation targets[72]: To
increase scientific knowledge, research and technology for ocean health; support small scale
fishers; implement and enforce international sea law.[73] One indicator (14.1.1b) under Goal 14
specifically relates to reducing impacts from marine plastic pollution.
Goal 15: Life on land

SDG 15 is to: "Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land degradation and
halt biodiversity loss". The proportion of remaining forest area, desertification and species
extinction risk are example indicators of this goal.
The nine outcome targets include: Conserve and restore terrestrial and freshwater ecosystems;

end deforestation and restore degraded forests; end desertification and restore degraded land;
ensure conservation of mountain ecosystems, protect biodiversity and natural habitats; protect
access to genetic resources and fair sharing of the benefits; eliminate poaching and trafficking
of protected species; prevent invasive alien species on land and in water ecosystems; and
integrate ecosystem and biodiversity in governmental planning. The three means of
implementation targets[77] include: Increase financial resources to conserve and sustainably use
ecosystem and biodiversity; finance and incentivize sustainable forest management; combat
global poaching and trafficking.

Goal 16: Peace, justice and strong institutions
SDG 16 is to: "Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at all
levels". Rates of birth registration and prevalence of bribery are two examples of indicators
included in this goal.
This section is an excerpt from Sustainable Development Goal 16.
SDG 16 has ten outcome targets: Reduce violence; protect children from abuse,

exploitation, trafficking and violence; promote the rule of law and ensure equal access to justice;
combat organized crime and illicit financial and arms flows, substantially
reduce corruption and bribery; develop effective, accountable and transparent institutions; ensure
responsive, inclusive and representative decision-making; strengthen the participation in global
governance; provide universal legal identity; ensure public access to information and
protect fundamental freedoms. There are also two means of implementation targets[80]:
Strengthen national institutions to prevent violence and combat crime and terrorism; promote and
enforce non-discriminatory laws and policies.
Goal 17: Partnership for the goals

SDG 17 is to: "Strengthen the means of implementation and revitalize the global partnership for
sustainable development".[82] Increasing international cooperation is seen as vital to achieving
each of the 16 previous goals. [83] Developing multi-stakeholder partnerships to share knowledge,
expertise, technology, and financial support is seen as critical to overall success of the SDGs.
The goal encompasses improving north–south and South-South cooperation, and public-private
partnerships which involve civil societies are specifically mentioned. [84][85]
SDG 17 is a vision for improved and more equitable trade, as well as coordinated investment
initiatives to promote sustainable development across borders. It is about strengthening and
streamlining cooperation between nation-states, both developed and developing, using the
SDGs as a shared framework and a shared vision for defining that collaborative way forward. [86] It
seeks to promote international trade and an equitable trading system.[87] The Goal has 17 targets
to be achieved by 2030, broken down into five categories: finance, technology, capacity
building, trade and systemic issues. Progress towards targets will be measured by 25 indicators.
[86][88]
All these targets are regarded as means of implementation targets.[89]
MILLENNIUM DEVELOPMENT GOALS TO SUSTAINABLE DEVELOPMENT

GOALS.
3.1 Introduction
The United Nations Millennium Development Goals (MDGs) are 8 goals that UN Member
States had agreed to try to achieve by the year 2015.
The United Nations (UN) Millennium Development goals (MDGs) are a set of goals that
were signed into an agreement with the member countries of the UN related to human

development, eradication of poverty, providing access to basic services like food, shelter, and
clean water to the underprivileged and poor people of the world. These goals though were not
legally binding were supposed to bound the members together in pursuit of global
humanitarian objectives. These goals were agreed upon in the year 2000 and have several
implications for corporates in the practice of Corporate Social Responsibility (CSR) and the
pursuit of socially and environmentally responsible business practices.
The nature of these MDGs is such that the signatories must pursue the humanitarian
objectives in conjunction with the other stakeholders in their countries like Non-
Governmental Organizations (NGOs), Civil Society, and the Corporates. Towards this end,
they would have to allocate resources for the actualization of the MDGs and work in
conjunction with the corporates to reach out to the underprivileged and the needy. This means
that the corporates would have to discharge their duties as responsible corporate citizens and
hence, must correspondingly adhere to the norms of the UN MDGs.
3.2 How the MDGs are funded?

The funding for the programs identified under the MDGs must be shared between the
government and the other stakeholders and this means that the corporates would have to share
some of the burden. However, as mentioned earlier, since these MDGs are not legally binding
and represent a kind of directive principles of state policies wherein member countries are
encouraged to pursue humanitarian goals and objectives, it has been the case that the targets
set for the actualization of the goals which were in the years between 2010-’15 have not been
fully met.
Further, the global economic crisis of 2008 has dealt a blow to the funding of the MDGs by
the members and the corporates as well. This has meant that the actualization of the
humanitarian objectives has been postponed or left to a future date when the initial aims were
to ensure that the targets would be met by 2015. Of course, this does not mean that no work
has been done as is evident in the way several countries in Africa have benefited immensely
because of the largesse showered on them by the Middle Eastern countries and China among
others.
Goal 1 – Eradicate Extreme Poverty and Hunger
Millennium Development Goal 1: eradicate extreme poverty and hunger
Target 1.C. Halve, between 1990 and 2015, the proportion of people who suffer from hunger
Undernutrition which includes fetal growth restriction, stunting, wasting and deficiencies of
vitamin A and zinc, along with suboptimal breastfeeding; is the underlying cause of death in
an estimated 45% of all deaths among children under 5 years of age. The proportion of

underweight children in developing countries has declined from 28% to 17% between 1990
and 2013. This rate of progress is close to the rate required to meet the MDG target, however
improvements have been unevenly distributed between and within different regions.
Millennium Development Goal 4: reduce child mortality
Target 4.A. Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate
Globally, significant progress has been made in reducing mortality in children under 5 years
of age. In 2013, 6.3 million children under 5 died, compared with 12.7 million in 1990.
Between 1990 and 2013, under-5 mortality declined by 49%, from an estimated rate of 90
deaths per 1000 live births to 46. The global rate of decline has also accelerated in recent
years – from 1.2% per annum during 1990–1995 to 4.0% during 2005–2013. Despite this
improvement, the world is unlikely to achieve the MDG target of a two-thirds reduction in
1990 mortality levels by the year 2015.
More countries are now achieving high levels of immunization coverage; in 2013, 66% of
Member States reached at least 90% coverage. In 2013, global measles immunization
coverage was 84% among children aged 12–23 months. During 2000–2013, estimated
measles deaths decreased by 74% from 481 000 to 124 000.
Millennium Development Goal 5: improve maternal health
Target 5.A. Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio
Target 5.B. Achieve, by 2015, universal access to reproductive health
Despite a significant reduction in the number of maternal deaths – from an estimated 523 000
in 1990 to 289 000 in 2013 – the rate of decline is less than half of what is needed to achieve
the MDG target of a three quarters reduction in the mortality ratio between 1990 and 2015.
To reduce the number of maternal deaths, women need access to good-quality reproductive
health care and effective interventions. In 2012, 64% of women aged 15–49 years who were
married or in a consensual union were using some form of contraception, while 12% wanted
to stop or postpone childbearing but were not using contraception.
The proportion of women receiving antenatal care at least once during pregnancy was about
83% for the period 2007–2014, but for the recommended minimum of 4 or more visits the
corresponding figure drops to around 64%.

The proportion of births attended by skilled personnel – crucial for reducing perinatal,
neonatal and maternal deaths – is above 90% in 3 of the 6 WHO regions. However, increased
coverage is needed in certain regions, such as the WHO African Region where the figure was
still only 51%.
Millennium Development Goal 6: combat HIV/AIDS, malaria and other diseases
Target 6A. Have halted by 2015 and begun to reverse the spread of HIV/AIDS
Target 6B. Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who
need it.
In 2013 an estimated 2.1 million people were newly infected with HIV – down from 3.4
million in 2001. By the end of 2013 about 12.9 million people were receiving antiretroviral
therapy (ART) globally. Of these, 11.7 million lived in low- and middle-income countries,
representing 36% of the estimated 32.6 million people living with HIV in these countries.
Should current trends continue the target of placing 15 million people on ART by 2015 will
be exceeded.
The decrease in the number of those newly infected along with the increased availability of
ART have contributed to a major decline in HIV mortality levels – from 2.4 million people in
2005 to an estimated 1.5 million in 2013. As fewer people die from AIDS-related causes the
number of people living with HIV is likely to continue to grow.
Target 6C. Have halted by 2015 and begun to reverse the incidence of malaria and other
major diseases
Malaria
About half the world’s population is at risk of malaria, and an estimated 198 million cases in
2013 led to approximately 584 000 deaths – most of these in children under the age of 5
living in Africa.
During the period 2000–2013, malaria incidence and mortality rates of population at risk
have both fallen globally, 30% and 47% respectively.
The coverage of interventions such as the distribution of insecticide-treated nets and indoor
residual spraying has greatly increased, and will need to be sustained in order to prevent the
resurgence of disease and deaths caused by malaria. Globally, the MDG target of halting by
2015 and beginning to reverse the incidence of malaria has already been met.

Tuberculosis
The annual global number of new cases of tuberculosis has been slowly falling for a decade
thus achieving MDG target 6.C to reverse the spread of the disease by 2015. In 2013, there
were an estimated 9 million new cases and 1.5 million deaths (including 360 000 deaths
among HIV-positive people).
Globally, treatment success rates have been sustained at high levels since 2007, at or above
the target of 85%. However, multi-drug resistant tuberculosis (MDR-TB), which emerged
primarily as a result of inadequate treatment, continues to pose problems.
Other diseases
MDG Target 6.C also includes neglected tropical diseases – a medically diverse group of
infectious conditions caused by a variety of pathogens.
In 2013 only 6314 cases of human African trypanosomiasis were reported, representing the
lowest levels of recorded cases in 50 years. This disease is now targeted for elimination as a
public health problem by 2020. Dracunculiasis is also on the verge of eradication with an
historic low of 126 cases reported in 2014 and an ongoing WHO target of interrupting its
transmission by the end of 2015.
Plans to eliminate leprosy as a public health problem worldwide by 2020 have also been
prepared and are being implemented. The elimination of visceral leishmaniasis as a public
health problem in the Indian subcontinent by 2020 is on track with a greater than 75%
reduction in incident cases recorded since the launch of the programme in 2005. In the case
of lymphatic filariasis, more than 5 billion treatments have been delivered since 2000 to stop
its spread and of the 73 known endemic countries 39 are on track to achieve its elimination as
a public health problem by 2020.
Millennium Development Goal 7: ensure environmental sustainability
Target 7C: By 2015, halve the proportion of people without sustainable access to safe
drinking water and basic sanitation
The world has now met the MDG target relating to access to safe drinking-water. In 2012,
90% of the population used an improved source of drinking-water compared with 76% in

1990. Progress has however been uneven across different regions, between urban and rural
areas, and between rich and poor.
With regard to basic sanitation, current rates of progress are too slow for the MDG target to
be met globally. In 2012, 2.5 billion people did not have access to improved sanitation
facilities, with 1 billion these people still practicing open defecation. The number of people
living in urban areas without access to improved sanitation is increasing because of rapid
growth in the size of urban populations.
Millennium Development Goal 8: develop a global partnership for development
Target 8E. In cooperation with pharmaceutical companies, provide access to affordable

essential medicines in developing countries
Many people continue to face a scarcity of medicines in the public sector, forcing them to the
private sector where prices can be substantially higher. Surveys undertaken from 2007-2013
show the average availability of selected generic medicines in 21 low- and middle-income
countries was only 55% in the public sector.
Even the lowest-priced generics can put common treatments beyond the reach of low-income
households in developing countries. The greatest price is paid by patients suffering chronic
diseases. Effective treatments for the majority of the global chronic disease burden exist, yet
universal access remains out-of-reach.
WHO response
WHO works with partners to support national efforts to achieve the health-related MDGs.
WHO’s activities include:
 setting prevention and treatment guidelines and other global norms and standards;
 providing technical support to countries to implement guidelines;
 analysing social and economic factors and highlighting the broader risks and
opportunities for health.
WHO assists national authorities as they develop health policies and plans, and helps
governments work with development partners to align external assistance with domestic
priorities. WHO also collects and disseminates data on health so countries can plan health
spending and track progress.

.11 INTERNATIONAL LABOUR ORGANIZATION TRIPARTITE DECLARATION
OF PRINCIPLES CONCERNING MULTINATIONAL ENTERPRISES AND
SOCIAL POLICY
Recalling that the International Labour Organization for many years has been involved with
certain social issues related to the activities of multinational enterprises; Noting in particular
that various Industrial Committees, Regional Conferences, and the International Labour
Conference since the mid-1960s have requested appropriate action by the Governing Body in
the field of multinational enterprises and social policy; Having been informed of the activities
of other international bodies, in particular the UN Commission on Transnational Corporations
and the Organization for Economic Cooperation and Development (OECD); Considering that
the ILO, with its unique tripartite structure, its competence, and its long-standing experience
in the social field, has an essential role to play in evolving principles for the guidance of
governments, workers’ and employers’ organizations, and multinational enterprises
themselves; Recalling that it convened a Tripartite Meeting of Experts on the Relationship
between Multinational Enterprises and Social Policy in 1972, which recommended an ILO
programme of research and study, and a Tripartite Advisory Meeting on the Relationship of
Multinational Enterprises and Social Policy in 1976 for the purpose of reviewing the ILO
programme of research and suggesting appropriate ILO action in the social and labour field;
Bearing in mind the deliberations of the World Employment Conference; Having thereafter
decided to establish a tripartite group to prepare a Draft Tripartite Declaration of Principles
covering all of the areas of ILO concern which relate to the social aspects of the activities of
multinational enterprises, including employment creation in the developing countries, all the
while bearing in mind the recommendations made by the Tripartite Advisory Meeting held in
1976; Having also decided to reconvene the Tripartite Advisory Meeting to consider the
Draft Declaration of Principles as prepared by the tripartite group; Having considered the
Report and the Draft Declaration of Principles submitted to it by the reconvened Tripartite
Advisory Meeting; Hereby approves the following Declaration which may be cited as the
Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy,
adopted by the Governing Body of the International Labour Office, and invites governments
of States Members of the ILO, the employers’ and workers’ organizations concerned and the
multinational enterprises operating in their territories to observe the principles embodied
therein.
1.Multinational enterprises play an important part in the economies of most countries and in
international economic relations. This is of increasing interest to governments as well as to

employers and workers and their respective organizations. Through international direct
investment and other means such enterprises can bring substantial benefits to home and host
countries by contributing to the more efficient utilization of capital, technology and labour.
Within the framework of development policies established by governments, they can also
make an important contribution to the promotion of economic and social welfare; to the
improvement of living standards and the satisfaction of basic needs; to the creation of
employment opportunities, both directly and indirectly; and to the enjoyment of basic human
rights, including freedom of association, throughout the world. On the other hand, the
advances made by multinational enterprises in organizing their operations beyond the
national framework may lead to abuse of concentrations of economic power and to conflicts
with national policy objectives and with the interest of the workers. In addition, the
complexity of multinational enterprises and the difficulty of clearly perceiving their diverse
structures, operations and policies sometimes give rise to concern either in the home or in the
host countries, or in both.
2. The aim of this Tripartite Declaration of Principles is to encourage the positive
contribution which multinational enterprises can make to economic and social progress and to
minimize and resolve the difficulties to which their various operations may give rise, taking
into account the United Nations resolutions advocating the establishment of a New
International Economic Order.
3. This aim will be furthered by appropriate laws and policies, measures and actions adopted
by the governments and by cooperation among the governments and the employers’ and
workers’ organizations of all countries.
4. The principles set out in this Declaration are commended to the governments, the
employers’ and workers’ organizations of home and host countries and to the multinational
enterprises themselves.
5. These principles are intended to guide the governments, the employers’ and workers’
organizations and the multinational enterprises in taking such measures and actions and
adopting such social policies, including those based on the principles laid down in the
Constitution and the relevant Conventions and Recommendations of the ILO, as would
further social progress.
6. To serve its purpose this Declaration does not require a precise legal definition of
multinational enterprises; this paragraph is designed to facilitate the understanding of the
Declaration and not to provide such a definition. Multinational enterprises include
enterprises, whether they are of public, mixed or private ownership, which own or control
production, distribution, services or other facilities outside the country in which they are
based. The degree of autonomy of entities within multinational enterprises in relation to each

other varies widely from one such enterprise to another, depending on the nature of the links
between such entities and their fields of activity and having regard to the great diversity in the
form of ownership, in the size, in the nature and location of the operations of the enterprises
concerned. Unless otherwise specified, the term “multinational enterprise” is used in this
Declaration to designate the various entities (parent companies or local entities or both or the
organization as a whole) according to the distribution of responsibilities among them, in the
expectation that they will cooperate and provide assistance to one another as necessary to
facilitate observance of the principles laid down in the Declaration.
7. This Declaration sets out principles in the fields of employment, training, conditions of
work and life and industrial relations which governments, employers’ and workers’
organizations and multinational enterprises are recommended to observe on a voluntary basis;
its provisions shall not limit or otherwise affect obligations arising out of ratification of any
ILO Convention.
GENERAL POLICIES
8. All the parties concerned by this Declaration should respect the sovereign rights of States,
obey the national laws and regulations, give due consideration to local practices and respect
relevant international standards. They should respect the Universal Declaration of Human
Rights and the corresponding International Covenants adopted by the General Assembly of
the United Nations as well as the Constitution of the International Labour Organization and
its principles according to which freedom of expression and association are essential to
sustained progress. They should contribute to the realization of the ILO Declaration on
Fundamental Principles and Rights at Work and its Follow-up, adopted in 1998. They should
also honour commitments which they have freely entered into, in conformity with the
national law and accepted international obligations.
9. Governments which have not yet ratified Conventions Nos. 87, 98, 111, 122, 138 and 182
are urged to do so and in any event to apply, to the greatest extent possible, through their
national policies, the principles embodied therein and in Recommendations Nos. 111, 119,
122, 146 and 190.1 Without prejudice to the obligation of governments to ensure compliance
with Conventions they have ratified, in countries in which the Conventions and
Recommendations cited in this paragraph are not complied with, all parties should refer to
them for guidance in their social policy.
10. Multinational enterprises should take fully into account established general policy
objectives of the countries in which they operate. Their activities should be in harmony with

the development priorities and social aims and structure of the country in which they operate.
To this effect, consultations should be held between multinational enterprises, the
government and, wherever appropriate, the national employers’ and workers’ organizations
concerned.
11. The principles laid down in this Declaration do not aim at introducing or maintaining
inequalities of treatment between multinational and national enterprises. They reflect good
practice for all. Multinational and national enterprises, wherever the principles of this
Declaration are relevant to both, should be subject to the same expectations in respect of their
conduct in general and their social practices in particular.
12. Governments of home countries should promote good social practice in accordance with
this Declaration of Principles, having regard to the social and labour law, regulations and
practices in host countries as well as to relevant international standards. Both host and home
country governments should be prepared to have consultations with each other, whenever the
need arises, on the initiative of either.
EMPLOYMENT
Employment promotion
13. With a view to stimulating economic growth and development, raising living standards,
meeting manpower requirements and overcoming unemployment and underemployment,
governments should declare and pursue, as a major goal, an active policy designed to
promote full, productive and freely chosen employment.
14. This is particularly important in the case of host country governments in developing areas
of the world where the problems of unemployment and underemployment are at their most
serious. In this connection, the general conclusions adopted by the Tripartite World
Conference on Employment, Income Distribution and Social Progress and the International
Division of Labour (Geneva, June 1976) should be kept in mind.
15. Paragraphs 13 and 14 above establish the framework within which due attention should
be paid, in both home and host countries, to the employment impact of multinational
enterprises.

16. Multinational enterprises, particularly when operating in developing countries, should
endeavour to increase employment opportunities and standards, taking into account the
employment policies and objectives of the governments, as well as security of employment
and the long-term development of the enterprise.
17. Before starting operations, multinational enterprises should, wherever appropriate,
consult the competent authorities and the national employers’ and workers’ organizations in
order to keep their manpower plans, as far as practicable, in harmony with national social
development policies. Such consultation, as in the case of national enterprises, should
continue between the multinational enterprises and all parties concerned, including the
workers’ organizations.
18. Multinational enterprises should give priority to the employment, occupational

development, promotion and advancement of nationals of the host country at all levels in
cooperation, as appropriate, with representatives of the workers employed by them or of the
organizations of these workers and governmental authorities.
19. Multinational enterprises, when investing in developing countries, should have regard to
the importance of using technologies which generate employment, both directly and
indirectly. To the extent permitted by the nature of the process and the conditions prevailing
in the economic sector concerned, they should adapt technologies to the needs and
characteristics of the host countries. They should also, where possible, take part in the
development of appropriate technology in host countries.
20. To promote employment in developing countries, in the context of an expanding world

economy, multinational enterprises, wherever practicable, should give consideration to the
conclusion of contracts with national enterprises for the manufacture of parts and equipment,
to the use of local raw materials and to the progressive promotion of the local processing of
raw materials. Such arrangements should not be used by multinational enterprises to avoid
the responsibilities embodied in the principles of this Declaration. Equality of opportunity
and treatment
21. All governments should pursue policies designed to promote equality of opportunity and
treatment in employment, with a view to eliminating any discrimination based on race,
colour, sex, religion, political opinion, national extraction or social origin.

22. Multinational enterprises should be guided by this general principle throughout their
operations without prejudice to the measures envisaged in paragraph 18 or to government
policies designed to correct historical patterns of discrimination and thereby to extend
equality of opportunity and treatment in employment. Multinational enterprises should
accordingly make qualifications, skill and experience the basis for the recruitment,
placement, training and advancement of their staff at all levels.
23. Governments should never require or encourage multinational enterprises to discriminate

on any of the grounds mentioned in paragraph 21, and continuing guidance from
governments, where appropriate, on the avoidance of such discrimination in employment is
encouraged. Security of employment
24. Governments should carefully study the impact of multinational enterprises on

employment in different industrial sectors. Governments, as well as multinational enterprises
themselves, in all countries should take suitable measures to deal with the employment and
labour market impacts of the operations of multinational enterprises.
25. Multinational enterprises equally with national enterprises, through active manpower
planning, should endeavour to provide stable employment for their employees and should
observe freely negotiated obligations concerning employment stability and social security. In
view of the flexibility which multinational enterprises may have, they should strive to assume
a leading role in promoting security of employment, particularly in countries where the
discontinuation of operations is likely to accentuate long-term unemployment.
26. In considering changes in operations (including those resulting from mergers, take-overs
or transfers of production) which would have major employment effects, multinational
enterprises should provide reasonable notice of such changes to the appropriate government
authorities and representatives of the workers in their employment and their organizations so
that the implications may be examined jointly in order to mitigate adverse effects to the
greatest possible extent. This is particularly important in the case of the closure of an entity
involving collective lay-offs or dismissals.
27. Arbitrary dismissal procedures should be avoided.5 28. Governments, in cooperation
with multinational as well as national enterprises, should provide some form of income
protection for workers whose employment has been terminated.6

TRAINING
29. Governments, in cooperation with all the parties concerned, should develop national
policies for vocational training and guidance, closely linked with employment.7 This is the
framework within which multinational enterprises should pursue their training policies.
30. In their operations, multinational enterprises should ensure that relevant training is
provided for all levels of their employees in the host country, as appropriate, to meet the
needs of the enterprise as well as the development policies of the country. Such training
should, to the extent possible, develop generally useful skills and promote career
opportunities. This responsibility should be carried out, where appropriate, in cooperation
with the authorities of the country, employers’ and workers’ organizations and the competent
local, national or international institutions.
31. Multinational enterprises operating in developing countries should participate, along with
national enterprises, in programmes, including special funds, encouraged by host
governments and supported by employers’ and workers’ organizations. These programmes
should have the aim of encouraging skill formation and development as well as providing
vocational guidance, and should be jointly administered by the parties which support them.
Wherever practicable, multinational enterprises should make the services of skilled resource
personnel available to help in training programmes organized by governments as part of a
contribution to national development.
32. Multinational enterprises, with the cooperation of governments and to the extent
consistent with the efficient operation of the enterprise, should afford opportunities within the
enterprise as a whole to broaden the experience of local management in suitable fields such
as industrial relations.
Books:
1. Corporate Social Responsibility in India. Trends, Issues and Strategies By Sateesh
GoudaM, A.G. Khan, S.L. Hiremath, Anchor Academic Publishing, 2017, Pg-9-42
2. Corporate Social Responsibility: A Very Short Introduction By Jeremy Moon, Oxford

University Press,

3. Business Ethics, Text and cases by CSV Murthy, Himalaya Publishing House, ISBN
81-8318-418- 1, 2008, Pg 369-372

Module 02

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Module 02

Uploaded by

Copyright:

Available Formats

MODULE 02

Framework of Social Orientation

1. MANAGEMENT AND SOCIAL THEORIES

Management theories are concepts surrounding recommended management strategies, which

Actively involving employees in decision-making process

Building connections and lines of communications between

Shifting between hands-on and hands-off approach to

Hands-on and directive about the pace of work that is set,

Autocratic style of management, more aptly known as

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

i. Driven by excessive self-interest and hard approaches.

ii. Prefer hard data, and tight control orientation.

iii. Authoritarian systems.

iv. Rule-bound methods.

v. Believes in modern management theories.

vi. Reduces every aspect of life to measurements.

vii. Tend to operate on the mechanical metaphor mostly.

viii. Treat human beings as resources.

ix. Inherent exploitation orientation.

x. Tend to operate on the mechanical metaphor mostly

xi. Inherent exploitation orientation

xiii. Metaphor (Cowboy)

ii. Cares more for the feminine side of the organizations.

iii. Display empathy orientation.

iv. Approach to management is different from MI.

v. Metaphor: Tribal Chief

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

iii. Relatively more authoritarian.

iv. Tend to have an authoritarian style of management.

i. Combines the muscularity-feminity factors in organisation.

2. A FRAMEWORK OF SOCIAL ORIENTATIONS

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

2.2 Management and Social Theories

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

4.1 United Nations

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

4.1.1 Main objectives of the United Nations

 Maintenance of international peace and security.

4.2 United nations Global Compact

The United Nations Global Compact is a non-binding United Nations pact to get

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

4.2.1 Member Company Responsibilities of the UN Global Compact

4.2.3 Incentives for Businesses to Support the UN Global Compact

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

Why should companies care?

What can companies do?

 Companies should look to the International Bill of Human Rights and the core International

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

o The second set of factors involves considering whether the company is

 The third set of factors is an analysis of the company’s relationships with

Companies should adopt a statement of policy as a public commitment to fulfill their

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

The policy should be informed by internal/external human rights expertise. Developing a

Human rights due diligence

Some particularly important elements of a comprehensive management approach to human

RTM Nagpur University MBA - 2022-23 / Semester – II / Dr. Dhanashree Katekhaye

 Integration of human rights policies throughout a company: The integration of

 Tracking performance: Monitoring and auditing processes permit a company to

 Communicating/reporting on performance: Reporting is a driver for change,