Corporate

Social
Responsibility
&
Sustainability
 UNIT II FRAMEWORK FOR CSR
What is international corporate social responsibility?
When doing international business, the government
expects larger companies to act in an internationally
responsible manner. Applying international corporate
social responsibility (ICSR) principles means taking the
impact of your business on man, the environment and
society into account. ICSR affects areas such as working
conditions, the environment, human rights and
corruption.
It deals with all ILO guidelines “enhancing the positive
social and labour effects of the operations of MNEs”. The
principles aim to serve as guidelines for multinational
enterprises (MNEs) as well as for companies, governments,
employers’ and workers’ organisations.
The Guiding Principles rest on three pillars:
The state duty to protect
the corporate responsibility to respect
• access to remedy
The mission and the actions of the ILO are based on four
basic principles:
Freedom of association and the right to collective bargaining
Elimination of forced labour
Abolition of child labour
• Elimination of discrimination in respect of employment and
occupation
The principles aim to serve as guidelines for multinational
enterprises (MNEs) as well as for companies, governments,
employers’ and workers’ organisations. All in all, the
declaration contains 59 rules for the following areas:
Employment
Training
Conditions of work and life
• Industrial relations
Millennium development goals
The Millennium Development Goals (MDGs) were eight
international development goals for the year2015 that had
been established following the Millennium Summit of the
United Nations in 2000, following the adoption of the United
Nations Millennium Declaration. These were based on the
OECD DAC International Development Goals agreed by
Development Ministers in the “Shaping the 21 s t Century
Strategy”. The Sustainable Development Goals (SDGs)
succeeded the MDGs in 2016.
Millennium goals
1. Eradicate Extreme hunger and poverty
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child Morality
5. Improve maternal health
6. Combat HIV/AIDS , Malaria and other diseases
7. Ensure environmental sustainability
8. Develop a global Partnership for development
Sustainable Development Goals

The Sustainable Development Goals (SDGs) aim to transform

our world. They are a call to action to end poverty and
inequality, protect the planet, and ensure that all people
enjoy health, justice and prosperity. It is critical that no one
is left behind.
Sustainability is broken into four distinct areas, known as
the four pillars of sustainability: Human, Social, Economic,
and Environmental Sustainability.
Goal 1: No Poverty
• Goal 2: Zero hunger
• Goal 3: Good health and wellbeing
• Goal 4: Quality education
• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 7 : Affordable and clear energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 10: Reduced inequalities
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 14: Life below water
• Goal 15: Life on land
• Goal 16: Peace, justice and strong institutions
• Goal 17: Partnerships
Relation between MDG and CSR

Findings revealed that CSR has significant positive effect on

MDGS, especially in the aspects of achieving universal
primary education, food, combating malaria and other
diseases and ensuring environmental sustainability.
United Nations (UN) Global compact

What Is the United Nations Global Compact?

The United Nations Global Compact is a strategic initiative
that supports global companies that are committed to
responsible business practices in the areas of human rights,
labor, the environment, and corruption. This UN-led
initiative promotes activities that contribute to sustainable
development goals to create a better world.
The United Nations Global Compact’s 10 Principles for
Businesses
• Principle 1: Support and respect the protection of
internationally proclaimed human rights.
• Principle 2: Ensure that business practices are not complicit
in human rights abuses.
• Principle 3: Uphold the freedom of association and the
effective recognition of the right to collective bargaining.
• Principle 4: Eliminate all forms of forced and compulsory
labor.
Principle 5: Abolish child labor.
Principle 6: Eliminate discrimination in employment and
occupation.
• Principle 7: Adopt a precautionary approach to
environmental challenges.
• Principle 8: Conduct environmentally responsible activities.
• Principle 9: Encourage the development and diffusion of
environmentally friendly technologies.
• Principle 10: Fight corruption in all its forms including
extortion and bribery.
UN guiding principles on business and
human rights
The Guiding Principles contain three chapters, or pillars:
protect, respect and remedy. Each defines concrete,
actionable steps for governments and companies to meet
their respective duties and responsibilities to prevent human
rights abuses in company operations and provide remedies if
such abuses take place.
• 2005:
Special Representative appointed to ‘identify and clarify’
existing standards and practices with regard to business and
human rights
• 2008:
UN Protect, Respect and Remedy Framework
• 2011
UN Guiding Principles on Business and Human Rights
articulating the corporate responsibility to respect human
rights and human rights due diligence
• 2011 – 2017:
UN Working Group on Business and Human Rights
OCED CSR POLICY TOOL

What is OCED?
The Organisation for Economic Co-operation and
Development (OECD) is an international organisation that
works to build better policies for better lives. Our goal is to
shape policies that foster prosperity, equality, opportunity
and well-being for all.
ILO tripartite declaration of principles on
multinational enterprises and social policy

The Tripartite declaration of principles concerning

multinational enterprises and social policy (MNE
Declaration) is the ILO instrument that provides direct
guidance to enterprises on social policy and inclusive,
responsible and sustainable workplace practices.
The MNE declaration

• Key instrument on labour aspects of CSR

• Non-binding character
• Adopted by the governing body of ILO in 1977
• Recommendations to enterprises, governments, employers
and workers
• Applies to multinational and domestic company
The MNE declaration content
1. General policies
2. Employment
• Employment promotion
• Social security
• Elimination of forced or compulsory labour
• Effective abolition of child labour: minimum age and worst
forms
• Equality of opportunity and treatment
• Security of employment
3. Training
4. Conditions of work and life
• Wages, benefits and conditions of work
• Safety and health
5. Industrial relations
• Freedom of association and the right to organize
• Collective bargaining
• Consultation
• Access to remedy and examination of grievances
Rules and responsibilities of tripartite Partners
1. 28 paragraphs addressed to Enterprises
2. 15 paragraphs addressed to Governments
3. Involvement of employees and workers organisation

• MNE subcommittee of the governing body & multinational

enterprises team
• Periodic surveys
• Interpretation procedure
• Promotional activities, research, technical cooperation
• Purpose of the survey is to monitor the effect given to the
MNE declaration by multinational, governments and
employers and workers organisation
• A questionnaire approved by the ILO governing body is
sent to the tripartite partners of all ILO member states
• The aim of this Declaration is to encourage the positive
contribution which multinational enterprises can make to
economic and social progress and the realization of decent
work for all; and to minimize and resolve the difficulties to
which their various operations may give rise.