ILO MNE Declaration A tool for Employers’ Organizations Emily Sims Senior Specialist

CSR impact How do we change this? There is little empirical evidence which explains the concrete impacts of CSR activities and programmes on the organisational performance of companies, the wider economy, or the social and environmental fabric of Europe, its nations and regions. IMPACT Research Project, Sept. 2013 How do we change this?

Step One: Clarifying roles MNE Declaration Addresses companies and governments, because both have essential roles to play in promoting sustainable enterprises. Explains what must remain the role of government.

Contributions of CSR Helps promote a culture of respect for labor law and industrial relations—WHY Helps disseminate best practices—HOW Encourages the continuous improvement of social development Has the potential to foster cooperation between buyers and their suppliers

Risks of CSR Proliferation of initiatives and instruments, often with conflicting messages Inefficient use of resources Gaps in protection of workers’ rights Companies substituting for government face many of the same problems  CSR is an important complement, but never a substitute, for the role of the State

Step Two: Clarifying boundaries The MNE Declaration reflects the international consensus of governments, employers and workers on where business contributions can have the greatest positive social impact while remaining sustainable.

MNE Declaration Approach Rights-based Focus: policy coherence International level National level Aligning private policies with national development objectives Aligning private policies with principles of ILS Key mechanism: dialogue

Role of Employers’ Organizations EO role underpinning MNE Declaration: Super connectors on «why» and «how» Encourage members Bring down costs (e.g., joint trainings) Curb CSR industry Voice of business on enabling environment Coordinating across borders for the right balance between global values and local priorities (Business Europe and IOE)

Is your organization prepared? Is your organization politically engaged in helping to shape an enabling environment for responsible business? Do you have the technical capacity to support your members on CSR issues? Have you invested in building a good working relationship with your national counterparts on CSR issues? MNE Declaration

Take aways CSR is an important complement, but never a substitute, for the role of the State. CSR is most effective when focused on what business does best. The MNE Declaration provides guidance to both business and government. Social Dialogue is a critical component. Employers’ Orgs have a key role to play. ILO can provide technical assistance.