1 Corporate Social Responsibility (CSR), global governance and sustainable development: what is at stake? Henri-Bernard Solignac Lecomte OECD Development.

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Presentation transcript:

1 Corporate Social Responsibility (CSR), global governance and sustainable development: what is at stake? Henri-Bernard Solignac Lecomte OECD Development Centre EU-LDC Network Conference ‘ Global Governance for Sustainable Development: Issues and Instruments ’ Chiang Mai, December 8-10, 2002

Outline 1.The CSR concept: shareholders & stakeholders 2.CSR and development: what are the links? 3.Vehicles for CSR: firms, governments, standards 4.Issues for debate

The CSR Concept Shareholder accountability Stakeholder accountability From opposition... … to a win-win situation? by compliance by choice by moral obligation?

CSR and Development (1) The development case (+) the current of business on society is sub-optimal (-) the scope for ‘ bad ’ corporate governance is greater than in developed countries

CSR and Development (2) The business case(s) Human resource retention, brand recognition, reputation insurance Cost-saving and better market access Mitigation of negative impacts Social license to operate

Vehicles for CSR (1) Firms Normal operations Social welfare and risk management Re-alignment of core business competencies with development priorities (partnerships) There is evidence of success, but how do we scale it up?

Vehicles for CSR (2) Governments Minimum standards Facilitate business going beyond compliance –Philippines CSR Week –Taiwan Green Business Award –Thailand Office on Labour Standards Development Challenges

Vehicles for CSR (3) Standards Reporting (end-of-pipeline, NGOs) Certification standards (financial sector) ‘ Aspirational ’ / non-binding principles (IGOs) –UN Global Compact –OECD Guidelines on Multinational Enterprises

CSR as an instrument for global governance? How far is long term? Who defines society ’ s expectations? Is there a risk of a bias towards public opinion in the North? Can shareholders afford CSR in bad times? PR pressure or strategic shift? How far into public governance? What role for the EU? (Cotonou, … )