Joris Oldenziel SOMO - Centre for Research on Multinational Corporations (Stichting Onderzoek Multinationale Ondernemingen) Said Business University, 21 October 2010 NGOs and responsible business conduct What do NGOs expect from business?

 SOMO is a non-profit, non-governmental organization  Since 1973, SOMO analyzes the consequences of the policies and activities of multinational corporations (MNCs) for developing countries. We do research and support campaigning on:  Corporate Social Responsibility (CSR) and corporate codes of conduct  International trade and investment agreements and treaties  National and international standards and regulations governing corporate behaviour  Sustainability issues in different sectors… Introduction to SOMO

SOMO researches production chains in: Textiles and clothing sector

Food, fruit and vegetables sector SOMO researches production chains in:

Electronics sector SOMO researches production chains in:

Extractives (Mining) sector SOMO researches production chains in:

Energy and Power sector SOMO researches production chains in:

More significant impacts of MNEs and increased awareness has led to a lot of talk about Corporate Social Responsibility, but… What exactly is CSR?  CSR is a process whereby a company assumes responsibility, across it’s entire supply chain, for the social, ecological and economic consequences of the company’s activities, reports on these consequences, and constructively engages with stakeholders (MVO Platform 2007). Corporate Social Responsibility (CSR)

The past decade has seen an explosion of CSR initiatives  Corporate codes of conduct, labelling initiatives and certification schemes  International standards and guidelines (UN Global Compact, OECD Guidelines for MNEs)  Partnerships  Environmental and Social reporting initiatives  Corporate charity and philanthropy Corporate Social Responsibility (CSR)

OECD Guidelines for MNEs: Government endorsed; broad coverage issues; complaint mechanism; Update 2010/11 UN Protect, Respect & Remedy framework of UNSRSG Professor Ruggie; do no harm; due dilligence; Guiding Principles 2011 UN Global Compact: 10 Core Principles; Signatory companies; voluntary basis ISO on Social Responsibility; Detailed guidance for all organisations; no certification; final 2010 Key international standards and initiatives

Companies are responsible for the impacts of their activities and their production processes CSR should be based on internationally accepted standards, conventions and agreements CSR may include voluntary activities but should have at its starting point compliance by minimum standards Monitoring and independent verification is essential for CSR initiatives to be credible Key NGO expectations on CSR

CSR remains largely voluntary, so what can NGOs do ensure companies behave and improve corporate accountability?  NGOs and trade unions: model codes of conduct  Call for implementation and verification of codes of conduct and CSR commitments  Engage in partnerships and multi-stakeholder initiatives  Research the behaviour of companies worldwide  Naming and shaming in international campaigns  Use international law to pressure companies  Call for international binding regulation NGO strategies for corporate accountability

Cooperation:  Partnerships  Consultancy services  Alliances to improve distribution of wealth along value chains  Engagement in stakeholder dialogues and standard-setting processes  Lobby for CSR incentives NGO strategies for corporate accountability

Confrontation:  Action research on critical issues  Naming and shaming – NGOs reveal bad practises  International campaign against companies, call for boycotts  Use international standards and semi-legal international law tools to pressure companies  Lobby for binding international regulation regarding human rights, labour conditions, the environment, accountability, transparency, supply chain responsibility etc. NGO strategies for corporate accountability

NGOs organize in networks to have more impact:  Clean Clothes Campaign (1989, 11 countries)  Maquila Solidarity Network (1996, Canada)  BankTrack, (2003, 18 organizations in 12 countries)  OECD Watch (2003, 82 organizations in 41 countries)  European Coalition for Corporate Justice - ECCJ (16 national networks)  Friends of the Earth (1971, organizations in 70 countries) NGO strategies for corporate accountability

NGOs also partner with other actors, such as:  Trade unions (e.g. Play Fair campaign)  Companies (e.g. Fair Trade movement)  Consumers (e.g. Make IT Fair)  Ethical investors (e.g. OECD Watch and Eurosif)  Governments (e.g. HIV / Aids campaigns) NGO strategies for corporate accountability

THANKS FOR LISTENING! For more information: SOMO Sarphatistraat GL Amsterdam The Netherlands