The Role of International Standards Plenary Session 3: The supporting role of the OECD Guidelines Christian Thorun, Policy Officer at the Federation of German Consumer Organizations Paris, 15 June 2009

2 Point of departure Consumers … want to be treated fairly are increasingly interested to know how a product was produced ask with what kind of products a company earns its money However: There is still a significant gap between consumer attitudes and consumer behavior – yet it is getting smaller

3 Major constraint for sustainable/ ethical consumption There is a lack of: Shared understanding what responsible corporate behaviour means: donations philanthropy selective activities re employees, environment etc. comprehensive activities re impacts social business Credible, comparable and easily accessible information for consumers

4 The role of international instruments and standards CSR might be voluntary but it should not be arbitrary International instruments and standards contribute towards a framework for responsible behaviour The value of the OECD Guidelines The strength of the OECD Guidelines is that it: is a multilaterally endorsed instrument takes a comprehensive view covering a wide range of issues has a mechanism for ‘enforcement’ The weakness of its recommendations are that: they are quite general they lack some vital issues that are of importance to consumers its investment nexus can hardly be explained to consumers Key question: What can be learned from other standards such as ISO 26000?

5 What ISO is ISO is a multi-stakeholder standardization process Objective: To develop an international standard providing guidance on social responsibility for all kinds of organizations. The standard is intended to add value to existing agreements, such as the UN Universal Declaration of Human Rights, agreements adopted by the International Labour Organization (ILO) or the OECD Guidelines Multi-stakeholder process: Representatives from industry, government, consumer, labour, non-governmental organizations; academia Participation: 430 participating experts and 175 observers from 91 countries and 42 Liaison organizations Target date for publication: 2010 OECD and ISO have signed MoU and OECD documents are systematically referenced in the standard

6 What can be learned from ISO for the consumer chapter (1/2) Current focus of „VII. Consumer Interests“ health and safety; consumer information about product qualities and use; dispute resolution; marketing practices; privacy and product recall ISO 26000‘s broader approach is not constrained by legal status quo broader approach towards information needs addresses also sustainable consumption, access to essential services and consumer education

7 What can be learned from ISO for the whole standard (2/2) For consumers it is important that enterprises do not cherry pick and greenwash Positive: The comprehensive perspective of the OECD Guidelines integrating various issues Negative: Fundamental expectations unclear in OECD Guidelines: investment nexus/ responsibility for supply chain human rights transparency

8 How the OECD Guidelines should be refined? OECD Guidelines should be more specific improve language on critical issues such as human rights, supply chain and consumers; reference other OECD documents Give OECD Guidelines ‚more teeth‘ NCPs should be independent and accountable

9 How could governments promote consumer protection and consumer interests? Revise the OECD Guidelines Develop instruments to give consumers more credible, comparable and easy accessible information Promote sustainable consumption by means of public procurement Make access to export guarantees dependent on complying with OECD Guidelines