Einde inhoudsopgave
Corporate Social Responsibility (IVOR nr. 77) 2010/6.6
6.6 Public legislation and policies on responsible corporate conduct
Mr. T.E. Lambooy, datum 17-11-2010
- Datum
17-11-2010
- Auteur
Mr. T.E. Lambooy
- JCDI
JCDI:ADS365818:1
- Vakgebied(en)
Ondernemingsrecht (V)
Voetnoten
Voetnoten
Article 74 of the Indonesian Company law No. 40/2007 provides: (1) Companies conducting business activities in the field of and/or related to natural resources have the obligation to carry out Social and Environmental Responsibility; (2) Social and Environmental Responsibility as referred to in paragraph (1) is the company's obligation, which is budgeted for and calculated as a cost of the company, and which is implemented with attention to appropriateness; (3) Companies which do not carry out their obligation as referred to in paragraph (1) shall be subject to sanctions according to the provisions of laws and regulations; (4) Further provisions on Social and Environmental Responsibility shall be regulated by Government Regulation.
Commission (EC), Communication from the EP, the Council and the European Economic and Social Committee, 'Implementing the Partnership for Growth and Jobs: Making Europe a Pole of Excellence o Corporate Social Responsibility', COM (2006) 136 final, 22 March 2006. See also supra note 3.
European Commission, Activities to promote CSR 2007-2008, European Multi-stakeholder Forum on Corporate Social Responsibility', Plenary Meeting, 10 February 2009, at: http:// ec.europa.eu/enterprise/csr/documents/stakeholder_forum/csrcom_summaryfinal.pdf, accessed on 10 April 2009.
E.P. Resolution (2007), supra note 43. This resolution was based on the principle that increasing social and environmental responsibility by business, linked to the principle of corporate accountability, represented an essential element of the European social model, and for the purposes of meeting the social challenges of economic globalisation'.
Under this Directive, code of conduct' means an agreement or set of rules not imposed by law, regulation or administrative provision of a Member State which defines the behaviour of traders who undertake to be bound by the code in relation to one or more particular commercial practices or business sectors'.
European Commission (2007), supra note 3, p. 58.
For instance by introducing sustainable purchase policies regarding products acquired by the Dutch government, which will be applied as of 2010, see: http://www.senternovem.nl/duurzaaminkopen/wat_is_duurzaam_inkopen/index.asp, accessed on 21 May 2009. The Dutch government has also incorporated references to the OECD MNE Guidelines in its export credit insurance facility, 'Periodieke evaluatie van de Exportkredietverzekeringsfaciliteit van de Staat; Beleidsevaluatie over de periode 2001 - 2006' [Periodic evaluation of the Export credit insurance facility of the state; Policy evaluation over the period 20012006], 15 February 2007, p.4, see: http://static.ikregeer.nl/pdf/BLG11289.pdf, accessed on 21 May 2010.
Wet openbaarheid van productie en ketens, 10 December 2002. Pressure in favour of this draft regulation was reinitiated by M.L. Vos (Partij van de Arbeid [Labour Party]) and H-E. Waalkens (Labour Party) in April 2008. See also MVO Platform, letter to the chairman and members of the Dutch Parliament (Second Chamber) Commission for Economical Affairs, Second Chamber of the States-General (4 March 2009). Among others, this letter recommends the adoption of extra legislation and strengthening compliance with regard to transparency in product processes at the consumer level and supply-chain responsibility.
European Commission (2007), supra note 3, pp. 39-41. Other measures to promote CSR are also under discussion by the Italian government, including providing fiscal and financial benefits for organisations practising CSR. On the mentioned CSR-SC project, see also F. Perrini, S. Pogutz and A. Tencati (Bocconi University), Developing Corporate Social Responsibility: a European Perspective (Edward Elgar Publishing, Cheltenham 2006), p. 156.
Minister of Foreign Affairs of Norway, 'Report No.10 to the Storting: Corporate social responsibility in a global economy (2008-2009)', 23 January 2009; and Minister of Foreign Affairs of Norway, 'CSR Abroad', 23 January 2009, at: http://www.regjeringen.no/en/dep/udpress/News/2009/social_responsibility_abroad.html?id=543620, accessed on 21 May 2009. This White Paper was adopted on 5 May 2009.
For more information on NCPs, see: sections 6.10 and 6.12 below.
Forum for Environment and Development, 'Norway's first white paper on CSR', at: http:// www.forumfor.no/Artikler/5142.html, accessed on 21 May 2009. See also T. Fogelberg, 'Isn't it good, Norwegian Wood?' Ethical Corporation, 19 February 2009, at: http://www.ethicalcorp.com/content.asp?ContentID=6349, accessed on 10 April 2009.
In general, the extent to which the transnational conduct of internationally operating companies is socially responsible is not specifically regulated by public legislation. There are, however, a few notable exceptions.. In particular, the UK Companies Act 2006 (Chap. 46) states that the duty of a company executive 'to promote the success of the company' includes, inter alia, the impact of corporate operations on the community and the environment and the desirability for the company of maintaining a reputation for high standards in business conduct (article 172). Indonesian Company Law No. 40/2007 also incorporates certain provisions on CSR directed towards the extractive industry (article 74).1
At an EU policy level, it is stressed that CSR is 'fundamentally about voluntary business behavior. An approach involving additional obligations and administrative requirements for business risks is considered counter-productive and would be contrary to the principles of better regulation'.2 For the EU, emphasis should be placed on the greater political visibility of CSR in order to acknowledge what European enterprises already do in CSR and to encourage them to do more.3 It is thought that CSR policies can be enhanced by a better awareness and application of existing legal instruments, such as Directive 84/450/ EEC on misleading advertising and Directive 2005/29/EC on unfair business-to-consumer commercial practices, as these Directives add value to companies' adherence to their voluntary codes of conduct.4 Directive 2005/29/EC stresses that 'it is appropriate to provide a role for codes of conduct, which enable traders to apply the principles of this Directive effectively in specific economic fields'.5 The policies of some European countries in respect of CSR are addressed below:
In the Netherlands, the government refrains from imposing CSR legislation on companies: Legislation will lead to companies doing only the bare minimum, whereas the Dutch Government sees CSR as part of a company's core business'.6 The Dutch policies aim to promote CSR at the local, national but also at the international level, which includes supporting the development and use of private regulatory regimes in the field of CSR.7 The Dutch government also actively supports business networks aimed at promoting CSR. It should be noted that this position - refraining from imposing CSR legislation - is not one of unanimous consent. Some members of the Dutch Parliament support the adoption of a public regulation on the corporate duty to provide information on societal aspects of company activities and products to Dutch consumers. Their goal is to encourage more sustainable consumption;8
The Italian Ministries of Labour and Social Affairs have started to develop a CSR-SC (Social Commitment) project in cooperation with BocconiUniversity (Milan). The project intends to promote companies' voluntary ethical behavior and participation in national and local welfare schemes. This involves the creation of modular standards - based on predefined guidelines and indicators - that companies can adopt on a voluntary basis to identify socially responsible behavior;9 and
In Norway, the government published a White Paper in 2009 on responsible business, which was adopted with minor changes in May 20 09.10 Among other goals, it aims to strengthen the Norwegian NCP for the OECD'sMNE Guidelines.11 The Norwegian government will furthermore propose amendments to the Norwegian Accounting Act that extend the duty of Norwegian companies to provide information on what they are doing to implement ethical guidelines. Some critics have pointed out that this publication refrains from proposing mandatory national CSR guidelines in recognition of the global competitive environment in which Norwegian companies operate.12
Although the precise nature of CSR approaches varies among EU countries along national and cultural lines, it mainly involves voluntary measures rather than binding legislation. In general, and with a few exceptions, the political will to enact public legislation requiring EU-based companies to act responsibly in their international business activities seems to be lacking.