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Chapter 3 Labour standards and

management in CSR

3.1 Labour standards and management in CSR

The International Labour Organization (ILO) plays a key role in CSR as labour and social dialogue are key
aspects of sustainable businesses and CSR strategies. When talking about labour standards, many codes of
conducts derive from principles and standards developed by ILO.

ILO conventions, when ratified at the national level, become binding on governments and those
governments adopt legislation to apply them. If they are not binding to companies, ILO standards can
guide their behavior.

The first involvement of ILO with CSR standards can be traced to 1977 and the “MNE Declaration” or
“Tripartite Declaration of Principles Concerning Multinational Enterprises & Social Policy” which is a
guide on company behavior aimed at governments, ILO constituents and enterprises. This declaration
recognizes the role of multinational enterprises in globalization, direct investment, trade and social
policies. It was adopted with the agreement of workers, governments and companies (tripartite
collaboration).

In 1998, ILO signed the Declaration on Fundamental Rights and Principles at Work, which addresses social
rights such as the right of association for workers and the end of forced labour.

In 2000, ILO accepted the invitation of the UN Secretary General to participate in an initiative promoting
global citizenship, the UN Global Citizenship Compact. It promoted policy dialogue on how to prevent
discrimination and promote equality and more specifically how to prevent discrimination related to HIV. It
has also written the Labour Principles of the United Nations Global Compact, a Guide for Business.

Other than ILO declarations, company codes also define labour standards. A company code refers to
a voluntary initiative adopted unilaterally by individual corporations. On a wider level there are also
business association codes. Finally there are multi-stakeholder codes which are initiated by NGOs and
operate through a subscription method. The Fair Labour Association FLA Code, Ethical Trading Initiative
ETI Base Code and Social Accountability 8000 standards are examples of multi stakeholder codes.