CORPORATE SOCIAL RESPONSIBILITY



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the global voice of the legal profession International Bar Association Series CORPORATE SOCIAL RESPONSIBILITY The Corporate Governance ofthe 21st Century General Editor: Daniel Brennan Richard Brophy James E. Brumm EmilioJ. Cardenas Hans Corell Jonathan Goldsmith Ivor Hopkins Michael Hopkins Donald J. Johnston David Kinley Paola Konopik Reinier Lock John Lowry Josep M. Lozano Claes Lundblad Jonathan Lux Felix Martin Authors: Annemarie Meisling Gerald Milward-Oliver Felix Ntrakwah Isaiah Odeleye Maria Prandi Jakob Ragnwaldh James Roselle Jerome J. Shestack Marcelle Shoop Richard Taylor Rosamund Thomas Sune Skadegard Thorsen Mark Walsh Stephen B. Young KLUWER LAW INTERNATIONAL and International Bar Association

TABLE OF CONTENTS Foreword Emilio J. Cardenas About the Editor and Authors PART I - PRESENTATION Chapter 1 The Global Responsibility of Business 3 PART II - GENERAL OVERVIEW Chapter 2 Business Ethics 31 Rosamund Thomas Chapter 3 CSR and Corporate Governance 37 Mark Walsh & John Lowry Chapter 4 The Soul of the Corporation 61 Gerald Milward-Oliver Chapter 5 Public Policy 77 Felix Martin Chapter 6 Corporate Social Responsibility in a Changing Corporate World 97 Jerome J. Shestack PART III -THE MAIN OBJECTIVES OF CORPORATE SOCIAL RESPONSIBILITY Chapter 7 The Triple Bottom Line: Building Shareholder Value 113 James Roselle Chapter 8 Labour Standards and Corporate Social Responsibility: The Need for a Planetary Bargain 141 Michael Hopkins & Ivor Hopkins xiii xv

viii CSR - THE CORPORATE GOVERNANCE OF THE 21 ST CENTURY Chapter 9 the Environment - Our Common Future 159 Marcelle Shoop Chapter 10 Human Rights 183 Josep M. Lozano & Maria Prandi Chapter 11 International Human Rights Law 205 David Kinley PART IV - WORLDWIDE INITIATIVES ON CORPORATE SOCIAL RESPONSIBILITY Chapter 12 The Tripartite Declaration of Principles Concerning Multinational Enterprises 217 Chapter 13 The Global Sullivan Principles of Corporate Social Responsibility 221 Chapter 14 The Caux Round Table Principles for Business: Decision-Making Matrix for a More Moral Capitalism 225 Stephen B. Young Chapter 15 The Global Compact 235 Hans Corell Chapter 16 Promoting Corporate Responsibility: The OECD Guidelines for Multinational Enterprises 243 Donald J. Johnston Chapter 17 The UN Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with Regard to Human Rights 251 Jakob Ragnwaldh & Paola Konopik Chapter 18 Corporate Governance: New Ideas and Practical Applications 263 Daniel Brennan

PART V - REGIONAL PERSPECTIVES TABLE OF CONTENTS IX Chapter 19 The European Initiatives 279 Jonathan Lux, Sune Skadegard Thorsen & Annemarie Meisling Chapter 20 A European Perspective 299 Sune Skadegard Thorsen & Annemarie Meisling Chapter 21 The Central Role of Lawyers in Managing, Minimizing, and Responding to Social Responsibility Risks - A US Perspective 311 Chapter 22 Africa's Unique Challenge: Linking Economic Growth, Infrastructure Reforms and Corporate Responsibilities 321 Reimer Lock Chapter 23 The Japanese Perspective 337 James Brumm Chapter 24 Human Rights - The Ghana Experience in the Gold Mining Industry 347 Felix Ntrakwah PART VI - CODES OF CONDUCT Chapter 25 The History, Variations, Impact and Future of Self-Regulation 365 Chapter 26 Some Legal Dimensions of Corporate Codes of Conduct 385 Claes Lundblad PART VII - LAWYERS AND CORPORATE SOCIAL RESPONSIBILITY Chapter 27 Social Responsibility and the Lawyer in the 2Ist Century 403 Jerome J. Shestack Chapter 28 Lawyers' Responsibility for Advising on Corporate Social Responsibility 417 Jonathan Goldsmith

X CSR - THE CORPORATE GOVERNANCE OF THE 21 ST CENTURY Chapter 29 Corporate Social Responsibility in Lawyers' Firms 433 Richard Taylor and Richard Brophy Chapter 30 the In-house Counsel 447 Isaiah Odeleye PART VIII - CRITICISM OFTHE CORPORATE SOCIAL RESPONSIBILITY MOVEMENT Chapter 31 Criticism of the Corporate Social Responsibility Movement 473 Michael Hopkins PART IX - CONCLUSIONS Chapter 32 A Few Concluding Remarks 485 PART X - ANNEXES Annex 1 The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy 489 Annex 2 The Global Sullivan Principles 497 Annex 3 The Caux RoundTable Principles for Business 499 Annex 4 Amnesty International Guidelines for Companies 505 Annex 5 Social Accountability 8000 511 Annex 6 OECD Guidelines for Multinational Enterprises 517 Annex 7 The Global Compact Launched by the United Nations 527 Annex 8 The ICC's Nine Steps to Responsible Business Conduct 529 Annex 9 Global Reporting Initiative Guidelines 533 Annex 10 CCBE Guide for European Lawyers advising on Corporate Social Responsibility Issues 541

TABLE OF ^CONTENTS xi Annex 11 UN Norms on Responsibilities of Transnational Corporations and other Business Enterprises with regard to Human Rights 549 Index 555