Matthias Thorns, IOE

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  • 1. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDExperience of international business in application of OECD Guidelines for Multinational Enterprises and CSR principles in their daily operation LDDK CSR ConferenceMatthias Thorns Senior Advisor - IOE7 November 2013

2. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDWhat is the IOE ? Peak international organisation representing employers organisations and their members. Private and voluntary. Not part of ILO - Not paid by ILO Independent. Most representative global business organisation : 150 EOs in 144 countries. E.g. LDDKEstablished in 1920 2 3. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDSituating the IOE EMPLOYERSUNIONSGLOBAL OECDIOE BIACITUC TUACEUROPEBusinesseuropeETUC3 4. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDGlobal Employer Representation IOENATIONAL ORGS SECTORAL / REGIONAL ORGS (SOME COUNTRIES ONLY) INDIVIDUAL EMPLOYERS / BUSINESSES4 5. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDMain international CSR instruments and tools United Nations Global Compact United Nations Guiding Principles on Business and Human Rights OECD Guidelines for Multinational Enterprises (OECD Guidelines) ISO 26000 Guidance Standard of Social Responsibility (ISO 26000) ILO Tripartite Declaration of Principles concerning Multinational Enterprises on Social Policy (ILO MNE Declaration) 5 6. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLD2011 CSR Communication of the EU Commission The Commission invites: All large European enterprises to make a commitment by 2014 to take account of at least one of the following sets of principles and guidelines when developing their approach to CSR: the UN Global Compact, the OECD Guidelines for Multinational Enterprises, or the ISO 26000 Guidance Standard on Social Responsibility. All European-based multinational enterprises to make a commitment by 2014 to respect the ILO Tri-partite Declaration of Principles Concerning Multinational Enterprises and Social 6 Policy. 7. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDEU study on References made by large EU Companies to internationally recognised CSR Guidelines and Principles 68% of the sample companies make reference to CSR, 40% refer to at least one internationally recognised CSR instrument. 33% meet the European Commission's call to refer to at least one of the following: UN Global Compact, OECD Guidelines for Multinational Enterprises, or ISO 26000. 2% meet the European Commission's call to refer to the ILO MNE Declaration. 3% refer to the UN Guiding Principles on Business and Human Rights. The UN Global Compact and the Global Reporting Initiative, with 32% and 31% respectively, are the most commonly 7 referenced instruments. 8. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDCSRforAll Project Survey of at least 100 companies per country (Croatia, Macedonia, Montenegro, Romania, Turkey). The UN Guiding Principles on Business and Human Rights were best known by company representatives in Croatia (21%), Montenegro (40%) and Turkey (63.8%). Awareness of ISO 26000 also ranked high in all of the countries except Croatia (22% in Macedonia, 25% in Montenegro, 18% in Romania and 39% in Turkey). Whereas in Macedonia 6%, in Romania 11.93%, in Montenegro 17% and in Turkey 24.5% of the companies which are aware of at least one of the above mentioned instruments make use of at least one of them; in Croatia the number is markedly higher at 57.4%. The reason for the gap between awareness and use of the 8 instruments might indicate training needs by companies. 9. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDUN Global Compact Has its origins in a speech by the then UN Secretary-General Kofi Annan at the 1999 World Economic Forum in Davos, where he called on the business community to join with the UN in helping to put a human face on globalisation 10 principles on Human Rights, Labour Standards, Environment, Corruption More than 10,000 participants, including over 7,000 businesses in 145 countries around the world. GC office in New York has a budget of US $ 9 million 9 10. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDUN Global Compact issues Loss of focus: Compact has moved away from focusing on the principles and engaging through the responsible UN agencies, to being a multi-stakeholder, open-based platform covering a range of issues as for instance the engagement in the Sustainable Development Goals (SDG) debate. Stronger formalisation: Reporting requirements. Lack of Governance: GC Leaders Summit, Local Networks, Local Networks Forum, GC Board, GC Donor Group. Efforts to establish Local GC Networks as the recognized national business voice, instead of national Employers and business federations.10 11. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDUN Guiding Principles for Business and Human Rights In June 2011 the UN Human Rights Council endorsed the UN Guiding Principles for Business and Human Rights and decided to establish to set up a Working Group on business and human rights to promote the effective and comprehensive dissemination and implementation of the UN Guiding Principles on Business and Human Rights. UN Guiding Principles address states and companies. Operationalization of the protect-respect-remedy framework. 11 12. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDThe five independent members of the Working Group are: Mr. Michael Addo (Senior Lecturer in international human rights law at the University of Exeter) Ms. Alexandra Guaqueta (Attached to the School of International Studies at Flinders University) Ms. Margaret Jungk Chair (Director of the Human Rights & Business Department at the Danish Institute for Human Rights) Mr. Puvan Selvanathan (UN Global Compact) Mr. Pavel Sulyandziga (Member of the Public Chamber of Russia and working on the issue of the protection of indigenous rights) 12 13. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDThe Working Group pursues three work streams through which it will deliver its mandate: Global dissemination Promoting implementation Embedding in global governance frameworks Current Projects: UN Forum on Business and Human Rights Country Visits (Mongolia, USA, Russia, Ghana, ) Company and government Survey Global Community of Practice Initiative GP Laboratory 13 14. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDUN Forum on Business and Human Rights The first UN Forum on Business and Human Rights took place on 4 and 5 December 2012 in Geneva. The event took a constructive approach and focused on the challenges of implementing the UN Guiding Principles. The next UN Forum on Business and Human Rights will be on 3 and 4 December 2013 in Geneva. Business PreMeeting on 2 December in the afternoon.14 15. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDCompany Survey The results of a company survey jointly undertaken by the IOE, ICC, Global Business Initiative and the University of Denver on the challenges of implementing the UN Guiding Principles were presented at the Forum. According to the survey, 96% of companies engage in philanthropy and other voluntary activities that contribute positively to society, and this over and above their compliance with national law. 83% of companies have made a public commitment to respect human rights, and 86% have signed up to voluntary initiatives that address the respect of human rights. The IOE, ICC and the Global Business Initiative are currently undertake a follow-up survey! Please join!15 16. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDChallenges for Companies What does a HR due diligence approach looks like Doing Business in WGZ Supply Chain Management16 17. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDGovernment survey The UN Working Group also undertook a government survey with regard to the implementation of the UN Guiding Principles. From 193 UN members states only 24 participated in the survey. Key topics for governments: Equal opportunities and gender equality at the workplace (21 states), migrant workers (16 states), freedom of association (16 states), child labour and environmental pollution (15 states). Conclusion: The state survey indicates that governments are still in in the initial phase of the implementation of the UN Guiding Principles. The UN Working Group sets up a NGO survey on the implementation of the UN Guiding Principles, on questions 17 on how involved they are in remedy processes 18. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDWebcast of the Business and Human Rights Webinar is now available On 20 December 2012 IOE Secretary-General Brent Wilton delivered a webinar on the UN Guiding Principles on Business and Human Rights to provide employer organisation members, and their member companies, with a preliminary update on the implementation of the Guiding Principles, as well as to discuss challenges and obstacles. A webcast of this webinar is now available via the following link: http://www.youtube.com/watch?v=jpYTfIItm1I&feature=youtu.be 18 19. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDISO 26000 Adopted in Nov. 2010. Guidance Standard on the social responsibility of all kinds of organisations. Not a management system standard, nor is it intended or appropriate for certification purposes or for regulatory or contractual use.19 20. REPRESENTING EMPLOYER ORGANIZATIONS THROUGHOUT THE WORLDWhat are the main strengths of ISO 26000? It reflects broad international consensus on the elements of social responsibility, drawn from authoritative international instruments. As such, it serves as a good basis for cross-border discussions on social responsibility. It provides good orientation for starting a social responsibility journey. It contains a good basis for eng