1

Corporate Social Responsibility (CSR), global governance

and sustainable development:what is at stake?

Henri-Bernard Solignac LecomteOECD Development Centre

EU-LDC Network Conference‘Global Governance for Sustainable Development: Issues and Instruments’

Chiang Mai, December 8-10, 2002

Outline

1. The CSR concept: shareholders & stakeholders

2. CSR and development: what are the links?

3. Vehicles for CSR: firms, governments, standards

4. Issues for debate

The CSR Concept

• Shareholder accountability• Stakeholder accountability• From opposition ...• … to a win-win situation?

• by compliance

• by choice

• by moral obligation?

CSR and Development (1)

The development case

• (+) the current of business on society is sub-optimal

• (-) the scope for ‘bad’ corporate governance is greater than in developed countries

CSR and Development (2)

The business case(s)

• Human resource retention, brand recognition, reputation insurance

• Cost-saving and better market access

• Mitigation of negative impacts• Social license to operate

Vehicles for CSR (1) Firms

• Normal operations• Social welfare and risk management• Re-alignment of core business

competencies with development priorities (partnerships)

There is evidence of success, but how do we scale it up?

Vehicles for CSR (2)Governments

• Minimum standards• Facilitate business going beyond

compliance– Philippines CSR Week– Taiwan Green Business Award– Thailand Office on Labour Standards

Development• Challenges

Vehicles for CSR (3)Standards

• Reporting (end-of-pipeline, NGOs)• Certification standards (financial

sector)• ‘Aspirational’ / non-binding principles

(IGOs)– UN Global Compact– OECD Guidelines on Multinational

Enterprises

CSR as an instrument for global governance?

• How far is long term?• Who defines society’s expectations?• Is there a risk of a bias towards public

opinion in the North? • Can shareholders afford CSR in bad

times?• PR pressure or strategic shift?• How far into public governance?• What role for the EU? (Cotonou, …)