RENGO’s Views on Corporate Social Responsibility (CSR)
20th January 2005

III. Activities to Achieve CSR in the Areas of Employment, Labor and Human Rights


Regarding their activities on CSR (and SR in the broader term), the position or role of trade unions is two-fold. On one hand, they must monitor corporate management, and on the other had they must seek assurances from management regarding their members’ own rights, working conditions and skill development, Trade unions must consider these two positions when offering responses to CSR.

1. Labor-management consultations and the conclusion of labor agreements

  As an important part of CSR, trade unions should include the tasks of CSR into the agenda for labor-management consultations, call upon management to comply with information disclosure requirements and accountability, and at the same time build a mechanism to allow themselves to participate in the CSR process as a whole, including the follow-up and monitoring mechanisms.

(a) Establishment of a CSR committee at each corporation with participation by the union
      -- Making use of Eco-Mark and other certification standards
(b) Development of corporate rules of conduct and the union’s involvement into the development process
(c) Establishing a follow-up body, which also includes business relationships
(d) Pressure on the corporation to participate in the U.N. Global Compact
(e) Conclusion of framework agreements between global industrial federations and multinational corporations

2. Policy tasks

Trade unions should call upon national and local governments to implement policy measures to support the CSR efforts of individual corporations and to establish rules of fair competition.

(a) Make it mandatory for corporations to disclose information on basic matters
(b) Apply CSR criteria to the awarding process for public contracts by national and local governments
- Establish relevant municipal bylaws

3. Involvement in SRI (socially responsible investment)

Trade unions should actively encourage public and corporate pension funds to adopt CSR criteria into their fund management, and at the same time unions themselves should make efforts to make active use of CSR criteria in their voluntary welfare programs.

4. Review of evaluation criteria from a trade union perspective

 Trade unions should review CSR evaluation criteria in the areas of employment and labor issues.

5. Efforts following the international trade union movement

  At its 18th World Congress held in December 2004 in Miyazaki, the ICFTU adopted a resolution on CSR (see Note). In this regard, RENGO will make future efforts in a way that takes into account the ideas incorporated into the resolution stating that CSR must take into adequate consideration the rights of workers and trade unions.

Note:    Gist of the resolution: Trade unions will participate in discussions on CSR based on their clearly defined role as representatives of working people. The business community does not have the political legitimacy to independently define its own social responsibility to society. Policies on CSR should not contradict regulations for social protection, protection of workers, and environmental protection, but rather should clearly supplement these regulations. In addition, trade unions will support efforts on CSR as long as these efforts respect the standards provided in labor agreements and collective bargaining. Trade unions will resolutely oppose any attempt by corporations to make use of CSR to circumvent legitimate regulations on corporate behavior.

6. Involvement in the efforts of NPOs and other groups toward standardization

 Although activities for the standardization of corporate behavior promoted by SA8000 and ISO will not replace the regulatory activities of public institutions, they nevertheless have the potential to help improve discrepancies in the efforts of individual corporations. At the same time, because such standardization does not have binding power, there is a risk that it may be used as a mere cover to conceal the failure of some corporations to perform CSR. RENGO will encourage these standardization efforts to incorporate ILO and other international labor standards into their standards as a matter of course, and to improve the effectiveness of these standards through consultations and cooperation with relevant authorities.

- Efforts to achieve CSR in the areas of employment and labor issues

 Summarizing the aforementioned perspective on CSR, the following concrete tasks may be undertaken by RENGO, its affiliates, individual unions and Local RENGOs:

RENGO

Achieving policy demands (mandatory information disclosure requirements, etc.)

Consultations with employers’ organizations

Lobbying or participation in relevant advisory commissions

Exploring the development of evaluation criteria for corporate CSR performance

Cooperation with the ILO and ICFTU
RENGO Affiliates

Development of policies in line with actual situation in the relevant industrial sector

Consultations at labor-management councils organized by industry or by business type

Monitoring activity of corporations going overseas

Cooperation with global industrial federations –> signing of framework agreements
Individual Unions

Involvement in the development of corporate rules of conduct –> monitoring and checking

Establishment of and involvement in CSR committees, by bringing business partners and investment behaviors overseas into the scope of CSR

Meetings for consultation, and opening up to workers in atypical employment
Local RENGOs

Consultations with regional employers’ organizations, joint declaration

Cooperation with NPOs

- What are framework agreements?

Essentially, global union federations (GUFs) conclude labor agreements with employers’ organizations and multinational corporations, which stipulate observation of the core ILO labor standards.

- What is the U.N. Global Compact?

For the purpose of rectifying various adverse effects caused by globalization and at the same time to promote responsible corporate practices internationally, Mr. K.A. Annan, Secretary General of the United Nations, proposed this initiative at the World Economic Forum held in 1999. U.N. agencies such as OHCHR, UNEP, ILO and UNDP, are deeply involved in this initiative.

The U.N. Global Compact is comprised of ten voluntary maxims on human rights, labor, the environment and anti-corruption, based on the “Universal Declaration of Human Rights,” “ILO Declaration on Basic Principles and Rights of Labor” and “Rio Declaration on Environment and Development.”

      Approved at the 18th Meeting of the Central Executive Committee
      January 20, 2005