Corporate Social and Human Rights Responsibilities

Corporate Social and Human Rights Responsibilities:
Global, Legal and Management Perspectives


Edited by Karin Buhmann, Lynn Roseberry and Mette Morsing

Published by Palgrave Macmillan

ISBN: 978-0-230-23089-7

This review was first published on CSRWire.com on 22nd August 2011


Description

Corporate Social and Human Rights Responsibilities: Global, Legal and Management Perspectives – what has the law to do with Corporate Social Responsibility? Do Business Responsibilities for Human Rights (BRHR, with an acronym introduced in the book) differ from CSR? This book challenges the separation between CSR and law. It also demonstrates that BRHR may be gradually separating from CSR through emphasis on state obligations. Authors from around the world discuss how businesses engage in CSR and human rights, and how governments and intergovernmental organizations may support businesses in taking responsibility.

In this book, you will find a group of exciting chapters written by management scholars, lawyers, CSR practitioners and business ethicists. Drawing on cases from around the world, they want to set a new agenda regarding divergence and convergence between CSR, BRHR, and the law.

Commentary

The interrelation between CSR and law is a fascinating subject and one which many have written about. It's kind of chicken and egg, inferring on the practice of CSR a potential to drive standards which ultimately level the playing field for entire sectors and markets while understanding the power of law has the potential to drive more responsible practices of business which have previously been considered entirely voluntary. Some say CSR and the law are completely opposed. Some say they feed each other. Most companies do not understand the complexities of human rights in relation to their business and have tended to associate human rights with governments rather than businesses, despite the many connection points between what businesses do and how this affects people and societies. Partly as a result of the strong focus placed on human rights through the work of John Ruggie and the Protect, Respect, Remedy framework, more businesses now understand a human rights position is an essential part of their CSR framework.

Corporate Social and Human Rights Responsibilities adds a set of perspectives to this entire field, which is still in evolution—and some are quite fascinating and far-reaching for business. The book is a compilation of contributions that were developed for the CSR, Business Responsibilities for Human Rights and International Law Conference, organized by the University of Copenhagen in 2008, supported by the CSR-progressive Danish government. This was an attempt to strengthen the legal influence of CSR on management decisions while retaining the fundamental principle of CSR as a voluntary management policy. (Sort of having your cake and eating it too.) This was also at a time when the Danish Government introduced the pioneering Financial Statements Act in which large companies were required to report on sustainability or provide reasons for not doing so. The contributors in this volume include international lawyers, economists, investment management specialists, accomplished academics and a representative of Danish commerce—an impressive group delivering an equally impressive set of informative, thought-provoking papers.

The book is in three parts: first, an overview of the relationship between law and CSR including discussion of the United Nations Global Compact and the Human Rights Framework developed by John Ruggie; second, regional examples about the way businesses adopt responsibilities for human rights as part of CSR; and third, a view on law and management with CSR Codes of Conduct and more.

An important concept which falls somewhere between CSR and the law is "reflexive law" which, in layman's language, is the way law promotes industry self-regulation, e.g. requiring companies to disclose on sustainability but not prescribing the performance standards they should adhere to (such as the Danish Financial Act mentioned above). This is also the principle upon which the UN Global Compact rests (though it is not a legally binding framework): beyond a declaration to uphold principles, the key commitment companies make is to publish an annual report of their progress. Andreas Rasche, Professor in Business and Society at Warwick Business School, makes the point that criticism of the Global Compact is based on a misunderstanding of the mandate of the UNGC and classifies the UNGC as a "necessary supplement" to more existing and emerging regulatory efforts in the business environment linking business and civil society through learning events, dialogue events and partnership projects and acting as a "moral compass." He describes the UNGC as the largest corporate citizenship initiative in terms of size while admitting there are almost no "empirical insights on the implementation of tem principles in corporations."

Karin Buhman, Associate Professor of Law at the University of Copenhagen, writes about multi-stakeholder public-private regulatory forums, of which the UNGC is one, which function at the level above national lawmaking. She writes that while such bodies are clearly not conventional law-making institutions, they do have normative ambitions. She also points to the UNGC's "reflexive" approach as one of the ingredients in its success.

In another piece, Jette S. Knudsen, Associate Professor at Copenhagen University, looks at the organization of CSR as a means of corporate control (subtitled "From do-gooding to mainstream?"). Using HP and Ben and Jerry's as core examples, with some reference to IBM, Nike and others, Knudson looks at offensive CSR (clear link to business strategy) and defensive CSR (no clear link to business strategy), the role of boards in shaping the CSR agenda and position of CSR management within companies. Ultimately, he shows CSR will grow in importance to boards, and CSR managers need to be much more "business savvy." No surprises there.

One of the more fascinating articles is by Dominique Bé, deputy head of the European Social Fund, who compares the way human rights are reflected and upheld in corporate Codes of Conduct and International Framework Agreements (IFAs). The first IFA was between Danone and the International Union of Food (IUF) back in 1988 in which agreements on social responsibility and employee rights were reaffirmed. IFAs are not collective agreements, though they are often established with union bodies. However, there is no legal requirement for companies to sign an IFA. Most IFAs therefore build on the commitment of signatory MNEs to respect them worldwide, over and above adherence to national regulations – a kind of voluntary acceptance of a legally binding agreement, going beyond the unilateral nature of corporate Codes of Conduct.

Another interesting article by Lauren Caplan, counsel to an investment company, refers to the way CSR considerations are or are not integrated into the process of raising capital. The author notes the lack of disclosure in corporate social responsibility reports on risks relating to corporate social responsibility. No surprises there either.

All in all, the book Corporate Social and Human Rights Responsibilities does what it promises and more. It provides some engaging perspectives on CSR, human rights and the law, as well as some detailed discussion of the finer issues most CSR practitioners would be wise to have on their radar.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen  on Twitter or via my website www.b-yond.biz/en

Trafficking for Begging: Old Game, New Name

Trafficking for Begging: Old Game, New Name


By Iveta Cherneva

Published by Amazon Digital Services.

ASIN: B004J4X1AE

This review was first published on CSRwire.com on 25th April 2011

Description

Trafficking for Begging: Old Game, New Name describes an ugly industry; the exploitation of beggars is a form of human trafficking. The book gives a voice to the thousands of victims and uncovers details of this criminal activity. Apart from the legal and social discussion, the study also looks into psychological theories as to why people give money to beggars. The author suggests ideas for public campaign messages that can break the exploitative cycle of trafficking for begging based on these psychological theories. If you liked the movie Slumdog Millionaire, it is likely that you would also be touched by the main message brought by Trafficking for Begging: Old Game, New Name.

Commentary

This is an important book which will not, regrettably, be mainstream reading for anyone in a corporate setting. The subject of trafficking in humans (especially children) for the purpose of begging and profiteering is one of the low sides of our society which prevails around us and which, as responsible citizens, we should be acutely aware of. I am reminded of several trips to India some years ago where it was impossible to move more than a few meters without being approached by a child asking for money. I recall one particular young girl, carrying a disabled baby in her arms, who touched my heart as she begged me to buy powdered milk for her baby brother and took me down several Mumbai alleys to a kiosk selling cans of powdered milk. My colleagues laughed at me when I recounted the story. In my naiveté, I had not imagined that the infant was not actually her brother. I didn't contemplate that she may have another unfortunate child caught into the web of begging, probably "owned" by someone who would profit from the cash after the tin of powdered milk was returned to the kiosk to wait for another unsuspecting business person or tourist.

Iveta Cherneva has published an important work, exposing the intricate operations of begging traffickers in Western Europe, as well as in emerging economies. Yes, even in Geneva, Switzerland, "amidst the wealth and seemingly calm social landscape, an Ugly Industry is quietly sitting on the pavement." Iveta Cherneva says that victims of human trafficking are "part of a ring with organizational complexity comparable to that of a medium-size business enterprise." In Trafficking for Begging, she exposes the factors behind trafficking and the "business" decisions that traffickers make in order to boost profits: "Beggars are forced, abused, beaten and even mutilated by their begging pimps in order to cause more pity. Cut On Purpose. Blinded On Purpose. With broken limbs On Purpose. Without an arm On Purpose."

There are many forms of exploitation and trafficking which for most of us will be simply inconceivable in their cruelty and abuse of human life and human rights. These might include "mail order brides, domestic servitude and nannies, recruitment of child soldiers, illegal adoptions, trafficking for ritual purposes and trafficking of prisoners, camel jockeys, drug smuggling, petty theft, construction and agricultural work, etc." Just reading this list engenders reactions of outrage and great sadness.

Iveta says that "One of the main aims of this book is to suggest an emerging paradigm shift on the international, regional and national level indicating a move away from a purely law enforcement approach to a human rights victims-centered approach. That would hopefully result into a change of mindset in policy making and full-fledged protection and assistance to trafficking victims." In Sweden, for example, this means outlawing the practice of prostitution by punishing the client and protecting the victim. Iveta Cherneva maintains that "by giving money to beggars on the street we only encourage the vicious cycle, which fuels the criminal activity."

Trafficking for Begging is based on the author's observations in Switzerland and much research in international law and domestic legislation from around the world. This self-published book includes some personal stories from begging victims, but it is mainly an intelligent and detailed overview of international legal frameworks that cover trafficking, exploitation and begging in all their forms and a proposal for a policy direction that could assist in curtailing the effects of such difficult issues our society must face.

Whilst this subject might not be directly related to CSR policy in most companies, it is certainly related to sustainability and the creation of a just and equitable society for all. How many corporations use their funds and influence to fight this type of crime against humanity in the same way as they poor funds into education, health and other more "acceptable" social needs? The Body Shop, always a company to champion a less popular cause, has made anti-trafficking a flagship program, and there may be others. Perhaps Iveta Cherneva's book may spark more initiatives, especially for companies who operate in regions of high-risk for begging trafficking, which, it seems, can be just about anywhere. In any event, reading Trafficking for Begging is a sobering experience and Iveta Cherneva earns my admiration for skillfully bringing this subject onto the radar.

elaine cohen, CSR consultant, Sustainabilty Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices  Contact me via www.twitter.com/elainecohen  on Twitter or via my website www.b-yond.biz/en

Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights

Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights

By Thom Hartmann

Published by Berret Koehler Publishers, 2010
Second revised and expanded edition ISBN 978-1-60509-559-2

This review was first published on CSRwire.com on 20th September 2010.

Description

Did Supreme Court sell out America's citizens in the nineteenth century, with consequences lasting to this day? Is there a way for American citizens to recover democracy of, by, and for the people?

Thom Hartmann takes on these most difficult questions and tells a startling story that will forever change your understanding of American history. Amongst a deep historical context, Hartmann describes the history of the Fourteenth Amendment created at the end of the Civil War to grant basic rights to freed slaves and how it has been used by lawyers representing corporate interests to extend additional rights to businesses. Prior to 1886, corporations were referred to in U.S. law as "artificial persons." But in 1886, after a series of cases brought by lawyers representing the expanding railroad interests, the Supreme Court ruled that corporations were "persons" and entitled to the same rights granted to people under the Bill of Rights. Since this ruling, America has lost the legal structures that allowed for people to control corporate behavior.

Commentary

In 2009, "the transnational pharmaceutical giant Pfizer pled guilty to multiple criminal felonies. It had been marketing drugs in a way that may well have led to the deaths of people … [Pfizer] paid a $1.2 billion 'criminal' fine to the U.S. government … as well as an additional $1 billion in civil penalties… None of its executives… saw even five minutes of the inside of a police station or jail cell … in the autumn of 2004, Martha Stewart was convicted of lying to investigators about her sale of stock in another pharmaceutical company. Her crime cost nobody their life, but she famously was escorted off to a women's prison. Had she been a corporation instead of a human being, odds are there never would have been an investigation."

This punchy opening of this surreal book by Thom Hartmann gets you hooked from the very first line. It's true. What are corporations if not the actions of the people who work in them and for them? If a corporation does wrong, simply writing a check to the government doesn't seem to cut it, when the people responsible for the wrong-doing retain their jobs, their pay-checks and all privileges, and avoid punishment under the law. Hartmann explains, in great historical detail, how corporations became "persons" under US national law, with rights equivalent to those of "natural persons" (you and me, flesh and blood, individuals) including the First Amendment right of all persons to free speech, the Fourth Amendment right to privacy, the Fifth Amendment protection against double jeopardy and self-incrimination and the Fourteenth Amendment right to non-discrimination. Moreover, Thom Hartmann, blow by blow, explains how corporations have exploited these rights to advance their own interests, or at least, those of the "persons" who stood to benefit, at the expense of the common good and the people of the United States.

It all began, apparently, in 1886 when the Supreme Court Justice Morrison Waite pronounced judgment in a case of the Southern Pacific Railroad versus Santa Clara country, about the taxation levied on this corporation by the County. The lawyers claimed that the railroad corporation was entitled to the same rights as a "person". The court reporter noted in the written record of the case that, "The defendant corporations are persons within the intent of the clause in section 1 of the Fourteenth Amendment to the Constitution of the United States, which forbids a State to deny any person within its jurisdiction the equal protection of the laws." This written record, Thom Hartmann goes on to show, was actually an error and not the explicit intention of Justice Waite. Nonetheless, this record set the tone and served to legitimize all subsequent claims to corporate personhood for the rest of history until the present day. Further, Hartman postulates that this was all a big conspiracy engineered by the railroad lawyers who stood to make significant financial gain through defending more corporations in this way. The story is as incredible as it is outrageous and has the reader in a state of both disbelief and indignation. Surely the whole basis of corporate law in the US couldn’t have been derived from little more than a mistake? This is quite fascinating and the arguments are succinctly articulated with references to original documents and records of the time. If we are to believe this author, the entire legal infrastructure governing corporations may well have been a complete farce, opening the floodgates for unchecked corporate abuse of the law as it was originally intended.

Hartmann deals with many controversial and poorly understood issues relating to the power of corporations over the human rights of individuals, providing detailed case studies of an array of events and actions in relation to corporations. The reading is riveting, and even though we have heard many of these stories before, the "get to the real truth" approach of the author makes this compelling reading. We read about the events leading to the Boston Tea Party, which was a protest against the power of the East India Company, who had successfully lobbied to support the Tea Act which gave the East India Company full and unlimited access to the American tea trade as well as tax exemptions, thus helping to drive other tea-traders out of business. Hartmann recounts the astounding story of why the Marc Kasky case against Nike's "right to lie" in their marketing materials in the name of freedom of speech was never tried in court. Other chapters include the exposure of issues such as the lawsuit by the Texas beef barons against Oprah Winfrey for commenting that she would avoid eating hamburgers after an outbreak of mad-cow disease, the concentrated corporate ownership of the not-so-free press, corporate support for political campaigns, the limitations of federal authorities to carry out spot checks on businesses to assess health and safety compliance, comparisons of US versus European law and the application of the precautionary principle which is not law in the USA, the use by politicians and companies of Professional Blog Warriors who blast the Internet from all corners to make campaigns more effective, the complication of global corporations doing business across borders, military spending and corporate interests and more. All these stories show how the power of corporations threatens the basis of democracy and the protection of the human rights of "natural" persons. John Ruggie would feel extremely validated, reading this book.

As a non-lawyer, I found this book immensely readable, despite several long legal texts used to provide substance to the author's presentation of the issues. These cases are sometimes so incredible that they defy belief. Thom Hartman is "the (US) nation's #1 progressive radio talk show host" as well as being an award-winning well-respected author of over 21 books (he also works for humanitarian causes). He appears in this book to have conducted thorough research, though make no mistake about his intention: to convince us that we must get our rights back from corporate predators who not only do not deserve them but also abuse them. His concluding chapter offers suggestions as to how we might go about doing this, including references to democracy campaigners and organizations, such as the Community Environmental Legal Defense Fund or ReclaimDemocracy.org. Whether you believe in the conspiracy theories or the "hegemony of corporate personhood", or whether you do not, this book is certainly a recommended read. It is entertaining, using a dramatic story-telling pace to recount history, and very thought-provoking indeed.

elaine cohen, CSR consultant, Sustainabilty Reporter, HR Professional, Ice Cream Addict., author of  CSR for HR: A necessary partnership for advancing responsible business practices. Contact me via www.twitter.com/elainecohen  on Twitter or via my website www.b-yond.biz/en