THERE IS
NO SINGLE code or
standard, no panacea that will lead to corporate responsibility (CR). Yet,
now, more than ever before, corporations are waking up to the fact that they
must adopt codes and implement standards to satisfy the growing demands of
an ever-wider and ever-less-trustful spectrum of stakeholders. So, where do
companies start?
Information overload is nowhere more apparent than in the field of CR. There
are millions of pages and web pages written on codes and standards, but most
of it is spin: organisations punting to sell their code or standard. The
reality is that CR is an emerging field, a new terrain for which maps are
much needed, but often imprecise. Each company is different, each with its
own challenges, corporate culture, unique set of stakeholders, and
management systems. Corporate responsibility is a journey for which, today,
there is no single map but a multitude of codes and standards that can be
combined in new ways for different journeys. In her many lectures around the
world, CSR consultant Deborah Leipziger has been asked the same question
over and over again: ‘What are the best standards for companies seeking to
be socially responsible?’ Over the course of more than a decade, she has
analysed hundreds of codes of conduct and standards to answer that question.
This indispensable resource is the result.
The Corporate Responsibility Code Book
is a guide for companies trying to understand the landscape of corporate
responsibility and searching for their own, unique route towards satisfying
diverse stakeholders. There is no one-size-fits-all approach. A company may
face quite different challenges if it operates in more than part of the
world. And yet stakeholders, especially consumers and investors, are keen
for some degree of comparability with which they can evaluate corporate
performance. There are countervailing forces at work within corporate
responsibility: on the one hand is the need for convergence in order to
simplify the large numbers of codes and standards; and, on the other hand,
the need to foster diversity and innovation.
Many of the best codes of conduct and standards are not well known while
some CR instruments that are well disseminated are not terribly effective.
Some comprehensive codes of conduct achieve nothing, while other quite vague
codes of conduct become well embedded into the organisation and foster
innovation and change. The book explains some of the best CR instruments
available, and distils their most valuable elements.
The goal of the book is to help companies select, develop and implement
social and environmental codes of conduct. It demonstrates how the world’s
leading companies are implementing global codes of conduct, including the
United Nations Global Compact, the OECD Guidelines for Multinational
Enterprises, Social Accountability 8000 (SA 8000) and AccountAbility 1000
(AA 1000). The codes in this book cover a wide range of issues, including
human rights, labour rights, environmental management, corruption and
corporate governance. The book also includes how-to (or process) codes
focusing on reporting, stakeholder engagement and assurance.
This book is based on interviews with the standard-setters, the implementers
of standards, academics, activists and other key stakeholders from around
the world; and in many cases includes the full text of the code profiled.
Each of the standards and codes described has been shared with the
promulgators of the instrument to ensure that the information is as up to
date as possible.
The Corporate Responsibility Code Book
will be an invaluable tool for companies developing their own code, but will
also be a key tool for companies with a strong track record in CR, seeking
to understand the interrelationships among codes and standards to create
their own corporate vision. It will be the key reference text on corporate
codes of conduct for many years to come.
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In this intelligent and comprehensive analysis of today’s bewildering
variety of codes and standards intended to enhance the practice of
corporate responsibility, Deborah Leipziger has provided an invaluable
practical guide which will be useful not only to the corporate world, but
to all concerned with this issue.
Sir Geoffrey Chandler, Founder Chair, Amnesty International UK Business
Group 1991–2001, and former Director of Shell International
It’s a confusing world out there for anyone interested in corporate
responsibility—with codes, standards, guidelines, principles and
declarations all tumbling over each other, clamouring for attention.
Deborah Leipziger’s book will steer you through this tumult of new
initiatives, providing both the baseline information about what’s going on
as well as some invaluable ‘quality control’. This is confusion-busting
guidance at its best.
Jonathon Porritt, Forum for the Future
This is a mammoth piece of work that fills the need for a comprehensive
analysis of the array of corporate responsibility-related standards out
there. I am sure companies and others who operate within this complex
field will find it very useful.
Deborah Smith, EQ Management Ltd
I speak as a ‘godparent’ for several voluntary codes. They are a crucial
element in emerging governance patterns. But I am also uneasy about the
current code-mania. There will be a shake-out. Deborah’s timely guide
spotlights likely survivors.
John Elkington, Chair, SustainAbility; author, Cannibals with Forks
This excellent review provides more clarity and greater understanding for
all interested parties about the current state of play in codes of conduct.
This book will serve not only businesses but also readers interested in
better grasping the current debate about codes of conduct, their
effectiveness and credibility.
Dominique Bé, European Commission
A much-needed guide covering everything from individual corporate codes of
conduct, through the various standards applicable to different industries,
to the measurement indicators of the Global Reporting Initiative.
Mark Moody-Stuart, Chairman, Anglo American plc; former Chairman, Royal
Dutch/Shell Group
The Corporate Responsibility Code Book
will become the key reference guide for executives and boards of directors
seeking to become socially responsible. An antidote to prevent corporate
scandals, this book provides clear guidance to companies on corporate
governance, human rights, labour, environment and sustainability. Ms
Leipziger has written a book which fosters convergence between the many
codes and standards in the field of social responsibility. Every executive
should have it close to hand.
Alice Tepper Marlin, President and CEO, Social Accountability
International
The Corporate Responsibility Code Book
promises to make a contribution to rectifying one of the most vexing
problems facing business and its stakeholders: bringing order,
understanding and value to the complex landscape of principles, norms,
standards and guidelines.
Allen L. White, Co-Founder and Special Advisor, Global Reporting
Initiative; Vice President, Tellus Institute
This book is timely, as the debate has progressed from the ‘Why should we
report on these issues?’ to the ‘How should we?’ ... The task Deborah has
undertaken is extremely valuable ... she has a deep understanding of the
practical challenges of corporate responsibility reporting as well as
far-reaching experience in the development of codes and standards that are
appropriate to the companies concerned. This is crucial to her analysis of
the strengths and weaknesses of current standards.
Keith Jones, Chief Executive, Morley Fund Management
A well-written and powerful book for anybody who is serious about
corporate social responsibility. Deborah Leipziger has succeeded in
presenting a comprehensive guide that will enable a company to bring its
efforts up to standard in a way that suits its business and ambitions.
Arco ten Klooster, PricewaterhouseCoopers, Sustainability Solutions,
the Netherlands
Looking at corporate responsibility and sustainable behaviour, a common
understanding has emerged: the business of business is more than just
business. Together with a highly developed market-driven approach, this
has given businesses an institutional role in society parallel to public
institutions and civil-society organisations. In order not only to meet
the obligations of this role but also to benefit from them, companies need
well-established corporate governance systems and maximum transparency.The
Corporate Responsibility Code Book
offers not only excellent tools in the field but also challenging
perspectives on ways ahead consolidating the thousands of codes and
guidelines.
Jens Erik Lund, Operational Director, OECD LEED Trento Centre; formerly
inaugural director of The Copenhagen Centre
Codes of conduct are just a tool; how you use them is what really matters.
This book will help you determine the right approach for your company and
how to roll out a program that brings results.
Amy Hall, Manager, Social Accountability, Eileen Fisher, Inc.
Companies wanting to embrace the tenets of corporate responsibility more
deeply into their business model and behaviours are faced with a
bewildering array of codes, standards and guidelines. transparency.The
Corporate Responsibility Code Book
provides a timely review of what’s out there and how to decide what is
most relevant and helpful. The starting point, though, for each company is
to be clear about their own values and core purpose and then to use the
codes as a stimulous for thinking and as benchmarks to judge their own
performance and track progress. Without this starting point companies will
be rudderless in a sea of conflicting demands and expectations.
Mark Wade, Shell Learning—Leadership Development
In the corporate codes of conduct jungle a route map is a must.
transparency.The
Corporate Responsibility Code Book
is exactly that, clarifying the issues and charting a path to good
corporate citizenship.
Neil Kearney, General Secretary, International Garment, Textile and
Leather Workers’ Federation (ITGLWF)
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Reviews
This is a guide for companies trying to understand the landscape of
corporate responsibility and managing their way through the jungle of
sustainability, human rights and CSR standards. The most useful part of
the book is the summary, description and text of the most relevant codes
of conducts, standards and norms that exist to guide sustainable corporate
behaviour. A key reference book for all corporate responsibility
professionals
Sustainability Radar, December 2003
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Contents
Foreword
Keith
Jones, Chief Executive, Morley Fund Management
A note
to readers
What’s
in a name?
Codes are in the eye of the beholder.
Acknowledgements
Introduction
Code
paradoxes
The need for a code book
Executive
summary of corporate responsibility initiatives
1 Values,
principles, norms, codes and standards
1.1
Definitions
1.2 Categories of codes and standards
1.2.1
Classification by focus
1.2.2 Classification by method of development
1.3 How
can codes of conduct help companies?
1.3.1
Raising awareness of corporate responsibility
1.3.2 Setting strategies and objectives
1.3.3 Assisting with implementation and control
1.3.4 Avoiding risk
1.3.5 Fostering dialogue and partnerships with key stakeholders
1.3.6 Enhancing unity and identity among divergent companies
1.4 The
DNA of an outstanding code of conduct or standard
1.4.1
Clarity and conciseness
1.4.2 Flexibility and dynamism
1.4.3 Written with implementation in mind
1.4.4 Reference to key standards
1.4.5 Stakeholder support
1.4.6 Complaints and dispute resolution
1.4.7 Desire to change
1.5
Bringing a code of conduct or guidelines to life
1.5.1
Training to raise awareness
1.5.2 Strong support from senior leadership
1.5.3 Translation of text
1.5.4 Incentives
1.6 Guidelines for reviewing corporate responsibility tools
1.6.1 The origins
1.6.2 The date
1.6.3 The focus
1.6.4 Signatories
References
Part
1: Global initiatives
2 The
OECD Guidelines for Multinational Enterprises
THE OECD
GUIDELINES FOR MULTINATIONAL ENTERPRISES (text)
3 The
Global Sullivan Principles of Social Responsibility
GLOBAL
SULLIVAN PRINCIPLES OF SOCIAL RESPONSIBILITY (text)
4 The
UN Global Compact
THE
GLOBAL COMPACT’S NINE PRINCIPLES (text)
THE MILLENNIUM DEVELOPMENT GOALS (text)
Part
2: Human rights
5 The
Universal Declaration of Human Rights
THE
UNIVERSAL DECLARATION OF HUMAN RIGHTS (text)
6 The
Voluntary Principles on Security and Human Rights
THE
VOLUNTARY PRINCIPLES ON SECURITY AND HUMAN RIGHTS (text)
7 The
Norms on the Responsibilities of Transnational Corporations and Other
Business Enterprises with Regard to Human Rights
COMMENTARY ON THE NORMS ON THE RESPONSIBILITIES OF TRANSNATIONAL
CORPORATIONS (text)
Part
3: Labour rights
8 International Labour Organisation: Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy
TRIPARTITE DECLARATION OF PRINCIPLES CONCERNING MULTINATIONAL ENTERPRISES
AND SOCIAL POLICY (text)
9 Social
Accountability 8000
SOCIAL
ACCOUNTABILITY 8000 (text)
10 Fair
Labor Association: Workplace Code of Conduct
WORKPLACE CODE OF CONDUCT (text)
11 Ethical
Trading Initiative: Base Code
THE BASE
CODE (text)
12 Clean Clothes Campaign: Model Code
CODE OF
LABOUR PRACTICES FOR THE APPAREL INDUSTRY INCLUDING SPORTSWEAR (text)
13 Other
major initiatives in the clothing industry
Part
4: From environment to sustainability
THE
BUSINESS CHARTER FOR SUSTAINABLE DEVELOPMENT (text)
ECO-MANAGEMENT AND AUDIT SCHEME (text)
14 The
Rio Declaration on Environment and Development
RIO
DECLARATION ON ENVIRONMENT AND DEVELOPMENT (text)
15 The
CERES Principles
THE
CERES PRINCIPLES (text)
16 The
Natural Step
THE
NATURAL STEP PRINCIPLES (text)
Part
5: Combating corruption
17 The
OECD Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions
CONVENTION ON COMBATING BRIBERY OF FOREIGN PUBLIC OFFICIALS IN
INTERNATIONAL BUSINESS TRANSACTIONS (text)
18 The
Business Principles for Countering Bribery
THE
BUSINESS PRINCIPLES FOR COUNTERING BRIBERY (text)
Part
6: Corporate governance
THE
COMMONWEALTH CORPORATE GOVERNANCE PRINCIPLES (text)
THE KING REPORT (text)
19 The
OECD Principles of Corporate Governance
OECD
PRINCIPLES OF CORPORATE GOVERNANCE (text)
Part
7: Company codes of conduct
20 Shell’s
Business Principles
SHELL’S
STATEMENT OF GENERAL BUSINESS PRINCIPLES (text)
21 Johnson
& Johnson’s ‘Credo’
OUR
CREDO (text)
Part
8: Framework, sectoral and regional agreements
22 Framework
agreements
AGREEMENT BETWEEN NOPEF/ICEM AND STATOIL (text)
23 Sectoral
and regional agreements
STATEMENT ON RESPONSIBLE CARE® (text)
MSC PRINCIPLES AND CRITERIA FOR SUSTAINABLE FISHING (text)
Part
9: Implementation
24 AccountAbility
1000 Framework
ACCOUNTABILITY 1000 (AA1000) FRAMEWORK (selected text)
25 AccountAbility
1000 Assurance Standard
AA1000
ASSURANCE STANDARD (selected text)
26 The
Global Reporting Initiative
GRI
SUSTAINABILITY REPORTING GUIDELINES (selected text)
27 ISO
14001
ISO
14001:1996 (selected text)
28 The
‘Sustainability: Integrated Guidelines for Management’ (SIGMA) Project
THE
SIGMA GUIDELINES (text)
Part
10: Visions for the future
29 An
emerging consensus
About the author
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Deborah
Leipziger is a consultant in the field of corporate social
responsibility, and advises companies on the development and
implementation of codes of conduct and standards. Her clients have
included the UN’s Global Compact, Warwick University and Social
Accountability International. She is an adviser to Morley Fund
Management, assisting them on their approach to socially responsible
investment. Deborah played a key role in the development of the
Social Accountability 8000 standard and its Guidance Document. She
is the author of SA8000: The Definitive Guide to the New Social
Standard (FT Prentice Hall, 2001), and the co-author of
Living Corporate Citizenship (FT, 2002) and Corporate
Citizenship: Successful Strategies of Responsible Companies (FT,
1998). Deborah resides in The Hague, with her husband and three
daughters.
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