Professional Documents
Culture Documents
Corporate Social
Responsibility
Negotiator’s Guide
With a good CSR policy, organisations can play Prospect also encourages representatives to
a real role in alleviating poverty by providing negotiate for their employers to marry the
safe, decent and humane work. But a genuine millennium goals (Chapter 5) to core labour
commitment to CSR requires employers to standards, using CSR as the vehicle.
work with a range of stakeholders, not just
shareholders – and union involvement is crucial. Negotiating to become a CSR stakeholder
provides the opportunity to extend and enhance
Prospect voted at its 2006 national conference trade union values and bargaining agendas.
to raise the profile of international development It also increases Prospect’s visibility to non-
among members. It will support branches members and the wider community.
wanting to pursue aims such as reducing
global poverty, achieving trade justice and We welcome your feedback so that we can
promoting acceptable labour standards across improve future editions and include the
the developing world. It pledged in 2008 to experiences of branches now engaged in
expand on this work, linking it in to the eight Prospect’s follow-up campaign, Bargaining for
millennium goals. International Development, which is supported
by three years of funding from DFID.
Prospect’s 2007 ‘Think Global, Act Union’
campaign was made possible with support Paul Noon,
from the International Development Learning Prospect General Secretary
corporate responsibility, or corporate citizenship. 1.5 Many organisations have policies that
Sometimes, especially for businesses with large look good, but are largely presentational and
environmental impacts, it may be covered by top-down, and so are not embedded in the
environmental or sustainable development organisation. This means there is little awareness
policies. of them or commitment to making them work
across the business as a whole.
1.2 Generally speaking, CSR covers the things
an organisation does that: 1.6 The best way to bring about such
■■ have an impact beyond its immediate awareness and commitment is for the workforce
operations, for example on society, local to be involved in CSR policies at all stages.
communities or the environment An employer who is really committed to CSR
■■ are over and above its legal obligations should welcome such involvement. After all,
■■ affect how it is viewed and treated by the workforce are the people who know what is
stakeholders. really going on, and how things could be done
better.
The term stakeholders is usually used
to include all those with a stake in the Action plan
organisation – ie who are affected by Assess –
its actions or its success – other than ●● What is your employer already doing?
management and shareholders. As such, it ●● How deep is their commitment?
can include employees and trade unions. (Chapter 2)
But companies sometimes limit it to
Build –
external stakeholders. Where the term is
●● Create a business case for doing more
applied to employees, it does not imply that
●● Find channels you can use to engage with
they are separate from the organisation.
your employer or try to create them
●● Identify where your organisation has
1.3 Rather than looking for a precise opportunities and strengths which could
definition, it is better to look at what an be used to benefit or influence others
employer’s policies state, and just as important, ●● Look for where the union can add value
what happens in practice. Most large – for example, through relationships with
organisations have CSR policies in some form other stakeholders
– but aspects of CSR may also spread across ●● Agree a joint CSR framework
other areas, such as environment, employment, (Chapters 3-6)
equality and diversity, and community policies. Check –
●● Monitor progress
Why is this a matter ●● Seek and pass on feedback from members
●● Communicate the results to staff and
for trade unions? stakeholders.
(Chapter 7)
1.4 Prospect believes employees and
representatives should be fully engaged as
TAKING ACCOUNT OF THE NATURE OF THE BUSINESS AND ITS IMPACTS, ARE THERE ANY OBVIOUS GAPS?
3.5 This is often referred to as the ‘triple 3.11 Without government and public
“It is not bottom line’, linking the financial, environmental support, organisations may find it difficult or
possible to and social performance of a business. It applies impossible to operate. This may be particularly
as much or more to public sector or not-for- true with large infrastructure projects such as
separate profit organisations, since they should by airports or power stations, where apart from
definition be operating in the interests of society the statutory planning process, the objections
employees
as a whole. Good practice will increase public or support of local communities and the wider
from a confidence in them and so enable them to do public may affect the cost and timing of a
their core job better. project significantly, even where it does not halt
business, it altogether.
they are the 3.6 The benefits of CSR, like CSR itself, can take
many forms. The main ones are outlined below. 3.12 Good stakeholder management –
business.” through dialogue in advance and throughout
Reputation
Arthur D Little the project – can significantly ease the process
– The Business 3.7 A brand, and hence the ability of a and reduce planning delays. That can reflect
Case for Corporate business to generate profits, may be damaged positively on the reputation of the business, as
Responsibility, 2003 by adverse publicity – for example, about poor well as on the financial bottom line.
3.13 Some aspects of CSR, such as using 3.16 As with other business activities,
fewer resources or producing less waste, have organisations may gain competitive advantage
direct financial benefits as well as benefiting by being first to adopt a particular practice. In
the environment or society. There are financial some cases they may avert or delay the threat
benefits, as well as benefits to the company’s of government regulation by doing so, or, by
reputation, for avoiding penalties such as fines anticipating a regulation in preparation, be ready
for pollution. Sometimes these benefits are not for it before their competitors and even help
obvious or are only felt in the longer term, so shape it to suit them.
the case has still to be made.
3.17 As well as immediate competitive
Internalising the external
advantage CSR may give a company know-how or
3.14 Often the external costs to the new products and processes it can sell to others.
environment or society of an organisation’s
behaviour are not felt by the business internally.
Use the strengths of
Environmental and social taxes and charges
(eg tradeable permits for emissions) are your organisation
designed to redress this balance by making less
damaging options more attractive. However, 3.18 In looking at what more could be
an organisation may also choose to accept done, reps should not only consider where the
its wider responsibilities, especially to the organisation has negative impacts. They should
local community, for other reasons, such as also look at what opportunities the business
reputation, customers or recruitment. presents to benefit or influence others, and what
strengths it has.
Opening new markets
3.15 Being seen as a good company to do 3.19 One positive approach is to encourage
business with helps to develop new partnerships employers to act in ways that promote
and markets, ranging from domestic consumers achievement of the Millennium Development Goals.
who take this into account in choosing who to Although governments have signed up to the goals,
buy from, to overseas clients and customers. And they will not be achieved without the full support
vice versa – a poor reputation can damage sales. and commitment of businesses (see Chapter 5).
Agreeing a CSR
Engaging with framework
the employer
4.6 There is no one model for a CSR policy.
4.2 It is worth taking some time to think What is important will vary according to the
about the best channels to raise corporate social nature of the organisation, and aspects of CSR
responsibility issues – particularly in a large may be covered across a range of different
organisation with established structures – or policies and statements.
whether new structures are needed.
4.7 However, a number of core areas are
4.3 Many organisations have CSR relevant in most cases, and it is just as important
committees, and ideally these should include to have a robust process by which policies are
representatives of employees or trade unions drawn up, carried out and monitored. Chapters
as well as management. If not, you may be 6-7 provide some general guidance to these core
able to use or adapt existing groups – for areas, including some model provisions. The case
example, environment, human resources, health studies (Annex 1) illustrate some of the points.
and safety, or the general industrial relations
machinery – to raise CSR issues. It is in the 4.8 Other issues to cover depend on the
employer’s interest to work in partnership with nature of the organisation’s work, but should
Prospect and the other unions in the workplace include relevant ones from the checklist
on CSR matters. in Chapter 2. Though there is no point in
duplicating other documents, having a joint
4.4 There are currently no statutory rights framework agreement which sets out some
for trade union workplace representatives in core principles – for example, on core labour
the area of environment or corporate social standards – may be a way of formalising union
responsibility, in the way that there are for engagement.
6.3 However, this will not always be the case, Where relevant, encourage your employer to sign
especially when dealing with suppliers overseas, up to the ETI.
where legal requirements may be lower or not
observed. A CSR policy or framework agreement 6.6 Fair trade is where suppliers, usually
might include provisions on the lines of: individuals or small producers, are guaranteed
a fair payment for specific goods, mainly
‘X will work with our suppliers and sub- commodities such as coffee or cocoa, where
contractors to implement policies on world market prices can fluctuate widely.
employee rights, health and safety and Products carrying a Fairtrade mark are
environmental protection. In particular, independently certified against internationally-
we look to them to demonstrate their agreed standards, which include certain
commitment to all their workers by reference minimum labour standards depending on the
to the appropriate International Labour size of the organisation.
Organisation conventions. These cover:
■■ freedom from discrimination 6.7 Encourage your employer to buy relevant
6.11 But dealing with this in practice is not 6.16 The way an operation invests in
easy, especially as such arrangements are often acquisitions or in other businesses can also
disguised through payment of ‘commission’ to indicate how socially responsible it is. Socially
intermediaries. Company policies should include responsible or ethical investment can take
mechanisms that enable people who may have various forms. At a minimum it means that the
concerns about this issue to report them (see businesses invested in are acting responsibly.
Chapter 7).
6.17 Some social investors also exclude
6.12 Just as bribery diverts money from certain kinds of business because of the nature
legitimate business and government, and of the business itself, even where the business
distorts the market, failure to account properly is acting legally and, in their own terms,
for revenues and pay local taxes can have responsibly, thus making a value judgement
the same effect. The Extractive Industries about the nature of the business, as distinct
Transparency Initiative (see Annex 2) is designed from how that business is conducted.
to overcome this by opening up the earnings
of oil and mining companies to scrutiny and 6.18 Even where the business itself may not
ensuring a share of revenues is remitted to the be investing on a large scale, its pension fund
governments of host countries. will be doing so. The issues for union pension
Verifying and monitoring get accurate information from this source than
the employer or third-party assessors. The fact
that the workforce has been involved can only
7.1 Policies, codes and reports are not enough add to the credibility of the results and show
by themselves – especially if they contain that the policies are for real.
general values or aspirations which are not
translated into specific actions or targets. As 7.5 If you become aware of a major area of
well as being open to objective measurement concern – for example, employment of child
wherever possible, they should also be subject to labour in an overseas supplier or suspected
both internal and external scrutiny. Organisations corruption to secure business – you should
should be encouraged to see that. Prospect can discuss your concerns with your branch
play a valuable role in this process. committee and Prospect full-time official
and when consensus is reached on how to
7.2 Not all aspects of CSR are open to address the concern, it should be raised with
objective measurement, but where they are, management. A process for doing so should be
targets and reporting on them should be included in CSR policies or internal guidance.
included. This is about more than environmental
performance: health and safety (accident rates 7.6 Employers should welcome a feedback
and trends), employee satisfaction or the state of process since these issues can directly affect
industrial relations can all be measured. General their reputation and business. Sometimes they
aspirations to ‘be a good citizen’ or ‘reduce our indicate systems or communications failures – it
environmental impact’ should be unpacked and is not uncommon for purchasing departments
probed. to drive down prices and so encourage poor
practice at the same time as the CSR department
7.3 A number of organisations and tools exist is trying to raise standards.
which companies may use to evaluate, verify or
report on their CSR performance (see Annex 2). 7.7 You may be able to raise such concerns
While few are without problems, because of the through existing Prospect branch channels
subjective nature of many of the issues being or through health and safety committees,
assessed, they do provide a further element of industrial relations structures, or (particularly for
assurance and representatives should encourage ethical issues) counselling or whistle-blowing
their use where appropriate. Where employers arrangements where they exist. It is, however,
do not use them, you might discuss whether critical to communicate with and gain the
they would provide useful additional guidance or consensus of the branch executive committee
assurance. and full-time official.
“…break the link between ill health and by 2015 and respond to the world’s main
inactivity, to advance the prevention of ill health development challenges. Defra demonstrates
6
and injury, to encourage good management its support for helping to achieve these goals
of occupational health, and to transform through the work that it undertakes as part of its
opportunities for people to recover from illness ongoing commitment to promoting sustainable
while at work, maintaining their independence development. Activities such as volunteering, in
and their sense of worth.” 3
which its employees can contribute individually
and as teams towards the goals, form an integral
An explicit aim of this strategy was to develop part of its strategic corporate citizenship and
a charter for health, work and wellbeing, which wellbeing framework for action.
key stakeholders would be invited to sign, setting
out their role and contribution, with the charter Overview of current research:
incorporating a detailed action plan to ensure
progress. As a responsible employer keen to UK businesses are becoming increasingly aware
demonstrate its support for this important work, that promoting and supporting employee
Defra has signed up to the charter following its wellbeing is critical to sustaining business wealth
subsequent launch. and that the success of a company’s approach
“is dependent on the commitment of their
Defra as a government champion of leaders.” 7
sustainable development:
2 Ibid
5 United Nations (2005). The UN Millennium Development
3 HM Government (2005). Health, work and well-being –
Goals. Available online at www.un.org/millenniumgoals
Caring for our future. Available online at www.dwp.gov.uk/
publications/dwp/2005/health_and_wellbeing.pdf 6 United Nations Development Programme. Available online
at www.undp.org/mdg/basics.shtml
4 Directgov (2005). Wellbeing and Sustainable Development.
Available online at www.sustainable-development.gov.uk 7 Business in the Community (2006). Talking Health.
Crown Copyright. Updated July 27, 2007 Available online at www.bitc.org.uk/healthyworkplaces
Lee welcomes Prospect’s emphasis on the unions An example of the company’s UK work is the
becoming key stakeholders in company CSR community initiative ScottishPower Learning, set
policies. “I would like to see us have more say up in 1996. The scheme encourages employees
about what happens, rather than just being given to volunteer and has helped train over 12,000
information about the company’s activities. I unemployed young people.
believe Prospect can play a key role in monitoring
what companies are doing and highlighting Anne Douglas, Prospect national secretary for
examples of best practice. Scotland, welcomes the level of engagement
with stakeholders, including the unions.
“From the point of view of trade unions, CSR Discussion and consultation with Prospect and
is about capturing our members’ hearts and ScottishPower’s other unions takes a variety of
minds so that we can give a voice to the forms, including:
millions of voiceless people who depend on ●● twice-yearly meetings with the chief
the actions that we take to ensure their just executive and his board
future, encompassing their society’s health and ●● quarterly updates and discussions at the
environmental needs for future generations.” company council
●● joint health and safety committees
●● green the workplace courses and awareness-
ScottishPower raising sessions on sustainable development
●● collaboration on volunteering programmes
ScottishPower, part of the Spanish-owned within local communities
Iberdrola Group since April 2007, has had a ●● a union official as a member of the
corporate social responsibility policy for more ScottishPower Learning advisory board.
than a decade.
Douglas says: “ScottishPower engages with
In 2005 it identified 12 UK social and Prospect over its CSR activities as well as inviting
environmental impact areas that it would report Prospect and the other unions more generally to
on annually. Since 2007 the company has also input into its strategy. My only criticism is that
reported globally to the wider Iberdrola Group. few employees are aware of the full depth and
breadth of its CSR activities. The company would
say that because CSR is an integral part of
ScottishPower CSR impact areas what it does, it does not need to boast about it.
provision of energy; health and safety; Perhaps that attitude proves ScottishPower really
customer experience; climate change and recognises CSR as a benefit and not a burden.”
emissions to air; waste and resource use;
biodiversity; sites, siting and infrastructure;
employment experience; customers
with special circumstances; community;
procurement; economic.
■■ www.tuac.org/en/public/e- ■■ www.unglobalcompact.org
docs/00/00/00/67/document_doc.phtml
World Business Council for Sustainable
OECD Risk Awareness Tool for Multinational Development: A global association of some 200
Enterprises in Weak Governance Zones: Aims companies dealing exclusively with business and
to help companies that invest in countries where sustainable development.
governments are unwilling or unable to assume ■■ www.wbcsd.org
their responsibilities. It addresses risks and
ethical dilemmas that companies are likely to Trade union groups
face in such weak governance zones, including
obeying the law and observing international Global Union Federations: International bodies
instruments; heightened care in managing to which national unions are affiliated according
investments; knowing business partners and to industry or sector.
clients; dealing with public sector officials; and ■■ www.global-unions.org
speaking out about wrongdoing.
■■ www.oecd.org/dataoecd/26/21/36885821. A number of GUFs have reached Global
pdf Framework Agreements (or International
Framework Agreements), with multinationals,
OECD Convention on Combating Bribery
covering conditions worldwide in their industries.
of Foreign Public Officials in International
■■ www.imfmetal.org/main/index.
Business Transactions
cfm?n=47&l=2&c=10266
■■ www.oecd.org/document/21/0,3343,en_2
649_34859_2017813_1_1_1_1,00.html International Trade Union Confederation: Its
Transparency International: A global civil primary mission is the promotion and defence
society organisation to combat corruption. of workers’ rights and interests, through
international cooperation between trade unions,
■■ www.transparency.org
global campaigning and advocacy within the
UN Convention against Corruption 2003: major global institutions. Its main areas of
Came into force 2005, and has 106 parties. The activity include:
purposes of the Convention as set out in Article ●● trade union and human rights, economy,
1 are: society and the workplace
●● to promote and strengthen measures ●● equality and non-discrimination
to prevent and combat corruption more ●● international solidarity.
efficiently and effectively ■■ www.ituc-csi.org
●● to promote, facilitate and support
international cooperation and technical Irish Congress of Trade Unions: ICTU has
assistance in the prevention of and fight 56 affiliated unions, both north and south of
against corruption, including in asset the border. It has published Corporate Social
recovery Responsibility – a guide for trade unionists.
●● to promote integrity, accountability and ■■ www.ictu.ie
proper management of public affairs and
public property. Download ICTU’s CSR guide from:
■■ www.unodc.org/unodc/en/treaties/CAC/ ■■ www.ictuglobalsolidarity.org/uploads/
index.html CSR%20REPORT.pdf
Trade Union Advisory Committee to Trades Union Congress: The TUC develops
the OECD: TUAC is an international union common policies for British trade unions and
organisation with consultative status with the negotiates with the UK government and in
OECD and its various committees. the EU on employment and social legislation
■■ www.tuac.org and policies. It has a web area devoted to
international issues.
See two useful TUAC discussion papers at the ■■ www.tuc.org.uk/international
following links:
UNICORN: A global trade union anti-corruption
Workers’ Voice in Corporate Governance: a initiative, jointly run by TUAC, PSI and ITUC.
discussion paper on corporate governance that ■■ www.againstcorruption.org
3.1 A safe and hygienic working environment 5.1 Wages and benefits paid for a standard
shall be provided, bearing in mind the working week meet, at a minimum,
6.1 Working hours comply with national 9.1 Physical abuse or discipline, the threat of
laws and benchmark industry standards, physical abuse, sexual or other harassment
whichever affords greater protection. and verbal abuse or other forms of
6.2 In any event, workers shall not on a regular intimidation shall be prohibited.
basis be required to work in excess of The provisions of this code constitute minimum
48 hours per week and shall be provided and not maximum standards, and this code
with at least one day off for every seven- should not be used to prevent companies
day period on average. Overtime shall be from exceeding these standards. Companies
voluntary, shall not exceed 12 hours per applying this code are expected to comply with
week, shall not be demanded on a regular national and other applicable law and, where
basis and shall always be compensated at a the provisions of law and this Base Code address
premium rate. the same subject, to apply that provision which
No discrimination is practised affords the greater protection.
www.prospect.org.uk
Copies of this guide are available in large-print
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