Central America Domestic Advisory Group - Corporate social ...



Corporate social responsibility676910010081260EN00ENWe understand corporate social responsibility to be "an organisation's responsibility for the impacts of its decisions and activities on society and the environment, through ethical and transparent behaviour that contributes to sustainable development".In recent years, a number of documents published and endorsed by international bodies address corporate social responsibility (CSR), including:the Guiding Principles on Business and Human Rights (UNGPs), endorsed in 2011 by the UN Human Rights Council;the OECD Guidelines for Multinational Enterprises, which underline that many multinational companies have shown that adopting sustainability and CSR measures can increase growth and competitiveness and boost respect for human rights;the report presented by the Economic Commission for Latin America and the Caribbean (ECLAC) at the 2015 EU-CELAC Summit;the initial draft of a “legally binding instrument to regulate, in international human rights law, the activities of transnational corporations and other business enterprises”, which has been discussed at the UN since July 2018;the resolution adopted by the European Parliament in October 2018 on the EU’s input to a UN Binding Instrument on transnational corporations [...] with respect to human rights.These documents, among many others, set out a framework for action that should feed into decisions of the Board on Trade and Sustainable Development aimed at:boosting mechanisms and awareness-raising activities, with the aim of increasing socio-economic players' ability to apply the UN Guiding Principles on Business and Human Rights;promoting capacity-building and legislative work supporting implementation of the UN Guiding Principles on Business and Human Rights. This should encourage the development of National Action Plans, tailored to each national context, and the implementation of public policies that put these plans into practice, as part of a public-private dialogue involving the various stakeholders (governments, business, workers, NGOs and communities) in the field of human, labour and environmental rights;developing communication and transparency measures to promote knowledge of CSR among the general public. Consequently, developing instruments that enable businesses to report on sustainability;encouraging stakeholders, including the EU and its Central American counterparts, to inform and engage in dialogue with the relevant advisory groups about the development of the negotiations taking place under the auspices of the United Nations, with regard to the possible adoption of a binding treaty on multinational companies and human rights;ensuring, by all appropriate means, that anyone whose human rights are breached or whose environment suffers as a result of the activities of a business have access to effective remedies;promoting a regular - and not only an ex-post - impact assessment of the EU-Central America Agreement on trade and sustainable development, including social and environmental rights, specifically taking into account the impact, results and the role played by businesses supported by the agreement;incentivising the construction of a platform for exchanging best practices in the field of social responsibility/sustainability/responsible business conduct between the Central American and European business sectors, covering businesses of any size. Against this backdrop, prioritising support (such as knowledge-sharing, capacity-building and technological aid) for small and medium-sized enterprises in the agricultural sector to encourage the healthy use of plant protection products;boosting international cooperation programmes to support the efforts of companies that develop innovation to build an economy that respects the environment and promotes equitable access to basic services in the fields of drinking water, food, health services and energy;taking into account the structure and institutional set-up of each country, in order to work together to achieve this.AMENDMENT 1 by BE+ESFChange bullet point 2 for: "the OECD Guidelines for Multinational Enterprises, which underline that many multinational companies have shown that taking action on sustainability and CSR can enhance growth and their competitiveness";Justification: We do not agree with the second part of this section. Since the OECD Guidelines are a voluntary framework for companies, it is above and beyond what they have to comply with in terms of legislation, and it actually helps companies to act in a more socially responsible and sustainable way.AMENDMENT 2 by BE + ESFDelete bullet point number 4: encouraging stakeholders, including the EU and its Member States and the countries of Central America, to engage constructively in the negotiations taking place under the auspices of the United Nations, with a view to securing a binding treaty on business and human rights. This treaty would, among other things, help prevent unfair competition between companies that decide to comply with international rules and promote corporate social responsibility; Justification: We cannot support this section. As expressed in our position from October 2018 – adopted jointly with the International Employers Association, the International Chamber of Commerce and Business at OECD – the Zero Draft Treaty or the Draft Optional Protocol would take the business and human rights agenda backwards by undermining the UNGPs and exacerbating the failure of States to meet their existing obligations. They create a risk that companies may choose to "cut and run" from high-risk countries, not enter other high-risk markets and postpone investments in vital projects to achieve development and the SDGs. Companies would also need to adopt stricter policeman-like policies in their cross-border supply chains that would exceed their current abilities and powers in order to ensure their business partners act responsibly. Worryingly, this approach would further undermine the role of the State, given that some of its traditional functions and powers - such as carrying out inspections and awarding penalties of business partners - would need to be transferred to global business. All these unwanted outcomes would hugely undermine the development and partnership model espoused under the SDGs.AMENDMENT 3 by BE + ESFChange point number 6 as follows: "promoting a regular - and not only an ex-post - impact assessment of the EU-Central America Agreement on trade and sustainable development, including social and environmental rights, specifically taking into account the positive or negative role played by businesses supported by the agreement"_____________ ................
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