Chapter 2: Corporate Social Responsibility: A literature review
2.6. CSR Theories
2.6.4. Ethical theories
2.6.4.2. Universal rights approach
The universal rights approach is built upon the principle of human rights as addressed in documents such as the Universal Declaration of Human Rights, United Nations (UN) Global Compact and the Global Sullivan Principles (Cassel, 2001:261; Garriga & Mele, 2004:83; Welford, 2002:4). These documents and many others like them, discuss the fact that although organisations generally contribute towards development through the creation of employment, paying taxes and the transfer of technology and skills, they may also instigate structural violence, poor labour conditions and destruction of the environment and, in so doing, effectively become barriers to sustainable development (Lozano & Prandi, 2005:184).
The Universal Declaration of Human Rights were adopted by the United Nations in 1948 to recognise individuals “rights to an adequate standard of living, social security, the rights to work and just and favourable conditions of work, and the rights to education, equality and non-discrimination in addition to traditional civil and political rights” (Welford, 2002:4). These principles are considered to be very important by countries and organisations and have been used as appropriate motivation for social and economic development.
The UN Global Compact was initiated by the United Nations Secretary General Kofi Annan in 2000.
The ten principles of the UN Global Compact seek to give guidelines upon which organisations may conduct their business. The UN Global Compact has since become the largest voluntary corporate responsibility initiative. The principles (see Figure 2.8 below) streamline the broader UN ideals towards a CSR focus and advocate that organisations commit themselves to ensuring that their operations and strategies assist in the development and advancement of human rights, good labour practices and environmental protection.
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Figure 2.8. The 10 principles of the UN Global Compact Source: (unglobalcompact.org)
There are more than 16 000 signatories and participants to the Global Compact, with notable inclusions such as Bayer AG, Atlas Corporation, World Vision, Anheuser-Busch InBev, Starbucks and many other organisations including municipalities, public sector organisations and universities.
These organisations commit to ensuring that their operations are guided by universally acceptable principles.
Organisations are seen as conduits of globalisation and, as such, have the responsibility to ensure that their actions benefit economies and societies everywhere. Common aims such as market development, anti-corruption initiatives, environmental protection, and tackling inequality have resulted in unprecedented open collaborations between industry, governments, civil society, labour, and the United Nations (Ismail, 2009:206).
The Global Sullivan Principles, which were presented in 1999, are another example of universal guidelines adopted by the corporate world. Under the Global Sullivan Principles (1999: par. 1), endorsing organisations pledge to “support economic, social and political justice by companies where they do business, to support human rights and to encourage equal opportunity at all levels of employment, including racial and gender diversity on decision making committees and boards; to train and advance disadvantaged workers for technical, supervisory and management opportunities, and to assist with greater tolerance and understanding among people thereby helping to improve
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the quality of life for communities, workers and children with dignity and equality”. These principles were introduced as an expansion of the original Sullivan principles that were signed in 1977 and are intended to be a catalyst and compass for CSR and human rights. Signatories to the Global Sullivan Principles (1999: par. 4) consented to implementing the below actions:
“Express our support for universal human rights and, particularly, those of our employees, the communities within which we operate, and parties with whom we do business.
Promote equal opportunity for our employees at all levels of the company with respect to issues such as colour, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse.
Respect our employees' voluntary freedom of association.
Compensate our employees to enable them to meet at least their basic needs and provide the opportunity to improve their skill and capability in order to raise their social and economic opportunities.
Provide a safe and healthy workplace; protect human health and the environment; and promote sustainable development.
Promote fair competition including respect for intellectual and other property rights, and not offer, pay or accept bribes.
Work with government and communities in which we do business to improve the quality of life in those communities - their educational, cultural, economic and social well-being - and seek to provide training and opportunities for workers from disadvantaged backgrounds.
Promote the application of these principles by those with whom we do business”.
These principles may be described as a global code of conduct whose application is intended to
“facilitate greater tolerance and better understanding among those who apply them and to advance a culture of peace” (Global Sullivan Principles, 1999: par. 2). It is also worthwhile to note that following the relative success of the 1977 Principles, the Global Sullivan principles have contributed significantly towards the CSR construct.
Other instruments that are noteworthy within this approach include the Caux Principles for Business (1994), the Global Reporting Initiative (1997), the 1999 Principles for Global Corporate Responsibility: benchmarks, social accountability 8000 (SA8000). These human-rights-based approaches for corporate responsibility help ensure uniformity in the way organisations operate across the globe, especially with regards to human rights, labour and the environment.
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The universal rights approach highlights the need for organisations to respect the global economic, social and environmental standards and expectations. This approach illustrates organisations’
impact on society and confirms the ethical expectations placed on them by different custodians of human rights. Although governments bear the primary role of enforcing global human rights, there is an increasing expectation and recognition that organisations ought to play a role as well.