Deborah Leipziger has picked her top ten codes and standards. In the second of a two-part report, here she analyses another five

In the first part of my report, I analysed the following international codes of conduct and standards.

• The UN Global Compact
• Global Reporting Initiative
• AA1000 Series
• OECD Guidelines for Multinational Enterprises
• Social Accountability 8000

Here, I will examine the other five that make up my top ten:

• Universal Declaration of Human Rights
• ILO Tripartite Declaration
• OECD Convention for Combating Bribery
• The Ethical Trading Initiative Base Code
• Ceres Principles

Universal Declaration of Human Rights 

Description: The Universal Declaration of Human Rights is one of the most significant documents ever drafted. It enshrines the concept of human rights broadly, to include not only political rights but also social and economic rights. Universally accepted, the UDHR has formed the basis of many constitutions around the world. Moreover, the UDHR is cited in many corporate responsibility codes and principles.

Adopted by the UN General Assembly in 1948, the UDHR was unanimously adopted by the then 48 member states of the United Nations. In 1993, 171 governments adopted the Vienna Declaration which affirms support for the UDHR. The declaration is not legally binding but is accepted as customary law. The UDHR is elaborated on in two UN international covenants – one on civil and political rights and one on social, economic and cultural rights. These two covenants are binding for states that decide to become a party to these treaties.

Unique selling point: One of the greatest strengths of the UDHR is its acceptance around the world as a cornerstone of human rights. The clarity of its composition is also a great strength.

Strengths and weaknesses: Despite the fact that it is already over a half century old, the UDHR remains as relevant in 2010 as it was in 1948. However, it is important to remember that the drafters of the UDHR were predominantly of western background, leading some critics to argue that the concept of human rights is a “western” notion. To refute this argument, it is worth noting that very few governments have filed significant reservations on any human right treaties (which are based on the UDHR) they have ratified. The UDHR has also been criticised for its lack of focus on minorities and indigenous peoples. However subsequent UN documents have compensated for this oversight. The declaration is not easily translatable into corporate action but is a starting point for companies seeking to commit to human rights principles.

Progress to date: One of the challenges in the human rights field is to translate the UDHR into business principles. Social and economic rights are being translated into business codes but civil and political rights are rarely included in business principles. The Danish Centre on Human Rights has made significant progress in translating the articles of the UDHR into business principles with the support of companies and stakeholders.

ILO Tripartite Declaration

Description: Launched in 1977, the International Labour Organisation’s Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy is directed towards companies, governments, trade unions and employer organisations. The declaration refers to 28 ILO conventions, and as many recommendations, that were negotiated within a multilateral framework.

Unique selling point: The Tripartite Declaration provides a very useful reference for governments as well as companies on their role in promoting corporate responsibility as well as social and economic development.

Strengths and weaknesses: The declaration includes procedures for examining disputes that arise in its implementation. A government or trade union can seek to establish whether or not the behaviour of a company is in accordance with the declaration. As for the OECD Guidelines for Multinational Enterprises, companies are encouraged to observe standards comparable to the host country in which they operate. For many parts of the developing world, the observance of local norms could still involve poor working conditions.

Progress to date: The declaration has had a significant impact on corporate responsibility codes and standards, many of which draw on ILO conventions.

OECD Convention for Combating Bribery

Description: Launched in 1999, the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions is a landmark agreement, defining key terms and developing a legal framework for addressing bribery. The convention applies to bribery of foreign officials anywhere, regardless of where the incident takes place.

The convention criminalises offering and/or paying bribes, but not soliciting and/or accepting bribes. It covers only the bribery of foreign officials and not private-to-private corruption. The convention allows “small facilitation payments” to low-ranking officials.

Unique selling point: The OECD works with a wide range of regional programmes to combat bribery.

Strengths and weaknesses: Despite the OECD’s wide-spread co-operation with regional programmes, the corruption of public officials continues. According to Transparency International’s Bribe Payers Index, local firms are more likely to bribe government officials than multinational companies are. The convention does not address bribery of officials by local business and it has been criticised for failing to capture the full extent of bribery. For example, it does not cover bribery of private-sector employees. Moreover, it fails to address the bribery of political parties and political candidates. The convention provides no protection for whistle-blowers who uncover corruption, which can lead to reluctance to disclose incidents of bribery.

Progress to date: The convention has been ratified by all 33 members of the OECD and by a growing number of non-members as well.

AA1000 Series

Description: Launched in 1999, the AA1000 Series is designed to assist companies, stakeholders, auditors, consultants and standard-setting bodies. AA1000 can be used in two ways: on its own or in conjunction with other corporate responsibility standards. It provides a road map for companies on key CR issues, explaining points of divergence and convergence with other major standards.

The AA1000 Series has been developed and established by AccountAbility, and has as its premise three principles: inclusivity, materiality and responsiveness.

The AA1000 Series includes three standards:

AA1000APS Accountability Principles

AA1000AS Assurance Standard

AA1000SES Stakeholder Engagement Standard

Unique selling point: The AA1000 Principles are compatible with the UN Global Compact, the GRI and ISO 26000. The AA1000 Assurance Standard can be used with audits of factory compliance with labour standards and carbon emissions.

Strengths and weaknesses: The AA1000 Series provides an overarching framework for corporate responsibility. The AA1000 Assurance Standard (a part of the series) is designed to cover assurance processes across the spectrum of sustainability issues. It is accessible online at no cost. The accessibility of the standard is important, as it facilitates consultation with stakeholders. The consultation process for the AA1000 Assurance Standard has been thorough, benefiting from input into a wide range of organisations. A major challenge facing the field of assurance will be to build capacity among assurance providers.

Progress to date: The AA1000 series is used by a wide range of organisations, including multinational companies, small and medium sized enterprises, governments and civil society.

The Ethical Trading Initiative

Description: The Ethical Trading Initiative seeks to improve the lives of workers in global supply chains by creating a forum to identify and promote good practice in the implementation of codes of conduct. The ETI is tripartite, consisting of membership groups from three sectors: companies, NGOs and trade unions. It is funded by the UK government’s Department for International Development and from membership fees.

Unique selling points: The ETI is interested in sharing the lessons learned from various different approaches to monitoring, verification and other aspects of code implementation. In pursuit of its aims, ETI conducts experimental projects into aspects of code implementation, hosts seminars, events and conferences and has a research and publications programme.

Strengths and weaknesses: Company members report that the ETI provides a valuable forum in which to engage trade unions and NGOs. In addition, the ETI catalyses learning by sharing good practice and networking while providing a peer review of corporate progress and co-operation rather than competition.

The forging of new partnerships is also an important priority for the ETI and it works in partnership with industry stakeholders in all its experimental work. For example, in the South African province of Western Cape, the ETI has helped to establish the Ethical Trading Forum, which brings together producers, trade unions, NGOs and government to promote better working conditions within the field of agriculture.

One of the major lessons learned through ETI consultations is the degree of complexity and ambiguity within the field. As the pilot studies replicate the ETI tripartite model they are forging important alliances. However, working within the tripartite structure can be time-consuming and expensive.

Progress to date: The ETI’s members include companies with a combined turnover of over £107bn, from a wide range of sectors, including supermarkets, fashion retailers, department stores and stone sourcing companies, as well as major suppliers to retailers of food and drink, flowers, clothing, shoes, home, promotional and other products. 

Ceres Principles

Description: The ten Ceres Principles cover the major environmental concerns facing companies, including energy conservation, reduction and disposal of waste, and risk reduction. Originally known as the Valdez Principles, they were launched in 1989 as a response to the environmental disaster of the Exxon Valdez oil tanker.

Endorsing companies must commit publicly to the principles, address issues raised by the Ceres network and other stakeholders and report annually on their progress in meeting the Ceres Principles. Ceres is a coalition of more than 80 companies, with Sunoco being the first Fortune 500 signatory, joining in 1993. Coca-Cola, the Ford Motor Company, General Motors and Polaroid are among some of the most well-known companies that have endorsed the principles.

Unique selling point: One of the greatest strengths of the Ceres Principles is the degree to which Ceres engages with companies in on-going dialogue. Unlike the majority of the other principles and standards featured here, a company cannot unilaterally decide to adopt the Ceres Principles. Endorsing the principles is a two-way process which includes both the commitment of the company and the acceptance of the board of directors of Ceres.

Strengths and weaknesses: The Ceres Principles are among the few initiatives profiled in this report that include a clause to protect whistle-blowers. This is very important to safeguard those employees who disclose damaging information from suffering retaliation for going public.

Ceres is a US-based organisation addressing global issues. It would be a challenge for an organisation such as Ceres to expand globally and still maintain its cohesive network and sense of trust. Ceres maintains its US roots and identity, but with a global reporting mechanism.

Progress to date: There are nearly 100 Ceres companies, including Bank of America, Gap, Nike and Timberland. Ceres also works with investors worldwide.