Unit 4: International CSR framework
Business Ethics and Corporate Social Responsibility notes · PTU syllabus (BBASEC 401-18)
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Unit summary
CSR also has a global framework set by the United Nations and other bodies. This unit covers the Millennium Development Goals and Sustainable Development Goals, their link with CSR, the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD policy tool and the ILO tripartite declaration.
After this unit you can
- Distinguish the MDGs from the SDGs and relate them to CSR
- Explain the ten principles of the UN Global Compact
- Explain the UN Guiding Principles on Business and Human Rights
- Describe the OECD and ILO frameworks for responsible business
PTU syllabus topics
- Millennium Development Goals and Sustainable Development Goals
- relationship between CSR and the MDGs
- UN Global Compact 2011
- UN Guiding Principles on Business and Human Rights
- OECD CSR policy tool
- ILO tripartite declaration
UN SDGs
17 goals for 2030
UN Global Compact
10 principles: rights, labour, environment, anti-corruption
UN Guiding Principles
Protect, respect, remedy human rights
OECD Guidelines
Responsible conduct for multinationals
ILO Tripartite Declaration
Labour standards for MNEs
Topic 1
MDGs and SDGs
Period
2000–2015
2015–2030
Number
8 goals
17 goals, 169 targets
Focus
Mainly developing countries
All countries
Role of business
Limited
Business is a key partner
The SDGs include no poverty, zero hunger, good health, quality education, gender equality, clean water, affordable clean energy, decent work, industry and innovation, reduced inequalities, sustainable cities, responsible consumption, climate action, life below water, life on land, peace and justice, and partnerships. CSR and the goals: companies align CSR projects with specific goals (education → SDG 4; clean energy → SDG 7), making their contribution measurable.
Topic 2
UN Global Compact
The UN Global Compact (launched 2000) is a voluntary initiative asking companies to adopt ten principles in four areas:
Human rights (1–2)
Support human rights; avoid complicity in abuses
Labour (3–6)
Freedom of association, no forced labour, no child labour, no discrimination
Environment (7–9)
Precaution, environmental responsibility, clean technology
Anti-corruption (10)
Work against corruption, extortion and bribery
Topic 3
UN Guiding Principles on Business and Human Rights
Endorsed in 2011 (the "Ruggie framework"), they rest on three pillars:
- Protect: the state's duty to protect against human rights abuses by businesses.
- Respect: the corporate responsibility to respect human rights (due diligence).
- Remedy: access to effective remedy for victims.
Topic 4
OECD and ILO frameworks
- OECD Guidelines for Multinational Enterprises: recommendations on responsible business conduct — disclosure, human rights, employment, environment, anti-bribery, consumer interests, science, competition and taxation. The OECD also provides policy tools to help governments promote responsible business.
- ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy: guidance for governments, employers and workers on employment, training, conditions of work and industrial relations.
Key terms
- SDGs
- 17 UN goals for sustainable development by 2030
- UN Global Compact
- Voluntary initiative with ten principles for business
- Guiding Principles
- The protect, respect, remedy framework for human rights
- Due diligence
- A process to identify and prevent human rights harms
- ILO Tripartite Declaration
- Labour guidance for MNEs, governments and workers
Quick revision
- MDGs: 8 goals (2000–15); SDGs: 17 goals (2015–30).
- Global Compact: human rights, labour, environment, anti-corruption (10 principles).
- UNGPs (2011): protect, respect, remedy.
- OECD Guidelines and ILO Declaration guide MNE conduct.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Differentiate between MDGs and SDGs.
- Q2.What is the UN Global Compact?
- Q3.State the three pillars of the UN Guiding Principles.
- Q4.What are the OECD Guidelines for MNEs?
- Q5.What is the ILO Tripartite Declaration?
Long-answer questions
- Q1.Explain the SDGs and their relationship with CSR.
- Q2.Explain the ten principles of the UN Global Compact.
- Q3.Discuss the international frameworks for CSR: UNGPs, OECD Guidelines and the ILO Declaration.
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