RICHARD HOWITT MEP
Labour's Member of the European Parliament
News Release for Immediate Use 31 May 2002
European parliament votes to regulate multinational companies
The European Parliament in Brussels has yesterday (Thursday)
voted for new legislation to require companies to publicly report
annually on their social and environmental performance, to make
Board members personally responsible for these practices, and
to establish legal jurisdiction against European companies'
abuses in developing countries.
The package is part of a new European Union "Framework
for Corporate Social Responsibility", and represents a
major step towards establishing international regulation for
multinational companies.
Proposed by British Labour Euro MP Richard Howitt, who is European
Parliament Rapporteur (Spokesperson) on Corporate Social Responsibility,
the Parliament also voted to: -
-
Set up a European CSR Forum to give rights
to stakeholders such as consumer and activist groups to oversee
policies alongside business and trade unions
-
To set up a European Social Label to endorse
products where there is respect for human and trade union
rights
-
To introduce the wider social and environmental
impact of companies' performance in to European negotiations
between employers and trade unions
-
To make all EU financial assistance to business
subject to compliance with basic standards, including setting
up a blacklist against companies guilty of corruption
-
To mobilise the EU's trade and development
programmes to tackle abuses by companies in developing countries
Richard Howitt MEP said: -
"Although we want to encourage good practice by the best
companies, of 2,500 voluntary codes of conduct promoted by business,
two-thirds ignore internationally recognised standards, avoid
independent verification or disown responsibility down their
supply chain.
"If we want to end notorious abuses by multinational companies
from the clothing sweatshops of South-East Asia to the chocolate
slave labour in West Africa, now is the time for regulation
to complement business initiatives.
"The massive vote in favour supported by all the major
political parties in the European Parliament represents very
significant political support"
The European Commission is due to publish its response to the
Parliament's vote in July, with the revision of the Fourth Company
Law Directive where mandatory social and environmental reporting
is due to be considered during the second half of the year.
ENDS
EDITOR'S NOTE:
For more details, please contact Richard Howitt MEP's Brussels
office on +32 2 284 5477.
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