Reaction from the Clean Clothes Campaign to the European Commission
Green Paper "Promoting a European framework for Corporate Social
Responsibility"
Amsterdam, 21-12-2001
The European Clean Clothes Campaign represents
over 200 NGOs and trade unions in 11 European countries and has
close links with labour related organisations in many regions
of the world. The Clean Clothes Campaign aims to improve working
conditions in the global garment and sportswear industries. To
achieve this, the campaign supports worker organisations and mobilises
consumers, calls upon companies to respect internationally recognised
labour standards and accept independent verification and calls
upon authorities to encourage corporate social responsibility
and consider ethical concerns when purchasing goods or services.
The CCC perceive the higher profile of the EU Commission
in the international debate on Corporate Social Responsibility (The
CSR) as a change for the better. The issue of CSR/Codes of Conduct
has intensified since the beginning of the nineties and has led,
amongst other things, to the adoption of the EP Parliament Result
in No. A4-0508/98 of January the 13th, 1999 (the so-called Howitt
resolution).
It is appreciated that the Green Paper has taken into consideration
established principles of the international debate on CSR/Codes
of Conduct, such as:
- The complementary relationship between legislation and "soft
law" measures like codes of conduct,
- The necessity of taking the whole chain of production into
consideration,
- Systems of verification, transparency and reporting,
- The inclusion of new stakeholders into verification systems.
However, the CCC feels that a number of important issues are missing
in the paper and have not been fully addressed:
1. Changes due to globalisation need to be considered
In the Green Paper, the overall context of worldwide deterioration
of workers rights is barely covered and seems almost incidental.
However this is where the implementation of CSR might offer solutions.
The Green Paper does not mention the restructuring of global production
as one reason for the increased violations of workers rights. In
labour intensive industries such as the garment and sportswear industry,
the system of global sourcing has led to an informalisation of labour,
an increase in unpaid work and a deterioration of labour conditions
for the majority of workers. The Green Paper presumes the global
existence of governmental labour and social regulation, but is virtually
silent about how such regulation is being undermined worldwide due
to deregulation policies. The logical conclusion should therefore
be to re-establish government influence in the domain of labour
conditions and social policy.
2. The Commission and the European Parliament need to assume
a more active role.
The CCC finds it useful that the European Commission is generating
debate on CSR, however, the EC should not limit itself to facilitating
the CSR-process in relation to companies, which seems to be the
major impetus of the green paper.
The commission should take an active lead in promoting CSR and develop
appropriate policies, using both voluntary and legal instruments,
to ensure that codes of conduct can be used to their full potential
and that written agreements are translated into reality. The Commission
can take a first step regarding this by increasing collaboration
with the European Parliament. The Commission should implement the
above-mentioned Howitt resolution, which calls for establishing
EU standards for all European Enterprises operating in developing
countries.
Our view, which corresponds with that outlined in the Howitt resolution
(and therefore with the view of the European parliament), is that
an international legal framework needs to be established to make
sure that companies respect labour standards throughout their supply
chain. These standards should include the ILO core conventions as
well as the right to a healthy and safe working environment, a regular
working week, security of employment and a living wage).
Codes of conduct are a useful first step if they include all these
standards and are monitored and verified; processes that should
include the direct involvement of trade unions, labour NGOs and,
eventually, the workers themselves.
To move beyond this first stage, however, we need much more than
an increase in the number of codes and frameworks for dialogue as
outlined in the green paper and which appears to be the main focus
of the commission.
3. Too much focus on voluntary initiatives
The Green Paper focuses primarily on voluntary implementation of
recommended actions. However, these are insufficient and can't ensure
that international labour and human rights are being respected.
For example, many garment companies which produce goods outside
the European Union have voluntarily adopted codes of conduct. Though
we appreciate their good intentions and are glad that companies
now accept responsibility for the working conditions in their global
supply chains, unfortunately we have to say that this has not actually
led to improved labour conditions at factory-level. Almost daily
we receive reports about violations of labour rights from workers'
organisations in producing countries, many of whom are working for
companies which already have codes of conduct. Last year, for example,
84 workers died in Bangladesh whilst working in garment factories
producing for companies which include European buyers.
This is not due to the relatively recent appearance of voluntary
codes of conduct. The way the clothing industry is structured makes
it almost impossible for voluntary codes of conduct by themselves
to generate the structural improvements they promise. For example,
most supplier factories work for several international clients.
This means they are now confronted with several codes of conduct,
demanding different labour standards and increasingly varied monitoring
requirements. From the point of the view of the worker nothing changes;
from the point of the view of the supplier this has become an impossible
situation.
Already, 'code-fatigue' is emerging, and it is clear that there
are no mechanisms currently available to overcome the so-called
'free-rider' problem.
The CCC has become involved in 5 multistakeholder initiatives and
believes they have the potential to improve the implementation,
monitoring and verification of codes. However we also clearly recognise
the limitations of these initiatives. Trade unions and NGO's need
to have capacities that are not currently available in the South
or the North and will probably remain limited to improving the practices
of a relatively small number of companies in a few sectors of industry
unless public authorities take the necessary steps to ensure that
valuable lessons and established best practice are taken up industry
wide.
4. Use of clear definitions
It's important to define Corporate Social Responsibility very clearly
and provide a set of criteria and indicators to assist implementation.
This should be a both top-down and bottom-up approach, with the
participation of all relevant stakeholders. The EU interpretation
of CSR relating to social as well as environmental factors, is a
good standard for discussion about corporate social responsibility
at the national level. However in further implementing EU policy,
either at the European, national or corporate level, it is important
to differentiate between social and environmental/ecological matters.
Of course, an integrated approach is both necessary and welcome.
5. The Environment: identifiying the problem
In paragraph 39 there should be more extensive and specific identification
of problems and measures regarding environmental protection. The
identification of environmental problems associated with garment
production should relate to the whole production chain from the
production of raw material to the end product, as well as the disposal
of used clothing. Current eco-efficiency measures within the garment
sector are mostly related to production processes at the end of
the production chain (dyeing, bleaching etc.). Irresponsible behaviour
is widespread regarding the polluting effects of the intensive use
of pesticides and fertilizers in cotton production, the most important
raw material for garment production.
There should be a clear description of who is responsible for such
activity, but the description in paragraph 50 regarding this issue
is vague. Buyers, (European manufacturers and retailers) play an
important role in the transition from unsustainable use of raw materials
towards more sustainable uses. They should recognise their responsibilities
and create partnerships with the producers of raw materials (farmers).
The Role of the EU:
In addition to the steps outlined in the Howitt resolution we
urge the commission to take the following measures as soon as possible:
The right to obtain information: mandatory reporting
Transparency is mentioned by all as a key element of CSR. Voluntary
initiatives for reporting have been established and may provide
a useful starting point, but transparency, by its very nature, is
not best served by producing an increasing number of guidelines,
frameworks and mechanisms.
The demand for mandatory reporting is getting stronger. CCC welcomes
this, and suggests that the Commission uses the ICFTU/CCC model
code in referring to labour standards. The European Commission should
also take into account the guidelines of the UN, which are still
being developed. Sanctions should be imposed on companies who don't
meet the objectives to report regularly.
Protection of consumers: no false information
There should be a mechanism to hold companies accountable for the
information they give to consumers about working conditions in the
factories they are subcontracting their production to. Companies
who are giving false information should be penalised. This needs
to be investigated further.
Extra-territorial application of international labour standards.
In order for companies to respect labour, human and environmental
rights, a legal framework should be developed to ensure that companies
which operate abroad are obliged to respect these rights. In order
to do this, it is necessary to establish extra-territorial application
of ILO conventions for both governments and individual companies.
The EU Commission, in it's capacity as a body that produces new
legislation as well as working to improve existing laws, should
set in motion a process in which the EU member states adapt their
national laws so that national courts are able to apply norms of
international law in transnational litigation. This is to increase
the possibilities for the application of norms and diminish the
problems for national courts, to ensure jurisdiction over transnational
corporations, and give opportunities for national courts in the
EU member states to implement international law where the local
or national law is either incompatible with international law or
offers less protection than the rules of international law.
Public Procurement
The Commission acts as both a legal innovator and a consumer.
The Commission should therefore behave as an ethical consumer and
develop a policy to ensure implementation of this both internally
and in dealings with external organisations.
The Commission should also establish policy for procurement that
allows authorities to set explicit demands for social and environmental
criteria.
Standardization of codes of conduct (labour practices):
The commission should set the standard for codes of labour
practice to include the core ILO conventions and the following:
the right to a healthy and safe working environment, a regular 48
working week with no forced overtime, security of employment and
a living wage. As mentioned several times in the Green Paper, these
standards should apply throughout the supply chain. Written codes
should include provision for their implementation, monitoring and
verification. These provisions should also meet certain standards
(currently under debate in several multistakeholder initiatives).
There is an urgent need for standardization in monitoring and verification
practices. Social auditing has become a business in itself, with
highly variably quality levels.
Central to this process is the involvement of all stakeholders,
South and North, the need for transparency and the recognition of
the ILO as the appropriate body to do this. In the Green Paper the
commission seems to be equally supportive of the OECD, the ILO and
the Global Compact. In our opinion, the differences between these
bodies and their roles should be more clearly identified.
Eco and social labels
The current eco-label for textiles and garments is too limited (it
only refers to bedlinen and shirts) and is more a label to protect
the health of consumers than the worker's or farmer's health or
identify the environmental impact of production. The current procedures
(to be awarded an eco-label) on the EU-ecolabelling initiative are
not challenging enough from a CSR point of view. This is important,
for example, in relation to organic farming which at present isn't
covered within the EU-ecolabel.
The EC can refer to and make a lists of environmental best practice
initiatives company wise, but also in relation to governments. In
the Netherlands, for example, the Ministry of Housing, Spatial Planning
and the Environment has taken the initiative in identifying five
areas for sustainable consumption policy, and one of these specifically
includes the purchase of garments. Within the production-chain industry,
various associations and NGO's have joined together to devise a
policy agenda for the coming six years, covering the whole production
chain from field to shop.
There is a lot of confusion relating to the concept of a 'social
label'. For the CCC, a label is a tool which provides information
to the consumer about a company or a product. The information can
refer to the conditions under which a specific product was made
(in case of a product label) or the conditions under which a company
has all of its products manufactured. Given the current structure
of the garment industry it seems much more logical to work with
a company label than with a product label.
In any case, labelling is the final stage of a process that starts
with accepting a code and implementing it, and this is followed
by implementation, monitoring and verification. Only when all these
processes can be carried out in a credible, transparent and accountable
manner will it be possible to move onto certification and finally
to reliable and trustworthy labeling.
Promotion of structured dialogue:
CCC is willing to engage in dialogue with companies and stakeholders.
The criteria for involvement in such discussions should insist upon
a clear agenda which specifies the aims of the dialogue, who is
participating, what are the expectations of all stakeholders involved
and what the time frame might be. We feel the commission should
limit its support to those initiatives and discussions which are
genuinely multi-stakeholder and have the proven commitment of companies,
trade unions and NGOs. Southern and Eastern-European participation
needs to be increased. In order for CSR to be effective it needs
to be transparent, so everyone can see what is being done by whom
and when. Mechanisms should be developed to measure the CSR initiatives
in an accountable way (for example via multi-stakeholderism) so
that it is clear to consumers that these initiatives can be taken
seriously. There should be a bottom-up approach in which it is possible
for all stakeholders to give feedback on the activities of the CSR.
Actions to support CSR:
The European Commission should create possibilities within
existing European structural funding to support NGOs and trade unions
both in the North, as in the South and the East, who work on environmental
and labour issues. Existing multi-stakeholder initiatives should
be promoted and supported, and what is being learnt should be shared
with a broad audience both inside and outside of the EU.
On behalf of the European Clean Clothes Campaign,
Anne van Schaik
Ineke Zeldenrust
CCC International Secretariat
PO Box 11584
1001 GN Amsterdam
tel: +31-20-4122785
fax: +31-20-4122786
info@cleanclothes.org
http://www.cleanclothes.org
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