Documentos de Académico
Documentos de Profesional
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Published by:
Norwegian Ministry of Foreign Affairs
Corporate social responsibility
Internet address:
www.government.no in a global economy
Cover illustration: Torbjørn Vagstein
Cover illustration quote: Former UN Secretary-General
Kofi Annan, “The Business Contribution to the Millennium
Development Goals,” 14 June 2005
Printed by:
07 Gruppen AS – 06/2009 – Impression 2000
Ø M E R KE
ILJ T
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Trykksak 3
Report No. 10 (2008–2009) to the Storting
in a global economy
1 Introduction
Figure 1.1
1.1 Why do we need a white paper on extent than previously, Norwegian companies are
corporate social responsibility? engaged in countries with poor human rights
records or where human rights are challenged,
Profitable companies make important contribu where working conditions are unacceptable, or
tions to society. They create jobs and help finance where child labour is used. They also operate in
the general welfare of the population. The main areas where there is little concern for the environ
task of companies is to create value and generate mental impact of production processes. Legislation
financial results within the legislative framework of and its enforcement vary from country to country.
the society in which they operate. But companies The scale of corruption also varies. To an increas
are not just operating in a market. They are also ing extent, companies are being questioned about
operating within a culture, a local community and a what acceptable business practice is and whether
political system. The debate surrounding corporate or not the company’s responsibility extends bey
social responsibility (CSR) is concerned with the ond simply complying with the law in the country
role companies play in this broader social context. in which they are operating.
Companies have an impact on social develop The ethical basis for CSR derives from the invi
ment where they operate. They therefore have a olability of human dignity. Just as politics is not an
responsibility that extends beyond value creation. end in itself, but a means of promoting social
CSR is a matter of clarifying exactly what this change for the benefit of the people and the envi
responsibility entails and how it can best be fulfil ronment, a company’s profits or activities are not
led. There are examples of companies that are pro goals that can be viewed in isolation from other con
fitable in financial terms, but whose activities may siderations. Economic activities also require an
be harmful to both employees and the local com ethical foundation that puts people, the environ
munity. The task of politics is to change situations ment and broader social considerations centre
of this kind, in close dialogue with business actors stage. In recent years, there have been a number of
and the social partners. In a globalised world, cases that have shown the importance of CSR, as
many challenges can only be met through active well as the negative consequences for individuals,
cooperation with leading economic actors. An society and the environment when companies do
important aim of politics is to take advantage of not conduct their operations in a responsible man
these opportunities for cooperation. ner.
The ethical aspects of CSR have become more For a number of years, leading Norwegian
apparent as a result of globalisation. To a greater companies and the social partners have given high
2008– 2009 Report No. 10 to the Storting 7
Corporate social responsibility in a global economy
priority to CSR efforts. The social partners have regardless of the economic situation. Further
played an active role in promoting decent working more, companies can strengthen their long-term
conditions and the right to organise, also in develo competitiveness and position by having a responsi
ping countries, and NGOs have played a leading ble relationship to employees, consumers, owners
role in mobilising companies to prioritise social and other interested parties. In this way, CSR does
responsibility. Many companies have integrated not involve a conflict of interests, but is a commu
CSR into their operations and their decision- nity of interest that brings together companies, the
making processes. This is very positive. Those authorities and other actors.
who have been actively involved in the debate, and
in developing rules and norms relating to CSR,
should be commended for their efforts. But alt 1.2 What is corporate social
hough a number of companies and organisations responsibility?
have made considerable progress in integrating
social responsibility into their business practice, Over the years there have been different views of
there is still a need for increased awareness, grea the role and responsibilities of business in society.
ter knowledge and broader involvement. Some have argued that «the business of business is
These issues form the backdrop for the Govern business», and that the private sector benefits soci
ment’s decision to submit a report to the Storting ety best by concentrating on increasing its profita
on corporate social responsibility, the first of its bility within a clear legal framework. The rationale
kind. The purpose of this white paper is to raise here is that companies operating in a well-functio
awareness about social responsibility in both the ning market contribute to achieving broader social
private and the public sectors. The Government has goals such as employment, general development
a positive impression of Norwegian companies’ abi and welfare, thereby making their contribution to
lity and willingness to contribute in this area, and society.
the white paper is intended to strengthen this com In recent years, CSR has come to encompass
mitment. The Government’s aim is to clarify the more. This relates to the increasing influence of
authorities’ expectations of the private sector, and the private sector as a result of globalisation, and
to discuss the respective roles and responsibilities the opportunities and challenges associated with
of the authorities, the private sector and other this. Corporate social responsibility, with its atten
actors. It is also designed to boost Norwegian com dant norms and standards, is evolving constantly
panies’ motivation and ability to exercise social as new knowledge is acquired.
responsibility, by strengthening guidance and advi At the core of the concept lies the responsibility
sory measures, and increasing openness, dialogue of companies towards people, society and the envi
and exchange of experience between the authori ronment that are affected by their activities.
ties and the private sector. The Government will Companies that deal with their social responsi
play an active role in international processes aimed bility in a forward-looking manner ensure that
at further developing the CSR framework. becomes an integral aspect of their corporate
This white paper stresses the importance of governance. CSR must be clearly established as a
companies’ conduct abroad. To an increasing line management responsibility, and followed up
extent, Norwegian companies are engaging in on an ongoing basis by the company’s senior mana
commercial activities in, and trade with, countries gement and board.
that are affected by political instability, widespread There are various strategic approaches to CSR.
poverty or corruption. It is particularly with regard Some emphasise risk management, for instance
to involvement in these markets that companies through reputation management. Others advocate
may need greater awareness and expertise. a more proactive approach to CSR, where finding
However, social responsibility is relevant irrespec solutions to social problems becomes part of the
tive of the market the company is operating in, and company’s business strategy, thereby providing
also applies to activities in Norway. access to important markets. Quite apart from the
Many Norwegian companies and branches are company’s contribution to society through job
experiencing the effects of the global financial cri creation, taxation and generating economic
sis. An active policy is needed to reverse the econ spillover effects, the company can develop pro
omic downturn. Unstable times give rise to ques ducts, services, production methods and business
tions as to whether companies have the time and practices that promote development. Examples of
resources to exercise social responsibility. In the this include microcredit, mobile telecommunica
Government’s view, CSR efforts are important tions, solar power and water supply.
8 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
The substance and understanding of the con of international law, or to violations of other inter
cept of CSR are dynamic. The focal issues vary national standards on which there is general agre
according to the area of activity in question, and ement. If a company breaches environmental stan
change over time. Philanthropy, or donating to dards, for instance, it may risk negative sanctions.
good causes, has traditionally been perceived as an For example, a decision may be made to exclude a
expression of a company’s commitment to corpo company from the investment universe or to dis
rate social responsibility. Many companies conti continue project funding. «Responsibility» may
nue to view CSR in terms of charity and support to also be used in the sense of «legal liability», for
the local community. However, there is a growing example criminal responsibility or liability for
tendency to see the core area for practising social damages under local legislation, Norwegian law or
responsibility as the company’s own operations the legislation of a third country where legal pro
and supply chain. ceedings could be initiated against the company.
The Government’s position is that CSR involves
companies integrating social and environmental
1.3 The concept of CSR as used in this concerns into their day-to-day operations, as well as
white paper in their dealings with stakeholders. CSR means what
companies do on a voluntary basis beyond complying
The Government views the following areas as cen with existing legislation and rules in the country in
tral when it comes to corporate social responsibi which they are operating. Companies should pro
lity in international operations: respecting human mote positive social development through value
rights; upholding core labour standards and ensur creation and responsible business conduct, and by
ing decent working conditions; taking environmen taking the local community and other stakeholders
tal concerns into account; combating corruption; into consideration.
and maximising transparency.
All companies operating abroad are expected to
comply with the host country’s laws and regula 1.4 Corporate attitudes and practices
tions, as well as with Norwegian legislation insofar
as it applies to activities or operations carried out Norwegian companies that invest or operate
abroad. CSR extends beyond a company’s statu abroad have varying degrees of knowledge and
tory obligation to comply with national legislation. practices with regard to CSR. A survey that was
It may also be a matter of complying with legisla carried out for the Ministry of Foreign Affairs in
tion that is not properly enforced by the local aut 2008 measured the attitudes and practices of inter
horities. nationally oriented Norwegian companies in rela
Many developing countries have inadequate tion to CSR.1 Interviews were conducted with the
legislation, weak governance, widespread poverty general manager or staff member in charge of ope
and corruption. In countries such as these, the way rations abroad in 300 companies with more than 50
companies do business and demonstrate responsi employees.
bility is of particular importance. This does not The results of the survey give the impression
mean that companies should automatically assume that a number of company representatives have a
responsibility for matters that are the province of somewhat vague understanding of CSR. Many
the authorities in the countries concerned. It associate the concept first and foremost with how a
would be unreasonable to expect this of compa company treats its own employees in Norway and
nies, and it would not necessarily promote long- the extent to which it supports projects in the local
term development. community or contributes funds to organisations
The concept of responsibility used in this white that are engaged in relief work or environmental
paper is linked to companies’ ethical standards, protection. Large companies have greater aware
and is used in the sense of «moral responsibility» ness of CSR issues than small companies.
unless otherwise indicated. When a company fails However, hardly any differences in attitude seem
to comply with these standards, the result may be to be attributable to which branch companies are
that it is seen as failing to meet its own business operating in, or to whether or not they operate in
objectives, or not living up to the expectations of developing countries.
consumers, investors or the local community. The
concept of responsibility can also be invoked if 1
Conducted by Synovate Norge in January 2008. The ques
companies, through their business conduct, contri tions posed in the survey and the results have been publis
bute to human rights violations or other breaches hed on the Ministry of Foreign Affairs’ website.
2008– 2009 Report No. 10 to the Storting 9
Corporate social responsibility in a global economy
Figure 1.2 Examples of companies’ relationship to and areas of interaction with various stakeholders.
The survey also reveals the following: From the survey results, it appears that it is less
– 54 % of companies state that they have written common to check suppliers’ and subcontractors’
guidelines for how CSR should be practised CSR performance, but many of those interviewed
– Responsibility for CSR lies either with the say that they avoid doing business with companies
senior manager or with no one person in parti that do not have their own ethical guidelines. Com
cular panies believe they encounter the greatest challen
– 44 % report on CSR, the majority in their ges in their international operations in relation to
annual reports or in a special report environmental considerations. A minority of the
– Issues relating to CSR are discussed frequ respondents believe that Norwegian companies
ently in 28 % of executive management teams abroad demonstrate greater social responsibility
and in 20 % of company boards than foreign companies do.
According to the survey, there is little know
The survey also shows that attitudes to CSR are ledge of international guidelines and frameworks
positive. Many see it as giving the company in concerning how companies should practise CSR.
question a competitive edge, and use it in their There are widely divergent views regarding
marketing efforts. A large proportion of those whether binding national guidelines on CSR should
interviewed believe that the company’s owners and be drawn up for Norwegian companies when opera
financial contacts attach importance to CSR. Many ting abroad. Few believe that the Norwegian autho
of those interviewed agree that CSR is important in rities are playing a particularly active role in advi
recruiting competent personnel, and the majority sing Norwegian companies on CSR issues.
agree that it will become increasingly important for However, there is only moderate interest in recei
the company in the future. ving information of this kind from the authorities.
10 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
The survey shows that there is only moderate larly challenging in conflict-affected countries, or
knowledge of established international CSR guide in countries with widespread corruption or vulne
lines, and indicates that there is a clear need for rai rable natural environments. This raises questions
sing awareness and increasing knowledge with about what role companies should play in relation
regard to social responsibility. to the authorities, and whether companies should
operate in such countries at all. These issues are
discussed in Chapter 4. Partnerships between vari
1.5 Key issues in this white paper ous actors are important in meeting challenges of
this nature.
The Government has defined three key areas for According to the Government, economic enga
action with regard to CSR. The first is exercising gement in developing countries is positive,
social responsibility in the Government’s own acti because it contributes to value creation and can
vities. The second is conveying society’s expecta promote social and political development. This is
tions to Norwegian companies. The third is develo the subject of Chapter 5, which discusses various
ping and influencing the framework for CSR, both ways in which companies can promote develop
nationally and internationally. ment. The private sector can also contribute to
The public administration and the Norwegian strengthening the status of universal values and
authorities have an independent responsibility for norms, as set out in UN and OECD principles,
taking into account ethical considerations and declarations and guidelines.
behaving in a socially responsible manner. The The Government sees the need for internatio
Government’s aim is for the public sector to be at nally recognised CSR guidelines that give guid
the forefront in this area, both in terms of its con ance to Norwegian companies, provide opportuni
duct as owner and investor, and through the procu ties for companies’ stakeholders to appeal against
rement of goods and services. The authorities’ violations of their rights, and create equal condi
responsibilities in relation to these activities are tions of competition across national borders.
discussed in Chapter 2. The OECD Guidelines for Multinational Enter-
This white paper is based on the premise that prises cover the key areas for responsible business
Norwegian companies should be among the best conduct. A substantial part of the discussion in
at practising CSR, thereby helping to strengthen Chapter 6 concerns these Guidelines. The OECD
the status of human rights, create decent working Guidelines deal with respecting fundamental
conditions, protect the environment and combat human rights and combating child labour, forced
corruption. In the Government’s view, active cor labour and discrimination. They include employ
porate involvement in these areas will positively ees’ right to be represented by trade unions and to
impact both the companies and society at large. engage in constructive negotiations. Protection of
The authorities’ expectations of companies are exa the environment features prominently in the Guid
mined in Chapter 3, including the scope of compa elines, which also discuss combating bribery. The
nies’ responsibility, for instance in relation to the Guidelines draw attention to consumer interests
supply chain. and the responsibility to contribute to public finan
Companies have a clear self-interest in con ces through taxation. They are also relevant for
ducting business in a socially responsible manner. small businesses and suppliers.
To an increasing extent, clients and consumers are The OECD Guidelines address the fundamental
demanding responsible production of goods and social considerations that all Norwegian companies
services. Investors emphasise the maintenance of should, in the Government’s view, take into account
high standards in companies. The media shines a in their international operations. The Government
critical spotlight on how companies follow up their considers the Guidelines to be important, and urges
suppliers and foreign subsidiaries. Employees and Norwegian companies to actively comply with them
job-seekers are attaching increasing importance to in their international activities. The Government
companies’ attitudes to CSR. Many companies have also intends to enhance the effectiveness of the Nati
thus come to regard socially responsible conduct as onal Contact Point that informs the parties concer
important for ensuring long-term competitiveness, ned about the Guidelines, and deals with complaints
business opportunities and reputational benefits. concerning breaches of them.
Nevertheless, companies will encounter chal The Government’s aim is that Norway should
lenges and dilemmas in countries where there is play a proactive role globally in order to strengthen
inadequate legislation, or a lack of enforcement the status of human rights, create decent working
and sanctions. Business activities can be particu conditions and protect the environment. This enga
2008– 2009 Report No. 10 to the Storting 11
Corporate social responsibility in a global economy
gement will help to reinforce the existing CSR atives in international forums and organisations.
framework. The Norwegian authorities’ efforts in The Government places particular emphasis on
the various international processes are described international efforts to develop effective mecha
in greater detail in Chapter 7. nisms for enforcing and complying with frameworks
In debates on CSR, the question of the balance of this kind. Norway’s anti-corruption legislation is
between voluntary action and sanctions is often rai an example of the implementation and enforcement
sed. It is argued that national ethical guidelines of of international conventions nationally.
a binding nature could ensure that Norwegian The Norwegian tradition of close contact and
companies fulfil their social responsibility to a gre cooperation between the authorities, the private
ater extent. In connection with a recommendation sector and employees has played a positive role in
by the Standing Committee on Justice regarding the development of our society. This model is an
the Act amending the Company Act and other mat important resource that should be safeguarded
ters (Recommendation No. 12 (2006 – 2007) to the and developed further. NGOs play a proactive role
Odelsting), a majority of the Committee requested in national and international forums. This provides
that the Government consider the question of nati a good basis for further developing a shared and
onal guidelines for CSR in Norwegian companies’ strengthened commitment to CSR, as discussed in
operations abroad, and report back to the Storting Chapter 9.
in an appropriate manner. This is discussed in gre This white paper deals primarily with compa
ater detail in Chapter 8. nies’ international operations. Companies also
There are clear limitations on the extent to exercise social responsibility in the Norwegian
which ethical values and conditions outside Nor context. Examples of this include initiatives to
way’s borders can be regulated by the Norwegian create a more inclusive working life, environmen
authorities. The Government will seek actively to tal projects, and efforts to promote gender equality
strengthen and promote CSR frameworks and initi- and competence building through cooperation bet
ween companies and educational institutions, for
instance in the form of trainee and apprentice sche
Box 1.1 Other relevant documents mes. However, these aspects fall outside the scope
of this white paper.
This white paper must be seen in the context
of other white papers and action plans that
have been presented, in particular the follo
wing: 1.6 Aims, ambitions and expectations
– Report No. 13 (2006–2007) to the Storting:
The Government has high aims and ambitions for
An Active and Long-Term State Ownership
social responsibility efforts in the public sector,
– Report No. 26 (2006–2007) to the Stor
and equally clear expectations of the private sector.
ting: The Government’s Environmental
The Government emphasises the significance of
Policy and the State of the Environment in
CSR for value creation and for bringing about chan
Norway
ges that benefit people, the environment and soci
– Report No. 34 (2006–2007) to the Stor
ety at large.
ting: Norwegian Climate Policy
– The Norwegian Action Plan 2007–2010:
Environmental and Social Responsibility 1.6.1 State activities
in Public Procurement (2007)
– Aid for Trade – Norway’s Action Plan
Ownership, investment, procurement and
(2007)
administration
– Report No. 7 (2008–2009) to the Storting: • State-owned enterprises must lead the way in
An Innovative and Sustainable Norway exercising social responsibility. The Govern
ment will seek to promote this by actively exer
It must also be seen in the context of white cising ownership rights.
papers that are due to be submitted to the • The Ethical Guidelines for the Norwegian
Storting in the course of the 2009 spring ses Government Pension Fund – Global are cur
sion, on the Government Pension Fund, on rently being revised. The results of this pro
development policy and on the main features cess will be presented in the annual Report to
of foreign policy, respectively. the Storting on the Management of the
Government Pension Fund in spring 2009.
12 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
• The Government will devise requirements for from external sources and developing clear and
its own suppliers. The Norwegian Action Plan transparent procedures for specific instances.
for Environmental and Social Responsibility in • The Government will continue to consider
Public Procurement will be followed up, with measures designed to prevent Norwegian nati
particular emphasis on guidance, capacity- onals and companies committing serious envi
building and practical advice. ronmental crime outside Norway’s borders.
• CSR will be integrated as a cross-cutting theme • The Government emphasises transparency
in the administration of all Norwegian develop and disclosure, and will suggest that the
ment assistance funds. scope of the Accounting Act should be exten
ded to include information on ethical guideli
nes and social responsibility for the largest
International frameworks and processes companies that have an accounting obliga
• Norway will play a proactive role in strength tion.
ening international CSR guidelines, with a view • The Government will consider various models
to establishing more binding frameworks and for gaining a better overview of how the pri
mechanisms. vate sector follows up its social responsibility,
• Norway will advocate the revision of the different ways of organising advisory services
OECD Guidelines for Multinational Enterprises and appropriate ways of organising the Natio
in the areas of human rights and climate nal Contact Point for the OECD Guidelines. A
change/environment. proposal will be submitted for consultation by
• The Government will allocate increased the summer of 2009.
resources to initiatives and bodies that pro
mote CSR, including the UN Global Compact,
the Global Reporting Initiative (GRI), the Inter Other measures
national Labour Organisation (ILO), and the The Government will strengthen the CSR advisory
National Contact Point for the OECD Guideli- and guidance services available to Norwegian
nes for Multinational Enterprises. companies by:
• Norway is actively supporting the ongoing • strengthening the services that provide infor
efforts of the UN Special Representative of the mation, guidance and dilemma training;
Secretary-General on human rights and trans • establishing a web-based overview of informa
national corporations and other business tion and expertise regarding CSR;
enterprises. The aim is to develop a frame • setting up a focal point in the Ministry of For
work that sets out minimum requirements for eign Affairs for dealing with companies’ CSR
the corporate responsibility to respect human queries;
rights. • drawing up country profiles tailored to the pri
• The Government is seeking to strengthen and vate sector’s needs in areas relating to CSR
coordinate Norway’s efforts to promote labour that are relevant to the situation in the coun
rights in other countries, in accordance with tries concerned;
the newly-established strategy to strengthen • cooperating with the social partners and civil
workers’ rights globally. society with regard to sharing information and
• The Government will examine the role of experience;
secrecy jurisdictions, or tax havens, in facilita • evaluating companies’ CSR performance in
ting illicit financial flows. connection with advisory services and finan
• Norway will advocate integrating CSR into cial support;
international agreements and dialogues, • initiating efforts to improve social responsibi
where this is appropriate. lity in small and medium-sized enterprises.
The responsibility for this will lie with the
Ministry of Trade and Industry, in consultation
National measures with other relevant actors;
• The Government will strengthen the National • providing arenas for discussing specific pro
Contact Point for the OECD Guidelines by hol blems and challenges that companies
ding consultations with NGOs, seeking advice encounter internationally.
2008– 2009 Report No. 10 to the Storting 13
Corporate social responsibility in a global economy
Figure 2.1
The Norwegian authorities play an important role ning human rights, labour standards, the environ
as owner, investor and procurer. The public admi ment, sustainable resource management, taxation,
nistration and other public authorities have a sub corruption and trade. The Government’s role is
stantial ownership interest in the Norwegian pri primarily to enter into international agreements,
vate sector through publicly-owned companies and incorporate international provisions into Norwe
through ownership interests in listed companies. gian legislation, and to follow up and enforce the
Norwegian companies abroad are often equated requirements. At the same time, however, interna
with Norway, particularly those in which the state tional cooperation at governmental level has insuf
has an ownership interest. These companies must ficient tools at its disposal to ensure that rights
therefore be expected and required to observe par established by law or agreement are respected in
ticularly high standards for social responsibility. all sovereign states at all times. CSR is therefore
Through the Government Pension Fund – Glo both important and necessary.
bal, the Norwegian state manages substantial Through bilateral cooperation, the Norwegian
assets on behalf of present and future generations. authorities seek to promote CSR in partner coun
It is essential that these funds are managed in an tries. The Norwegian authorities can raise matters
ethically responsible manner. with the authorities of other countries at a political
As a purchaser, the Government can influence level and through dialogue and cooperation that it
the private sector by setting requirements for its would not be natural or possible for an individual
suppliers. company to engage in. For example, Norway coo
The authorities stipulate the framework condi perates with countries such as Brazil and China on
tions for companies’ activities by adopting and environmental issues, and it conducts human
implementing national legislation, regulations and rights dialogues with China, Indonesia and Viet
guidelines. Examples of this are regulations and nam. International cooperation and international
requirements relating to the health, safety and initiatives and measures are discussed in more
environment (HSE) field and to the natural envi detail in Chapters 6 and 7.
ronment. The authorities can also use positive The authorities can contribute to information
incentives to stimulate innovation in the private sharing and competence-building in the CSR con
sector and thereby produce new or better solutions text in cooperation with other actors. Public agen
to social challenges. cies and state investment funds must base their
The framework for corporate social responsibi engagement on high environmental and social
lity (CSR) is determined through international coo standards, cf. Chapter 9. This applies, for instance,
peration at governmental level. This applies, for to Innovation Norway, the Norwegian Agency for
example, to agreements and conventions concer Development Cooperation (Norad), the Norwe
2008– 2009 Report No. 10 to the Storting 15
Corporate social responsibility in a global economy
gian Investment Fund for Developing Countries operator Avinor and the Norwegian Broadcasting
(Norfund), the Norwegian Guarantee Institute for Corporation. Others have purely commercial
Export Credits (GIEK), Eksportfinans ASA, the objectives.
Research Council of Norway, the Industrial The state has acquired ownership interests in
Development Corporation of Norway (SIVA) and such companies for a number of different reasons.
Investinor. Some companies are the result of a decision to hive
The public administration is also responsible off state production or service functions into sepa
for maintaining high ethical and environmental rate companies. In certain cases, private parties
standards in its own activities. This is reflected, for have been brought in as co-owners through the
example, in the Platform for Leadership in the Civil sale of shares, the issuing of new shares and/or lis
Service and the ethical guidelines for civil ser ting on the stock exchange. The purpose of trans
vants. forming state enterprises into commercial compa
nies and opening up for private ownership has,
among other things, been to increase efficiency
2.1 The state’s role as owner and acquire capital and expertise. Kongsberg
Gruppen, Telenor, StatoilHydro and Cermaq are
The Norwegian state has a direct ownership inte examples of previously wholly state-owned compa
rest in a large number of Norwegian enterprises. nies that have been partially privatised. In other
The state has a major ownership interest in Nor cases, the state has acquired ownership interests
way’s largest listed companies, in addition to a in companies that were previously privately owned,
number of wholly state-owned companies in Nor for example in connection with a post-war settle
way that have been established for sector-specific ment (Norsk Hydro) or as the result of a crisis
policy purposes, such as Vinmonopolet (the Nor (DnB NOR).
wegian wine and spirits monopoly), the airport
Figure 2.2 Companies broken down by the ministry responsible for their administration
Source: The Government’s Ownership Policy (2008)
16 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
ted ethical guidelines. The companies that have 2.2 The state as an investor and
not done so will be followed up. investment manager
– Most of the large companies in which the state
has an ownership interest have chosen on The Government Pension Fund belongs to the
their own initiative to report in accordance Norwegian people and future generations of Nor
with the Global Reporting Initiative (GRI – cf. wegian citizens. The prosperity enjoyed by the pre
Chapter 6.3). This applies to Statkraft SF, sent population entails obligations. The assets in
KongsbergGruppen, DnB Nor, Telenor, Norsk the Government Pension Fund – Global stem from
Hydro, Yara, SAS and StatoilHydro among oil and gas revenues. The oil and gas reserves will
others. run out. Since these resources are limited, it would
– Several companies are members of the UN not be fair if this wealth were only to benefit the few
Global Compact. generations that happen to be living at this time.
– Many of the companies in which the state has These assets must be safeguarded for posterity.
interests issue separate sustainability reports Ensuring good returns on the fund over time is an
or report specifically on CSR in their annual important way of securing the future of the welfare
reports. state.
As an investor, the state also shares the respon
In its ownership policy document for 2008, the sibility for how the companies in which the fund
Government stated that there should be as much invests conduct themselves, what they produce
transparency as possible with respect to compa and their impact on the local community. The
nies’ ethical guidelines and that it expects these Government places great emphasis on social
guidelines to be published on the companies’ web- responsibility in the management of the Govern
sites. Companies are also expected to provide ment Pension Fund. This is an important criterion
information about financial matters, social respon for the evaluation of the ethical guidelines for the
sibility, environmental issues and the results achie Government Pension Fund – Global that is cur
ved. Large companies with international opera rently being conducted.
tions are urged to consider using the Global Repor The Government Pension Fund – Global had
ting Initiative (GRI) reporting standard. assets of NOK 1 992 billion on 30 June 2008. On the
It may also be expedient for the companies’ same date, the Government Pension Fund – Nor
boards of directors to consider having their way had assets of NOK 113 billion. The Govern
reports quality assured by an independent body, ment Pension Fund thus had combined assets of
for example the company’s auditor. This could also NOK 2 105 billion.
help to make this kind of control more common in Since the fund manages a large proportion of
privately-owned companies. the assets belonging to Norwegian society, it is
both important and necessary that the Norwegian
people have confidence in its management. Trust
The Government and legitimacy are largely built on transparency
• expects companies in which the state has an about investments, results and the fund’s strategy.
ownership interest to play a leading role in
exercising social responsibility;
• will conduct separate meetings on social 2.2.1 The ethical guidelines for the
responsibility once a year with the companies Government Pension Fund
in which the state has an ownership interest; In 2004, the Ministry of Finance issued ethical gui
• will follow up issues of social responsibility at delines for the Government Pension Fund – Glo
the regular meetings held with the companies; bal. In the same year, Folketrygdfondet’s board
• urges companies to make their ethical guideli adopted ethical guidelines for the management of
nes publicly known, for example by publishing the Government Pension Fund – Norway. The gui
them on their websites; delines for the two funds are largely based on a
• urges large companies with international ope common ethical platform. At the same time,
rations to use the Global Reporting Initiative however, the instruments for integrating ethical
reporting standard. considerations differ somewhat because of the dif
ference in the size of the two funds, the differences
in investment strategy and the different invest
ment universes in which they operate.
20 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
draw up guidelines for the management of such to procurement, the public sector can, due to its
funds. The work was coordinated and facilitated by size, significantly influence companies to adopt
the IMF. The objective was to raise awareness ethical and environmentally friendly practices.
about the funds, promote stable financial markets Moreover, companies that are used to meeting
and reduce the pressure for protectionist measu stringent requirements will be better equipped to
res. In October 2008, the working group submitted meet competition from abroad and to offer good
a unanimous proposal for Generally Accepted Prin solutions in international markets.
ciples and Practices (GAPP), also known as the Requirements set by the public sector also give
Santiago Principles – voluntary principles regar a clear signal that the authorities expect the private
ding an institutional framework, fund management sector to take an active approach to this area.
and investment activities. Representatives from the Public sector demand for a more sustainable pro
Ministry of Finance and Norges Bank participated duction of goods will also increase the opportuni
on behalf of Norway. ties for other consumers to choose such products.
In the Government’s view, the GAPP are based Increased emphasis on ethics, the environment
on sensible principles, and give funds a political and life cycle costs can also foster better and more
obligation to ensure transparency in key areas in sustainable public procurement.
order to build trust and meet expectations in On 1 January 2007, the Government introdu
important recipient countries. Norway has there ced new and improved regulations for public pro
fore endorsed the principles. curement. Public procurers are now required to
turn down suppliers who have been convicted of
corruption, organised crime, fraud or money laun
The Government dering, and they are also entitled to turn down sup
• has initiated a review of the ethical guidelines pliers who have been convicted of criminal offen
for the Government Pension Fund – Global, ces involving business malpractice, such as failure
which, together with the fund’s other activities, to comply with environmental legislation and
will be discussed on a broad basis in the annual requirements for the equal treatment of workers.
report to the Storting on the management of Since the new Public Information Act entered
the Government Pension Fund, which will be into force on 1 January 2009, all registers of ten
submitted in spring 2009; ders have been publicly available. Suppliers, the
• takes a positive view of active and open exer
cise of ownership rights in connection with the
activities of the Government Pension Fund in Box 2.3 Environmental requirements to
order to safeguard the fund’s long-term finan suppliers
cial interests;
• takes a positive view of Norges Bank’s empha Bærum municipality has stipulated environ
sis on exercising its ownership rights, and con mental requirements in connection with the
siders children’s rights and protection of the procurement of hotel and conference servi
environment to be fundamental ethical norms ces. The municipality has used the new envi
that should be safeguarded through the exer ronmental criteria for hotels that were drawn
cise of ownership rights. up in response to the Government’s action
plan for environmental and social responsibi
lity in public procurements. It requires suppli
2.3 The public sector as procurer ers to have a system for measuring and
monitoring energy consumption, waste mana
The Government wants the consumption and pro gement, including sorting at source, the use
duction of goods and services to be as sustainable of chemicals and water consumption.
as possible. The public sector must take the lead by Tenderers compete on the criteria relating
purchasing goods that have been manufactured in to energy consumption, waste production,
accordance with the highest ethical and environ chemical consumption, water consumption
mental standards. The public sector must use and the provision of organic food.
resources efficiently and build confidence in its Experience showed that these criteria did
procurement processes. not restrict competition and worked well in
Today, public sector procurement in Norway relation to the market. As a result, one of the
amounts to roughly NOK 250 billion a year. By set hotels involved will now be eco-labelled.
ting demands and taking a constructive approach
2008– 2009 Report No. 10 to the Storting 25
Corporate social responsibility in a global economy
media and the general public thereby have a better contracts. On 1 March 2008, the regulations on pay
opportunity to check that extraneous factors are and working conditions in public contracts entered
not taken into account and that corruption or con into force. The regulations, which incorporate ILO
duct resembling corruption does not occur. Convention No 94 on labour clauses in public con
In June 2007, the Government presented an tracts, is intended to ensure that pay and working
action plan for environmental and social responsi conditions for employees in construction compa
bility in public procurement. In this connection, a nies that carry out work for public clients are not
specific environmental policy was drawn up for poorer than those set out in national collective
public procurement. All government agencies agreements or otherwise normal for the place and
must comply with the specific requirements in the trade in question. The regulations apply to central
action plan. The head of each agency has been government, municipal and county authorities and
made responsible for ensuring environmentally bodies governed by public law, and are applicable
sound procurement, and tools have been made to contracts over a certain threshold value. They
available for training and competence-building in also apply to work performed abroad.
this area. The Government also believes that the public
Environmentally sound public procurement is sector should require suppliers to comply with fun
highly prioritised in the international arena, and damental ethical requirements, for example with
new policies are being developed in a number of regard to the working environment, child labour,
countries. The European Commission has recently forced labour and corruption. Requirements
drawn up an action plan for more sustainable pro should be stipulated and followed up for the whole
duction and consumption, including a proposal for production chain. In accordance with the action
using public procurement actively to achieve envi plan, the Government has established that it is legi
ronmental benefits. The Commission has propo timate to stipulate ethical requirements in connec
sed that 50 % of public procurement should be tion with public procurements. As a next step, it
green by 2010. Initially, this target applies to ten will consider whether to require purchasers in the
product areas for which common environmental government administration to set social and ethical
criteria have been drawn up. A task force has been requirements for their suppliers.
established under the UN Marrakech Process to The Ethical Trading Initiative (see Box 3.11)
develop toolkits to promote sustainable public pro has been commissioned by the Ministry of Chil
curement. dren and Equality to produce a guide for how such
In Norway, Innkjøpspanelet, a national panel on requirements should be formulated and followed
environmentally responsible procurement, has up in practice. This guide was completed in Janu
developed common environmental criteria for a ary 2009. A support and advisory function will be
number of product groups. These are intended for
use by the central and local authorities, but they
could also be used by the private sector in develo Box 2.4 Ethical requirements in
ping greener supply chains. contractual terms and conditions
A centre will be established in every county/
region to provide public agencies with the assis The City of Bergen has included «compliance
tance they need to implement the Government’s with ILO core conventions throughout the
action plan for environmental and social responsi production chain» as a contractual condition
bility. These centres will act as driving forces and in selected tender processes. During the con
centres of expertise for networks of purchasers. tract period, suppliers undertake to carry out
The new Agency for Public Management and e- self-reporting in relation to the eight conven
Government is responsible for the development of tions concerning child labour, forced labour,
tools and competence-building initiatives, and is freedom of association and discrimination. On
thus playing a key role in this work. These efforts entering into an agreement, suppliers must
will be coordinated with equivalent efforts aimed at give an account of their status in relation to
the private sector. each of the conventions, and seek to improve
In its role as client, the public sector has a par steadily in relation to this starting point. The
ticular responsibility for combating social dum goal is to make the production chain more
ping. The action plan for environmental and social transparent – a precondition for ethical procu
responsibility in the public sector emphasises that rement – through openness and dialogue bet
it is important that the public sector stipulates ween client and supplier.
labour and working environment standards in its
26 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
established to help the public sector to utilise these nes. However, progress has not been as significant
tools in connection with public procurements. in other areas. The Government will seek to
The Government has also decided to prepare a develop a comprehensive policy that ensures that
white paper on public procurement, which will social and environmental concerns are taken into
include strategies and measures aimed at impro account in all public sector activities.
ving public procurement practice. Questions have been raised about whether the
ethical guidelines for the Government Pension
Fund should also apply to enterprises in which the
The Government state has ownership interests. It is not, however,
• will provide guidelines, competence-building clear whether it would be right or expedient for the
and practical advice in line with the action plan state to do so.
for environmental and social responsibility in The ethical guidelines for the Government Pen
public procurement; sion Fund – Global are tailored to the fund’s role as
• will require all central government agencies to a financial investor and minority shareholder in
follow up the action plan; thousands of companies worldwide. The state, in
• will establish a support and advisory service its role as a major, strategic owner of a number of
on public procurement; Norwegian companies, faces a different situation.
• will establish an environmental policy for cen The differences in these situations affect both the
tral government procurement, including con way ethical considerations can be taken into acco
crete requirements for central government unt and the instruments available. For example, in
agencies in relation to prioritised product the case of the Government Pension Fund – Glo
groups; bal, it is far easier to sell, or simply not acquire,
• will cooperate closely with the EU and others ownership interests in unsuitable companies than
on ambitious programmes for developing stan is the case in direct, strategic ownership of Norwe
dards and criteria for greener procurement gian companies. Direct state ownership is exerci
and supply chains. sed in accordance with established principles for
corporate governance, cf. the discussion in Chap
ter 2.1.
2.4 A comprehensive policy The public sector and the private sector are
facing many similar challenges regarding social
The authorities’ responsibilities are wide-ranging. responsibility. This calls for consistency between
Norway has achieved international recognition for the conduct of the public sector and the expecta
the Government Pension Fund’s ethical guideli tions that apply to the private sector.
2008– 2009 Report No. 10 to the Storting 27
Corporate social responsibility in a global economy
Figure 3.1
The private sector’s primary aim is value creation. 3.1 Expectations of the private sector
By creating value, it contributes to economic
growth and social development. In a long-term per The Government expects all companies to exercise
spective, it is in the interests of both companies social responsibility, irrespective of whether they
and society to have a private sector that operates are privately or publicly owned. The Government’s
responsibly and develops products and services position is that Norwegian businesses should be at
that help address social and environmental chal the forefront when it comes to practising social
lenges. responsibility based on sound values, awareness
Globalisation, with its attendant advances in and reflection. Norwegian companies should pur
communication technology and increased transpa sue best practices within their field or branch as
rency, has led to greater awareness concerning the their guiding principle and aim when developing
challenges companies face with regard to social their CSR efforts.
development. A growing number of consumers, cli
ents and investors are demanding that products
and services are produced in a manner that is soci 3.1.1 Guidelines for social responsibility
ally and environmentally sound. For companies, it The Government expects all Norwegian compa
is a matter of developing their «social antennae» nies to develop and comply with guidelines for
and having the ability to internalise aspects of social responsibility. Companies’ employees – and,
social development in their own operations. as far as possible, their partners in the supply chain
However, the situations that companies encounter – should be familiar with these guidelines.
internationally not only pose challenges; they also There are a number of international guidelines
present opportunities. Through novel ways of thin for CSR, which are discussed in detail in Chapter 6.
king and innovation, companies can discover new The Government would like to draw particular
market opportunities. attention to the OECD Guidelines for Multinational
Companies that exercise social responsibility Enterprises. These guidelines provide a detailed
can reduce their own risks, which can positively framework of principles and standards for respon
impact their competitiveness and financial develop sible business conduct consistent with applicable
ment. Norwegian companies operating abroad are laws. As an adhering country, Norway is obligated
often equated with the Norwegian state, and their to encourage its private sector to observe the Gui
conduct is therefore also important for Norway’s delines. The Government expects Norwegian com
reputation. panies to acquaint themselves with the Guidelines,
and to follow them in their operations.
28 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
The UN has also developed principles for integral part of companies’ day-to-day corporate
responsible business practices through the Global governance.
Compact initiative. The UN Global Compact seeks The Government considers it important for
to advance 10 principles in the areas of human companies to involve the trade union movement in
rights, labour, environment and anti-corruption. It their CSR efforts. Since employee representation
is based on international conventions and guideli on company boards is generally only found in the
nes. Companies that have joined the Global Com Nordic countries, it is crucial that employee repre
pact are expected to implement the principles in sentatives in other countries are also drawn into
their business operations, share their experience, these efforts. Global framework agreements ente
and report on the progress they have made in red into between Norwegian multinational enter
implementing the 10 principles. In the Govern prises and international labour organisations are a
ment’s view, participation in networks such as the good example of how Norwegian companies can
UN Global Compact can enable companies to work at the corporate level, cf. Box 3.6.
increase their knowledge and enhance their moti At the same time it is important to be aware
vation to exercise social responsibility. that, in many contexts, Norwegian experience and
practices cannot simply be transferred to other
countries uncritically. It is important that Norwe
3.1.2 Good corporate practices gian companies are open to, and respect, cultural
The Government expects Norwegian companies and value differences, and that they seek to find
to promote good corporate practices from Norway ways of adapting elements of Norwegian corporate
in their operations abroad. CSR efforts must be practices to other countries.
integrated into their operations, and followed up on Systematic CSR efforts are a key element of the
an ongoing basis by management. Systematic CSR risk management and business strategies of for
efforts should have the firm backing of company ward-looking companies. In this context, it is also
boards. They should be developed and practised in important to have systems and routines for whistle-
close cooperation with employees and employee blowing or notification of unacceptable conditions.
representatives, and in dialogue with suppliers, cli The Norwegian Working Environment Act has
ents and other stakeholders. They must form an been amended to include new provisions concer
ning employees’ freedom of expression, and came
2008– 2009 Report No. 10 to the Storting 29
Corporate social responsibility in a global economy
into force on 1 January 2007. Employers are to tions with the societies in which companies are
develop routines for notification or whistle-blowing operating. It can be important for stakeholders to
inside the company, or implement measures that know what guidelines the companies use as the
facilitate notification concerning unacceptable cir basis for their activities and how these are followed
cumstances in the company. in practice. This applies to shareholders, authori
Norwegian companies should also establish ties, employees, clients, suppliers, partners and
routines for notification and whistle-blowing for society at large.
their activities abroad so that employees can report As part of their transparency efforts, it is impor
unacceptable circumstances or seek advice and tant that companies report on their social and envi
guidance. This could for example be done by ronmental performance, either in separate reports
appointing an ombudsman within the company, or in their ordinary annual reports. Systematic
using an external arrangement or tasking an exis reporting can be an important tool in developing
ting body to fulfil this function. companies’ CSR practices. It can also help to
improve companies’ risk management capability.
Reporting based on a common standard facilita
3.1.3 Transparency and disclosure tes the comparison of results. The Global Repor
In the Government’s view, it is important that com ting Initiative (GRI) has developed a framework for
panies demonstrate transparency and disclose reporting on economic, environmental and social
information about social and environmental factors performance, which provides an internationally
in connection with their operations, cf. Chapter 8, recognised standard for reporting. The GRI Repor
section 3. This helps to forge trust and good rela ting Framework is particularly suitable for large-
Box 3.1 Main elements of the OECD Guidelines for Multinational Enterprises
1. Concepts and Principles: The Guidelines set 6. Combating Bribery: Enterprises should not,
out voluntary principles and standards of good directly or indirectly, offer, promise, give or
practice for all enterprises, and they have global demand a bribe or other undue advantage to
relevance. obtain or retain business or other improper
2. General Policies: Enterprises should take advantage. They should promote employee awa
fully into account established policies in the reness of company policies against bribery.
countries in which they operate, and they 7. Consumer Interests: Enterprises should act
should respect human rights, promote local in accordance with fair business, marketing and
capacity building and encourage suppliers and advertising practices and should take all reaso
sub-contractors to apply principles of corporate nable steps to ensure the safety and quality of
conduct compatible with the Guidelines. the goods or services they provide. They should
3. Disclosure: The Guidelines recommend provide consumers with product information
regular disclosure of information regarding and establish procedures that contribute to the
enterprises’ activities, structure, financial situa resolution of consumer disputes.
tion and performance. 8. Science and Technology: Enterprises
4. Employment and Industrial Relations: should contribute to the transfer of technology
Enterprises should respect the their employees’ and know-how to host countries and to the
labour rights, engage in constructive negotia development of local and national innovative
tions with employees’ representatives, combat capacity. When appropriate, they should per
discrimination, and contribute to the elimination form science and technology development work
of child labour and forced or compulsory labour. in host countries.
5. Environment: Enterprises should take due 9. Competition: Enterprises should refrain
account of the need to protect the environment from entering into or carrying out anti-competi
and public health and safety. They should estab tive agreements among competitors, and should
lish a system of environmental management, conduct all their activities in a manner consis
and maintain contingency plans for preventing, tent with all applicable competition laws.
mitigating, and controlling serious environmen 10. Taxation: Enterprises should contribute
tal and health damage. to the public finances of host countries by
making timely payment of their tax liabilities.
30 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
competitive advantage that is not based on know the national and international level. Companies’
ledge and innovation. attitudes and conduct are crucial in this context.
Innovation and the ability to adapt are key to Leading companies have gradually gained a grea
tackling social challenges relating to the environ ter awareness of human rights, as well as of the sig
ment, the growing number of people requiring nificance that better observance of these rights in
care, and increased globalisation. The Govern the host country can have for companies and their
ment will therefore seek to facilitate greater inno stakeholders.
vation in both the private and the public sectors. In Human rights constitute a set of obligations
this connection, it submitted a white paper on inn that are not directed towards the private sector.
ovation to the Storting in 2008. The white paper They are formulated as the obligations of a state
sets out the Government’s policy for securing long- towards its citizens, and they must be safeguarded
term and sustainable value creation. by the public authorities. At the same time, it can
be argued that human rights are an expression of
general moral obligations that apply to all mem
The Government expects Norwegian bers of society. This conception is reflected in the
companies to: Universal Declaration of Human Rights adopted by
• integrate a clear awareness of CSR in their the UN in 1948.
boards, management teams and corporate cul The Universal Declaration of Human Rights
ture; covers civil and political rights, as well as econo
• build and further develop the necessary exper mic, social and cultural rights. The different kinds
tise within the company; of rights have been defined more precisely and
• acquaint themselves with the OECD Guideli codified in a number of international human rights
nes for Multinational Enterprises and follow conventions.
them in their operations; According to the Universal Declaration of
• consider joining the UN Global Compact; Human Rights, everyone has an individual respon
• draw up and implement guidelines for social sibility in relation to human rights. Human rights
responsibility; are therefore relevant for companies and business
• follow their own guidelines with regard to the managers too, albeit in a different way than they
supply chain, by setting requirements, having are for states. Companies can fulfil this obligation
control procedures and promoting capacity-
building;
• take good corporate practices with them from
Norway, including models for cooperating with Box 3.3 Key human rights conventions
employees and employee representatives;
• develop their own CSR standards, using best – The International Covenant on Economic,
practice within their field or branch as their Social and Cultural Rights
guiding principle and goal; – The UN Convention Against Torture
• establish mechanisms or schemes for whistle- – The International Convention on the Eli
blowing or notification of unacceptable cir mination of All Forms of Racial Discrimi
cumstances; nation
• show transparency with regard to the econo – The UN Convention on the Elimination of
mic, social and environmental consequences of All Forms of Discrimination against
their operations; Women
• actively seek out information and guidance in – The UN Convention on the Rights of the
connection with international operations, parti Child
cularly in developing countries. – The UN Convention on the Rights of Per
sons with Disabilities
– The European Convention on Human
3.2 The responsibility of business in Rights
key areas – The European Social Charter
– The European Convention for the Preven
3.2.1 Corporate responsibility to respect tion of Torture and Inhuman or Degra
human rights ding Treatment or Punishment
The involvement of various actors is necessary in – The ILO core conventions
order to ensure greater respect for human rights at
32 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
have effective follow-up and control mechanisms lation on an ongoing basis, and thus form part of
that ensure compliance with the guidelines. Many the existing legislation that companies must
companies still need to establish good guidelines comply with in countries that are parties to these
and practices in this area, not least when it comes agreements.
to encouraging their subcontractors to respect In addition to the ongoing development of nati
employees’ rights. This can be achieved by inclu onal and international environmental standards for
ding clauses in their contracts with their subcon the private sector, companies should take a proac
tractors, for instance. tive approach in order to reduce the adverse envi
ronmental impacts of their operations beyond what
is stipulated in such standards. By being at the
3.2.3 Corporate environmental forefront of developments in this area, companies
responsibility can achieve lower costs, an improved strategic
The Government views the participation of the pri starting point for their long-term operations, and
vate sector as crucial in addressing the challenges new market opportunities. The private sector
relating to climate change, the loss of biodiversity, should therefore have considerable self-interest in
and releases of hazardous substances. Companies integrating an environmental perspective more
that manage to stay at the forefront of innovation fully into its activities.
and environmentally sound resource use can gain The private sector can help to mitigate environ
comparative advantages, both in financial terms mental problems by making its own operations
and in relation to markets. The focus of corporate more environmentally friendly and by making effi
environmental responsibility has shifted from avo cient use of resources. Companies can play a part
iding damage to the environment to integrating by developing innovative processes or technology
environmental concerns and resource use into sys designed to minimise the use of scarce resources
tems for managing companies’ products, finances and reduce harmful emissions. Companies can
and reputation. also develop new, greener products and services to
Under international agreements that have been replace existing ones. They can make an important
implemented in national legislation, the private contribution by collaborating with their supply
sector must comply with a number of require chains and requiring their partners to meet high
ments designed to limit the adverse environmental environmental standards. The most advanced com
impacts of its operations. Multilateral environmen panies now carry out life cycle analyses for their
tal agreements are incorporated into national legis- products, and are introducing routines that include
requirements for their subcontractors.
Climate change is creating new challenges, and
national authorities and the private sector have a
Box 3.7 Carbon Disclosure Project
shared responsibility for addressing them. The
The Carbon Disclosure Project (CDP) is an authorities are responsible for establishing a
independent, non-profit organisation that col framework that will promote innovation and cost-
lects and publishes information on corporate effective solutions. The private sector has a role to
greenhouse gas emissions, as well as other play in finding solutions by developing new techno
information on how companies are managing logy and by using the best available techniques. It
and reducing their greenhouse gas emis is important to raise companies’ awareness of their
sions. Altogether, 1 300 of the world’s largest direct and indirect impacts on the climate, and
companies responded to the CDP question what steps they can take to minimise these
naire in 2007. impacts.
The CDP Corporate Supply Chain Pro
gramme was initiated in 2007. The aim of the
programme is to establish a standardised 3.2.4 Corporate responsibility to combat
approach to the reporting of greenhouse gas corruption
emissions resulting from a company’s supply Corruption is a serious obstacle to social and econ
chain emissions. Participating Norwegian omic development in many parts of the world.
enterprises include Aker Yards, DnB Nor, Total international development assistance is insig
Hafslund, Marine Harvest Group, Norsk nificant compared with the sums that disappear
Hydro, Orkla, the REC Group, Schibsted, from poor countries, for example due to corruption
StatoilHydro, Storebrand and Norges Bank. and tax evasion. Public corruption and the unlaw
ful enrichment of decision-makers undermine
2008– 2009 Report No. 10 to the Storting 35
Corporate social responsibility in a global economy
democratic processes and decisions based on the section 276b, on gross corruption; and section
best interests of the community. Valuable resour 276c, on trading in influence (see Box 3.8). Those
ces are lost, and public governance is weakened. convicted of corruption face up to three years’
There are various forms of corruption, ranging imprisonment, while the penalty for gross corrup
from corruption linked to large-scale projects with tion is imprisonment for up to 10 years. Aiding and
substantial flows of capital, to grease or lubrication abetting carries the same penalty.
payments and facilitation payments. There is a According to the amendments of 1 March 2008
close connection between corruption, other forms to the Act relating to compensation, corruption
of international crime, and illicit financial flows. also incurs liability for damages. If an employer is
Like many other countries, Norway is party to to avoid liability for damages caused by an
various international agreements that contain obli employee’s corrupt behaviour, the employer must
gations to combat corruption. These obligations have taken all reasonable precautions in order to
define the conditions for business activity both prevent corruption of this kind from occurring.
within and outside Norway’s borders. A growing number of other countries are tigh
Norwegian legislation relating to corruption tening their legislation on corruption, partly as a
has been made more stringent in recent years. result of the UN Convention against Corruption,
This is particularly evident in the amendments to the Council of Europe Criminal Law Convention on
the Penal Code. All forms of corruption are prohi Corruption, and the OECD Anti-Bribery Conven
bited under Norwegian law. This prohibition also tion. This means that the international community
applies fully to Norwegian nationals and persons is moving towards a global standard. For Norwe
domiciled in Norway who are involved in activities gian companies operating in an international mar
abroad. Facilitation payments, i.e. payments for ket, this means that they will encounter legislation
services to which one is already entitled without that is equivalent to Norwegian legislation in an
paying an extra fee, are also considered to be cor increasing number of other countries. This will
ruption. The key concept in the legislation is that of help to give the private sector more equal condi
«improper advantage». tions of competition.
Norwegian courts base their rulings on Nor However, the Norwegian authorities are aware
wegian law, even when business has been con that not all countries enforce an anti-corruption
ducted abroad. However, the culture and traditions standard that is in line with international conven
of the country in question are taken into account tions, and it may take some time before they do.
when assessing to what extent improper conduct For the foreseeable future, the private sector
has occurred. Companies may incur criminal liabi should therefore be prepared for challenging situ
lity under foreign legislation, as well as under Nor ations in countries where corruption is wide
wegian legislation. Companies therefore have to spread.
observe both local and Norwegian laws. The authorities and the private sector have a
The Penal Code includes three sections that shared responsibility to combat corruption. They
are particularly important in the fight against cor also have a shared responsibility to promote the
ruption. These are: section 276a, on corruption; greatest possible degree of transparency with
regard to capital flows, particularly in connection
with operations in developing countries.
Most major Norwegian companies with opera
tions abroad have developed their own internal gui
delines and routines for combating corruption.
The challenge is to implement and follow up these
guidelines in practice.
The Government
• expects companies to respect fundamental
human rights, including those of children,
women and indigenous peoples, in all their ope
rations, as set out in international conventions;
Figure 3.5 • expects companies to base their operations on
Illustration photo: Jocelyn Carlin/Panos/Felix Features. the ILO core conventions regarding the right
36 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
to organise and the abolition of forced labour, tion schemes, internal guidelines and
child labour and discrimination; information efforts;
• expects companies to maintain HSE standards • expects companies to show the maximum pos
that safeguard employees’ safety and health; sible degree of transparency in connection
• calls on the social partners to actively advocate with financial flows.
global corporate agreements in order to safe
guard employees’ rights;
• expects companies operating in countries 3.3 The scope of corporate
where universal rights such as the right to responsibility
organise and the right to collective bargaining
are not upheld to seek to establish other arran Companies should be aware of issues within their
gements that enable employees’ views to be «sphere of influence» that affect their operations or
heard; are a result of them. In Norway there is a wide
• expects companies to take into account envi spread view that companies have a responsibility
ronmental considerations and promote sustai towards their employees, and that they are part of,
nable development, for instance by developing and have a responsibility towards, the society in
and using environmentally sound technology; which they operate. Companies’ activities have
• expects companies to actively combat corrup financial, environmental and social consequences
tion by means of whistle-blowing or notifica that it is only reasonable that they take responsibi
2008– 2009 Report No. 10 to the Storting 37
Corporate social responsibility in a global economy
lity for. However, the extent of this responsibility is Processes of this kind also have relevance for the
not always clear. other aspects of the CSR concept. Assessments of
According to the UN Secretary-General’s Spe- due diligence can often be linked to the notions
cial Representative on business and human rights, «sphere of influence» and «complicity». It is there-
the starting point for corporate responsibility must fore pertinent to take a closer look at these con-
be to consider whether the company has shown cepts.
«due diligence». There are a number of different
steps a company can take in order to operationalise
the concept of due diligence. The concept can help Companies’ sphere of influence
companies gain an awareness of, prevent and add- As far as the scope of companies’ responsibility is
ress the negative consequences of their opera- concerned, it is natural to start with matters com-
tions. In his April 2008 report, the Special Repre- panies are able to influence. Responsibility can be
sentative states that a human rights due diligence most clearly attributed to companies for matters
process should include four areas: over which they have a decisive influence or con-
– Policies: companies should adopt a human trol. They can also incur responsibility when they
rights policy; outsource functions and assignments to others,
– Impact assessments: companies should carry since this can be viewed as part of the company’s
out impact assessments regarding the implica- own operations.
tions of their activities; Companies are responsible for ensuring that
– Integration: human rights policies should be employees are provided with conditions that are at
integrated throughout a company; least in line with international minimum standards.
– Tracking performance: companies should have Companies are expected to assess the risks rela-
a system for monitoring and auditing in order ting to forced labour, child labour and workplace
to track their human rights performance on an discrimination, and to take the necessary precau-
ongoing basis. tions to minimise such risks. Freedom of associa-
tion, freedom of expression and freedom of reli-
38 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
gion and belief are also rights that companies this is explained in Official Norwegian Report
should respect. NOU 2003:22, Management for the future: Proposed
Companies also have a direct influence over ethical guidelines for the Government Petroleum
their own contractual relations, and over the envi Fund, inter alia drawing on the scope of complicity
ronmental consequences of their activities. Norwe as set out in Norwegian law:
gian companies can contribute to raising standards
«In order for an investor to be complicit in an
by facilitating good corporate culture, by having
action, he/she must be able to foresee it. Some
good routines for health, safety and environment form of systematic or causal relationship must
(HSE), and by transferring knowledge and techno exist between the company’s activities and the
logy to their own operations abroad and to their actions to which the investor does not wish to
subcontractors. contribute. Investment in a company cannot be
Usually a company engaged in international considered to entail complicity in actions that
operations will also have significant influence over were impossible to anticipate or be aware of or
– if not actual control of – matters relating to the circumstances over which the company in ques
company’s surroundings, for instance the local tion could not have any significant degree of con
community and contractual parties. By setting con trol.»
tractual terms and making sure that all the actors There is no clear internationally agreed defini
in the value chain provide decent working condi tion of complicity, but the concept is being empha
tions for their employees and meet key environ sised to an increasing extent by investors and
mental standards, companies take responsibility NGOs. The UN Secretary-General’s Special Repre
for their surroundings. Companies may also have a sentative on business and human rights has exami
responsibility towards other groups. An example of ned the issue of complicity more closely in relation
this is if a company buys security services from to human rights. In his view, the concept refers to
local security forces in its area of operation. «indirect involvement by companies in human
The further removed something is from a com rights abuses – where the actual harm is commit
pany’s core activities, the harder it is to argue that ted by another party, including governments and
the company can exert a decisive influence over it. non-State actors». Moreover, it has both legal and
Companies and their representatives may wish, or non-legal meanings.
consider it in their interests, to take a clear stance The legal meaning of complicity is particularly
against serious human rights abuses. However, relevant in connection with international crimes.
some host countries may react negatively to a com Here, providing encouragement or practical assis
pany getting involved in human rights issues wit tance that has a substantial effect on the commis
hin their jurisdiction, particularly if these issues sion of the crime may constitute complicity. In Sep
are political in nature. In any case, a company tember 2008, the International Commission of
should keep abreast of key developments in the Jurists Expert Legal Panel on Corporate Compli
country in which it is operating, including develop city in International Crimes published an extensive
ments in the human rights situation. report on this topic.
Some companies wish to contribute to humani The above-mentioned Official Norwegian
tarian efforts outside their own sphere of influ Report on proposed ethical guidelines for the
ence. This involvement may be linked to economic, Government Petroleum Fund gives examples of
social and cultural rights, for instance through aid various scenarios relevant to the concept of compli
projects in the areas of health, infrastructure, edu city:
cation or sport. There are also examples of compa
«Particular problems arise in connection with
nies supporting the promotion of civil and political
companies that have activities in states where
rights.
severe human rights violations occur. Such vio
lations can also occur in connection with the
companies’ activities, for example by using secu
Complicity
rity forces that commit abuses to protect the
Companies must make sure that they are not com company’s property and installations, deporta
plicit in unethical practices. The Ethical Guidelines tion of people and environmental degradation to
for the Norwegian Government Pension Fund – facilitate the company’s projects or arrests and
Global also state that the Fund should not make persecution of workers who are seeking to pro
investments which constitute an unacceptable risk mote trade union rights. Complicity on the part
that the Fund may contribute to serious or syste of the company can be invoked only if direct
action is taken to protect the company’s property
matic violations of human rights. What is meant by
2008– 2009 Report No. 10 to the Storting 39
Corporate social responsibility in a global economy
ronment at different stages of production proces organisations are given access to information, so
ses, including the production of factor inputs. that they can adapt their consumption to their per
Thus, the introduction of ethical guidelines in the sonal convictions.
supply chain can be regarded as a risk manage
ment tool.
So far, both practical experience and research 3.4.2 Ethical requirements in the supply
point in the same direction, indicating that introdu chain
cing requirements for social responsibility in the Taking responsibility for the supply chain means
supply chain can create opportunities, both for that companies do not just set requirements for
business development and for improving financial their suppliers, but also work with them to help
performance. Key factors in this context are long- them meet their obligations. This requires con
term systematic improvement and competence- crete, sustained efforts to improve the situation,
building in the supply chain. Companies can gain a and companies must be prepared to follow up their
competitive advantage by adjusting quickly to suppliers over the long term. No company can
forthcoming regulations and long-term market work equally closely with all its suppliers at all
developments, and not least by meeting market times. But everyone can make a start.
expectations. A company can observe and monitor how its
So far, the public debate on supply chains has suppliers comply with their obligations by coopera
focused primarily on the importance of setting ting closely with them, and by visiting their premi
minimum requirements for suppliers. However, ses. This will also increase suppliers’ awareness of
many consumers expect more than this, and consi their obligations and further the transfer of know
der ethical standards to be important when making ledge and experience. Norwegian companies can
purchases. In order for consumers to be able to for example contribute expertise on HSE, environ
make informed choices, it is important to ensure mental management and dialogue between the
the greatest possible degree of transparency with social partners, as well as demonstrating how
regard to production abroad. In the Government’s improved working conditions can enhance pro
view, it is important that consumers and consumer ductivity and quality.
A natural first step is to develop a code of con
duct that as a minimum is in line with international
conventions and standards. There are also sector-
Box 3.10 Cooperation between Stormberg
specific standards that correspond to codes of con
and its suppliers
duct, for the textile industry, for instance. Codes of
Stormberg is a sports and textiles wholesaler. conduct can be used to convey what is expected of
The company is seeking to take workers’ suppliers as regards both ethical and environmen
rights and environmental considerations into tal standards.
account in its operations in Norway and Recent research1 and established good practice
abroad. indicate that if ethical guidelines are to function as
Outdoor clothing is designed and develo intended and meet the expectations of employees
ped in Norway, but manufactured at a number and other stakeholders, the following are impor
of factories in China. According to the com tant elements:
pany’s ethical guidelines, all suppliers must – that codes of conduct are drawn up in line with
provide well-regulated pay and working con international workers’ and human rights and
ditions and respect the right to organise and environmental standards, so that the require
the right to enter into collective bargaining ments suppliers must meet are as standardised
agreements. A Chinese version of the guideli as possible, even when they are made by diffe
nes is displayed in the factories. rent actors;2
Stormberg carries out spot checks of the – that the requirements suppliers must meet are
factories, sometimes unannounced. Storm- primarily in line with applicable national legis
berg has drawn up a profile for each factory as lation, but alternatively in line with internatio
a basis for inspection and control, which iden
tifies factors to which special attention should 1
The ETI code of labour practice: Do workers really benefit?
be paid. In addition, inspectors are provided Institute of Development Studies 2006.
2
with a list of points to check, and also conduct The Universal Declaration of Human Rights, the Convention
on the Rights of the Child, the core ILO conventions and
interviews with workers at the factories. other ILO conventions and documents dealing with matters
such as HSE, working hours and the right to a living wage.
2008– 2009 Report No. 10 to the Storting 41
Corporate social responsibility in a global economy
nally recognised standards if there is no The Ethical Trading Initiative Norway (ETI-Nor
relevant national legislation or it is inadequate; way) is a resource centre that seeks to strengthen
– that requirements and the monitoring of com support for ethical trade practices throughout the
pliance with these are combined with compe supply chain. ETI-Norway provides its public- and
tence-building and exchange of experience; private-sector members with information, methods
– that wherever possible, control, monitoring and tools they can use when setting requirements
and competence-building are carried out by for decent working conditions and the inclusion of
actors with a firm basis in the local community environmental considerations throughout the sup
and good cultural understanding; ply chain.
– that codes of conduct are implemented on the To ensure that suppliers comply with labour
basis of an integrated approach to CSR and standards, companies can encourage them to
with the support of the management and the obtain certification. SA 8000 is the most widely
board. recognised generic certification standard. It is pri
marily intended for producers, and SA 8000 certifi
cation shows that a facility respects workers’
Box 3.11 Ethical Trading Initiative Norway rights. Using recognised standards saves time and
(ETI-Norway) resources, for both customers and producers.
ETI-Norway was founded in 2000 by Norwe There are also environmental management sys
gian Church Aid, the Norwegian Confedera tems that use third-party certification, such as ISO
tion of Trade Unions (LO), the Federation of 14001, the voluntary EU Eco-Management and
Norwegian Commercial and Service Enterpri Audit Scheme (EMAS), and the Norwegian Eco-
ses (HSH) and Coop Norway, to promote ethi Lighthouse Programme, see Chapter 6.4.
cal trade practices in the supply chain. As of Product labelling is another way of showing
November 2008, ETI-Norway had around 95 that products are produced in accordance with
members. It has two main objectives: social or environmental standards. Examples of
1. Strengthening support for ethical trade such labels are the Nordic Swan, the EU Flower,
issues; and the forthcoming EU Organic Logo, the FAIR
2. Supporting members in developing ethical TRADE Mark, environmental declarations (in line
trade practices. with ISO 14025), the Forest Stewardship Council
(FSC) label, and the Marine Stewardship Council
ETI-Norway spreads information on the (MSC) eco-label.
importance of improved labour and environ Product labelling is a tool for consumers to
mental standards globally. It also makes use obtain information about the ethical and environ
of knowledge-sharing and tools to strengthen mental standards of products. Companies can also
its members’ ethical trade practices. choose to provide this information in other ways.
Members commit to working towards Regardless of how the information is provided, it is
improvements in labour and environmental important to ensure that consumers are not misled
standards throughout their supply chains. by incorrect, imprecise or poorly documented
Their performance is measured through claims. In February 2005, the Nordic Consumer
annual reports. Members’ efforts should be Ombudsmen adopted a joint guideline on the use
based on: of ethical and environmental claims in marketing.
– Information concerning labour and envi The Norwegian Consumer Ombudsman adopted
ronmental standards in producer coun guidelines in this area in June 2003. These are
tries; based on the Marketing Act, and they require that
– Specific tools and methods; all advertising must convey a clear and balanced
– Risk assessment and risk management; message, that it must give a correct overall impres
– Training initiatives and guidance; sion, that it must be based on fact, and that it must
– Cooperation between companies, authori be possible to substantiate all claims. It will proba
ties, special interest organisations, trade bly be possible to continue to use these guidelines
unions, research institutions and NGOs, after the new Marketing Act comes into force in
both locally and internationally; and spring 2009.
– Competence-building in international
networks.
42 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
and fund managers, who are giving increasing tors in connection with investments. Three methods
weight to ethical standards in their investment and are widely used, either individually or in combination:
sales decisions. Some banks and insurance compa Negative screening enables financial institutions
nies have also become more concerned with ensur to avoid investing in the worst companies using cri
ing that their loan and insurance customers meet teria that define where they do not wish to invest.
satisfactory social responsibility standards. These criteria are generally connected to what is
produced, for example landmines, cluster muni
tions, nuclear weapons or tobacco. Criteria can also
3.5.1 Socially responsible investment be drawn up for the way companies manage their
One reason why actors in the capital market are operations, for example whether they are responsi
focusing more on CSR is that professional inves ble for serious violations of human rights, or invol
tors have become more aware of the importance of ved in corruption or major environmental damage.
environmental and social factors for the value of This method is often used by funds that set mini
their own investments. In addition, investors are mum ethical standards, such as the Government
also being held accountable for matters other than Pension Fund – Global. Some investment mana
financial returns. Investors are increasingly expec gers publish the names of the companies they pull
ted to include ethical considerations when inves out of, and believe that this increases pressure on
ting, both their own and their customers’ funds. A companies to improve their performance in this
number of Norwegian financial institutions have area.
therefore introduced CSR criteria as a basis for Another approach to socially responsible inves
their investments. tment is positive screening, which entails compa
Investors and fund managers have used the ring companies to identify which are the best.
term socially responsible investment (SRI) to Companies within the same sector are rated accor
describe investments where financial returns are ding to their CSR performance. Factors such as
an important aim, but where ethical and environ environmental management systems, measures to
mental requirements are also taken into account. fight corruption, principles of corporate gover
Responsible investment (RI) is a term that is nance, conditions for the employees, and guideli
increasingly used to describe the inclusion of envi nes to safeguard human and workers’ rights are
ronmental considerations, social conditions and used as criteria. The rating enables an investor to
good corporate governance in fund management.
These are factors that can have a long-term finan
cial effect.
SRI is not new for investors. When the Metho Box 3.12 The UN Principles for
dist Church in the US started investing in the stock Responsible Investment
market in the early 1900s, it avoided shares associ
ated with alcohol or gambling. In Norway, interest – We will incorporate environmental, social
in socially responsible investment arose at the end and corporate governance (ESG) issues
of the 1980s. Gradually, socially responsible inves into investment analysis and decision-
tment developed from a small niche to an area of making processes.
interest to ordinary investors. Other parts of the – We will be active owners and incorporate
financial sector have started taking initiatives to ESG issues into our ownership policies
meet challenges and utilise opportunities relating and practices.
to CSR in connection with their loan and invest – We will seek appropriate disclosure on
ment activities. ESG issues by the entities in which we
Considerable technical expertise has been invest.
built up in this area, and several companies have – We will promote acceptance and imple
developed their own analysis tools. Certain compa mentation of the Principles within the
nies qualify for inclusion on international sustaina investment industry.
bility indexes, such as the Dow Jones Sustainabi – We will work together to enhance our
lity World Index and the FTSE4Good Index. These effectiveness in implementing the Prin
measure the performance of major companies that ciples.
are seeking to meet CSR criteria. – We will each report on our activities and
Financial institutions can take different approac progress towards implementing the Prin
hes when setting requirements for non-financial fac ciples.
44 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
select the best companies in each sector. These their own guidelines for lending and for portfolio
companies qualify for inclusion in «best in class» investments.
funds – funds that set extremely high CSR require The 12 largest institutional investors in Norway
ments for their operations. The same analyses and have launched a collaborative project called Sustai
criteria can also be used to exclude the poorest nable Value Creation (Bærekraftig verdiskaping).
companies in each sector. They have carried out a survey of the companies
The third commonly used method is active listed on the Oslo Børs (Oslo stock exchange) Ben
ownership. Investors can seek to exert a positive chmark Index, the results of which were published
influence on companies that they are critical in December 2008. The aim of this initiative is to
towards by engaging them in dialogue or taking encourage Norwegian listed companies to focus
active part in the company’s general meetings. on sustainable development and long-term value
There are several examples of international pres creation. Altogether, the investors supporting the
sure being used in this way to influence companies project represent assets amounting to NOK 2 700
to make changes to their operations. Some people billion, NOK 1 000 billion of which is invested
maintain that it is more effective to increase invest directly in the Norwegian market.
ments in companies that are seen in a critical light,
in order to exert a positive influence on them
through active ownership. The Government
In addition, a number of investment managers • calls on institutions in the private financial sec
provide specialised funds that focus on particular tor to give more weight to social responsibility
sectors, such as renewable energy and environ as an important element in their overall activi
mental technology. Investing in these funds entails ties;
a higher risk than investing in broad index funds. • will encourage all parts of the financial sector
However, they provide investors who wish to invest to increase transparency with regard to invest
in these sectors an opportunity to spread their ments.
investments in a cost-effective manner.
The extent to which companies and organisa
tions outside the financial sector use CSR as a cri
Box 3.13 Equator Principles
terion for investment management is unclear.
However, it is expected that these actors too will The Equator Principles are a set of voluntary
direct increasing attention to social responsibility. guidelines relating to project financing, which
A number of financial institutions have adopted are largely based on policies and guidelines
the UN Principles for Responsible Investment from the private sector investment arm of the
(UNPRI). Following an initiative by the UN World Bank, the International Finance Corpo
Secretary General, six principles for responsible ration (IFC). Ten leading banks, with Citigroup
investment were drawn up in a process involving at the helm, adopted the Principles in 2003.
representatives of the world’s largest institutional Institutions that use the Equator Prin
investors in cooperation with representatives of the ciples have committed themselves to only
financial sector, the authorities, civil society and financing projects that are to be implemented
research institutions during the period 2005–2006. in a socially and environmentally responsible
The principles reflect the core values of large way. By establishing these principles, the
investors, whose investment horizon is generally banks have agreed not to compete on the
long, and whose portfolios are often highly diversi basis of environmental and social factors.
fied. In Norway, the principles have been adopted Under the principles, the banks have com
by DnB NOR, KLP, Nordea, Norges Bank on mitted themselves to requiring environmental
behalf of the Government Pension Fund – Global, impact assessments, public consultation, and
and Storebrand. general project management that is in accor
CSR is also becoming increasingly important in dance with various minimum standards regar
the banking sector. Several institutions have ding environment, human rights and working
developed their own CSR analysis tools for their conditions. As of December 2008, around 60
lending activities. These are used in connection financial institutions were employing the prin
with risk management. The Equator Principles con ciples in their financing activities. In Norway,
stitute the international standard for responsible the principles have been adopted by DnB Nor
lending, see Box 3.13. Many companies also use and Nordea.
2008– 2009 Report No. 10 to the Storting 45
Corporate social responsibility in a global economy
3.6 Responsibilities and opportunities enterprises. Smaller companies tend not to have
the resources or expertise to work as systemati
There are considerable opportunities for internati cally and thoroughly with CSR as larger compa
onally oriented companies to increase their compe nies. Advisory services targeting smaller compa
titive edge through socially responsible practices. nies are discussed in Chapter 9.
Upholding good values and integrating CSR into The Government believes that all companies
business management enables companies to iden have responsibilities that extend beyond value
tify and utilise new market opportunities. creation in purely economic terms. Through soci
Systematic CSR work has primarily been ally responsible practices, it is possible for all com
undertaken in large companies with extensive panies to promote social and environmental values
international involvement. Most of Norway’s pri while at the same time strengthening their long-
vate sector is made up of small and medium-sized term competitiveness.
46 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Figure 4.1
Increasing internationalisation means that Norwe community and the environment. This calls for dia
gian companies are operating to a greater extent logue between the relevant stakeholders, both in
than before in countries where there is little Norway and in the host country.
respect for human rights. Working conditions are The Government believes that Norwegian
often unacceptable and child labour is used in pro companies should also engage in countries where
duction processes. There is discrimination in the political values and standards differ from ours, and
workplace on the basis of gender, religious belief where they will face ethical dilemmas. In such
or ethnic background. Too little account is taken of cases it is important that the individual company is
environmental impacts; corruption may be wide aware of the challenges and dilemmas it will
spread. Often these conditions are related to defici encounter.
encies in legislation, weak enforcement or a lack of Many companies have an active approach to
sanctions. these issues. They conduct systematic assess
In many cases the individual company thus ments of challenges they may encounter in actual
faces a number of fundamental questions. Should and potential projects. Country assessments,
we, or should we not, become engaged in the coun impact assessments, consultations with stakehol
try? What can reasonably be required or expected ders and dilemma training can help to prepare
of our company, and how can we meet these expec companies to deal with challenging situations.
tations? Which requirements are reasonable, and
which are better addressed by the authorities in
the host country or in Norway? How can we recon 4.1 To engage or not to engage?
cile the different expectations? How should we
operate in cases where our competitors are not The question of whether a company should ope
applying the same strict codes of conduct? rate or become involved in a project in an area of
There are no simple answers to these ques conflict seldom has a straightforward answer. Nor
tions. Standards do not remain static – the values of is it apparent that a company that is already enga
companies and societies change over time. Requi ged in such an area should withdraw. It is not
rements may vary from country to country, sector necessarily right for a company to refrain from ope
to sector and company to company. In today’s soci rating in or to withdraw from a country because it
ety, Norwegian companies are assessed not only is undemocratic or corrupt. Neither is it clear that
on their financial results but also on the impacts, the company should remain in such a country, or in
positive or negative, of their activities on the local an area of conflict, because it may positively influ
2008– 2009 Report No. 10 to the Storting 47
Corporate social responsibility in a global economy
The UN is addressing these problems to an increa of principles known as the Voluntary Principles on
sing extent in relation to peace operations and Security and Human Rights was drawn up as a
sanctions regimes. A resolution (55/56), adopted result of a continuing dialogue between govern
by the UN General Assembly in 2000, led to inter ments, companies in the extractive and energy sec
national cooperation on reducing the flow of con tors and civil society. The initiative was taken by
flict diamonds through a certification scheme the UK and the US in 2000, and Norway became a
known as the Kimberley Process (see Box 4.4). participant in 2002. Norsk Hydro and StatoilHydro
Apart from the aforementioned sanctions, are also participants.
there are few rules in this field that are binding The Voluntary Principles serve as a guide for
under international law. This has resulted in a companies in the extractive and energy sectors
governance gap or deficit that is spawning new who face a dilemma between the legitimate need
partnerships between actors that normally play for security services and respect for the human
very different roles. Industry, government and rights of the local population. According to the
civil society have come together to solve specific principles, companies are to conduct a thorough
problems and challenges by means of schemes assessment of the risks in their operating environ
based on voluntary participation and cooperation. ment, both normal security risks and risks posed
These partnerships are in part based on the recog by conflict in the area. They should consider the
nition that there are limits to what can be achieved potential for violence in the region, the human
by regulation and legislation. rights practices of public security forces, the cau
ses of local conflicts and the responses of the aut
horities to allegations of human rights abuses.
4.2.1 Guidelines in zones of conflict According to the Voluntary Principles, in rela
Although many companies wish to conduct busi tions with public and private security providers,
ness in a responsible manner, there are no binding companies should:
international rules that define what is expected of – hold consultations and communicate their
them. How can companies engage responsibly in human rights policies, use their influence to
zones of conflict?
A company’s area of operations may significan
tly influence the degree to which it should exercise Box 4.5 Corporate Actors in Zones of
vigilance. Is the production or trade with a particu Conflict: Responsible Engagement
lar actor/organisation in the area in any way linked In cooperation with the International Peace
with or supporting an emerging or existing con Research Institute, Oslo (PRIO), the Confede
flict? Vigilance is especially important if the client ration of Norwegian Enterprises (NHO) has
is involved in the military or with the defence published a brochure entitled Corporate Actors
industry, or if there is any uncertainty about who in Zones of Conflict: Responsible Engagement.
the client actually is or how the product will be In the brochure, «responsible engage
used. The main consideration here is to avoid in ment» is defined as engagement that includes
any way increasing military capability in the coun an assessment of indirect responsibility and
try. This applies not only to defence materiel and complicity on the part of the company. The
military products but also to a large range of brochure states:
civilian goods. In such cases the company could be
suspected of complicity and at worst held legally It should be stressed that CSR does not
responsible. Norwegian companies are required to involve politicizing companies. However,
follow specific regulations regarding the export of it is desirable that companies take respon
defence materiel and other products that can be sibility for the effects of their activities,
that is, for effects that would not have
used for civilian and military purposes. A separate
come about had it not been for the pre
licence is required for every shipment and may sence of the company. For this purpose,
only be obtained after careful assessment by the we need a conceptual framework that is
authorities.1 sufficiently general to avoid arbitrariness
Companies operating in conflict zones have in our judgements, and yet that is suffici
been criticised a number of times because of abu ently flexible to take into account the par
ses perpetrated by private security personnel. A set ticularities that make each context unique,
varying from area to area and, not least,
1 over time.
A white paper on current legislation and practice with regard
to defence materiel is submitted annually to the Storting.
2008– 2009 Report No. 10 to the Storting 51
Corporate social responsibility in a global economy
other interventions in the way of life or rights of the rights to land-use and management. This will also
local population. help to ensure that indigenous communities and
Given indigenous peoples’ dependence on the women have the opportunity to participate and
natural environment and resources, environmental assert their rights.
considerations and respect for the rights of the
indigenous population must weigh heavily in areas
where indigenous peoples live. There have been a 4.3.2 Transparency in the extractive
number of instances where Norwegian business industries – EITI
interests have come into conflict with the use of the Many developing countries are rich in mineral and
environment by indigenous groups. It is therefore petroleum resources. Utilising these resources in a
vital to consult and involve indigenous and local way that benefits the population is a challenging
communities when planning activities that may task for a country. The quality of institutions and
affect their interests. legislation in these countries varies. This calls for
Large population groups depend on forests and particularly strict requirements for companies par
forest products for their livelihoods. Timber is also ticipating in the extraction of natural resources.
a financially profitable commodity in international Oil and gas extraction yields high revenues.
trade, and there are usually no technical barriers to Since financial flows from the extractive industries
trade in this sector. Norwegian companies that to government authorities are often not disclosed
manage or exploit forests in other countries have a to the public, countries rich in natural resources
special responsibility to see that their activities are are particularly vulnerable to corruption. This
in accordance with international law, that they are means that the revenues from these resources are
based on ethical standards, and that considerations not used to promote sustainable economic and
regarding long-term resource management are social development. In many cases this leads to
taken into account destabilisation and provides a basis for social
Clarifying the rights of the local population and unrest and conflict, a phenomenon that is known as
establishing a system for leasing or other forms of the natural resource curse. Revenues that are not
access to forests or other land-based natural subject to democratic control may be used to
resources provides local communities with the finance armed conflict, which in turn is an obstacle
opportunity to assert their property rights and to development. This shows how important it is for
countries with natural resources to develop sound
and effective frameworks to ensure that the resour
ces benefit the country and its inhabitants. It also
shows how important it is that companies are
aware of these potential problems and exercise
vigilance.
Over the last few years a number of organisa
tions have urged petroleum companies to widen
their sphere of responsibility to include national
challenges related to the development of the petro
leum sector. Studies have shown that countries
rich in petroleum resources tend to lag behind
other developing countries on social and humanita
rian issues. This is mainly due to corruption and
weak institutional development, lack of transpa
rency in government budget processes and natio
nal accounts, the use of petroleum revenues for
military rather than social purposes and repeated
violations of human rights. Some civil society orga
nisations have gone so far as to accuse the petro
leum companies themselves of contributing to this
unacceptable situation because it is being maintai
ned by the revenues from taxation of companies’
Figure 4.2 Oil pipelines running through a activities.
Nigerian village. It is not always easy for a company to deal with
Photo: George Osodi/Panos Pictures/Felix Features. such challenges on its own. Confidentiality concer
2008– 2009 Report No. 10 to the Storting 53
Corporate social responsibility in a global economy
ning the flow of money is often part of the con 2007. Norway is the only Western country that has
tractual agreement with the authorities in the host declared that it will fulfil the EITI criteria. This will
country, and companies that have led the way in help to eliminate any suspicion that the Western
publicly disclosing payment figures have been met countries have a hidden agenda in their insistence
with threats of sanctions. In such cases coopera on transparency in the financial flows from the stra
tion and coordinated action between companies, tegically important extractive industries. Norway
the authorities and civil society can often help to also plays a central role in the Multi-Donor Trust
resolve the situation. Fund for the Extractive Industries Transparency
The Extractive Industries Transparency Initia- Initiative managed by the World Bank, which sup
tive (EITI) is an international initiative that seeks ports countries’ efforts to implement the EITI.
to improve transparency and accountability con Norway already practises transparency concer
cerning the flows of money in the extractive indus ning the payments from petroleum companies to
tries. The goals are that transparency concerning the government authorities. EITI compliance
revenues from natural resources should become a means that companies must report payments to an
global norm and that a greater proportion of the independent EITI administrator, and that the
income from these resources should be used to government authorities must report receipt of pay
promote social and economic development. ments to the same body. A multi-stakeholder com
Governments, companies, civil society groups, mittee must also be appointed to monitor the
investors and organisations participate in the EITI. implementation of the EITI criteria. The first
It has resulted in a set of standards for companies meeting of the committee was held in October
to report what they pay and for governments to dis 2008, where a proposal for how to implement the
close what they receive from the extractive criteria and draft regulations governing implemen
industry. This promotes public accountability con tation in Norway were presented. A public consul
cerning government revenues and expenditure tation will be held on the regulations once the com
and informed public debate on the equitable and mittee has evaluated these proposals.
sustainable utilisation of the country’s natural The Government’s aim is for the entire valida
resources. In September 2008 the UN General tion process to be completed in the course of 2009.
Assembly adopted a resolution on strengthening The Storting will be kept informed of the progress
transparency in industries, providing strong sup of the work. Norway’s efforts to implement the
port for the EITI. The resolution notes the efforts EITI criteria have been favourably received by the
of countries that are participating in initiatives to international community.
improve transparency and accountability in indus Other forms of cooperation or partnership bet
tries, and encourages them to share their experi ween petroleum companies and multilateral orga
ence with interested Member States. Norway was nisations such as the World Bank and the regional
a driving force in developing the resolution. development banks have also been established.
National ownership is vital for implementing The aim is to address what are known as collective
the initiative. As of October 2008, 23 developing action problems that may arise in oil provinces
countries are in the process of fulfilling EITI trans where a company may decide to give less priority
parency criteria, and a further 20 countries are con to social issues out of fear of losing out in the com
sidering implementing the initiative. This brings petition for government licences.
the number up to over half of the world’s natural The government considers that partnership
resource-rich countries, defined as countries in between the authorities, the private sector and civil
which the extraction of natural resources accounts society is a sound way of addressing challenges
for more than 25 % of GDP. Hydro and StatoilHydro relating to natural resource-based industries. Such
have supported implementation of the initiative partnerships may also prove useful in streng
since 2003. StatoilHydro’s payments to the govern thening transparency and accountability in other
ments of most of the countries in which the com sectors.
pany is engaged in extractive activities are publis
hed in its annual report. The EITI has the political
support of the G8 countries and is financed by con The Government
tributions from a number of countries including • expects Norwegian companies involved in the
the UK, the US, Germany, Canada, Italy and Nor extraction of natural resources to continue
way. their work on best practices for taking social
The Government actively supports the EITI, and environmental considerations into account
and has hosted the secretariat since the autumn of as their guide and goal;
54 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
• expects Norwegian companies involved in the safeguard the values represented by such areas. In
extraction of natural resources to respect the cooperation with the International Union for Con
rights of indigenous communities; servation of Nature (IUCN) and the private sector,
• will implement the EITI criteria, seek to including StatoilHydro, UNEP’s World Conserva
ensure that more countries join the initiative tion Monitoring Centre has developed a web-based
and help these countries to implement it information system for the world’s protected areas.
successfully; This means that lack of knowledge no longer pre
• will promote the development of transparency vents companies from taking account of protected
initiatives in other sectors; areas when planning to establish activities in new
• considers that partnerships between the aut areas. Companies should seek to avoid having
horities, the private sector and civil society are direct or indirect negative impacts in protected
useful in addressing challenges related to natu areas and should therefore always take these
ral resource-based industries; and issues into account when engaging in new areas.
• calls on Norwegian companies to participate in Particular caution is required when planning
relevant partnership initiatives that aim to add commercial activities in vulnerable habitats such
ress sector-specific challenges. as wetlands, mires, rivers and lakes and marine
areas, since ecosystem integrity may otherwise be
disturbed. Moreover, the areas may contain very
4.4 Business engagement in important or rare species. Commercial activities in
vulnerable natural environments such areas may directly or indirectly put further
pressure on the environment due to more inten
Value creation in many sectors, for example fish sive use of land and living resources, the develop
ing, aquaculture and tourism, depends on the use ment of physical infrastructure or increased indus
of natural resources. Natural resource-based com trial activity and transport.
mercial activities are also important for economic
development in developing countries and for crea
ting jobs at the local level. However, if commercial Biodiversity
activities are to be viable over time these industries In Global Biodiversity Outlook 2, the UN conclu
are dependent on sound natural resource manage ded that the pressures on biodiversity are increas
ment. Sustainable use of natural resources is there ing so rapidly that they threaten the very basis for
fore also a precondition for future growth and pro sustainable development. The IUCN Red List pro
sperity, especially in developing countries. vides an overview of threatened species. Compa
The conservation and protection of the natural nies that operate in vulnerable natural environ
environment should ideally be ensured by interna ments should take account of possible negative
tional agreements and laid down in national legisla impacts on biodiversity on the basis of the Red List.
tion. However, although international agreements Activities in the petroleum and mining sectors
and legislation exist and are being enforced, in often involve major disturbance of the natural envi
several environmental areas they often impose ronment and particular caution must be exercised
only minimum requirements. Although there is no in the planning stages.
international agreement on ambitious environmen The development of hydropower may also have
tal goals or global requirements for rain forest major impacts. Changes in water flow affect living
management or releases of hazardous substances, organisms and species diversity in rivers and
Norwegian companies should take account of lakes, and the diversion of water to hydropower
necessary environmental considerations in their production may also compete with other uses of
activities and should require their subcontractors the water, for example for irrigation and drinking.
to do the same. In the absence of binding internati This may also have an impact on tourism and other
onal commitments, the willingness of the private industries.
sector to voluntarily assume responsibility is The tourist industry is one of the world’s lar
essential for addressing these problems. gest industries. Tourism in vulnerable natural envi
There are more than 114 000 protected areas in ronments may cause wear and tear on the land and
the world, and they cover approximately 13 % of the disturb animal life. On the other hand, close coope
earth’s land surface. These areas have been given ration between tourism and conservation interests
protected status in order to protect and maintain may provide a secure income base that benefits
biological diversity and the natural environment. both parties.
Knowledge of the individual area is required to
2008– 2009 Report No. 10 to the Storting 55
Corporate social responsibility in a global economy
The United Nations Environmental Pro ment, especially vulnerable habitats. However, in a
gramme (UNEP) cooperates with the tourist number of countries, especially countries with
industry, NGOs and interested countries on pro weak governance, the authorities do not require
moting sustainable tourism, based on improving this, which means that in practice it is often up to
coastal zone planning, reducing impact on the cli the company itself to perform such assessments.
mate and channelling funds to the protection of There are a number of tools that companies can
areas of natural environment. By supporting these use in such cases. The most widely used of these
efforts, Norwegian tourism operators can help to are environmental impact assessments and strate
ensure that the development and operation of tou gic environmental assessments. There are also
rism activities contribute positively to development tools for specific sectors on particular environmen
in the host country. tal issues. An example of this is the Natural Value
In many cases it is impossible to prevent com Initiative, an international partnership between
mercial activity from harming the natural environ financial institutions, NGOs and business schools
ment. Mechanisms, known as biodiversity offsets, promoted by the UNEP Finance Initiative. The aim
have been developed to compensate for such nega is to assist the financial sector by developing a set
tive impacts and reduce the total harm. This means of tools for assessing biodiversity and ecosystem
that by ensuring sound, long-term management in services investment risks and opportunities.
other relevant areas, loss of biodiversity can be
mitigated in a wider perspective. A growing num
ber of companies are realising that biodiversity off Use of genetic resources by the private sector
sets can help to reduce their ecological footprint In 2002 the Conference of the Parties to the UN
and that employing such mechanisms improves Convention of Biological Diversity (CBD) adopted
cooperation with the authorities and other stake the Bonn Guidelines on Access to Genetic Resour
holders. The Business and Biodiversity Offsets ces and Fair and Equitable Sharing of the Benefits
Programme is a broad-based partnership for explo Arising out of Their Utilization. Use of the guideli
ring biodiversity offsets and testing them in the nes is voluntary, but they may be used as a basis for
form of practical pilot projects. national legislation and agreements between coun
Ideally, national authorities should require tries and companies.
environmental impact assessments in the case of The aim of the guidelines is to assist users and
major projects that will affect the natural environ- suppliers in matters relating to access to genetic
resources and benefit-sharing. They contain a
recommended procedure by which applicants for
access to genetic resources can obtain prior infor
med consent from the host country. It is a require
ment that indigenous and local communities are
involved in the decision-making process when indi
genous knowledge of natural resources is needed.
Source countries will be able to make use of the
CBD and the Bonn Guidelines to impose more
stringent requirements on foreign companies that
wish to engage in bioprospecting, i.e. searching for
valuable biochemical and genetic resources from
living organisms.
The guidelines serve as a framework for the
practical implementation of the provisions of the
CBD concerning benefit-sharing with regard to the
results of research and development and the utili
sation of genetic resources. This is to be based on
terms and conditions negotiated in each case.
More equitable sharing of benefits from the pro
ducts derived from processing genetic resources
will serve as an incentive to developing countries
Figure 4.3 Tropical rainforests are being cleared to conserve biodiversity.
to make way for plantations in Indonesia. An international regime on access and benefit-
Photo: Paul Lowe/Panos Pictures/Felix Features. sharing under the CBD is being negotiated, which
56 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
will build further on the Bonn guidelines. The nies, employers’ and employees’ organisations,
negotiations are scheduled to be completed in embassies and NGOs.
2010. A systematic approach is important when diffi
cult choices have to be made. Risk and impact
assessments can reduce uncertainty and provide
The Government the company with a better basis for decision-
• expects companies to conduct the necessary making. Dilemma training will also raise aware
risk and impact assessments when establishing ness among company employees and prepare
activities in vulnerable habitats and ecosys them for dealing with specific situations. However,
tems; a company will never be able to obtain a complete
• expects Norwegian companies to take threate overview of all the possible consequences of its
ned species and protected areas fully into acco activities. It is therefore essential that the company
unt in their operations, for example using the and its employees have a sound value base for their
IUCN Red List of Threatened Species and assessments and actions.
overviews of protected areas. Although the individual company itself has to
make the final decision about its activities, pro
blems can also be addressed in cooperation with
4.5 The need for vigilance other actors. Social problems such as corruption
are often so widespread that they require joint
Companies engaged in commercial activities in efforts by a number of different actors. Voluntary
countries with weak governance, poor legislation, principles and partnership initiatives such as the
widespread corruption or absence of the rule of EITI are examples of how companies, civil society
law face special challenges and dilemmas. As there and the authorities can cooperate on addressing
are no absolute answers to how they should add the challenges specific to various sectors.
ress these issues, companies must gain thorough Although the challenges are complex, trade
knowledge of national and local conditions. Impor with and investment in developing countries are
tant sources of such information are other compa vital for economic and social development in these
countries and in local communities.
2008– 2009 Report No. 10 to the Storting 57
Corporate social responsibility in a global economy
Figure 5.1
Aid alone does not create lasting development. titive private sector. The OECD also points out that
Economic growth is a prerequisite for this. An all these effects boost economic growth, which is
active and dynamic private sector is the foundation the most important tool for combating poverty.
for the value creation we need to combat poverty UNCTAD has carried out a study of the participa
and achieve the UN Millennium Development tion of transnational corporations in the develop
Goals (MDGs). Private-sector development crea ment of the extractive industry (oil, gas and mine
tes jobs and helps to fund infrastructure and social rals). The study examines the conditions that must
services. Aid is and will remain important, particu be met if direct investment is to contribute to
larly in the poorest countries. But without econo development. It shows that low-income countries
mic activity and value creation in the individual at a low level of development in terms of compe
countries, it will be impossible to realise the tence and production capability can benefit most
MDGs. from the capital, knowledge, technology and skills
In the Government’s view, economic involve that transnational corporations can provide.1
ment in developing countries is positive, not only In recent decades, we have seen a strong
as an instrument for value creation and economic increase in private capital flows to developing coun
growth but also because it can promote political tries. These capital flows are unevenly distributed,
and social development. Moreover, Norwegian however. They have contributed to economic
companies can help to reinforce universal norms growth in many countries, while others have
and values as expressed in the efforts of the United become marginalised. Today, Africa receives just
Nations and the OECD. This presupposes that the 3 % of global foreign direct investment – and most
companies operate in accordance with these of this is channelled to the petroleum sector. The
norms and their own ethical values regardless of least developed countries receive 2 % (2005).
where in the world they are located. Norwegian investments account for a very
small fraction of total foreign investments in
developing countries. Most of the Norwegian
5.1 Investments in developing investments are in oil, gas, shipping and the envi
countries ronment – areas in which Norway has substantial
expertise and a sound corporate base. It is impor
Direct investment is one of the most important tant to build on areas in which Norwegian compa
means of promoting development in poor coun nies have expertise, as well as involving other com
tries. A large-scale survey by the OECD shows that panies. Almost 60 % of Norwegian foreign direct
direct investment plays a role in technology trans investment is in Europe. Approximately 25 % is in
fer, knowledge and competence building, trade
integration and the development of a more compe 1
UNCTAD World Investment Report 2007.
58 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
5.5 Responsible business – the key to a need for dialogue and exchange of experience
development and knowledge between the foreign companies
and authorities or organisations that have develop
Through knowledge, experience, presence and ment experience, and between the private sector
influence, the private sector can help to address and local authorities and societal groups.
many of the challenges facing developing coun Norway is seeking to persuade developing
tries. Through investments, transparency and countries to accede to international conventions
good business practices, Norwegian and other and implement and enforce them nationally. This
multinational companies can contribute to strengt will help to raise standards for economic activity in
hening the countries’ own economies and private these countries. However, there are still a number
sectors. In this respect, development can be said to of considerations that cannot be dealt with without
be good for business, and business good for further developing the international framework for
development. the private sector. Norway is therefore actively par
However, there is no automatic convergence of ticipating in efforts to strengthen international gui
the interests of foreign companies and the real delines for CSR.
needs of the local population. That is why there is
Box 5.6 The UN Millennium Development Goals and examples of private sector contributions
A report from the UN Development Programme 5. Improve maternal health
(UNDP), Creating Value for All: Strategies for Provide inexpensive medical products and
Doing Business with the Poor (July 2008), provi health services.Improve women’s working
des examples of what companies can do to help conditions and occupational health.
to achieve the Millennium Development Goals 6. Combat HIV/AIDS, malaria and other disea-
and promote global development. ses
1. Eradicate extreme poverty and hunger Provide inexpensive medical products,
Promote value creation and contribute signi health services and innovative solu
ficantly to public revenues.Create jobs and tions.Implement HIV/AIDS programmes in
access to necessary goods and services. the workplace, focusing on information, pre
2. Achieve universal primary education vention and treatment.
Play an important role in efforts to combat 7. Ensure environmental sustainability
child labour in the workplace.Promote Can have a major positive impact on the envi
schooling for the children of employees and ronment and increasingly invest in new pro
invest in education. ducts and business processes to counteract
3. Promote gender equality and empower women adverse environmental impacts.
Increase women’s financial autonomy as 8. Global partnership for development
entrepreneurs, employees and producers. Be an important partner in supporting inves
Contribute to and invest in leadership tment and a transparent trading and financial
development for women. system.Be an essential partner in work to
4. Reduce child mortality promote employment among young people
Provide inexpensive medical products and and to make new technology available.
health services.Promote children’s rights
and issues concerning children.
64 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Figure 6.1
With globalisation, business is becomingly increa Such widely recognised international standards
singly internationally oriented, making it more and instruments are useful for guiding and clarify
necessary than ever for enterprises to operate in a ing the private sector’s engagement in the field.
responsible manner. This forms the backdrop for Businesses that follow the same international guid
international efforts in the OECD, the UN and elines are able to exchange ideas and experience,
other organisations to establish a normative and making it easier to measure and compare results
more binding framework for companies. This fram and meet the expectations of governments,
ework consists partly of international conventions employees and society. When enterprises base
that governments are obliged to comply with, and their business activities on the same international
partly of voluntary instruments for responsible guidelines, the competitive environment becomes
business conduct. more equal, resulting in a more level playing field.
The Government is engaged in efforts to
strengthen international guidelines and to develop
regional and global standards that will as far as pos 6.1 The OECD Guidelines for
sible ensure that businesses have equal framework Multinational Enterprises
conditions. The Government’s aim is that Norway
should be a leading nation in such efforts, both by The OECD established a set of guidelines for mul
taking action on its own initiative and by suppor tinational enterprises as early as 1976, and was
ting the actions of others. The Government is also thus a pioneer in the field of CSR. The OECD Gui
supporting efforts to monitor compliance with gui delines are the only multilaterally recognised fram
delines and standards. ework that governments are committed to promo
The OECD Guidelines for Multinational Enter ting. They consist of a set of recommendations by
prises contain detailed recommendations for enter governments to multinational enterprises, and
prises operating in or from OECD countries, and a include a comprehensive framework of voluntary
special mechanism for promoting and following up principles and standards for responsible business
the Guidelines in the form of National Contact conduct consistent with applicable laws.
Points (NCPs). The UN Global Compact is a global The Guidelines are part of the OECD Declara
initiative that sets out principles for businesses and tion on International Investment and Multinational
has broad participation from developing countries. Enterprises of 1976, the purpose of which is to
The Global Reporting Initiative (GRI) promotes improve the investment climate and encourage the
transparency and provides guidance for reporting positive contribution multinational enterprises can
on the economic, social and environmental impacts make to economic and social progress. The Guide
of companies and organisations. lines are based on the principle that multinational
2008– 2009 Report No. 10 to the Storting 65
Corporate social responsibility in a global economy
enterprises are in a better position to promote sus One of the strengths of the Guidelines is that
tainable development when trade and investment they are supported by business and labour organi
are conducted in a context of open, competitive and sations, both of which work actively to disseminate
appropriately regulated markets. The Guidelines information about them. The private sector’s and
were most recently updated in 2000. the trade unions’ OECD committees, the Business
The Guidelines contain recommendations that and Industry Advisory Committee (BIAC) and the
reflect the ILO core conventions on forced labour Trade Union Advisory Committee (TUAC), partici
and child labour. Multinational enterprises are pate in following up the Guidelines, as does the
encouraged to raise the level of their environmen OECD Investment Committee. OECD Watch, an
tal performance through improved internal envi international network consisting of more than 65
ronmental management and better contingency voluntary organisations, including the Norwegian
planning for environmental impacts. The Guideli Forum for Environment and Development
nes contain provisions on human rights, comba (ForUM), monitors the work and the development
ting corruption and consumer protection. Busi of the Guidelines.
ness partners, including suppliers and subcontrac In addition to the OECD’s 30 member coun
tors, are encouraged to base their conduct on the tries, 11 observer countries have endorsed the Gui
Guidelines. Small and medium-sized enterprises delines.1 In all, this covers the countries in which
are also encouraged to observe the Guidelines. most of the multinational enterprises have their
The OECD Guidelines are voluntary, and the headquarters and a large proportion of their opera
authorities cannot impose sanctions for violations. tions. Roughly 85 % of foreign investment flows are
On the other hand, the member countries are obli to countries that endorse the Guidelines.
ged to establish National Contact Points (NCPs) as
central bodies for effective implementation of the 1
The 11 observer states are: Argentina, Brazil, Chile, Egypt,
Guidelines. Estonia, Israel, Latvia, Lithuania, Peru, Romania and Slove
nia.
Box 6.1 General policies (Chapter II of the OECD Guidelines for Multinational Enterprises)
Enterprises should take fully into account estab 6. Support and uphold good corporate gover
lished policies in the countries in which they nance principles and develop and apply good
operate, and consider the views of other stake corporate governance practices.
holders. In this regard, enterprises should: 7. Develop and apply effective self-regulatory
1. Contribute to economic, social and environ practices and management systems that fos
mental progress with a view to achieving sus ter a relationship of confidence and mutual
tainable development. trust between enterprises and the societies
2. Respect the human rights of those affected in which they operate.
by their activities consistent with the host 8. Promote employee awareness of, and compli
government’s international obligations and ance with, company policies through appro
commitments. priate dissemination of these policies, inclu
3. Encourage local capacity building through ding through training programmes.
close cooperation with the local community, 9. Refrain from discriminatory or disciplinary
including business interests, as well as action against employees who make bona
developing the enterprise’s activities in fide reports to management or, as appropri
domestic and foreign markets, consistent ate, to the competent public authorities, on
with the need for sound commercial practice. practices that contravene the law, the Guide
4. Encourage human capital formation, in parti lines or the enterprise’s policies.
cular by creating employment opportunities 10. Encourage, where practicable, business
and facilitating training opportunities for partners, including suppliers and subcon
employees. tractors, to apply principles of corporate con
5. Refrain from seeking or accepting exemp duct compatible with the Guidelines.
tions not contemplated in the statutory or 11. Abstain from any improper involvement in
regulatory framework related to environ local political activities.
mental, health, safety, labour, taxation, finan
cial incentives, or other issues.
66 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Nordea’s financing of a paper pulp factory in Uru des representatives of both the authorities and
guay (2007). NGOs, while in others only the authorities are
The procedures of the Norwegian NCP worked represented. The Netherlands recently establis
well in all three of the complaints considered by it. hed a new, independent national contact point com
The NCPs composition reflects the Norwegian tri posed solely of representatives from the private
partite tradition. However, neither the OECD Gui sector, academia and civil society. Norway, Sweden
delines nor the NCP are well enough known. The and Denmark have based their NCPs on a tripar
survey conducted for the Ministry of Foreign tite structure patterned on the tripartite coopera
Affairs in 2008, cf. Chapter 1, showed that only a tion that has a long-standing status in the Nordic
small minority of Norwegian medium-sized and countries. In Sweden, civil society is also represen
large enterprises are aware of the Guidelines. ted in the NCP.
Norwegian companies have expressed a need Several member countries have pointed out the
for clarification of what is required to comply with need for a better overview of the complaints sub
the Guidelines and recommend that the Guidelines mitted to the NCPs. For example, there is no satis
should be made more user-friendly. Some have factory system at present that registers whether a
noted that the NCPs methods and procedures are subsidiary operating in a different country than
unclear. the parent company has been brought before the
The Norwegian authorities will work to make NCP in that country. A parent company in Norway
the contents of the Guidelines and the NCPs met may be completely unaware that that its subsidiary
hods and procedures better known. Instructions is involved in a complaint being dealt with by
will be drawn up as well as web-based information another country’s NCP, unless the local NCP has
about the Guidelines. informed the NCP in Norway about the case. Nor
way will actively support OECD initiatives to
ensure an improved information flow between
6.1.3 Experiences and potential for NCPs in such cases.
improvement One challenge facing the OECD is promoting
There is great variation within the OECD with the principles in countries that have not endorsed
respect to the composition and organisation of the Guidelines. Several member countries consi
NCPs. In some member countries, the NCP inclu- der this important and have taken the initiative to
translate the Guidelines into other languages.
If the Guidelines are to remain relevant and
Box 6.3 OECD Watch Model National keep pace with global developments, they must be
Contact Point regularly updated. It is more than eight years since
the Guidelines were last revised, and important
In 2008, OECD Watch published a handbook, developments have taken place in the field since
Model National Contact Point, which, among then. In other words, the time seems ripe for upda
other things, includes the following recom ting the OECD Guidelines. Today, the Guidelines
mendations for the NCPs: have a broad scope, but in certain areas they are
– The necessary training and adequate imprecise. As regards human rights, for instance,
resources must be provided if the NCPs it may be necessary to specify considerations
are to function as intended. regarding local communities and indigenous
– The NCPs should adopt a strategy for pro peoples’ rights more clearly. In the light of recent
moting the guidelines, hold seminars and developments, it may also be necessary to update
annual consultations with various stake the Guidelines as regards the environment and cli
holders and make active use of embassies mate. This can be done in the form of new supple
and trade missions to promote the guideli ments to the text. Norway has worked actively for
nes. the Guidelines to be updated in these areas. With
– Complaints should be dealt with within a the support of other member countries, the matter
reasonable time frame and preferably wit has been included in the OECD Investment Com
hin 12 months. mittee’s work programme for 2009–2010.
– Procedures should be transparent and the
NCP should keep the parties informed
and treat them equitably throughout the The Government
process. • will strengthen the NCP’s procedures and
make its functioning more transparent;
2008– 2009 Report No. 10 to the Storting 69
Corporate social responsibility in a global economy
The Government
Box 6.6 Declaration by the leaders of the
G8 countries at the Heiligendam summit • attaches importance to the efforts to strengt
in 2007 hen the Global Compact as an important global
framework for CSR, and it will continue to con
tribute financially to the initiative;
«We stress in particular the UN Global • will cooperate with the private sector to
Compact as an important CSR initiative;
increase knowledge about the Global Compact
we invite corporations from the G8 coun
tries, emerging nations and developing and encourage more companies to join the ini
countries to participate actively in the Glo tiative;
bal Compact and to support the worldwide • will, through donor meetings, discuss how the
dissemination of this initiative. donor countries can help to strengthen and
In order to strengthen the voluntary further develop the Global Compact.
approach of CSR, we encourage the impro
vement of the transparency of private com
panies’ performance with respect to CSR , 6.3 The Global Reporting Initiative
and clarification of the numerous stan
dards and principles issued in this area by The Global Reporting Initiative (GRI) is a volun
many different public and private actors.
tary international network based on cooperation
We invite the companies listed on our
Stock Markets to assess, in their annual between companies, employees’ organisations,
reports, the way they comply with CSR investors, auditors, NGOs, academics and other
standards and principles. We ask the stakeholders. The network has affiliated UN status
OECD, in cooperation with the Global as an institution that cooperates with the UN Envi
Compact and ILO, to compile the most ronment Programme, UNEP.
relevant CSR standards in order to give The objective of the GRI is to make reporting
more visibility and more clarity to the vari on the triple bottom line, i.e. economic, environ
ous standards and principles.» mental and social outcomes, as widespread as nor
mal financial reporting is today. The GRI has
developed principles and indicators for such repor
ting, and it is the most widespread international
panies, it is crucial that they document that they framework of its kind. The framework is suitable
operate responsibly. The Global Compact Office for companies and organisations in different sec
now reacts systematically to the failure to report. tors. More than 1 000 enterprises in 60 countries
Companies that have failed to report for three currently use the GRI.
years are de-listed from the Global Compact. In The GRI network works on development and
January 2008, 394 companies were removed from improvement of the Guidelines and aims to
the membership register for this reason. The chief increase their use. The G3 Guidelines are the cor
executives of 78 companies received a written war nerstone of the framework. Launched in 2006, they
ning for failure to report. Companies that submit were the result of three years of consultations with
outstanding reports are given positive feedback. 3 000 representatives from various stakeholder
Global Compact was never intended to be a bin groups.
ding instrument where breaches of the principles The GRI is supported financially by the Dutch,
can result in legal sanctions. The purpose of the British, German, Swedish and Australian authori
Global Compact has been to create a UN-based ties, the EU, major industrial companies and other
international corporate network to promote work private and public donors. Norway became a donor
on CSR in practice. It is necessary to work in paral in 2008.
lel to develop other, more binding frameworks.
It is still a challenge to get companies to realise
the practical usefulness of the Global Compact and 6.3.1 What does GRI reporting entail?
to get more companies to join. Through increased The GRI framework describes why, how and about
support for and concrete work on the 10 principles, what an organisation should report. Eleven prin
the private sector can make the Global Compact an ciples provide guidance on the report’s contents
important factor in global development. and quality, and they include sustainability, compa
rability, clarity and reliability. In addition to the
principles, the report is to state how far the com
72 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
pany has complied with the Guidelines at which defining reporting responsibility down though the
level (A, B or C) of performance. External verifica value chain, and it is working on tools to be used by
tion of the report is encouraged, but is not a requi suppliers. It has also launched a network for trans
rement. parency in the supply chain.
The GRI also recommends that the reporting
should include the company’s vision and strategy
for contributing to sustainable development, and 6.3.2 The value of reporting
describe the company’s profile, activities and sta Transparent reporting heightens the focus on
keholders. It should also describe the company’s economic, social and environmental factors. It
governance structure and management system. motivates companies to intensify their efforts in
The GRI consists of more than 80 indicators for relation to CSR and can help to improve compli
economic, social and environmental performance. ance with UN and OECD principles and standards.
Within each area, the GRI defines core indicators The Global Compact recommends that the GRI be
on which all companies should report, as well as used in the preparation of the annual Communica
additional indicators that may be used to enrich a tion on Progress to the Global Compact. The
report. OECD Guidelines for Multinational Enterprises
– The economic indicators concern the com encourage companies to apply high quality stan
pany’s financial value creation and other econo dards to non-financial reporting, including infor
mic effects on society. They cover reporting on mation about environmental and social factors.
wages, pensions and other benefits for the com The use of a single template for reporting is
pany’s management and employees, payments advantageous for companies, authorities and orga
received from customers and payments made nisations since it systemises documentation and
to subcontractors. makes it more readily comparable. The GRI tem
– The environmental
indicators deal with the plate is currently the most important tool for inter
company’s impacts on the environment, eco national comparison of companies’ results.
systems, soil, air and water. The indicators Large companies in Norway use the GRI as a
include environmental impacts of the com reporting template and consider it a necessary tool
pany’s products and services, resource con in their operations. The reporting helps to syste
sumption, the consumption of environmentally mise companies’ work on CSR, and the process
hazardous substances and raw materials, emis helps to increase awareness within companies of
sions of greenhouse gases and other polluta the challenges and the potential for improvement.
nts, waste, costs of environmental investments, What a company measures can be controlled, and
and fines and penalties for violation of environ what can be controlled can be changed. Reporting
mental legislation. is thus a useful tool in companies’ ongoing efforts
– The social indicators are grouped into three to improve their operations.
categories: factors relating to employees; to Some companies claim that the number of indi
human rights; and to more general social cators and the scope of the reporting make them
issues concerning consumers, local communi less user-friendly. Others claim that GRI reporting
ties and other stakeholders. Such information is expensive and best suited to large companies
can be difficult to quantify. In some cases quali with extensive resources at their disposal. Experi
tative descriptions may be permitted. ence shows that it is important that companies use
those parts of GRI that are relevant to them and
GRI reports should be prepared annually and pub apply the framework flexibly.
lished on the internet. GRI reporting is voluntary
and free of charge. Companies can choose whether
they wish to use the guidelines in their entirety or The Government
in part, or use them as a reference. • views the GRI as a useful basis for reporting on
The GRI guidelines are continually being economic, social and environmental factors,
developed and improved. Sector supplements have particularly for large companies;
been produced that are intended to supplement the • will help to improve information and guidance
core guidelines. The framework also targets small about the GRI;
and medium-sized enterprises, and a guide has • will join the donors supporting the GRI, with
been produced to simplify reporting by such com particular emphasis on increasing the rele
panies. The GRI has also developed a protocol for vance of the GRI in developing countries;
2008– 2009 Report No. 10 to the Storting 73
Corporate social responsibility in a global economy
• will support the GRI’s work on developing dard with methods for verifying reports on CSR
reporting tools that are adapted to small and (AA 1000as). Det Norske Veritas offers certifica
medium-sized enterprises. tion of companies in accordance with SA 8000 and
verification based on the GRI and AA 1000as.
The International Organization for Standardiza
6.4 Standardisation and certification tion (ISO) decided in 2004, in consultation with
various stakeholders, to develop an international
Most of the reporting schemes have in common guiding standard for organisations’ social responsi
that they are voluntary and that they are seldom bility (Guidance on Social Responsibility), called
verified. It is possible, however, for a company to ISO 26000.
have its report externally audited. Independent The standard, which is scheduled for comple
certification will enable companies to demonstrate tion in the autumn of 2010, will apply to all types of
their social responsibility to consumers and other organisations, in both developing and industriali
stakeholders. This applies in particular to compa sed countries. It will contain guidelines and recom
nies in developing countries that need to show con mendations for how organisations should exercise
sumers that they uphold high standards. Certifica their social responsibility, and will cover topics
tion can also be useful in identifying strengths, such as corporate governance, human rights,
weakness and potential for improvement. labour standards, the environment, consumer
SA 8000 is currently the only certifiable stan issues and participation by local communities.
dard that includes international human rights and The standard will be consistent with other exis
labour rights. The standard builds on the same ting ISO standards, and its normative content is
basis as the established ISO 9001 and ISO 14001 drawn from relevant international declarations,
standards for quality and environmental manage agreements and conventions developed by the UN
ment and control. The AA 1000 standards are tem and UN agencies, including the ILO. The use of
plates for dialogue with stakeholders and a stan ISO 26000 will be voluntary.
The process of developing ISO 26000 is already 6.5 The need for international
contributing to existing efforts within the area of guidelines
social responsibility by:
– developing international consensus on con In principle, corporate compliance with the guideli
cepts and central issues relating to social nes and standards described in this chapter is
responsibility, and issues that various different voluntary. The Government expects Norwegian
organisations must take a position on; companies to base their international operations
– providing guidelines for how general prin on such guidelines and standards.
ciples for social responsibility can be transla In the Government’s view, it is important that
ted into concrete action; the international efforts to make the framework for
– identifying examples of best practice, from social responsibility more binding and ensure that
both the private and the public sector. it includes monitoring mechanisms are continued.
The Government intends to play a proactive role in
The process of developing the standard is probably efforts to strengthen such mechanisms in the UN
the most extensive ever carried out under the aus and OECD. In relation to the OECD Guidelines for
pices of the ISO. The standard is being developed Multinational Enterprises, this is being done
by a broad-based working group comprising repre through efforts to reinforce the role of the NCPs.
sentatives from the authorities, the private sector, Several of the initiatives described in this chapter
workers’ organisations, NGOs, consumers, acade are therefore somewhere between purely volun
mia, service providers and others. A majority of the tary and binding. Joining them is a voluntary mat
84 countries currently participating in this work ter but, once a company has joined, compliance
are developing countries. This is unique in the ISO with the requirements is subject to control.
context. In addition, roughly 40 organisations such Such initiatives are therefore often characteri
as the OECD, UNCTAD, WHO, ILO, the UN Glo sed as «soft law» instruments and, in principle,
bal Compact, the GRI and Consumers Internatio they can be further developed with respect to grie
nal are involved in the work. Standards Norway is vance mechanisms, documentation and transpa
coordinating Norwegian efforts and has appointed rency requirements and sanctions. The broad pro
a mirror committee that discusses and provides liferation and consequent harmonisation of requi
input to the Norwegian delegation. rements for such instruments can pave the way for
The development of an ISO standard, which is legal instruments whose introduction would other
now in its final phase, is being followed with inte wise have been demanding and controversial.
rest. In the Government’s view, the process will be In the Government’s view, «soft-law» instru
worthwhile if it results in a standard that gains glo ments are of great importance in driving develop
bal acceptance. However, there is still uncertainty ments forward. Such instruments can clarify requi
about the status of such a standard. With so many rements and expectations and facilitate a coordina
countries involved and the requirement of consen ted effort on the part of the private sector, the
sus, the final result may well be the lowest common authorities and NGOs. Such initiatives can, not
denominator. The importance of ISO 26000 will least, stimulate voluntary participation in schemes
probably vary from country to country. It will for effective verification of compliance with the
depend to a great extent on the final wording of the requirements. It is important that companies
standard and the experience of and interest shown obtain information about these instruments and
by opinion leaders. guidelines and apply those that are most suited to
their operations.
The Government will participate actively in
The Government efforts to consolidate, further develop and
• is participating actively in the development of increase adherence to international frameworks
ISO 26000; that, in various ways, promote social responsibility
• is of the view that the process of developing an and transparency in the private sector. The
international guiding standard for social Government will support efforts to further develop
responsibility will represent an important step and realise synergies between the different stan
in the direction of a common international dards and principles of the UN, the OECD and
framework. ILO.
The Government views the development of
international frameworks for the private sector’s
operations as the best solution for governing the
2008– 2009 Report No. 10 to the Storting 75
Corporate social responsibility in a global economy
global economy and addressing fundamental chal- competition. International processes that can influ
lenges facing society. International norms and ence the framework for the private sector’s opera-
standards also help to ensure equal conditions of tions are discussed in the following chapter.
76 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Figure 7.1
tations with governments, the private sector, inter Human Rights Council as part of the Universal
national organisations, civil society and other Periodic Review in 2009.
actors will continue to be a central element.
Together, we can work for better protection against
corporate human rights violations. 7.2 Global labour standards
Decent working conditions and respect for wor
The Government will kers’ rights are prerequisites for a just society. The
• continue to be a driving force in the ongoing International Labour Organisation (ILO) is the
work of the UN on business and human rights main body responsible for drawing up core labour
• follow up the recommendations of the UN Spe standards. The framework for safeguarding wor
cial Representative; kers’ rights is expressed in ILO conventions, in
• continue to support the Special Representa particular its core conventions, cf. Box 3.5.
tive’s work both politically and financially; Norway has participated actively in the ILO
• take concrete initiatives for consultations on since it was founded in 1919 and has traditionally
corporate human rights responsibility and been one of its largest voluntary contributors. Nor
further develop cooperation with individual way’s contribution to the ILO has largely been
countries; earmarked for combating child labour. Norway
• raise the issue of corporate human rights has also given priority to strengthening the social
responsibility in Norway’s human rights dialo partners and cooperation between them, gender
gues with China, Vietnam and Indonesia; equality and women’s rights in the workplace, and
• continue to cooperate with NGOs; combating other forms of discrimination.
• include information on corporate social As regards the social dimension of globalisa
responsibility in Norway’s report to the tion, the ILO points out that the poor have reaped
few benefits from the major economic results of
Figure 7.3 Textile workers in Bangladesh protest against the killing of several demonstrators by the
police during a demonstration to demand payment of statutory holiday pay.
Photo: Fernando Moleres/Panos Pictures/Felix Features.
2008– 2009 Report No. 10 to the Storting 79
Corporate social responsibility in a global economy
globalisation. This is because far too few countries – Social insurance rights and standards at work
have a socially just distribution policy, and in many – Protection of workers’ rights as expressed in
places globalisation has not helped to create new the ILO conventions, with an emphasis on the
jobs. The ILO has responded to this challenge with core conventions
an action plan, The Decent Work Agenda.
The ILO Decent Work Agenda is based on the An element in the agenda is what is known as
conviction that the fight against poverty must be «Decent Work Country Programmes», which the
part of a comprehensive change whereby people ILO is following up by advocating that they be
get decent and productive jobs, where fundamental mainstreamed in developing countries’ develop
labour standards are respected and where jobs ment strategies.
deliver a fair income. Equality is a recurrent theme Norway participated in drawing up the ILO
in the agenda, which rests on four main pillars: declaration of June 2008, Social Justice for a Fair
– Full employment Globalization. The declaration emphasises strengt
– Social dialogue at work and strengthening the hening the connection between trade-related fac
social partners and their role in designing tors and workers’ rights, and places social justice
economic policy on a par with economic efficiency. The declaration
Box 7.1 The Government’s strategy for promoting workers’ rights globally
1. Norway will intensify its efforts to promote wor 5. Safeguarding workers’ rights in other coun
kers’ rights on a global level. This will be done tries will be an important aspect of the Govern
both through policy initiatives vis-à-vis the ment’s business policy and its efforts to enco
ILO and through foreign policy, develop urage Norwegian companies to exercise social
ment policy, trade policy, ownership policy responsibility. The state, in its role as owner,
and labour policy. Policy coordination in this expects companies to demonstrate social
area will also be improved. responsibility. Companies’ operations must
2. Norway’s policy vis-à-vis the ILO will be be carried out in accordance with fundamen
further developed. This could be done by tal human rights, and the same requirement
increasing Norway’s financial contribution to must apply to business partners and suppli
the ILO, by enhancing knowledge of the ILO ers. The Government expects Norwegian
and its work in Norway, and by facilitating companies to base their operations on the
closer contact and cooperation with the ILO. eight ILO core conventions and to have good
3. Promotion of workers’ rights in other countries HSE standards that ensure the health and
will be given higher priority in foreign policy safety of employees. Norwegian companies
and development policy. Respect for workers’ must also have systems to ensure this is fol
rights, particularly the eight ILO core con lowed up in practice.
ventions, will be made a criterion when 6. A special effort will be made to strengthen the
assessing how to prioritise the use of Norwe verification and enforcement of legislation
gian development funds. Everyone who concerning labour standards. This could for
works on development projects should have instance be done through development
working conditions that as a minimum policy, the work in the ILO and by the Nor
comply with the eight ILO core conventions. wegian Labour Inspection Authority coope
4. Norway will also play a proactive role in efforts rating with corresponding authorities in
to promote the importance of decent work in other countries.
the area of trade policy, for example in bilate 7. Norwegian experience will be used to improve
ral, multilateral and regional trade agre working environment monitoring in other
ements. countries. The expertise of the National Insti
tute of Occupational Health (STAMI), with
the recently established National Sur
veillance System for the Working Environ
ment and Occupational Health (NOA), will
be utilised in this work.
80 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
underlines that the violation of fundamental prin Government will engage in close dialogue with the
ciples and rights at work cannot be invoked or social partners. The content of the strategy will the
otherwise used as a legitimate comparative advan refore be concretised and further elaborated in the
tage and that labour standards should not be used Norwegian ILO committee.
for protectionist trade purposes. At its autumn session in 2008, the UN General
The declaration places full employment at the Assembly adopted a resolution supporting the
centre of economic policy, recommends an active Social Justice for a Fair Globalization declaration.
social policy and calls for dialogue between the The resolution, for which Norway took the initia
social partners. It stresses the importance of tive, urges all relevant actors to contribute to imple
respecting and protecting the fundamental rights mentation of the declaration. This was part of the
of workers. Freedom of association and the right to follow-up of the Government’s strategy for promo
collective bargaining are especially important. By ting workers’ rights globally and a direct result of
providing decent working conditions, the member the Decent Work Conference in Oslo.
states can promote development and social justice. The Government will work for universal ratifi
Labour standards have been a controversial cation of the ILO core conventions. Norway will
issue in the WTO, and they were not included in also advocate that the national enforcement
the negotiating mandate for the current DOHA mechanisms in member states be strengthened.
round. In February 2007, the ILO and WTO Secre Many countries have ratified the ILO core conven
tariats submitted a joint report on trade and tions and adopted acceptable labour legislation,
employment, which proposed possible ways of but lack the resources to implement and enforce
further developing cooperation between the orga them. Issues related to workers’ rights will also be
nisations. raised in Norway’s human rights dialogue with
In September 2008, the Ministry of Foreign China.
Affairs, in collaboration with the Norwegian Fede As a first step in the implementation of the stra
ration of Trade Unions and the Confederation of tegy, Norway signed an agreement in September
Norwegian Enterprise, organised an international 2008 with the ILO in which it pledged NOK 100 mil
conference in Oslo entitled Decent Work – a Key to lion over a two-year period (2008–2009) to promote
Social Justice for a Fair Globalisation. The Direc decent working conditions. Half of the Norwegian
tors General of the ILO and the WTO both took contribution will be devoted to promoting gender
part, along with leaders of the international labour equality and women’s rights in the workplace,
movement and the global business community. An including measures to combat forced labour and
important aim of the conference was to identify human trafficking.
ways of safeguarding workers’ interests in the glo
balised economy. Strengthening the ILO and achie
ving better coordination of work of the ILO and the The Government
WTO are important in this context. • sees the need for a more coherent policy for
The need for greater coherence between the promoting workers’ rights globally;
interests and attitudes of states in various interna • is of the view that further strengthening and
tional forums was discussed at the conference. protection of global labour standards and wor
Membership of both the ILO and the WTO entails kers’ rights should primarily be carried out
a responsibility on the part of the authorities to be under the auspices of the ILO;
consistent. Proposals were put forward at the con • will base these efforts on its strategy for
ference to set up international forums to discuss strengthening and coordinating efforts for
ways of achieving greater coherence between the worker’s rights in other countries;
authorities’ handling of workers’ rights and other • assumes a special responsibility for following
important issues in international organisations. up and supporting the ILO Declaration on
The Government’s seven-point strategy for pro Social Justice;
moting workers’ rights globally (see Box 7.1) was • will work for the establishment of international
presented at the conference. The ongoing Norwe forums where improved coherence of the
gian debate has revealed a need for stronger and work in various international organisations
more closely coordinated efforts in various policy such as the ILO, the WTO and the OECD can
areas and within the various ministries. The stra be discussed;
tegy will complement efforts to combat social dum • will promote the importance of workers’ rights
ping in Norway. In its continued efforts, the in trade agreements.
2008– 2009 Report No. 10 to the Storting 81
Corporate social responsibility in a global economy
col, and should be the basis for subsequent climate Kyoto Protocol. It is therefore very important that
agreements. The Climate Change Convention was the International Maritime Organization (IMO)
adopted in May 1992. It entered into force on 21 and the International Civil Aviation Organization
March 1994 and has been ratified by 192 countries. (ICAO) follow up climate change issues related to
The Kyoto Protocol to the Climate Change international shipping and aviation, and that the
Convention involves a commitment by industrial ambitions here are in line with those set out in the
countries to reduce their collective greenhouse Climate Change Convention.
gas (GHG) emissions during the period 2008–2012 In the run-up to the Copenhagen climate sum
by about 5 % in relation to the 1990 level. The Pro mit in 2009, efforts are being made to put in place
tocol contains stringent and far-reaching provi an international climate change agreement. If it is
sions concerning controls and sanctions. However, to respond to today’s climate challenges, the new
the countries that have made a quantitative com international agreement must be more ambitious
mitment under the Kyoto Protocol only account for than the Kyoto Protocol, and it must result in lar
approximately 30 % of global GHG emissions. ger, more extensive emissions reductions and be
Some of the countries that have not ratified the binding on more countries. The developing coun
Protocol (China, India and Brazil) have rapidly tries in particular have argued that climate agre
increasing emissions, while the USA is still respon ements should be based on the polluter pays prin
sible for the largest share of global greenhouse gas ciple. A system for emissions trading between
emissions. countries can help to ensure that emissions
Under the Kyoto Protocol, rules and institu reductions are made at the lowest possible cost,
tions to facilitate the implementation of emission- while sharing the burden fairly between countries.
reducing measures in developing countries have Norway has proposed auctioning some of the emis
been adopted through the Clean Development sions allowances to raise money for climate measu
Mechanism (CDM). res in developing countries. The industrialised
Due to their distinctive nature, emissions from countries must also take particular responsibility
international shipping and aviation have not been for developing climate-friendly technology.
included in the quantitative commitments of the
Figure 7.4 Deforestation in the Amazon, where the rainforest has had to give way to cultivated land.
Photo: Eduardo Martino/Panos Pictures /Felix Features.
2008– 2009 Report No. 10 to the Storting 83
Corporate social responsibility in a global economy
tion and promote good governance. The multilate 7.5 Trade and international
ral banks have produced blacklists of companies cooperation
charged with corruption, which will be excluded
from future projects. The World Bank has set up a The international trade regime primarily consists
special programme for companies that wish to coo of the WTO agreements, but also includes a large
perate, known as the «Voluntary Disclosure Pro number of bilateral trade and cooperation agre
gram». Companies that put all their cards on the ements. The agreements constitute an important
table will avoid being blacklisted and can cooperate part of the international framework conditions for
with the World Bank on combating corruption. companies.
Norway also supports measures to combat money The authorities are working to strengthen the
laundering and the financing of terrorism through agreements concerning protection of human
the International Monetary Fund (IMF). rights, workers’ rights, environmental protection
and combating corruption in various international
forums. It is important in this context to ensure
7.4.1 Capital flight and secrecy jurisdictions that trade policy rules do not pose an obstacle to
Norway has helped to put illegal capital flows and international solutions in these areas and that they
their consequences for developing countries on contribute as far as possible to finding good solu
the agenda. Norway chairs an informal internatio tions.
nal working group under an initiative designed to With this in view, the Government will raise
identify innovative mechanisms to finance develop issues relating to corporate social responsibility in
ment assistance. The group is seeking to obtain negotiations and dialogues on trade-related issues
knowledge about the mechanisms that contribute with other countries.
to illegal capital flight from developing countries, The main aim of the World Trade Organisation
and will propose possible policy measures to (WTO) is to further develop a rule-based, open tra
reverse this development. The role played by ding system that will create better conditions for
secrecy jurisdictions (tax havens) is one of the economic growth and prosperity, not least in the
issues it will consider. developing countries. The Government considers
In addition, the Government appointed an it important to contribute to further developing the
expert committee in March 2008 to examine the WTO rules into the best possible tool for a fair glo
role of secrecy jurisdictions in relation to capital bal trade regime, and ensuring the implementation
flight from developing countries and to evaluate of the rules. In the Government’s view, the conclu
Norway’s position as regards the investment of sion of the negotiations in the Doha Development
assets via secrecy jurisdictions. The committee is Round would be a positive step in addressing the
scheduled to submit its recommendation to the difficult global economic situation we face today.
Minister of the Environment and International With a few indirect exceptions, the WTO rules
Development by 1 June 2009. contain no provisions on core labour standards.
Nor are core labour standards or decent work part
of the mandate for the current Doha Round negoti
The Government ations. It will not be possible to raise the issue in
• is working to persuade more countries to the WTO until the ongoing negotiations have been
adhere to and implement the UN Convention concluded. Many developing countries fear that
against Corruption and for the establishment of such provisions could be used for protectionist pur
a mechanism to ensure implementation; poses and that they would discriminate against
• will examine the role of secrecy jurisdictions countries whose comparative advantage lies in low
as facilitators of illicit financial flows; wage levels. The ILO declaration of June 2008
• is assisting developing countries, both bilate could be a step towards allaying this fear, cf. Chap
rally and through multilateral organisations, in ter 7.2. The Government will seek to emphasise
establishing good governance and systems for the importance of workers’ rights in the WTO
combating corruption. agreements once the Doha Round has been con
cluded.
There is growing international debate about
the extent to which environmental and climatic
considerations should also be reflected in trade
policy rules. Sustainable development is mentio
ned in the preamble to the 1994 Marrakesh Agre
2008– 2009 Report No. 10 to the Storting 85
Corporate social responsibility in a global economy
ement that established the WTO in 1994 and in the important element in connection with bilateral
general exception provisions of the WTO agre investment treaties (BITs).
ements. There is, however, still some international
disagreement on the relationship between the
WTO rules and multilateral environment agre The Government
ements (MEAs). Norway is working actively to • will advocate integrating CSR into international
ensure that trade policies and environmental poli agreements and dialogues where this is appro
cies are mutually supportive in practice. priate;
Norway’s bilateral trade agreements are prima • will cooperate bilaterally on training in and the
rily negotiated through EFTA. There is agreement transfer of expertise on CSR.
among the EFTA states that environmental and
sustainable development considerations should be
included in the preambles to trade agreements. 7.6 International frameworks and
The environmental question is also touched on in national guidelines
the substantive provisions, such as those relating
to SPS (sanitary and phytosanitary measures) and Some people in Norway have advocated introdu
TBT (technical barriers to trade). The incorpora cing national guidelines for Norwegian companies’
tion of environmental provisions into trade agre operations abroad. In this and the previous chap
ements is a rapidly growing area. Canada, the USA ter, a number of international guidelines, frame
and the EU member states are among the coun works and processes have been discussed that
tries that have incorporated the most comprehen help to concretise the Government’s expectations
sive environmental provisions into recent trade of the private sector and to establish clearer fram
agreements. eworks. In the Government’s view, the OECD Gui
A working group has been set up under the aus delines for Multinational Enterprises constitute
pices of EFTA to examine whether more binding highly significant rules for the transboundary acti
environmental provisions can be included in future vities of Norwegian companies. The Government
EFTA trade agreements and, if so, how this can be expects Norwegian companies to familiarise
done. Such provisions could, for example, contain themselves with these guidelines and apply them
references to international cooperation, the imple in their operations. This framework meets the
mentation of national environmental legislation need for national guidelines for Norwegian compa
and closer bilateral cooperation on the environ nies’ international activities.
ment. This work will continue in accordance with The OECD Guidelines are voluntary as regards
the Government’s fundamental approach, which is companies’ activities abroad, but they deal with
to promote an international trade regime in which many issues that have already been incorporated
decisive importance is attached to the environ into legislation and agreements in Norway. In the
ment, labour and social rights, food security and debate about national guidelines for Norwegian
development in poor countries. companies, the question has also been raised of
The Government considers it important that whether the guidelines should be legally binding
Norway stresses the significance both of corporate on the companies as regards their activities
social responsibility and of the state’s responsibi abroad, i.e. whether violations of the guidelines
lity for good public administration when conclu can be pursued in the Norwegian courts. The
ding bilateral trade agreements. This has now been question remains whether there are grounds for
included in the preambles to several EFTA trade establishing further legal remedies or sanctions to
agreements and the provisions have legal signifi follow this up within the framework of Norwegian
cance as a basis for interpreting the agreements. legislation. This is discussed in greater detail in the
Corporate social responsibility will also be an next chapter.
86 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Figure 8.1
It has been argued that the social responsibility of The Norwegian Confederation of Trade Unions
Norwegian companies operating abroad should be (LO) argues that national legislation, the social dia
legislated. The underlying rationale is that more logue and the agreements concluded between the
and more Norwegian companies are operating in social partners are the most important tools that
countries and regions where there are serious Norwegian businesses can take with them when
human rights violations and whose judiciaries, relocating production or setting up new companies
national legislation and democratic institutions are abroad. LO does not, therefore, currently see the
weak and ineffective. need for binding national guidelines for corporate
The Norwegian Forum for Environment and social responsibility.
Development (ForUM) and Amnesty International LO points out that the combination of the legis
Norway, for example, have advocated drawing up lation, arrangements and certification systems that
binding national guidelines that set minimum are already in place is adequate provided that they
social responsibility standards for financial institu are complied with. It is of the view that voluntary
tions and business enterprises, regardless of arrangements, action plans developed by indivi
where they operate. ForUM also advocates exten dual companies and good checklists can be useful
ding corporate management responsibility in supplements for Norwegian companies setting up
practice by making managers personally liable for business abroad.
the consequences of their company’s operations in When the Norwegian Limited Liability Compa
the case of serious transgressions. They also nies Act was revised in 2006, a majority in the Stan
maintain that companies and financial institutions ding Committee on Justice urged the Government,
should have actual legal liability based on Norwe in a comment, to evaluate the need for national gui
gian criminal law, including for acts committed out delines for corporate social responsibility abroad
side Norwegian territory. and present the results to the Storting (the Norwe
The social partners have a different approach. gian parliament) in the appropriate manner. It is
The Confederation of Norwegian Enterprise reasonable to interpret this as a signal that the
(NHO), emphasises the importance of internatio Committee on Justice does not consider company
nal agreements and guidelines for the private sec law to be the appropriate place to promote the con
tor that are adapted to national legislation. It consi siderations concerning specific challenges abroad
ders that special Norwegian rules for companies’ that are dealt with in this report.
international operations would have a limited effect In this chapter, we will discuss other national
on international developments. In NHO’s opinion, legal instruments in relation to companies’ opera
developments can best be influenced on the inter tions abroad.
national level.
2008– 2009 Report No. 10 to the Storting 87
Corporate social responsibility in a global economy
As a general rule, we cannot exclude the possi this regard. Specific mention must be made of any
bility of civil liability under Norwegian law for loss damage, injuries and accidents. The report must
or damage in another country. However, a liability also contain an account of the current status of gen
case of this nature would be challenging; the der equality in the company, with an overview of
offence would have been committed abroad and implemented or planned measures to promote
most of the witnesses and other forms of evidence equality and prevent discrimination that contrave
would be outside Norway. The fact that evidence nes the Gender Equality Act. The report must also
would have to be obtained by means of judicial disclose any matters relating to the company’s ope
requests to the authorities of the country in ques rations, including input factors and products that
tion, as well as the fact that the parties might have could have an appreciable impact on the natural
a right to be present, could prove challenging. environment. In addition, information must be pro
vided about any environmental impact that results
or might result from a company’s activities, and
The Government any implemented or planned measures to prevent
• will continue to evaluate measures that can or reduce negative environmental impact.
help to prevent Norwegian nationals and com
panies from committing serious environmental
crimes outside Norway. 8.3.2 The duty to provide information about
ethical guidelines
The Government advocates that the current provi
8.3 Reporting on social responsibility sions of the Accounting Act requiring companies to
report on social responsibility factors be extended
It can be challenging to identify other legal instru to include a duty to provide information on the
ments that can promote greater corporate aware company’s ethical guidelines. It intends to submit
ness. Instruments other than purely legal ones are for consultation a bill proposing the introduction of
therefore likely to be the most important in this an additional provision requiring the largest com
context. It is assumed that the best «sanction» in panies with an accounting obligation to state which
relation to more progressive and targeted stan ethical guidelines or standards for social responsi
dards is public opinion and consumer pressure, bility they follow and what the company has done
combined with measures to raise the awareness of during the accounting year to follow up its social
employees and management in the individual com responsibility. Companies that do not have any gui
panies. delines will be obliged to disclose this.
Legal instruments could nonetheless have a The purpose of incorporating such a provision
function in throwing a public spotlight on corpo is to highlight the importance the authorities
rate operations. An example of this is the obligation attach to social responsibility and enhance corpo
to report social and environmental impacts that rate awareness and follow-up in this area. It should
has been or is being introduced in a number of serve as an incentive for companies to make CSR
countries, such as France, the UK, Denmark and an integral part of their day-to-day operations and
Sweden. corporate governance and risk management
regime. It could also help to ensure that sharehol
ders, consumers and society at large are better
8.3.1 Reporting obligation under Norwegian informed about how companies approach social
law responsibility issues.
Pursuant to Norwegian law, all companies that are Among other things, an obligation to disclose
required to submit accounts must report on some which ethical guidelines or standards for social
aspects of their social responsibility, currently limi responsibility are used by the company and how
ted to the working environment, gender equality this responsibility is followed up will lead to greater
and environmental impact. Section 3–3 of the Nor management awareness of the value of emphasi
wegian Accounting Act requires all such compa sing economic, social and environmental factors in
nies to give an account of specific non-financial fac corporate governance. It could also trigger a
tors (sustainability reporting) in the Board of review of a company’s guidelines and routines, and
Directors’ annual report. initiate a continuous assessment of possible new
According to the Accounting Act, information measures to improve practice.
must be provided on the working environment, The purpose of the Accounting Act is to help to
including an overview of measures implemented in ensure that as much information as possible is pro
90 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
vided to various stakeholders about a company’s the company’s environmental impact), employees
financial position, risk exposure, financial perfor and social and community issues to the extent
mance and other aspects of the business. There is necessary for an understanding of the develop
a tendency today to also request non-financial ment, performance and position of the company’s
information. Investors and creditors are among the business. Companies are to include information on
users of such information. any policies relating to these matters and their
We also note that companies that operate in a effectiveness. The «comply or explain» principle is
socially and environmentally responsible manner applied.
can improve their market position and competitive The Norwegian proposal to extend the duty to
ness both at home and abroad. Better reporting on provide information is similar to the legislation
CSR will help to present a more holistic picture of recently enacted in Denmark. The Government
a company’s operations. Good reporting will also assumes that an information requirement relating
improve transparency and enhance the company’s to ethical guidelines will generate more relevant
reputation. information than a requirement relating to factors
The general trend in the EU seems to be to that are necessary in order to understand a com
request companies to disclose which guidelines pany’s development, performance and position.
they use, or to state that they have no guidelines if In practice, a requirement in line with the Bri
that is the case, rather than to make detailed legis tish model might exclude much of the most rele
lative provisions. vant social responsibility information because it
In Denmark, a statutory reporting obligation would not be deemed necessary for an understan
has recently been introduced for the 1 100 largest ding of the development, performance and position
companies and institutional investors. They are of the company’s business. A requirement linked
now obliged to give an account of their social to ethical guidelines could help to create more awa
responsibility policy and how it is implemented in reness in companies of social responsibility in
practice. The companies must state which stan general, while a requirement linked to the signifi
dards, guidelines or principles they follow, and cance for the development, performance and posi
which follow-up systems or procedures they use. tion of a company’s business will primarily enco
They must also give an account of what they have urage companies to consider whether environmen
achieved through their social responsibility efforts tal or social issues have financial implications for
and their expectations of this work in the years the business. Information that is necessary to
ahead. Companies that do not have a policy in this understand the development, performance and
area must say so. This information must be inclu position of a company’s business will have to be
ded in the company’s annual report, which may, provided in any case pursuant to the general provi
where appropriate, refer to information in a sepa sions of the Accounting Act.
rate report or to the company’s website.
The purpose of this legislative provision is to
«encourage companies and investors to look acti Follow-up and evaluation
vely and constructively at how their core compe Practice in Norwegian companies reveals that
tencies match the global challenges they face». there are few companies that currently comply
The obligation to inform is intended to motivate with the Act’s provisions on environmental repor
companies to take a stand on «the international ting. One of the reasons is that the provisions of the
agenda». However, the way in which it meets the Accounting Act are not adequately followed up
challenges and opportunities of globalisation is up with sufficient guidance. In the Government’s
to the company itself. view, the proposal to extend the duty to provide
France has a law (2001) requiring companies to information concerning social responsibility
declare how their foreign subsidiaries comply with should be followed up by the provision of better
the ILO core conventions. Listed companies must guidance and advisory services for the private sec
report on how they address environmental, social tor. The Ministry of Trade and Industry, the
and working environment considerations in Ministry of the Environment and the Ministry of
domestic and foreign operations. Sweden requires Foreign Affairs will contribute to improving such
state-owned companies to use the reporting tem guidance and advice.
plate of the Global Reporting Initiative (GRI). There are plans to conduct an evaluation of the
In the UK, the 2006 Companies Act requires actual status of corporate reporting of social
the annual reports of quoted companies to include responsibility and of whether the tools are ade
information on environmental matters (including
2008– 2009 Report No. 10 to the Storting 91
Corporate social responsibility in a global economy
quate. The evaluation will be initiated within five social responsibility for the largest companies
years. that have an accounting obligation.
business can be said to contravene the OECD Gui outside the Ministry, could enhance its indepen
delines for Multinational Enterprises, the grie dence and legitimacy. This could enable it to play a
vance may be brought before the National Contact more active role in promoting social responsibility
Point (NCP) in the company’s country of registra through information and dialogue and issuing sta
tion, or the NCP in the country where the breach tements in specific instances. An alternative could
occurred if the host country has endorsed the be to strengthen the contact point in its present
OECD Guidelines. Complaints against all Norwe form by increasing its resources and capacity to
gian companies may be brought before the NCP provide information and guidance about the OECD
for the OECD Guidelines. The Guidelines are Guidelines for Multinational Enterprises.
wide-ranging and incorporate human rights, envi The Government will consider various models
ronmental concerns, the ILO core conventions, that could provide a better overview of how the pri
anti-corruption measures and consumer interests. vate sector follows up its social responsibility. In its
Measures for strengthening the Norwegian con assessment, it will examine various models for
tact point’s guidance and information efforts are further strengthening the NCP for the OECD Gui
discussed under 6.1. delines. Strengthening advisory services in rela
It may be relevant to look more closely at the tion to CSR will also be considered. The Govern
NCPs organisation and procedures. NGOs in Nor ment will submit these issues to the involved par
way argue that the contact point should hold ties for consultation before the summer of 2009.
annual meetings with various stakeholders, report
annually to the Storting and make more extensive
use of external advisers. The international network International mechanisms
of civil society organisations, OECD Watch, points There are an increasing number of cases where
to the possibility of setting up an independent companies that are formally or actually based in
panel or consultation group consisting of different countries that do not endorse the OECD Guideli
stakeholders. In the UK, an external board has nes are accused of causing damage even though no
been established, and in the Netherlands the con grievance has been brought by the host country.
tact point has been given a more independent sta International grievance mechanisms can supple
tus. ment NCPs in such cases.
Making the contact point independent with an With regard to working conditions, the ILO has
external leader, and possibly its own secretariat a permanent committee for dealing with disputes.
This committee, the CEACR, has been active since lows up its social responsibility, different ways
1926, and it considered 515 cases in 2007. While of organising advisory services and appropri
clear breaches of the 184 ILO conventions are dealt ate ways of organising the NCP for the OECD
with at conferences of states parties, and occasio Guidelines. A proposal will be submitted for
nally as matters between states, the role of the consultation by the summer of 2009.
CEACR is more that of developing «soft law». The • sees a need for thorough discussions and stu
ILO’s 194 recommendations also serve as guid dies of international grievance mechanisms
ance in disputes. The CEACR reports to the ILO’s and will support initiatives in this field.
general assembly, and in its conclusions it confines
itself to giving advice to the state against which a
grievance has been brought. 8.5 Considerations
There is no corresponding global mechanism
for hearing grievances and issuing recommenda In the Government’s view, the establishment and
tions in cases concerning the environment. In view implementation of a strong international frame
of this, it may be desirable to develop a global sys work would be more expedient than setting up nati
tem that could be applied to all countries and busi onal schemes that would vary from one country to
ness activities regardless of where the companies another and give rise to uncertainty for both the
operate. This could supplement the NCP function business community and society at large. The
in countries that have endorsed the OECD Guide Government will therefore work to further develop
line for Multinational Enterprises. Such a system international frameworks for the private sector
should be based on generally recognised stan rather than developing special Norwegian sche
dards for minimising environmental impact in each mes. The Government will also seek to get more
industry. countries to adhere to international conventions
Norway will discuss with the other Nordic and implement them in national legislation and
countries whether to take an initiative to examine practice.
the possibility of establishing a global mechanism The introduction of special Norwegian legisla
for clarifying facts in cases where companies are tion and provisions for Norwegian companies’ ope
accused of serious breaches of generally accepted rations abroad would raise a number of matters of
environmental practice. Such a mechanism could principle and practical problems. Similar problems
take the form of a panel composed of independent would arise if Norwegian legislation were to be
experts from the research community and the pri made applicable to the operations of Norwegian
vate sector, supported by a secretariat with wide- companies abroad. This also raises a number of
ranging knowledge about the environment and legal considerations and matters of principle, for
business, for example under the UN Environment example with regard to national legislation in host
Programme, UNEP. countries. The fact that many Norwegian compa
In accordance with his renewed mandate, the nies are engaged in ventures in which local compa
UN Secretary-General Special Representative on nies or others may have strong ownership inte
human rights and business will consider national rests is also a factor to be considered.
and international grievance mechanisms for dea As regards the environment, other countries
ling with companies’ violations of human rights. may be facing different climatic and topographical
The Special Representative emphasises the need conditions, which means that Norwegian provi
for thorough evaluations before such a mechanism sions are not automatically transferable. This white
could potentially be introduced. paper therefore discusses several contexts in
The Special Representative’s recommenda which Norwegian companies are expected to aim
tions will be one of the foundations on which the towards best practice in their operations abroad.
Government will base its deliberations on an In the Government’s view it would be most
appropriate organisation of the NCP for the OECD expedient to consider international grievance and
Guidelines. monitoring mechanisms with respect to human
rights and the environment. The NCP for the
OECD Guidelines plays an important role, and the
The Government Government emphasises its significance.
• will consider various models that can provide a
better overview of how the private sector fol
94 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Figure 9.1
Providing knowledge and guidance about corpo cautious about giving any advice that has a direct
rate social responsibility (CSR) is an important bearing on financial decisions.
task for the authorities, social partner organisa The diplomatic and consular missions have an
tions and civil society. The Government will inten important function as door openers to local autho
sify its efforts in this area and emphasises the rities and key local actors. In some situations it will
importance of close cooperation between various be natural to make on-site political visits in order to
actors in order to support companies in their promote Norwegian economic interests and sup
efforts. port CSR initiatives by Norwegian companies. In
Most of the Norwegian private sector consists many cases this may be decisive in terms of gai
of small and medium-sized enterprises. Small ning access to the market. When Norwegian aut
enterprises often have neither the resources nor horities back the activities and interests of Norwe
the competence to work as systematically and tho gian companies in this way, they do so on the
roughly on CSR as larger ones. The Government assumption that the companies will conduct
will make active use of the instruments at its dispo themselves decently and comply with international
sal to communicate information and provide guid guidelines for social responsibility.
ance to small and medium-sized enterprises. CSR In addition to assistance with purely commer
will increasingly be a criterion for receiving fun cial or financial aspects, companies can also obtain
ding and other services. information about social and environmental condi
tions. The diplomatic and consular missions and
Innovation Norway’s offices abroad can provide
9.1 Public instruments targeting the information about public institutions and relevant
private sector legislation in the host countries. They can also
advise on how to establish contact with national
The Foreign Service and local authorities and potential local partners.
The missions can organise seminars and confe
In connection with their international operations, rences about relevant issues for Norwegian com
companies frequently contact the Foreign Service panies seeking knowledge regarding local condi
for information about local conditions. This can be tions. On request, they can also assist companies
particularly important to companies operating in or industries in gaining better insight into their
countries where there is significant economic or supply chains. Companies can use the diplomatic
political risk. The Ministry of Foreign Affairs can and consular missions as dialogue partners when
provide information and guidance, but is in general dealing with challenges and dilemmas.
2008– 2009 Report No. 10 to the Storting 95
Corporate social responsibility in a global economy
bat corruption. It has drawn up guidelines for nati way. In recent years, the OECD has been increas
onal and international advisory services in which ingly concerned with reaching agreement on com
CSR is an important element. A special CSR mon anti-corruption and environmental guidelines.
module has also been developed and included in Norway has been actively engaged in this work.
the company’s competence-building services. GIEK and Eksportfinans cooperate closely on Nor
Internally, dilemma training is used to increase wegian implementation of the OECD guidelines
knowledge and awareness about corruption. Inno for export credits and go somewhat further than
vation Norway’s sustainability reporting is in the OECD minimum requirements in that they
accordance with the Global Reporting Initiative also evaluate maritime matters and minor matters.
(GRI) standard, and it is also certified in accor The OECD Environmental Guidelines have
dance with the Norwegian «Eco-lighthouse» envi been broadened in that they now also refer to the
ronmental certification system. moving of people and the effects on vulnerable or
ethnic groups and cultural heritage in addition to
impacts on the natural environment. In 2007, wor
The Government king conditions were also incorporated into the
• will initiate efforts to improve CSR perfor guidelines through the reference in the agreement
mance in small and medium-sized enterprises. to the International Finance Corporation (IFC)
The responsibility for this will lie with the Performance Standard 2 (Labour and Working
Ministry of Trade and Industry, in consultation Conditions), which, in turn, refers to the ILO con
with other actors; ventions. In general, the OECD Environmental
• will establish a web-based overview of informa Guidelines refer to international environmental
tion and expertise regarding CSR prepared by and social responsibility standards such as the
authorities and organisations. The responsibi World Bank Safeguard Policies, and the IFC Per
lity for this will lie with the Ministry of Trade formance Standards.
and Industry; So far, the revised guidelines of 2007 have
• will strengthen the efforts of the diplomatic shown that practical implementation of more wide-
and consular missions and Innovation Norway ranging social responsibility, in particular the ILO
to provide information, guidance and dilemma conventions, is challenging. Implementation will
training; be a trial and error process and will be further
• will require funding agencies to evaluate com discussed in the light of the export credit agencies’
panies’ CSR performance in connection with experience. The guidelines will be revised again in
advisory services and financial support. 2010.
It is still unclear how the various export credit
agencies view standards for working conditions,
The Norwegian Guarantee Institute for Export and meetings in the OECD have revealed great
Credits (GIEK) and Eksportfinans ASA divergence as regards interpretation and imple
GIEK is a central governmental agency offering mentation. The best way to implement the require
long-term guarantees for export credits tailored to ments in practice will be a topic for future discus
the needs of Norwegian export companies for risk sions.
coverage. GIEK’s clients export capital goods to Efforts are also being made through the OECD
countries all over the world. Most of the portfolio to involve export credit institutions in countries
relates to the maritime sector and oil and gas. Eks outside the OECD, such as China, India, Brazil and
portfinans administers the «108 scheme» of fixed South Africa, in CSR efforts. The goal is thereby to
interest (CIRR) loans to foreign buyers of Norwe enhance awareness and understanding of the
gian capital goods. OECD Environmental Guidelines.
Together, GIEK’s guarantees and the 108 GIEK is in dialogue with its Nordic counter
scheme administered by Eksportfinans constitute parts about ways of improving CSR efforts, inclu
Norway’s officially supported export financing. It ding whether membership of the UN Global Com
is regulated by the OECD «Arrangement on Offici pact would be advisable.
ally Supported Export Credits». The Government is concerned that different
Social responsibility is becoming an increas countries should be able to compete on equal
ingly important issue in GIEK and Eksportfinans. terms, and this is also the main rationale for inter
Many of their commitments concern exports to or national agreements on export financing. It would
investments in countries whose social and environ be a significant advantage if all export credit agen
mental standards differ from those applied in Nor cies were to implement the same guidelines and, as
2008– 2009 Report No. 10 to the Storting 97
Corporate social responsibility in a global economy
far as possible, have the same procedures and des support to companies that establish trade rela
interpretation of the regulations. tions with and import from developing countries.
The Government is also interested in having Norad administers grant schemes aimed at
guidelines that are possible to realise in practice, strengthening civil society. Norad’s guidelines for
so that actions can reflect policy. The OECD is the grants to civil society contain provisions that
most important forum for institutions such as encompass social responsibility. They apply in par
GIEK and Eksportfinans as regards developing ticular to the natural environment and human
common, realistic rules. The Government attaches rights, including the rights of workers, children,
great importance to this work in the OECD and the disabled, indigenous peoples and minorities.
wants Norway to be a driving force for increased There is now greater emphasis on effective aid,
efforts by export credit institutions to promote results and combating corruption in the dialogue
social responsibility. with civil society organisations.
institutions that are set up in the countries concer fund, and therefore also one of the development
ned. Norfund helps to lower the threshold for Nor effects of the investments.
wegian companies that are considering investing
in developing countries. Its portfolio, which ranges
from microfinance to renewable energy, local The Government
banks and fish farms, shows that it is possible to • wants Norfund to invest in profitable enterpri
make profitable investments in challenging mar ses that also promote development goals and
kets. Norfund gives priority to investments in the improve environmental and social conditions;
least developed countries (LDCs), particularly in • requests Norfund to exert its influence acti
Africa, and it promotes public-private partnerships vely through directorships and investment
on investments in clean energy. The largest single positions in order to improve working condi
investment is a joint venture with Statkraft in the tions and social responsibility in the projects in
energy company SN Power. which the fund invests;
Good corporate governance and zero-tolerance • calls on Norfund to play a leading role in
of corruption are central to Norfund’s investments. attracting more private investors in order to
This is essential as the majority of the Norfund raise capital for economic development and
investments are in countries that are struggling employment in poor countries;
with corruption and illegal capital flight, inade • encourages Norfund to make renewable
quate legislation and institutions, poorly developed energy a cornerstone of its portfolio.
and monopolised markets, poor infrastructure and
unpredictable governance. There may also be poli
tical unrest and a risk of extreme situations such as 9.2 Social partner organisations
civil war and expropriation. This calls for effective
awareness-raising among local company mana Social partner organisations have engaged in vari
gers, fund managers, partners and co-investors ous areas of national and international work on
about acceptable business practice, as well as focus social responsibility. They have been driving forces
on the environment and social conditions, the qua in the development of guidelines and principles for
lity of contracts and reporting procedures. social responsibility, and they participate actively
Positions on companies’ boards give Norfund in international forums. The organisations are wor
an opportunity to ensure that progress is made in king to strengthen independent sister organisa
companies’ efforts regarding environmental stan tions in partner countries. They play a central role
dards and social conditions. in the provision of information and guidance about
Like its sister organisations, Norfund makes CSR.
investments in various ways. It invests in funds and
individual companies, in addition to its banking
activities. The possibility of controlling HSE condi The Confederation of Norwegian Enterprise (NHO)
tions and actively contributing to improvement NHO’s work on CSR is grounded in a long tradition
varies from one business area to another. Nor of collaboration with trade unions and efforts to
fund’s responsibility and influence is greatest in improve working conditions and ensure that com
relation to direct investments. Norfund’s holdings panies take responsibility for the natural environ
in funds vary from single units of just two or three ment. In matters concerning the natural environ
per cent of the total capital to interests in fund ment, NHO has been active in the promotion of
management companies and lead-investor posi non-financial reporting and environmental stan
tions in the funds. Microfinance is an example of an dards. As an employers’ association, NHO was
investment where it is difficult to ensure that the quick to demonstrate how companies can take
standards are followed all the way to the end user. responsibility for human rights, and the confedera
Norfund can also invest in companies that do tion has been a driving force in Norway in its mem
not meet the most stringent environmental and ber companies’ work to promote social responsibi
social requirements since bringing companies with lity and combat corruption.
an acceptable starting point up to international NHO participates in international forums rela
standard has a substantial development effect. ting to CSR, including through membership and
This also applies to corporate governance. In such involvement in the UN Global Compact, the World
cases, an improvement programme is a central Business Council for Sustainable Development,
part of the contract between the company and Nor- the International Organisation of Employers,
2008– 2009 Report No. 10 to the Storting 99
Corporate social responsibility in a global economy
Figure 9.2 Young boys and men working as shipbreakers on a beach in Bangladesh.
Photo: Corbis/Scanpix.
ners’ Association. As well as its recruitment cam The Norwegian Forum for environment and
paigns in Norway, the association currently runs development (ForUM) is a network of more than 50
training projects in collaboration with local educa NGOs. The main objective of ForUM’s working
tional institutions in the Philippines, China, Russia, group on CSR is to support and promote national
Brazil and Vietnam. The association is also consi and global binding agreements on CSR and ethical
dering setting up a centre of excellence in West capital management. Among other things, ForUM
Africa. has issued recommendations concerning invest
The association has intensified its CSR informa ments and public ownership in a collection of arti
tion and awareness-raising efforts vis-à-vis its cles entitled Næringslivets samfunnsansvar – hvil
members. Among other things, it has collaborated ken rolle kan og bør norske myndigheter spille?
with Det Norske Veritas and issued a guide that (Social responsibility in the private sector – what
concretises CSR in the shipping industry. It has role could and should Norwegian authorities
also produced a members’ anti-corruption guide, play»)
containing general advice, examples of recommen Amnesty International Norway endeavours to
ded guidelines and an ethics test. ensure that the private sector fulfils its social
responsibility, with the main emphasis on human
rights. The organisation works to influence inter
The Government national and supranational bodies, national authori
• urges social partner organisations to assist ties and organisations, and it also targets compa
companies in competence-building and nies directly. Amnesty also utilises various met
dilemma training; hods to hold accountable and influence authorities
• encourages industry-specific exchange of and the private sector, ranging from campaigns
experience and development of guidance on and lobbying to dialogue and cooperation.
social responsibility; Norwegian Church Aid is a co-founder and
• will cooperate with the social partners on the board member of Fairtrade Max Havelaar, The
exchange of information and experience. Ethical Trading Initiative Norway and Publish
What You Pay (PWYP) Norway. The organisation
emphasises companies’ independent duty to
9.3 Non-governmental organizations respect and actively promote human rights and
sustainable development as expressed in internati
Non-governmental organisations (NGOs) play a onal conventions. It also believes that knowledge
key role in the promotion of socially responsible about and familiarity with actual conditions and
behaviour in companies. They act as drivers and rights, and the will to use such knowledge, is an
watch-dogs in relation to various issues and sec important prerequisite for responsible business.
tors. They are engaged in the prevention of human Transparency International (TI) Norway is a
rights violations in companies’ work and pro driving force behind efforts to combat corruption.
duction, protecting the environment, ensuring bet TI urges the authorities to implement effective
ter management of natural resources, and preven legislation and policies against corruption, to
ting and exposing corruption. They are often increase awareness of corruption and promote
important partners for companies in connection transparency in international business transac
with projects and training in developing countries. tions. TI cooperates with sister organisations in
The NGOs disseminate information about several African countries on projects to advance
rights, targeting employees, employers and the transparency, anti-corruption measures and ethical
local population. They influence and cooperate business conduct. The «Business Principles for
with local and central authorities to improve or Combating Bribery» is an important tool develo
establish adequate legislation and frameworks. ped by TI in cooperation with the international pri
They also offer services not provided by other vate sector to prevent bribery in the private sector.
actors. TI has also compiled a user guide showing how the
NGOs are important spokespersons for local OECD Guidelines for Multinational Enterprises
stakeholders, ensuring that their needs and views can be applied in combating corruption.
are communicated to national and international Publish What You Pay Norway (PWYP Norway)
decision makers. The media also have an impor is the Norwegian chapter of an international civil
tant role to play in ensuring that matters raised by society coalition mobilising around 400 organisa
NGOs gain more widespread attention. tions from about 70 countries in promoting trans
parency, accountability and the mandatory dis
102 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
closure of payments, receipts and allocations of for the period 2006–2008. The programme was allo
revenues from oil, gas and mining. cated a financial framework of NOK 7.5 million for
Future in Our Hands works to promote envi the whole period, and funds were granted to three
ronmental responsibility, equitable global benefit projects. The evaluations and recommendations of
sharing and ethical business. It runs Norwatch, a the working group are still relevant, and they
journalistic news service that monitors Norwegian should continue to be an important basis for
businesses in poor countries. further Norwegian research in the field.
WWF Norway (World Wide Fund for Nature) The working group recommended setting up a
cooperates with a number of industries, companies research programme concentrating on the role of
and authorities to identify challenges and propose businesses in vulnerable communities where there
solutions for ways in which natural resource mana is a considerable potential for exerting influence
gement, production, technology and trade can con and the need for social responsibility is most
tribute to more equitable growth with a smaller urgent and challenging. The group recommended
ecological footprint. The WWF runs campaigns five priority areas:
against illegal fishing and overfishing, and it coope – CSR and the fight against poverty;
rates with companies and authorities on innovation – The development of democracy and good
and the development of sustainable markets and governance – corporate responsibility and legi
products that demonstrate that this is possible. timate freedom of action;
The WWF promotes the Stewardship Council and – Mechanisms for access, disclosure and acco
the Forest Stewardship Council certification sche untability;
mes. – Ethical capital management;
– The role of Norwegian authorities: policy
making and institutional instruments.
The Government
• emphasises the importance of NGOs as drivers In addition to these areas, research relating to
and monitors in relation to CSR, both in inter responses by the private sector and individual com
national processes and vis-à-vis companies and panies to climate challenges has become one of the
authorities; main constituents of the CSR debate. In the
• regards NGOs as important partners in both Government’s view, these areas remain important
national and international processes and in subjects for research. The need for more know
project work. ledge about corporate responsibility and conduct
in conflict zones and areas with particular challen
ges relating to human rights and weak governance
9.4 Research and education is closely linked to the aforementioned topics.
Legal research can further elucidate issues such as
The private sector, the authorities and public opi the scope of «complicity» in violations of internati
nion need knowledge and empirical information onal humanitarian law and human rights.
about CSR. Strengthening the knowledge base in CSR is a relatively small field of research, both
this area will necessarily involve research and the nationally and internationally, so the amount of
integration of the discipline into higher education research-based knowledge is limited. Much of the
and further and continuing education. empirical knowledge in the field resides with pri
vate enterprises and consultancies. The research is
often initiated and funded by various special inte
9.4.1 The need for research rest groups (companies, other commercial actors,
Research is an important source of objective and ministries and their administrative agencies and
legitimate knowledge about the effects of CSR. NGOs).
There is a need for research on methods for mea For Norwegian companies and authorities, it is
suring the socio-economic effects of companies’ important to find proficient Norwegian research
operations and methods for ensuring CSR. Rese environments in this field. The peculiarities of Nor
arch can also help identify instruments for stimula wegian society and Norwegian companies mean
ting the private sector to more actively exercise that international research findings are not always
social responsibility. directly applicable to Norwegian conditions. Rese
A report prepared in 2003 by a working group arch into the conduct and experience of Norwe
under the Research Council of Norway resulted in gian companies may also be of international inte
a dedicated Research Council programme for CSR rest, both because Norwegian companies come in
2008– 2009 Report No. 10 to the Storting 103
Corporate social responsibility in a global economy
part from a different social tradition from that of • urges Norwegian educational institutions to
many of their competitors and partners abroad, include CSR in relevant educational program
and also because several Norwegian companies mes.
have come relatively far in the area.
The Government is positive towards the increa
sed interest in CSR shown in research environ 9.5 Dialogue and exchange of
ments. It is also important to develop environ experience
ments with sufficient activity to ensure professio
nal depth and breadth. This will make it possible to The private sector, the authorities and civil society
manage and further develop the knowledge base. have different roles but a clear common interest in
In this context, it is important that Norwegian rese promoting social responsibility. Dialogue and
arch environments participate in international exchange of experience will enable the various
research networks and obtain funding from inter actors to come together to improve practice in the
national sources, such as the EU’s 7th framework area of CSR. There is a need for reflection and
programme. debate about the challenges and dilemmas facing
companies, the authorities and NGOs in relation to
international activities.
9.4.2 Social responsibility and education Norway participates actively in a number of
Integrating the CSR perspective into business-rela multi-stakeholder initiatives for social responsibi
ted higher education is essential in order to lity and transparency. Experience of what works
enhance knowledge about the issue among future and how to organise various initiatives can be use
managers and implementers of CSR in Norwegian ful in strengthening ongoing processes and develo
companies. It is important that educational institu ping new ones. This applies to participation in and
tions develop further and continuing education support for the UN Global Compact, the Voluntary
programmes in which CSR is an integral element. Principles for Security and Human Rights, the
It should also be a central component of educatio ongoing UN process on business and human
nal programmes in management and management rights and the Extractives Industries Transparency
development. Initiative (EITI). The Government will build on
In the Government’s view, it is important for experience from the various initiatives when asses
educational institutions to collaborate with the pri sing other partnership models for social responsi
vate sector when drawing up their CSR program bility and transparency in different industries. This
mes. This will help to ensure that the programmes will be a topic for discussion in KOMpakt and other
meet the private sector’s actual needs and allows forums in which the authorities participate.
for individual companies’ experience to be inclu
ded in the teaching. The quality of the teaching at
these institutions will be improved if they also KOMpakt – Consultative Body for Corporate Social
carry out their own research in the field and parti Responsibility
cipate in national and international knowledge and KOMpakt was established as early as 1998 as the
research networks. Government’s Consultative Body for Human
Several universities and university colleges cur Rights and Norwegian Economic Involvement
rently include CSR modules in their Bachelor and Abroad. In 2006, its mandate was modified to
Master’s degree programmes in economics and include more aspects of CSR. Through the early
business studies, technology subjects and other establishment of KOMpakt, Norway has in many
business-related subjects. The Government enco respects been a pioneer in the promotion of dialo
urages all relevant educational institutions to gue and exchange of experience regarding CSR.
include the subject in their study programmes. KOMpakt was established before the UN Global
Compact was founded, which was in 2000.
KOMpakt’s overriding goal is to improve the
The Government Norwegian authorities’ decision-making basis. It
• urges the Research Council of Norway to conti also facilitates the exchange of information bet
nue and strengthen its programme for the fun ween Norwegian stakeholders. The dialogue wit
ding of CSR-related research; hin KOMpakt is also intended to increase motiva
• encourages Norwegian research environ tion for exercising CSR. The dissemination of infor
ments to join international CSR networks and mation about international social responsibility
apply for funding from international sources; frameworks is a priority task. It was in KOMpakt
104 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
Box 9.4 Members of KOMpakt (The Government Consultative Body for Corporate Social
Responsibility)
Amnesty International Norad – Norwegian Agency for Development
Centre for Development and the Environment cooperation
(SUM) Norfund – Norwegian Fund for Investments in
Chr. Michelsen Institute Developing Countries
Confederation of Norwegian Enterprise (NHO) Norske Skogindustrier ASA
Confederation of Vocational Unions (YS) Norsk Hydro ASA
Det Norske Veritas Norwegian Centre for Human Rights (Univer
DNB Nor ASA sity of Oslo)
Ethical Trading Initiative Norwegian Confederation of Trade Unions
Federation of Norwegian Commercial and (LO)
Service Enterprises (HSH) Norwegian Church Aid
Innovation Norway Norwegian Helsinki Committee
INTSOK (Norwegian Oil and Gas Partners) Norwegian P.E.N.
KLP Kapitalforvaltning ASA Norwegian People’s Aid
Mellomkirkelig Råd (Church of Norway Coun Norwegian Red Cross
cil on Ecumenical and International Relations) Norwegian Shipowners’ Association
Ministry of Children and Equality Orkla ASA
Ministry of the Environment Research Council of Norway
Ministry of Finance Royal Norwegian Society for Development
Ministry of Foreign Affairs SN-Power AS
Ministry of Labour and Social Inclusion StatoilHydro ASA
Ministry of Petroleum and Energy Storebrand ASA
Ministry of Trade and Industry Telenor ASA
Transparency International Norway
that the Norwegian approach to corporate social The Ministry of Foreign Affairs has held a
responsibility was first formulated, in a working number of meetings on CSR with key actors. In
group report entitled «Sosialt ansvarlige bedrifter» February 2008, a dialogue meeting was held on
(Socially Responsible Companies) (2000). human rights and business in which the Norwe
In March 2008, a separate working group under gian Minister of Foreign Affairs, the Special Repre
KOMpakt published a report on small companies sentative of the UN Secretary-General on human
and social responsibility. The report includes an rights and business, and 10 Norwegian business
overview of the expertise and tools available to
Norwegian authorities, organisations and compa
nies. The report also makes recommendations for
further initiatives in relation to smaller companies.
A working group has also looked more closely at
greener supply chains, cf. chapter 3.4.3.
leaders participated. Meetings in KOMpakt with Global Compact and the OECD Guidelines for
NHO’s network for CSR and sustainability, the Multinational Enterprises will be central.
trade union movement and central participants • will take steps to make KOMpakt an arena for
from civil society have also made valuable contri exchanging experience and highlighting
butions to the authorities’ work on CSR. examples of best practice;
• will use KOMpakt to further develop policy
and governance regarding CSR;
The Government • will create new forums for discussing challen
• will use KOMpakt to discuss key questions con ges and opportunities facing Norwegian com
cerning social responsibility. Factors relating to panies in relevant markets.
the implementation of the principles of the UN
106 Report No. 10 to the Storting 2008– 2009
Corporate social responsibility in a global economy
This white paper provides an account of the are uncertain, various stakeholders are increas-
Government’s efforts to strengthen international ingly expressing similar expectations. Companies
frameworks that raise minimum standards for cor- that actively exercise social responsibility can the-
porate social responsibility (CSR). The Govern- refore strengthen their competitiveness and
ment intends to play a proactive role in efforts in enhance their reputation, whereas those who fail to
the UN and the OECD to develop guidelines and do so may find that this has negative consequences
processes that promote CSR. for their access to capital, value creation and recru-
The white paper provides an overview of the itment. On the other hand, corporate responsibility
authorities’ expectations of the private sector in may entail new costs for companies, particularly if
terms of social responsibility. However, the autho- they are not already engaged in systematic CSR
rities and the public sector also have responsibility efforts.
for maintaining high ethical standards in their own An extension of the duty to provide information
activities. The authorities play an important role as set out in the Accounting Act to include informa-
owner, investor and purchaser. Companies with tion on social responsibility, which the Govern-
state ownership are required and expected to ment intends to propose, would not in itself neces-
observe high standards of social responsibility, as sarily involve any significant costs for the compa-
are the authorities in managing the assets of the nies concerned. Internal measures and procedures
Government Pension Fund and in their procure- introduced by companies to follow this up could,
ment policy. however, entail additional costs.
The white paper also discusses how the autho-
rities will provide improved guidance and advisory
services concerning CSR. This will be followed up The Ministry of Foreign Affairs
by the Ministry of Foreign Affairs in cooperation
with other ministries and the social partners, and hereby recomends:
in contact with NGOs. These and other measures
outlined in the white paper will be covered by the that the recommendation from the Ministry of
budgets of the ministries concerned. Foreign Affairs concerning corporate social
The Government expects all companies to acti- responsibility in a global economy dated 23 Janu-
vely exercise social responsibility. Although the ary 2009 should be submitted to the Storting.
financial consequences of this for the companies
2008– 2009 Report No. 10 to the Storting 107
Corporate social responsibility in a global economy
Annex 1
Published by:
www.government.no
in a global economy
Cover illustration: Torbjørn Vagstein
Printed by:
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