Case: Policy coherence in general

21-10-2010 The EP on CSR in International Trade Agreements

The topic of Corporate Social Responsibility (CSR) was raised in the 1990s when scandals of horrible working conditions in plants owned by Multinational Corporations (MNCs) in developing countries made headlines in the media. Companies causing these scandals saw the negative impact on their revenues and quickly adopted CSR programmes. In the following years many small and big companies were to follow, yet too often the working conditions have not improved.

In 2010 the Commission renewed its commitment to CSR. This was reason for MEP Harlem Désir (S&D) to write a report on CSR in international trade agreements on behalf of the International Trade Committee in the European Parliament (EP). In his report Désir urges for more international market regulation, to make sure everyone is to benefit. Since international trade is governed via agreements between different countries and also intergovernmental organisations like the EU, CSR should be promoted within the institutional settings of individual countries and intergovernmental organisations. Most of the EUs international trade agreements already have chapters on social and environmental concerns, but separate clauses on CSR would encourage companies not only to act in a sustainable way, but also to look for ways to contribute to the local society. Désir also states that the European trade policy should be in line with its other external EU policies. Being part of the EU's external policy, development policy should be taken into account as well.  

Fair Politics agrees with Harlem Désir that coherence is necessary in trade agreements to foster development for all. Trade should not only be about the economic profit for companies. However CSR remains a voluntary tool. The Commission specifically mentions this in their definition of CSR.  The result is that the concept only exist in words, but is not effectively implemented in developing countries. The human rights of workers affected by EU trade policies, are not yet safeguarded enough by EU policies. This should be the case since Policy Coherence for Development (PCD) has a legal status in the Treaty of Lisbon under article 21 and 208. Which states that there should be consistency in policies towards thirds countries. 

For his concerns expressed in the report on CSR in international trade agreements, Fair Politics recognises Harlem Désir (S&D) as Fair Politician. For this contribution to the debate on CSR in the EP he earns two points in our monitoring system. 

Monitor fair: S&D(2)