A
social charter refers to either a declaration of principles by a firm or group of firms, also known as a code of conduct, or an international document, such as the European Social Charter.
Social Charters and Codes of Conduct as a Tool for Corporate Social Responsibility
Many multinational corporations have implemented voluntary
social charters or codes of conduct as a means of ensuring corporate social responsibility. These
charters apply not only to personnel working directly for the corporation, but also to suppliers, who are obliged to sign the charter.
On the private level,
social charters resemble marketing tools that give large corporations a more ethical image. They are not enforced by concrete sanctions and often reiterate national labour legislation. This practise has therefore generated criticism.
At the International Level
A
social charter typically refers to a stand-alone agreement between nations or firms, rather than a clause or document related to a specific trade agreement. Its purpose is to commit signatory parties to a minimum standard of worker rights, thereby avoiding worker exploitation as a means of creating a competitive advantage. It addresses fundamental worker rights such as labour and workplace rights, rights to healthcare and education.
Signatory parties that do not fulfil their social obligations may be sanctioned in several different ways. Non-observance penalties may be commercial, political or moral. If non-compliance entails economic penalties, the
social charter may operate as a social clause (a legally binding clause found in some trade agreements).
The Social Charter in Europe
On March 15, 1989, the European Parliament adopted a resolution on "the social dimension of the single market." It called for the adoption at the Community level of fundamental social rights which could be used as the basis for dialogue between management and labour. On December 9, 1989, at the Strasbourg Summit, the Heads of State or Government of 11 Member States adopted, in the form of a declaration, the text of the Community Charter of Fundamental Social Rights for Workers. It was not signed by the United Kingdom until 1998, following Tony Blair's election.
The European
Social Charter "establishes the major principles on which the European labour law model is based and, more generally, the role of work in society. It includes the following headings:
- Freedom of movement;
- Employment and remuneration;
- Improvement of living and working conditions;
- Social protection;
- Freedom of association and collective bargaining;
- Vocational training;
- Equal treatment for men and women;
- Information, consultation and participation of workers;
- Health protection and safety at the workplace;
- Protection of children and adolescents;
- Elderly persons;
- Disabled persons."
(Europa,
Social Charter, 2005, visited 2009-08-02)
A Social Charter for the Americas?
In 1992, then-presidential candidate Bill Clinton advocated that a strong
social charter to protect labour and environmental rights be included in the North American Free Trade Agreement (NAFTA). The result was the Inter-American Democratic Charter of 2001, a document not unlike a
social charter which aims to protect social, cultural and economic rights through the use and protection of the democratic system.
In 2004, to further encourage social dialogue in the Americas, Venezuelan President Hugo Chavez recommended that the Organization of American States (OAS) pass a resolution to begin drafting a
Social Charter of the Americas. This charter would effectively reinforce previous commitments concerning the protection of human rights and democracy while continuing the fight against poverty. The drafting of this document is currently being undertaken by the OAS.
The UN Global Compact
Often considered to be the
social charter of the UN, the Global Compact details ten universal principles concerning human rights, labour, and the environment. However, the Global Compact is a voluntary initiative based on corporate citizenship, not a binding treaty; therefore, in the case of non-compliance, firms may be excluded from the network of signatory firms but no direct economic sanctions apply.
Debate
"Many consumer, labor, and environmental protection groups now advocate that
social charters protecting worker rights should be part of all trade agreements."
(Cavanagh, J. and E. Leaver,
Controlling Transnational Corporations,
Foreign Policy in Focus, 1,6, November 1996, visited 2010-08-02)
"Opponents of an international
social charter argue that harmonization is an unnecessary and counterproductive interference on the workings of what should otherwise be a liberalized system of free trade in goods and services. Proponents of multilateral policy harmonization argue that in the absence of global standards, the increasing mobility of capital facilitates a race to the bottom of social policies."
(Gomez, R.,
Globalization and labor standards: multilateral worker protection in an era of ‘footloose' capital,
Centre for International Studies Working Paper 4, University of Toronto, 1998, visited 2010-08-08)
