CORPORATE SOCIAL RESPONSIBILITY THROUGH CODES OF CONDUCT IN THE TEXTILE AND CLOTHING SECTOR*

Mina Kaway **

*Paper prepared at the Graduate Institute of International and Development Studies (IHEID) for Prof. Eric Gravel's Droit International du Travail course. Geneva, spring 2009. **Lawyer at Mello, Kaway, Zilli, Schmidt & Prado Associates. Master in International Law at the Graduate Institute of International and Development Studies IHEID, Geneva, Switzerland (2010). Bachelor in Law at Santa Catarina Federal University UFSC, Florianpolis, Brazil (2007).

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector

CONTENT
1.CORPORATE SOCIAL RESPONSIBILITY: AN INTRODUCTION TEXTILE AND CLOTHING INDUSTRY 4 5

DEFINITION OF THE TEXTILE AND CLOTHING SECTOR................................................................................................... 5 CODES OF CONDUCT FOR MULTINATIONALS ENTERPRISES 8

INTRODUCTION......................................................................................................................................................... 8 LEGAL NATURE........................................................................................................................................................ 9 CONTENT............................................................................................................................................................... 10 IMPLEMENTATION AND MONITORING........................................................................................................................ 11 INTERGOVERNMENTAL INITIATIVES 13

THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT OECD.......................................................13 THE OECD GUIDELINES FOR MULTINATIONALS ENTERPRISES...................................................................................................14 UN GLOBAL COMPACT........................................................................................................................................... 17 INTERNATIONAL LABOR ORGANIZATION ILO......................................................................................................... 18 PRIVATE INITIATIVES 20

CORPORATE CODES OF CONDUCT............................................................................................................................. 21 EURATEX CODE................................................................................................................................................ 23 CLEAN CLOTHES CAMPAIGN..................................................................................................................................... 24 ETHICAL TRADE INITIATIVE.................................................................................................................................... 25 SOCIAL ACCOUNTABILITY INTERNATIONAL SA 8000.............................................................................................25 AMERICAN APPAREL INDUSTRY PARTNERSHIPS AGREEMENT......................................................................................26 SOCIALLY RESPONSIBLE INVESTMENT CONCLUSIONS BIBLIOGRAPHY 27 29 31

SCHOLARLY AND INSTITUTIONAL WORKS.................................................................................................................. 31 CODES AND CONVENTIONS....................................................................................................................................... 32 WEBSITES............................................................................................................................................................. 33

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 3 Sector

LIST OF ABBREVIATIONS
AIP CC CCC CSR EC ESG ETI ETUF:TCL EU EURATEX FLA ISO MNE NCP NGO OECD PRI PWC SA8000 SAI TC UN UNGC VPI Apparel Industry Partnership Codes of Conduct Clean Clothes Campaign Corporate Social Responsibility European Commission Environmental, Social and Governance Ethical Trading Initiative
European Trade Unions Federation Textile, Clothing and Leather

European Union European Apparel and Textile Organization Fair Labor Association International Standard Organization Multinational Enterprise National Contact Point Non Governmental Organization
Organization for Economic Co-operation and Development

Principles for Responsible Investment PricewaterhouseCoopers Social Accountability 8000 Social Accountability International Textile and Clothing United Nations United Nations Global Compact Voluntary Private Initiatives

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 4 Sector

Corporate Social Responsibility: an introduction

The idea of a Corporate Social Responsibility (CSR) is not new, in fact, it is considered to be as old as business itself. For instance, campaigns to emancipate slaves in the 18 th and 19th centuries can easily be considered as calls for a social and moral responsibility of commercial actors1. Thus, though the idea of a CSR is no novelty, the transformation of it in a field of study is recent and it is still under formation. For this reason, it is no surprise that there is no consensus when it comes to defining what is CSR, its contents, and consequences 2. A Green Paper3 from the European Commission (EC) on Corporate Social Responsibility defines CSR as: a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The phenomenon of globalization is regarded as one of the key factors in the development of corporate social responsibility and more specifically of voluntary initiatives, i.e. codes of conduct. The advantages of globalization to the enterprises, such as the enlargement of connections between regions and increased possibilities of markets, have also brought an implied obligation of a responsible conduct by enterprises to the public. In this sense, CSR, in the form of public and private voluntary initiatives, is a sort of response to this obligation4. Furthermore, CSR has an internal and external dimension. That is, internally CSR affects employees and shareholders, but CSR goes beyond the companys door, and also extends to suppliers, costumers, community and environment 5. Thus, codes of conducts can exercise a significant role for business. The ILO, the UN and the OECD have all established public instruments aiming to provide standards and guidelines for companies wishing to adopt a more responsible conduct. Private initiatives are manifested through codes of conducts adopted by a company.
1

MUCHLINSKI, Peter. Multinationals enterprises and the law. 2nd ed. Oxford University Press: 2007. 2 CRANE, Andrew, et al. Corporate Social Responsibility. Oxford University Press, 2008. 3 EC Green Paper COM(2001)366, July 18 2001. 4 OECD. Responsabilit des enterprises: initiatives prives et objectifs publics. Paris, 2001. 5 Ibid footnote 3.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 5 Sector These codes aim at establishing a compromise of the company in adopting certain conducts regarding labor, environment, corruption, health and safety, among others. The issues covered by a code of conduct will depend mainly on which industry sector the company is inserted, its geographical location and public demand. According to a study made by the OECD in 2001 6, voluntary initiatives are a global tendency and have been increasing each year. In addition, despite the inexistence of a consensus regarding exactly which issues have to be covered and how they should be covered, voluntary initiatives are considered as a first step in the elaboration of common group of norms of conducts for enterprises. a

Textile and Clothing Industry

It is within the Textile and Clothing Industry (TC) that Codes of Conduct are more numerous, therefore it is important to understand what is this sector and why is it relevant to the study of Codes of Conduct.

Definition of the Textile and Clothing Sector

The TC sector is one of the oldest sectors in the industrial development, and it is often referred to as the traditional industry. In addition, it is a very diverse and This heterogeneous sector, where its products are used by virtually everybody. industries:7: Treatment of raw materials, that is to say, the preparation of production of various textile fibers (natural or man-made) and manufacture of yarns; -Natural fibers include, among others, cotton, wool, silk, flax and jute. -Man-made fibers include, among others, cellulosic fibers (viscose), synthetic fibers (polyester, nylon, acrylic etc), and fibers from inorganic materials (glass, metal, carbon or ceramic).
6 7

diversity can be demonstrated by the vast activities and products comprised by the TC

Production of knitted and woven fabrics (knitting and weaving);

Ibid., footnote 3. European Commission Report Textile and clothing industry in the EU: a survey of July 2001, Enterprise Paper n 2-2001. (http://ec.europa.eu/enterprise/library/enterprise-papers/paper2.htm)

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 6 Sector Finishing activities, which give fabrics the visual, physical and aesthetic properties such as bleaching, printing, dyeing, coating, plasticizing, etc; Transformation of those fabrics into products such as: garments, knitted or woven; carpets and other textile floor covering; home textiles (i.e: bed line, table linen, toilet linen, curtains etc); technical or industrial textiles 8 The TC industry is a very global and competitive sector, and therefore it is greatly affected by the globalization. One of the effects of the globalization in the TC sector is the complex subcontracting system in which one of the main features is the outsourcing of labor-intensive activities to developing countries 9. The European Union, for instance, describes this outsourcing of labor as a part of the modernization and restructuring process its industries had to go through due to the globalization of the TC sector and its increased competitiveness:
Globalization and ongoing liberalization expose EU industry to ever more competition from a large number of low-labour cost countries
8

Technical textiles include: In the earthworks sector: linings, netting, insulation, artificial grass (geotextiles) for the use in construction companies for roads, water engineering, soil stabilization, tunnels and other earthworks. In the construction sector: insulation and roofing materials (building textiles) for the use in building firms, architects. In the agriculture sector: sun protection for greenhouses, fishing nets (agrotextiles) for the use in farming, horticulture and fishing. In the transport sector: car mats and lining, airbags, fire resistant, seat covers and carpets, safety belts for the use of producers of cars, aeroplanes, boats. In the medical and healthcare sector: bandages, medical corsetry (medical textiles) for the use in hospitals, nursing homes, households. In the protection safety sector: nets, ribbons and tapes, fire, resistant clothing (protecting textiles) for the use in industry, public procurement, households. In the packaging sector: twine and cordage, sacks and bags, tarpaulins (packing textiles) for the use in industry, distribution, and households. In the military and public services: fire service equipment, bullet-proof jackets, army tents, parachutes, extinguishing blankets, tubes for the use in military/security, forestry, offshore oil industry. In the specialized clothing sector: sports, skiing and leisure for the use in active sports, mountaineering, Households. In the communications sector: optical fibers, image conductor cables for the use in the communication sector. In the industry sector: filters, drive and conveyer belts, abrasive belts for the use in engineering, machinery, chemicals, plastics, mining, energy, etc. In the furnishing: interlaid scrims, braiding, shower curtains, umbrellas, parasols, deck chairs, textile wall papers for the use in decoration firms, households. 9 FAURE, Stphanie. The role of joint voluntary initiatives in the promotion and momentum of social dialogue in the textile, clothing and footwear industries. Sectoral Activities Programme, doc. WP 170, Geneva, Jun., 2001.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 7 Sector
(especially from Asia) [] In the light of the huge labour cost differential between many third countries and Europe, EU industry strives to remain competitive by means of higher productivity [] Subcontracting accounts for an important part of activities of Europes T/C industry, though varying considerably between Member States. These subcontracting activities are spread between a web of thousands of small businesses, often taking the form of cottage industries, which play an essential role as a source of employment and income, and which are often highly concentrated in particular regions10.

A good example of the outsourcing of labor activities in the TC sector is the case of Zara11, a Spanish clothing chain founded in 1963 as a maker of women lingeries in the town of La Corua, Spain, and nowadays one of the largest fashion retailers in the world
12

with more than 450 stores in more than 70 countries worldwide. Its products are

developed in a design center in La Corua, but are sewed by more than 400 subcontractors in developing countries, which allows fast and low cost production. Thus, the TC sector is relevant to the study of Codes of Conducts not only due to the subcontracting chain system used in this industry but also due to the fact that the TC industry is mainly a labor industry, that is, the use of manual workers is high if compared to other machinery manufacturers sectors, and therefore creating an environment more favorable for abuses to occur in this sense. This high use of manual workers and the permanent search for low cost production in order to keep up with competition13 can entail severe disrespect to fundamental labor rights, and it is exactly at this intersection that the Codes of Conduct play their role, that is, to prevent and eliminate this sort of disrespect. Moreover, the TC sector has the biggest number of codes in comparison to the other industry sector, according to the OECD in a 2001 study.
10 11

Ibid., footnote 5. Source: Case study: The vertical integration concept of Zara in the European Commission Report Textile and clothing industry in the EU: a survey of July 2001, Enterprise Paper n 2-2001. (http://ec.europa.eu/enterprise/library/enterprise-papers/paper2.htm). 12 According to the Zara case study Zara Case: Fast Fashion from Savvy Systems (September 2008) made by Prof. John Gallaugher from Boston College's Carroll School of Management. 13 Ibid, footnote 5.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 8 Sector

Figure 1

Finally, the analysis of Codes of Conducts by sector is often done as a consequence of the particularities of each industry sector 14. For instance, the TC sector is labor related, whereas the oil and mining sector relates more to environmental aspects, the electricity and energy sector to security, etc. However, this separation by sector does not mean that labor issues are not raised on the oil and mining or electricity and energy sector, or vice versa. This sectorial separation regards only the main and most recurrent issues in each sector.

Codes of Conduct for Multinationals Enterprises

Introduction
When studying Codes of Conduct (CC) of multinationals enterprises (MNE) it if first important to distinguish the different initiatives and actors in attempts to establish standards of conduct for multinationals enterprises. The two major categories of initiatives can be divided into inter-governmental initiatives and private initiatives. Inter-governmental initiatives are made within an international organization and its member states. Whereas, private initiatives can be made unilaterally by the company or by a coalition of actors, such as NGOs, trade unions, employers association and the company. Private initiatives are more diverse in its forms and can be sub-divided into seven categories: i) corporate codes of conducts; ii) multi-stakeholder initiatives; iii)

14

Ibid., footnote 7.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 9 Sector certification and labeling; iv) model codes; v) sectorial initiatives; vi) international framework agreements; and vii) socially responsible investment. 15 Overall, private initiatives vary in objectives, origins, areas covered and implementation mechanisms. The initiatives can be specific of an enterprise, or of a sector, but can also involve different sectors and stakeholders. Moreover, private initiatives can cover a wide range of issues in a more general manner, or they can focus in only one or two issues in more depth. This last possibility being very common in the TC sector as explained in the first part of this paper.

Legal Nature
Codes of Conduct coming from either from public or private initiatives do not bind enterprises nor States. Thus, they cannot be considered as legally binding laws nor as treaties, but rather as soft law. Soft law is usually created within an international organization and/or promoted by them, and normally refer to human rights, international economic relations and environment. There are three main features that characterize a soft law: a) close connection with international organizations, as explained above; b) substance reflects new trends and concerns in international or national community; c) inexistence of consensus or interest of States and stakeholders and early stage of development of the subject in question16. Thus, soft law does not imply a legal obligation but it can be the first step in the formation of laws and customs. This sort of instrument usually takes the form of Guidelines, Principles, Declarations, Codes of Conducts and Recommendations 17. Hence, codes of conduct fit perfectly into the characteristics of soft law in the sense that they are promoted by international organizations (i.e. when it comes to the codes coming from public initiatives) and because the content of a code of conduct, as it will be demonstrated, is broad and there is not yet a consensus of what should be the real

15 16

OECD. Overview of Selected Initiatives and Instruments Relevant to Corporate Social Responsibility. 2008. CASSESE, Antonio. International Law. Oxford, 2005. Pp. 196-197. 17 AUST, Anthony. Handbook on International Law. Cambridge, 2005. Pp. 11-12.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 0 content. Codes of Conduct are still in an early stage of development and thus, represent a new and growing trend within the international community.

Content
The content of a code of conduct usually reflects particular problems in each industry sector. Nevertheless, the main issues normally found in Codes of Conduct are labor, environment, human rights, health and safety and ethical conducts 18. As previously mentioned, codes of conduct in the textile and clothing sector usually tend to address labor issues more than other ones, and more specifically, child and forced labor are the issues most commonly found in these kind of code. Intergovernmental codes and guidelines tend to have a broader scope with a large range of issues covered so that they can be used more as a guide in which companies can rely on when drafting their own codes of conduct. However, even a corporate code of conduct can contain a broad content including environmental, human rights and ethical issues. For instance, the Levis Strauss & Co. 19 and Nike20 Codes of Conduct refer to environmental and ethical issues. The wording of their Code, however, is very broad and vague. The reason behind this broadness and vagueness of Codes of Conduct is due not only to the interest of the company and having such a wording, but also to the source used to define the terms used in the text. In this regard, the most common source used to define the criteria being applied is auto definition. That is, the multinational enterprise itself defines the terms used in the code. This method is often criticized for it allows enterprises to mold concepts and definitions as they please. 21
18

DILLER, Janelle. Responsabilit sociale et mondialisation: quattendre des codes de conduite, des labels sociaux et des pratiques dinvestissement?. 1999, 138(2) Revue Internationale du Travail. 19 Ethical Standards we will seek to identify and utilize business partners who aspire as individuals and in the conduct of all their businesses to a set of ethical standards not incompatible with our own. [] Environmental Requirements we will only do business with partners who share our commitment to the environment and who conduct their business in a way that is consistent with Levi Strauss & Co.s Environmental Philosophy and Guiding Principles. 20 Minimizing our impact to the environment. 21 ILO. Tour dhorizon des faits nouveaux dans le monde et des activits du Bureau concernant les codes de conduite le label social et dautres initiatives manant du secteur priv en raport avec des questions sociales . Conseil dadministration, 273 session, Groupe de travail sur la dimension sociale de la liberalization du commerce international, doc. GB 273/WP/SDL/I, Geneva, Nov., 1998.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 1 Following auto definition, the second most used source is national law. The use of national law is justified in the sense that some topics do not have an international regulation, and therefore leads to the national sphere 22. Finally, the last source used is international standards, that is, international organizations conventions or recommendations. This kind of source is commonly used when the code is drafted in a coalition between trade unions, associations and the enterprise23.

Implementation and Monitoring

Another important feature of a Code of Conduct, apart from its substantive content, is how its implementation and monitoring are established, because after all, there is no use to have a well written code with a large range of issues covered, if it is not respected. Implementation of a Code refers to the strategies used by the company to put the code into effect, and in this sense it is important to have mechanisms that involve not only the company, but also workers and public in order to make them aware and well informed of the policies of the company24. Monitoring of a Code, often confused with implementation, is to observe and check if the code is being respect, that is, if it is being implemented. The monitoring can be done internally or externally. Internal monitoring is done by the company itself through quality control programs, whereas, external monitoring is conducted, usually, by a third company25. Internal monitoring is considered as a poor mechanism of monitoring, since it is done by the company itself and thus, does not reflects the reality of its scenario. External monitoring (also called independent monitoring), by its turn, is regarded as the best solution for verifying the implementation of a code since it is conducted by an audit company or an organizations specially created for this end. Nevertheless, external monitoring is sometimes criticized by the lack of transparency. This is common when
22 23

Ibid., footnote 40. Ibid footnote 40. 24 ITGWLF. How to Use Codes of Conduct to Help Secure Fundamental Worker Rights. 2001. 25 Ibid., footnote 43.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 2 the monitoring is done by an audit company hired by the multinational. On situations like this, usually their interests ended up being similar, and the results are not disclosed to the public, or are manipulated26. Even when the monitoring is conduct by an association created especially for this end, sometimes it can present problems with transparency. The provision of monitoring by an association created for this only purpose appears in the Clean Clothes Campaign Code of Conduct, and also in the American Apparel Industry Partnership Agreement, which will be studied further on. The monitoring of intergovernmental initiatives by its turn is done in a broader manner and is usually based on the individual monitoring done by each company, which will then provide the results of the implementation or not of the initiative in question. As it will be seen in the next topic, all three intergovernmental initiatives studied in this paper have some sort of monitoring of its implementation. The OECD Guidelines, for instance, provides that each government will do the implementation by promoting the principles within companies established in their territory. Moreover, the OECD Guidelines created a specific body to monitor the implementation of the principles. The National Contact Points NCP is charged with assisting companies, solving problems that may rise, promoting the principles and gathering information and producing reports of the implementation of the principles. The UN Global Compact created the Communication on Progress COP body that produces reports according to the results sent by members, which can entail the delisting and change in the status of the company or country according to the result of the report. The ILO Declaration on Multinationals does not have a specific body created with the only purpose of monitoring its implementation. Thus, the monitoring of the Declaration is done by the ILO Secretariat through surveys sent to countries, which are then compiled in a report containing the results of a period.

26

Ibid., footnote 15.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 3

Intergovernmental Initiatives
The search and application of internationally recognized standards in corporate social responsibility has been long discussed between stakeholders. In this sense, international organizations have taken actions in the form of instruments containing conducts and principles that should be followed by enterprises in order to achieve a more active corporate social role in business and trade.

The Organization for Economic Cooperation and Development OECD

In 1976, the Organization for Economic Cooperation and Development (OECD) adopted the Declaration and Decisions on International Investment and Multinationals Enterprises, a policy commitment by the governments of OECD member countries on International Investment and Multinational Enterprises to improve the investment climate, encourage the positive contribution multinational enterprises can make to economic and social progress; minimize and resolve difficulties which may arise from their operations27. All 30 OECD member states have adhered to the Declaration, in addition to eleven non-member states28. The OECD Declaration is composed of four parts, each of them supported by an OECD decision on follow up procedures. The four elements are: The Guidelines for Multinational Enterprises, National Treatment, Conflicting requirements and International investment incentives and disincentives. All parts of the Declaration are subject to periodical reviews. The most recent review - completed in June 2000 concerned the Guidelines for Multinational Enterprises, which reinforced core elements social, economic and environmental of the sustainable development agenda 29.
27 28

http://www.oecd.org/daf/investment/declaration Argentina (22 April 1997), Brazil (14 November 1997), Chile (3 October 1997), Egypt (11 July 2007), Estonia (20 September 2001), Israel (18 September 2002), Latvia (9 January 2004), Lithuania (20 September 2001), Peru (25 July 2008), Romania (20 April 2005), Slovenia (22 January 2002). 29 According to the DAFFE/IME (2000)20, these new updates are: With the addition of recommendations relating to the elimination of child and forced labour, all internationally recognised core labour standards are now covered by the Guidelines. The environment section now encourages enterprises to raise their environmental performance, through such measures as improved internal environmental management, stronger disclosure of environmental information, and better contingency planning for environmental impacts. A recommendation on human rights has been introduced. New chapters on combating corruption and on consumer protection have also been added. The chapter on disclosure and transparency has been updated to reflect the OECD Principles on Corporate Governance and to recognise and encourage progress in enhancing firms social and environmental accountability.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 4 In this paper, the focus will be given to the Guidelines for Multinationals Enterprises, since it is establishes recommendations for conduct of enterprises. The OECD Guidelines for Multinationals Enterprises The Guidelines for Multinationals Enterprises is a set of voluntary principles and standards in all major areas of business ethics, including employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interest, science and technology, competition, and taxation 30. The Guidelines aim at improving the climate for investment and to put an end to discrimination against multinationals enterprises. In this sense, the Preface of the Guidelines provide that:
The Guidelines aim to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises.

The topics contained in each chapter of the Guidelines reflect main issues relating to business that should not be overlooked. The text of each chapter is based on an already existing instrument specific to the issue31: Disclosure chapter: it is based on the OECD Principles of Corporate Governance and aim at encouraging understanding of the importance of information disclosure not only for shareholders but also to the community as a whole. Employment and Industrial Relations chapter: based on ILOs Declaration on Fundamental Principles and Rights at Work and the Tripartite Declaration Principles concerning Multinationals Enterprises and Social Policy. The chapter intends to promote the rights established by the ILO and thus reinforce their importance. Environment chapter: reflects the Rio Declaration on Environment and Development, the Convention on Access to Information, Public Participation in
30 31

OECD. The OECD Guidelines for Multinationals Enterprises. 2008. Ibid., footnote 23.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 5 Decision-making and Access to Justice in Environmental Matters, and the ISO Standard on Environmental Management Systems. Enterprises have an important role to play in the sustainable development. Sound environmental management is of extreme importance in this matter not only as business responsibility but also as business opportunities since the improvement of environmental performance can produce economic benefits for the company. Combating Bribery chapter: derived from the OECD Convention of Combating Bribery of Foreign Public Officials, the Recommendation on Combating Bribery in International Business Transactions and the Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials, this chapter aims at raising awareness of companies that bribery and corruption damage democracy, the governance of corporations and diminish social goals. Consumer Interests chapter: reflect the works of the OECD Committee on Consumer Policy, the UN Guidelines on Consumer Policy and the OECD Guidelines for Consumer Protection in the Context of Electronic Commerce, and also the ever-increasing international tendency of expanding consumer rights due to the development of electronic commerce and globalization. Science and Technology chapter: the inclusion of this chapter is based on the fact that development of science and technology are the bases for the development of industries, and multinationals are the conduit of this development internationally and therefore results of researches should be diffused in order to increase innovative capacities. Competition chapter: based on the Recommendation of the OECD Council Concerning Effective Action Against Hard Core Cartels. The chapter aims at emphasizing the importance of compliance with competition law and policies, i.e. antitrust and antimonopoly laws. Taxation chapter: based on the OECD Transfer Pricing Guidelines for

Multinationals Enterprises and Tax Administration. Just like the Competition chapter, this chapter aims at raising awareness of the importance in complying with taxation laws and regulations in all countries a company operates.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 6 All these principles contained in the OECD Guidelines for Multinationals Enterprises are not to be considered to substitute or override national laws, but rather as supplementary standards to be followed by multinationals within their activities 32. The implementation of the Guidelines is done by adhering governments that commit themselves to promote these principles among multinationals enterprises operating in or from their territories. The governments through their network of National Contact Points (NCP) do the promotion of the Guidelines.33 The NCP is a government office responsible for promoting the observance of the Guidelines in its territory34. The main activities of the NCP are gathering information on national experiences with the Guidelines, handling enquiries, discussing matters related to the Guidelines, assisting in solving problems that may arise. These issues can be brought to the NCP not only by enterprises but also by any person or organization. The role of the NCP is extremely important for the effectiveness of the Guidelines, and in this regard, all NCPs follow four main criteria in their activities, such as: visibility, accessibility, transparency and accountability. These criteria not only conduct NCPs activities, but also serve as a way of evaluation of the NCP by the Investment Committee, which is the organ responsible for the functioning of the Guidelines and the OECD Declaration as a whole35. The importance of the Guidelines are reinforced by the OECD in the Commentary of the Guidelines where it reads:
Enterprises recognize that their activities often have social and environmental implications. The institution of self-regulatory practices and management systems by enterprises sensitive to reaching these goals thereby contributing to sustainable development is an illustration of this. which they operate. In turn, developing such practices can further constructive relationships between enterprises and the societies in

32 33

Ibid., footnote 23. Ibid., footnote 23. 34 A list of all NCPs can be found at: http://www.oecd.org/dataoecd/17/44/1900962.pdf 35 OECD. The OECD Guidelines for Multinationals Enterprises. 2008.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 7 Thus, the Guidelines are relevant and justified due to the importance of responsible and ethical conducts by enterprises, and accordingly of instruments establishing and reinforcing these conducts.

UN Global Compact
In July 2000 the United Nations Global Compact (UNGC) was signed and launched. The UN Global Compact is a policy platform and a practical framework for businessmen who are committed or want to commit in the progress of sustainable development 36. It is not, however, a regulatory instrument but rather a voluntary initiative. It contains ten principles considered to be universally accepted in the areas of labor, human rights, environment and anti-corruption37. So far, the UN Global Compact gathers more than 5100 participants companies and stakeholders from more than 130 countries 38. The UNGC aims to bring together corporate polices with values and objectives internationally recognized and accepted, and also to catalyze actions in support of a sustainable development. It is governed by a multi-stakeholder board with representatives of enterprises, international organizations and civil society39. The monitoring of the application of these principles is done through the transparency and accountability policy called Communication on Progress (COP). The COP annually posts a report demonstrating the participants actions and commitment with the UN

36 37

UN. Corporate Citizenship in the World Economy: the UN Global Compact. 2008. Human Rights: 1) Businesses should support and respect the protection of internationally proclaimed human rights; and 2) make sure that they are not complicit in human rights abuses. Labor: 3) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4) the elimination of all forms of forced and compulsory labour; 5) the effective abolition of child labour; and 6) the elimination of discrimination in respect of employment and occupation. Environment: 7) Businesses are asked to support a precautionary approach to environmental challenges; 8) undertake initiatives to promote greater environmental responsibility; and 9) encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption:

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 8 Global Compact. If a participant fails to communicate the COP of its actions it may result in a change of its status and possible delisting40. The UN Global Compact, therefore, is a worldwide attempt to make enterprises contribute with the practice of corporate social responsibility and aiming at a more sustainable and inclusive global economy.

International Labor Organization ILO

In 1977, a year after the adoption the OECD Declaration on Multinationals Enterprises, the International Labor Organization (ILO) adopted the Tripartite Declaration of Principles Concerning Multinationals Enterprises and Social Policy (MNE Declaration). The MNE Declaration has as its main objective to encourage positive contributions that multinationals can make to economic and social progress, and also to minimize and solve difficulties arising from their operations41. The MNE Declaration is voluntary, despite the efforts by unions and developing countries to make it binding. The principles contained therein serve as a guide to multinationals, governments, employers and workers organizations when adopting social policies and to inspire good practice to companies. The MNE Declaration refers to principles and rights such as right to union activity and collective bargaining, employment policy, equality, security, training and health and safety 42. In 2000 the MNE Declaration was revised to include the Fundamental Principles and Rights at Work. In 2006, it was revised once again to update references to other ILO instruments.43 Despite being of voluntary character, the ILO Secretariat monitors the practical results of the Declaration by sending to governments and to the most representative national employers and workers organizations in all member States a questionnaire, which they are required to complete. The results of the survey are compiled in a report by the
10) Businesses should work against corruption in all its forms, including extortion and bribery. 38 http://www.unglobalcompact.org 39 Ibid. footnote 31. 40 Ibid., footnote 31. 41 http://www.ilo.org/public/english/employment/multi/tripartite/index.htm 42 CLEAN CLOTHES CAMPAIGN. Codes of Conducts for transnational corporations: an overview. June 1998. 43 http://www.ilo.org/multi

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 1 Sector 9 Secretariat and then taken for discussion at the Board of Directors of the Committee on Multinational Enterprises44. Until the present, there have been eight surveys. The last one was published in 2006 and refers to the period of 2000 2003. According to the report of the 8 th survey45, some respondents recognize that they have not reviewed the results of the previous report (7th survey) and consequently undertaken activities to promote the observance of the MNE Declaration. Some respondents also indicate that the ILO should promote the MNE Declaration more actively. widely as possible46. These results demonstrate that although the MNE Declaration is a tripartite initiative to establish conducts for multinationals and nationals enterprises, it has not yet become very effective, mainly due to its voluntary aspect. In this regard, the report recommends a more active promotion of the MNE Declaration and in addition, translation and reproduction as

Private Initiatives
Parallel to intergovernmental initiatives there are private initiatives that because they usually come directly from the company, they are considered an important step in the promotion and application of standards and principles internationally recognized. Private initiatives cannot be overestimated though, since the mere establishment of a code of conduct does not amount to a real implementation of its content. In this regard, when studying private codes of conduct important attention has to be given to the implementation and monitoring of the codes for this is the most controversial and problematic aspect of private codes. The increase of private codes of conducts may represent not only a real conscientiousness by enterprises of relevant social matters but also a sign of the ever more important role of enterprises in the globalized world. In addition, it may also
44 45

http://www.ilo.org/public/english/employment/multi/tripartite/index.htm ILO. Follow-up to and promotion of the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. GB.295/MNE/1/1. 2006. 46 ILO. Eighth Survey on the effect given to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy: Analytical report of the Working Group on the reports submitted by governments and by employers and workers organizations, Geneva, March 2006.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 0 represent a strategy for competitiveness 47. Stphanie Faure (2001) from the ILO well summarizes it on her working paper regarding private codes of conduct:
The emergence of a social role for companies therefore corresponds to a noticeable shift in economic power, from the State to companies, which are henceforth universally acknowledged as the principal engine of growth. The preservation of affirmation of a positive image in the eyes of consumers becomes an increasingly important feature of competitiveness in the consumer goods sectors, especially if the companies concerned are globalized and make use of subcontractors in countries with different development levels. Affirming a willingness to respect a number of ethical principles can represent a significant commercial asset for a company in so far as its business practice conforms to the principles displayed.

Private initiatives are usually called voluntary private initiatives (VPI), and can be composed in different forms. For instance, a code of conduct can be adopted unilaterally by an individual company (for example, C&A Code of Conduct). This type of code is called individual code of conduct. But a code can also be developed by a coalition of different participants i.e.: multinational enterprise, employers associations, trade unions, NGOs, international trade secretariat and in this case it is considered a hybrid code. The hybrid codes are usually meant to be standard codes or model codes to serve as basis for companies wishing to adopt an ethical approach 48. According to a study of 233 codes in 2001 by the OECD 49, 48% of them, i.e. 118, were individual codes of conduct, followed by 37% (92) of codes from professional associations/trade unions.

47 48

Ibid., footnote 7. Ibid., footnote 7. 49 OECD. Responsabilit des enterprises: initiatives prives et objectifs publics. Paris, 2001.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 1

Figure 2

Corporate Codes of Conduct

Corporate Codes of Conduct are codes made unilaterally by enterprises and usually contain directives and guidelines of conducts to be implemented within the company and the supply chain in some cases. These kinds of codes often establish monitoring mechanisms either internal, external or both in order to monitor the implementation of the Code50. The Code of Conduct of the Dutch-based retailer C&A is referred to as an example of a code that is aimed to the company and its supply chain 51. It establishes standards regarding labor and environmental issues that have to be respected by all suppliers. Furthermore, the code provides that suppliers are required to disclosure all information of production and sub-contractors, and to authorize the appointed auditing company SOCAM to make unannounced inspections of manufacturing facilities at any time. 52 Probably the main weakness of this code is the fact that C&A itself is the parent company of SOCAM - the auditing company used by C&A to monitor its suppliers. Thus, this monitoring although made externally by a supposed third company does not reveal the real scenario of the company and of the suppliers since their interests tend to mix in such situations. A similar problem happens with Nikes Code of Conduct, which provides monitoring by an external, though hired company, i.e. Ernst & Young53.

50 51

Ibid footnote 36. Ibid footnote 15. 52 DISCLOSURE & INSPECTION

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 2 During September 2000 the Massachusetts Institute of Technology (MIT) joined PricewaterhouseCoopers (PwC) during inspections in China and Korea. PwC is an audit company that offers the same type of services as Ernst & Young, and therefore the findings of MITs report can be useful to also understand Nikes situation 54. The final report produced by PwC was not considered as to represent the real conditions of the factories visited. The main problem noted was the number of issues missed by the auditors, such as: hazardous chemical use and other serious health and safety problems, barriers to freedom of association and collective bargaining, violations to overtime and wage laws and timecards that seemed to be falsified55. All this missing and flawed reporting produced by PwC was a result of a monitoring made accompanied by a representative of the MIT and leaves the question of how would it be a normal monitoring made only by PwC monitors 56. PwC is the leading audit company in this segment and it has performed over 6,000 factory inspections in only one year for companies like The Gap, Disney, Nike, Wal-Mart, among others. Due to its leading position, PwC is considered as to be setting standards of how corporate monitoring should be. However, facing the problems outlined by the MITs analysis in PwC monitoring system, concrete concerns with regard to the monitoring of corporate codes of conduct can be raised 57. Thus, the major problem when it comes to Corporate Codes of Conduct is its unilateralism. In other words, because it is a voluntary and unilateral initiative of the company, it is for the company itself to decide the measures it wants to take and how it wants to take.

We require suppliers to make full disclosure to us of all facts and circumstances concerning production and use of sub-contractors. All C&A suppliers are obliged to make their sub-contractors aware of, and comply with, the C&A Code of Conduct. Additionally, our suppliers are required to authorise SOCAM, the auditing company appointed by C&A, to make unannounced inspections of any manufacturing facility at any time. 53 Ibid footnote 15. 54 OROUKE, Dara. Monitoring the monitors: a critique of PricewaterhouseCoopers (PwC) labor monitoring. Department of Urban Studies and Planning. Massachusetts Institute of Technology, Sep. 2000. 55 Ibid footnote 50. 56 Ibid footnote 50. 57 Ibid footnote 50.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 3 On the other hand, this unilateralism can be at the same time a positive aspect for it represents awareness from the company of social issues and willingness to do something in this regard.

EURATEX Code
The Charter by the Social Partners in the European Textile and Clothing Sector (The Charter) is the result of more than one year of negotiation between the European Apparel and Textile Organization58 (EURATEX) and the European Trade Union Federation of Textile, Clothing and Leather59 (ETUF:TCL). The EURATEX represents the textile and clothing industry and groups a large number of employers federations. Whereas, the ETUF:TCL represents the employees of this industry. European Commission60. The main relevance of this Code is the fact that it is one of the first initiatives coming from employers and employees organizations together. The Code contains only 3 articles and refers only to labor issues, however it makes references to ILOs fundamental Conventions61 when providing that the Code aims at complying of the Conventions by its members. The Charter, according to article 2, must be first adopted at the national level by different EU member States, and then adopted at the company level. This method envisages that the Charter be first to be incorporated in collective agreements negotiated and concluded at national levels, so that it can, then, have legal force for the companies covered by these agreements. Overall, the Charter two aims are that of becoming an European instrument with legal force and that of serving as a standard voluntary code for companies. It has indeed been well accepted and adopted by EU member States. In addition, the Charter has also increased awareness of the problem of social responsibility of companies at the national
58 59

The Charter is

supported by the Directorate-General (DG) of Employment and Social Affairs of the

http://www.euratex.org http://www.etuf-tcl.org 60 Ibid footnote 7. 61 Conventions n 29 and 105 (forced labor); Conventions 87 and 98 (freedom of association and right to negotiate); Convention 138 (Child labor) and Convention 111 (Non discrimination of employment).

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 4 level, and in this sense the Charter aims not only to be adopted by European companies themselves, but also by its subsidiaries overseas 62.

Clean Clothes Campaign

The Clean Clothes Campaign63 (CCC) is the first joint voluntary initiative in the TC sector as it gathers consumer associations, trade unions and solidarity groups. It is considered a hybrid initiative though no company or representative thereof participated in its elaboration64. The CCC was founded in 1990 in the Netherlands, and forms a large European network that aims to encourage social players to respect fundamental workers rights in the textile and clothing industry65. The CCC Code of Conduct aims to be a model code. It was established in 1997 and contains an exhaustive list of fundamental workers right with reference to ILOs Conventions and supporting the idea of independent monitoring. The Code aims at being applied in the whole production chain (suppliers, subcontractors, licensed producers and even home workers)66. For instance, the Swiss CCC experience is remarkable for the fact that it has no trade unions within its organization, but also because it was the first country where the CCC established an agreement with three important retailers 67 that have fully adopted the Code68. Because of its large network, the CCC is therefore a success in the terms of mobilizations and awareness rising within consumers in Europe.

62 63

Ibid. footnote 7. http://www.cleanclothes.org/ 64 Ibid. footnote 7. 65 Ibid. footnote 59. 66 Ibid footnote 59. 67 Mabrouc SA/Switcher, Migros and Charles Veillon SA. 68 http://www.cleanclothes.org/about-us/243

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 5

Ethical Trade Initiative

The Ethical Trade Initiative69 (ETI) is a non-profit making initiative founded in 1998 in London for the purpose of identifying and promoting good practice in code implementation by companies and retailers in the United Kingdom. The ETI works together with retailers, NGOs and trade unions, and it has also the support of the British Government. The first and main task of ETI was to develop a model code of conduct. The ETI Base Code is very precise when defining the terms used since it makes references to ILO standards70. To the date, there are 56 companies 71 that have joined the ETI and that have committed themselves to applying the code to their supply chain, and to test the code by means of different monitoring and verification systems through the introduction of pilot projects.

Social Accountability International SA 8000

Certification and labeling are also expressions of private initiatives. In the TC sector the existence of labeling is not as common as in the food sector, for instance. Certification on the other hand does exist in the TC sector and an example of this is the SA 8000 72. Born from the initiative of the Council of Economic Priorities (CEP), the Social Accountability International73 (SAI) was founded in 1997 and decided to develop a social quality standard inspired by the managerial (ISO 9000) and environmental (ISO 14000) quality standards if the International Standardization Organization. In October 1997 the Social Accountability 8000 (SA 8000) was adopted aiming to establish a standard to different industries and not only to the textile and clothing industry, covering work conditions and monitored by an independent organ. The SA 8000 was discussed between companies, trade unions, NGOs and certification societies 74.

69 70

http://www.ethicaltrade.org Ibid footnote 7. 71 According to ETIs website. 72 Ibid footnote 7. 73 http://www.sa-intl.org/ 74 Ibid footnote 68.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 6 The standards contained in the SA 8000 refer not only to the ILO Declaration on Fundamental Principles and Rights at Work (1998) but also to the UN Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. The SA 8000 does not certify products but production sites. Each production site is certified separately, that is to say, it the certification of one site does not extend to its suppliers and subcontractors. The member companies of the SA 8000 must follow the standards set therein, and also make public their willingness to find socially responsible suppliers as well as to assist their current suppliers in the achieving those standards. In order to obtain the certification, the company must demonstrate its capacity to engage in the certification process by respecting the SA 8000 code. The company then undergoes an audit that will determine whether it will receive the certification. If the certification is obtained, then supervision will be done every six months, and the certification can be renewed every three years if the requirements are met75. Until September 200876, 1,835 production sites had been certified, representing 68 countries and 67 industries. From this total, it is the textile and clothing sector the industry with most certifications (22%). This demonstrates that the SA 8000 is indeed very operational and successful within companies.

American Apparel Industry Partnerships Agreement

The Apparel Industry Partnership (AIP) was set in 1996 with the support of the US Government, companies, NGOs and trade unions. In 1997 the AIP launched the Workplace Code of Conduct which establishes work conducts to be established within the company and also a monitoring system that is to be done by an independent association the Fair Labor Association (FLA) that was created in 1998 for this sole purpose77. The FLA monitoring system and the Code of Conduct itself have been subject to many critics. As regarding the Code of Conduct, the main remarks made by trade unions are
75 76

Ibid footnote 68. http://www.saasaccreditation.org/certfacilitieslist.htm 77 Ibid footnote 7.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 7 the lack of precision, inadequacy and no reference at all to ILOs Conventions. Turning to the monitoring system carried out by the FLA, the main criticism concerns the fact that this system excludes from monitoring production sites that are considered to be not important , i.e. subcontractors and suppliers. Furthermore, another reason for criticism is that companies can choose which of its activities it will submit to the Code and which they will not. This means, that in the event of a company having different brands, it can submit only a few to the monitoring and not the other. Or if the company has only one brand, it can submit only a handful of its products to the monitoring whilst the other are left unmonitored78. In addition, another feature of the monitoring which is well criticized, is the principle of confidential information which allows companies to disclosure to the public only the information they find convenient79. Thus, this system of monitoring has been considered to lack transparency and was not signed by the trade unions; however at the same time the Fair Labor certification offers American companies a certification system that is supported by the US government.

Socially Responsible Investment

Owing to the fact that CSR refers to conducts and actions to be taken by the company as whole, the Socially Responsible Investment reflects this tendency of establishing social and ethical standards in business making and thus, it is considered as well as a private initiative80. Socially Responsible Investment or Ethical Investment is a movement within investors that aims to promote social changes by means of investments. This can be done by two means. The first one is by selective investment according to a list of socially responsible enterprises. In the selective investment, investors choose out of a portfolio, enterprises that have demonstrated a socially responsible conduct in a general aspect or with regard to a specific issue, rather than those enterprises that have not 81.

78 79

Ibid footnote 7. Ibid footnote 7. 80 Ibid footnote 13. 81 Ibid footnote 37.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 8 The second form of social responsible investment depends on the shareholders. In this sense, shareholders are expected to make use of their powers and rights in order to establish socially responsible policies inside the enterprise 82. These two means of exercising a socially responsible investment can be used together, since the first one takes place before the shares are bought and the second, after. Indeed, it would be more fruitful if both means of actions were used. The idea of social responsible cannot be left just to one particular moment in an enterprise life, but rather it has to be present during the entire process of entrepreneurship. The dominant perspective in Corporate Social Responsibility contends that firms can do well by doing good83. Therefore, there is no reason for investors to enter a country as if there was no society there upon which their activities will impact 84 and disregard their responsibilities upon the society they are surrounded. Indeed, the stability of an investment can be increased if it brings benefits to the society in which it is inserted. Thus, social responsibility can and should be one of the components of an investment plan85. Following this reasoning, the Principles for Responsible Investment (PRI) is another initiative that reflects the ever-increasing relevance of the social and environmental issues in investment practices. Between 2005 and 2006, the UN Secretary-General invited a group of international investors to elaborate the PRI, which resulted in a text containing six main principles to be applied in investment practices 86. The issues covered by the Principles environmental, social and governance (ESG) are regarded as relevant to the performance of an investment, and when implemented result in increased returns and lower risks87. The Principles aim at incorporating ESG issues in investment analysis, decision making process and policies. Moreover, the PRI states a compromise from members to seek
82 83

Ibid footnote 37. Ibid footnote 2. 84 MUCHLINSKI, Peter. Multinationals enterprises and the law. 2nd ed. Oxford University Press: 2007. Pp. 637 687. 85 Ibid footnote 2. 86 http://www.unpri.org/ 87 Ibid footnote 13.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 2 Sector 9 disclosure on ESG issues from entities in which they whish to invest, and to implement and promote the PRI88. The governing board of the PRI is made up of an elected board of 11 representatives from asset owner signatory organizations and two representatives from the United Nations89. Overall, the PRI reflects the core values of the group of large investors whose investment horizon is generally long, and whose portfolios are often highly diversified. However, the Principles are open to all institutional investors, investment managers and professional service partners to support.

Conclusions
The idea of a Corporate Social Responsibility can be traced back to the 18 th century, but CSR as a field of study is still recent and very broad due to the wide range of issues it can cover. And indeed, the more issues are covered, the better. The objective of this paper was to study the codes of conducts as one of the instruments for CSR. The focus was given to the textile and clothing sector due to its characteristics as an industry based on labor and on a complex supply chain which raise concerns regarding the frequent disrespect to labor and ethical issues. Moreover, TC companies were the pioneers in the elaboration of corporate codes of conducts, thus providing a richer and longer material in this matter. The initiatives, either private or public, aiming to establish a CSR are numerous, but they all raise a similar concern: its implementation and monitoring. The implementation and monitoring of a code are perhaps the most difficulty issue to tackle since CSR initiatives are voluntary initiatives and therefore do not bind the companies. On the other hand, it would contradictory if a code of conduct was elaborated without any provision of implementation and monitoring, containing only vague principles. Indeed, companies and stakeholders have been developing different mechanisms for
88 89

Ibid footnote 82. Ibid footnote 82.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 3 Sector 0 monitoring the codes. The possibility of an external and independent monitoring rather than only an internal monitoring is already a sign of this development. However, there are still flaws that have to be cured and improved. The initiatives in the investment field are more recent than codes of conduct and certification, but they can represent a strong CSR tool since the awareness is raised in an early stage of entrepreneurship, i.e. when buying shares, and within an empowered decision-making group, i.e. shareholders. The lack of consensus when it comes to defining CSR and the content of codes shall not be regard as a negative aspect, but rather a positive one for it allows discussion and debates on the subject, which can lead to solid concepts in the future. Thus, overall, CSR and codes of conduct should not be a new form of marketing the company or its products, nor it should be a mere compliance with law. Codes of conduct and any other CSR initiative should be regarded as a proactive instrument in which the multinational actively supports sustainable development.

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 3 Sector 1

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Codes and Conventions

A Charter by the Social Partners in the European Textile and Clothing Sector Apparel Industry Partnerships Agreement C&A Code of Coduct Clean Clothes Campaign Code of Conduct

Corporate Social Responsibility Through Codes of Conduct in the Textile and Clothing 3 Sector 3 Declaration and Decisions on International Investment and Multinational Enterprises Levi Strauss & Co. Sourcing and Operating Guidelines Nike Code of Conduct Social Accountability 8000 Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy Triumph Internationals Code of Conduct UN Global Compact

Websites
American Apparel and Footwear Association Clean Clothes Campaign Ethique sur Etiquette EURATEX European Commission European Trade Union Federation Textile, Clothing and Leather Fair Labor Association ILO ISO OECD Principles of Responsible Investment: Social Funds Social Investment Forum UN Global Compact http://www.apparelandfootwear.org http://www.cleanclothes.org/ http://www.ethique-sur-etiquette.org/ http://www.euratex.org/ http://ec.europa.eu/ http://www.etuf-tcl.org/ http://www.fairlabor.org/ http://www.ilo.org http://www.iso.org/iso/home.htm http://www.oecd.org http://www.unpri.org http://www.socialfunds.com/ http://www.socialinvest.org/ http://www.unglobalcompact.org/index.html