1CorporateSocialResponsibility

The Institute for Domestic and International Affairs

Commission on Social Development

Corporate Social Responsibility

Rutgers Model United Nations

16-19 November 2006

Director: Jenny Muschinske

© 2006 Institute for Domestic & International Affairs, Inc. (IDIA)

This document is solely for use in preparation for Rutgers Model

United Nations 2006. Use for other purposes is not permitted without the express written consent of IDIA. For more

information, please write us at [email protected]

Introduction _________________________________________________________________ 1

Early History_____________________________________________________________________ 2 Recent History____________________________________________________________________ 3 Corporate Corruption _____________________________________________________________ 4

Globalization, Privatization and Governance ___________________________________________________5 The World Summit for Social Development and the UNCSD ______________________________________6

Current Status _______________________________________________________________ 8 Education_______________________________________________________________________ 10 Human Rights ___________________________________________________________________ 11 Environment ____________________________________________________________________ 11 Medical ________________________________________________________________________ 12

Key Positions _______________________________________________________________ 12 Asia____________________________________________________________________________ 12 Southwest Asia/Middle East _______________________________________________________ 13 Africa __________________________________________________________________________ 14 Eastern Europe __________________________________________________________________ 14 Latin States _____________________________________________________________________ 15 Western Nations _________________________________________________________________ 16

Summary___________________________________________________________________ 17

Discussion Questions _________________________________________________________ 18

Works Cited ________________________________________________________________ 19

Rutgers Model United Nations 2006 1

Introduction The Commission on Social Development (CSD) was established at the 1995

World Summit in Copenhagen. The intended goals for the CSD included regulating and

maintaining social development projects throughout the world. Resources and funds for

social development come from all different facets of society: governments,

nongovernmental organizations (NGOs), philanthropic organizations, and businesses.

With a recent trend in globalization, there has been a push for privatization of funding for

social development. The CSD, in conjunction with other United Nations (UN) bodies,

such as the General Assembly and the Commission on Sustainable Development, works

to determine the necessary and obligatory level of involvement that corporations should

have in funding and remedying social causes and thus helps states find sustainable means

for social development.

Developed and Lesser Developed Countries (LDCs) alike have social

development needs, ranging from human rights and education to environmental

protection and healthcare. An ambiguity with corporate social responsibility not only

falls in whether or not corporations are obligated to contribute to the development, but

how far they can or should go with their help. Within the two aforementioned types of

states, companies come across a multitude of different issues related to social

responsibility. A corporation in a developed state most likely has less of need for social

development as it functions within an environment that is already made infrastructural

progress. Still, such businesses do have funds to direct toward social projects in

developed states. The impact that corporate conglomerates have on the social advances

in the underdeveloped world, however, is of much greater magnitude than the influence

they exercise in developed states. One of the most important actors in LDCs are

multinational corporations (MNCs). Underdeveloped states can benefit from the

presence of MNCs because of the added revenue, job opportunities, and infrastructure.

These same corporations, however, must be careful not to infringe upon state

sovereignty. The issue of corporate social development is complex, but clarifying the


ambiguous role companies play in various parts of the globe is vital to the ability of many

states to develop socially.

Early History Major corporations began to arise in the early 1920s and have continued to grow

to this day. The beginnings of corporate social responsibility can be linked to the 1930s.

This time brought about the idea that for an effective corporation, there must be a

separation between ownership and control.1 This was primarily instituted to limit

corruption, where owners had total control over every aspect of the company. As the

companies grew, owners began to separate themselves from the corporation and

appointed Chief Executive Officers (CEO) and Chief Financial Officers (CFO).

Confusion emerges here over who directs the company’s money, the owner or the

decision maker. Generally, most decisions are left up to the appointed employees so the

owner is able to be impartial, thus expecting the best decisions to be made.2 Corporations

with significant philanthropic abilities have to decide if, and in which, social causes they

want to invest.

The term “Corporate Social Responsibility” (CSR) emerged as a concept in the

mid-seventies and undergoes continuous refinement as the demands for development

evolve. The topic came to light in America in the 1960s when minority promotion and

employment security were major issues. The population thought that is was the

government’s responsibility to demand the appropriate changes and the corporations’

responsibility to institute the mandated reforms. Subsequently, the issue spread to France

in the 1970s for the same reasons.3 Initially, as mentioned above, corporation owners

were closely involved with their work, their community, and their employees. Since that

time, owners of corporations have surfaced as more of a figurehead than an active

contributor in the decision making process of a company. They are associated with the 1 Janet Dine, Companies, International Trade, and Human Rights (Cambridge, Cambridge University Press, 2005), 235 2 Ibid. 3 Suzanne Ontiveros, Corporate Social Development: Contemporary Viewpoints (Santa Barbara, ABC-Clio, Inc. 1986) ix


company, and the money behind the company, but have a lot less direct interaction with

the actual workings of the company at a whole. The owner hires people to do specific

jobs like the CEO and CFO. Often, companies do not have a person who oversees the

general actions of the company. Thus, the worker concentrates more on their individual

duties than being a “better corporate citizen.”4 This situation illustrates how social

responsibility can be forgotten while other duties are given priority.

In the era after the Second World War, the occurrences of Multinational

Corporations (MNCs) grew exponentially and still grow today. A MNC is a company

that works in more than one state. Multinational Corporations call into question the issue

of state sovereignty and the applicability of corporate social responsibility within the

particular state that houses the company. It is crucial to note is that MNCs have multiple

locations in different states, but the main controlling body of the MNC is located in one

individual state. Therefore, defining the lines of CSR becomes very difficult as each state

has different laws and regulations. This is only one aspect of the problem with social

responsibility in the private sector; as the issue must be addressed by not only the

corporation, but also on world governments within the UN.

Recent History Since the Copenhagen Declaration, the General Assembly (GA) approached the

subjects of corruption and CSR, and incorporated the overlying topic of corporate social

responsibility into the forty-first session of the Commission on Social Development.

During the 41st session the CSD acknowledged many countries’ growing reliance on the

private sector. As the power of the private sector and the awareness of the role of market

forces increases, the notion that the private sector should play a big part in social

development has rapidly spread into many states. The Report on the forty-first session of

the Commission on Social Development encourages private corporations to comply with

internationally recognized rules, definitions, treaties, and resolutions put forth by

international organizations, such as the UN, but more specifically, the International Labor 4 Ibid.


Organization (ILO).5

Corporate Corruption Billions of dollars have been lost or stolen in cases of corporate bribery and

corruption. In the early 1990s, subornment and extortion were popular tactics in

overthrowing governments and destroying market economies. LDCs and developing

states in Latin America are still experiencing the repercussions of such scandals. There is

debate regarding what the international community can do to make up for lost assets in

still suffering states, but more so, whose responsibility it is to help these states. Here,

parts of the private sector caused the problem and the question lies in determining who is

now responsible for solving the problem; the state or the private corporations. Most often

the states in need of the most help are the states with the least resistance and safeguards

to this type of corruption.6

Formerly, states handled this issue independently, as both the need for social

development and the power of the private sector varies from state to state. In the United

States, for example, President Reagan established the Private Sector Initiatives Task

Force.7 Now, however, states are seeing the need to work together due to the rise of

MNCs and other issues related to globalization. The Economic and Social Commission

for Asia and the Pacific (ESCAP) also drafted a number of poverty reduction strategies,

which were later incorporated into UN documents to provide an international scope.8

In 1997 the GA adopted Resolution 51/191 “United Nations Declaration Against

Corruption and Bribery in International Commercial Transactions.” It is the first

resolution that directly addressed Corporate Social Responsibility. The resolution

recalled a number of previously enacted resolutions that focused on illicit payments and

bribery. It also sets the goal for reaching international commitment on the

criminalization of bribery. Resolution 51/191 also “[e]ncourages private and public 5 Johan Scholvinck, “Follow-up to the World Summit for Social Development and the 24th Special Session of the General Assembly” 41st Session of the Commission on Social Development, 10 February 2003: 3 6 Ibid. 7 William C. Norris, “The Social Responsibility Debate” Goldhirsh Group, Inc., August 1989:13. 8 Ibid.


corporations, including transnational corporations, and individuals engaged in

international commercial transactions to cooperate in the effective implementation of the

Declaration.”9 Here, the United Nations is taking a proactive role in trying to define the

ambiguous line between state and private sector to promote sustainable social

development. If all states hold their individual private sectors to international agreements

such as this, there will be a chance for more successful social development throughout

the world.

Globalization, Privatization and Governance The recent phenomenon of globalization is one of the largest reasons that the

private sector has grown in importance. Globalization brings about a focus on the use of

market forces, and decreases the concentration on state intrusion in the areas of health

care, education, and environmental protection. The combination of globalization and the

demand for action from the private sector has created “multi-stakeholder initiatives” and

“public-private partnerships.” Both of these entities “bring together business interests,

NGOs, trade unions, as well as bilateral and multilateral organizations to set standards

and promote monitoring, reporting, and/or certification.”10 These initiatives reminded

corporations that it is not only the large multinational corporations that can make a

difference, but that in many states, the majority of employees work in small and medium

sized enterprises (SMEs). Rapid emergence of new jobs is more likely to occur in SMEs

than in large corporations or government business. Therefore, a matter of discussion

should include how much states should expect SMEs to contribute to CSR as well.

Globalization becomes increasingly more complicated as the digital divide rapidly

grows between nations. Around the year 2000, many states cut their government funding

of social services, emphasizing the importance of the private sector. The issue of

governance and the relation to the private sector is also extremely important to paralleling

globalization to social development. It is of concern, though, whether or not the private 9 A/RES/51/191 “Declaration Against Corruption and Bribery in International Commercial Transactions” 21 February 1997, United Nations. 10 DESA, “58th Session 2nd Committee on Corporate Responsibility”, 10 October 2003


sector actually has the strength to take significant action on any given social problem in

their community. Corporations are usually extremely vulnerable, and social action on

their part leaves them very open to the scrutiny of their community. It is important, too,

that the private sector direct their services where they are really needed. The United

Nations encourages that governments give the private sector guidance, and has discussed

the idea of government incentives for those corporations who channel their funds and

development attempts in the right direction. The CSD believes that collaboration between

the government and the private sector is essential for the success of any social services,

and that one must be cautious in placing expectations on the private sector.11

In addition to globalization, privatization changes the whole concept of corporate

social development. There is no way that the government can force private companies to

become involved in social development, though they can regulate to make sure that

standards are met. There has been a strong push for social service organizations to make

the transformation from being provided by the government operated privately. ECOSOC

noted that universal education should be the first priority for globalization. This alone,

would assist in social development, as education is central to so many of the problems

that cause areas and groups to be underdeveloped. In the US, for example, there is

encouragement for private elementary and secondary education through voucher

programs. The privatization takes the pressure off of the states to allot funds to social

development while still keeping ties with the programs and organizations.12

The World Summit for Social Development and the UNCSD Though worldwide debate has been underway for years, it was not until 1995 that

the World Summit for Social Development adopted the Copenhagen Declaration on

Social Development. The Commission for Social Development was created specifically

to monitor the implementation of the legislation written and the agreements made at the

11 ECOSOC, 9. 12 Rebecca M. Blank “When Can Public Policy Makers Rely on Private Markets? The Effectiveness Provision of Social Services” The Economic Journal, 110, (2001). JSTOR. http://www.jstor.org/


World Summit.13 This was the first time that the United Nations thoroughly addressed

various approaches to social development, some of which involved private business and

non-governmental organizations. The main reason cited for holding the summit was to

“establish a people centered framework for social development” and “to build a culture of

cooperation and partnership” to assist those most in need.14 The Summit did not directly

address the use of corporations in social development, however a document was

produced on the utilization of NGOs.

The Commission on Sustainable Development (UNCSD) met in 1998 with a

similar agenda to that of the World Summit on Social Development that occurred three

years earlier. The UNCSD, unlike the Copenhagen Summit, directly addressed CSR and

concluded that the private sector constitutes one of the main sources of employment,

information, and training. In order for the private sector to play an adequate role in both

social and sustainable development, there must be a solid policy framework set, both

within governments and on an international level. The International Chamber of

Commerce (ICC) and the World Business Council for Sustainable Development

(WBCSD) collaborated to suggest to UNCSD and the CSD effective usage of emerging

technology in social and environmental development. Difficulty falls in that technology

is always changing, and once policy framework is set, it is just a matter of time until

something new emerges and creates another problem. The difference between

technologies, such as discrepancies in the level of development, incompatible operating

systems, and a lack of communication, throughout the world also makes it difficult for an

international standard to be set. The ICC and WBCSD based their framework on

effective training and technology education programs throughout the world. 15

13 Earth Summit “Commission for Social Development,” UNED-UK, http://www.earthsummit2002.org/wssd/sdcomm/sdcomm.htm (accessed 1 February 2006) 14 The United Nations, “Current Social Situation and Reasons for Convening the Summit” Copenhagen Declaration on Social Development, 21 August 2000 15 United Nations Commission on Sustainable Development “Chapeau for Business and Industry Background Papers” 6th Session of the Commission on Sustainable Development April 1998


In 2000, the General Assembly convened at the 24th Special Session of the General

Assembly in Geneva. They labeled this meeting “Social Summit +5” as the point of the

gathering was to discuss the Copenhagen Summit, which had taken place five years

earlier. One of the key questions addressed during Social Summit +5 was the relationship

between governments, the private sector, and civil society. It was determined that in

many states, the government withdrew from social development and left it up to the

market to look out for society’s social welfare. The states, the Summit determined, are

responsible for determining and promoting social development goals, while the private

sector is responsible for carrying out the necessary actions to fulfill the goals of the state.

The years between the summit in Copenhagen and Social Summit +5 showed a

considerable amount of regression, and not as much progress as the CSD expected.16

Current Status Many corporations are realizing that CSR is essential for running a good business;

they now understand that “they need to protect shareholder value through awareness of

social, environmental and corporate issues.”17 This statement means that as a public

corporation, there are more viewpoints and opinions that must be considered. Therefore

MNCs and other major corporations are working more diligently to satisfy all of their

interests, namely those of the surrounding communities. Many countries are even seeing

trends in education programs not only as a result of CSR but also about CSR. This

promotes the importance of a strong CSR department within civil society and endorses

the development of such programs to companies in the area. Corporations are compelled

to implement policies pertaining to Corporate Social Responsibility because this brings a

better reputation to the company.18

16 ECOSOC “Symposium on States, markets, and social progress: roles and cooperation of the public and private sectors” 38th Session of the Commission on Social Development April 2000 17 Maria O’Brian “CSR Pays Off” Latin American Financial Publications, Inc. (2005). Lexis-Nexis. http://web.lexis-nexis.com 18 Ibid.


Companies and states alike now understand that establishing equal opportunities is

an issue that should be prioritized by CSR. As it stands now, the UN’s Global Compact

defines the major facets of Corporate Social Responsibility. The Global Compact asks

companies to address nine main principles, taken from various sources such as the

Universal Declaration on Human Rights, the International Labor Organization’s

Fundamental Principles on Rights at Work, and the Rio Principles on Environment and

Development. The Compact attempts to institute the idea of benevolent actions into the

private sector. The principles fall under three categories: human rights, labor, and

environment.19 Implementation of the Compact can help promote sustainable

development through CSR.

Corporate Social Responsibility offers a multitude of benefits, however there are

also detractors that propose counter viewpoints to be addressed. There are two main

arguments against CSR. The first is that CSR distracts a company from its primary

purpose: producing goods and making a profit. Basically, the company is exists solely

for the benefit of itself. The second argument is a bit more complex, stating that: CSR embodies the notion that progress in relation to environmental and social issues lies in making norms and standards more stringent and more uniform…[t]his approach takes too little account of costs and benefits of extending regulation in ways that would reduce welfare.20

This view believes that CSR simply will not happen because it views it as impossible or

that companies will not take it upon themselves to promote CSR. Instead, the push for

CSR must come from above, a higher source of authority so that every one is accountable

to CSR. These concerns come from political theorists. There is no notable opposition to

the use of the private sector in social development from states themselves.

The CSD most recently addressed the role of the private sector in social

development during the 41st session of the Commission on Social Development in 2003.

During this session, the CSD addressed the topic at an all encompassing level; nationally

and internationally, large business and SMEs. The conclusion was made that the

19 Dine, 227. 20 Henderson, D. Misguided Virtue (IEA, London, 2001)


commission would need to take “concrete actions within the United Nations systems and

through the participation of all relevant stakeholders on corporate responsibility.”21 These

actions include ensuring that developing countries be involved in international economic

decision-making and the strengthening of rapports between countries to keep the trade

and socio economic situation balanced.

There are many areas in which CSR can make a huge difference. The four most

plausible and neediest areas are environmental protection, educational provides, the

safeguard of human rights, and medical treatment. Multi National Corporations (MNC)

of all different sorts have the means to provide educational and vocational training, all

can be cautious of their environmental surroundings, and some MNCs, such as

pharmaceutical companies, can provide medicine to those struggling in developing

nations.

Education According to Arnold Hiatt, the Chairman of Business for Social Responsibility in

the Department of Public Information, the private sector is changing along with the world

as a whole. Hiatt shares the story of his experience working at Stride-Rite, the children’s

shoe company. While working for the company, which is located in Roxbury, a suburb

of Boston, he noticed that the children playing on the street outside of his office were

underprivileged members of families that were trying to get by on a meager salary. The

company decided to open up a day care center for these children, so that they would have

somewhere to go. Stride Rite later expanded this program to include an Intergenerational

Center and a mentoring program for poorly behaved children at inner city schools.22

Though this took place over twenty years ago, Hiatt notes the prominence of similar

programs during this day and age. Day care centers like this have appeared in various

locales, everywhere from factories to grocery stores. This is a prime example of the

21 Commission on Social Development, RES 2003/41/1 “National and International Cooperation for Social Development” March 2003 22 Arnold Hiatt. “Best Practices” DPI-NGO. http://www.un.org/dpi/ngosection/annualconfs/53/hiatt.html (accessed 6 February 2006)


potential of the private sector in social development.

Human Rights Human Rights encompass various principles. One is the “support and respect the

protection of international human rights within their sphere of influence.”23 This is an

overlying concept that applies not specifically to corporations, but to the world as a

whole. An additional principle specifies that corporations do not violate human rights in

their labor practices and policies. Respecting human rights within the context of labor is

a goal of the Secretary General. Businesses are asked to uphold “freedom of association

and the effective recognition of the right to collective bargaining.”24 The elimination of

forced and compulsory labor along with child labor is an ideal promoted by human rights

proponents as is the termination of discrimination in the workplace. This category relates

more to CSR within a corporation, rather than the link to the community. Though this is

company specific, it is still very important to the upholding of a society, as these

principles protect both jobs and human rights.

Environment One of the main focuses of the GA and the CSD is environmental protection.

There is a strong emphasis placed on the compliance of businesses with environmental

laws, especially those corporations that do work that is potentially harmful to natural

ecosystems. The UNCSD and the CSD agree, “business has a key role to play in

addressing poverty alleviation while stimulating more sustainable consumption and

production, all in the context of economic growth, environmental protection and social

development.”25 Though these two bodies agree, the scope of ‘business’ and its

responsibility has yet to be defined.

The environment section of the Global Compact asked business to treat

environmental causes carefully and thoughtfully, take on the promotion of stronger

23 Ibid. 24 Ibid. 25 UNCSD


environmental responsibility, and “encourage the development and diffusion of

environmentally friendly technologies.”26 Environmental development is one of the more

difficult concepts for corporations to address, as there is no way to globalize

environment, and sometimes the condition of an environment can be beyond the scope of

what any single corporation can do, like global warming, for instance. Another important

environmental policy directly tied to the responsibility of corporations is the almost

omnipresent clean air policy sweeping over businesses, banning smoking in the

workplace.

Medical The relationship between corporations and social development in the medical field

becomes a tricky one. The benefits of pharmecutical companies taking part in CSR are

extensive, however, a moral question arises in this involvement. Pharmaceutical

companies and other medical supply business have the resources to save lives, but many

people see their giving away “extra” or as of yet untested drugs to people who cannot

afford anything else, as a problem. It is hard to determine if it is acceptable to give people

in need what the companies can, even if they are unsure of the safety of the medicine or

the product. The pharmaceutical industry in India has taken up the “Corporate Social

Responsibility in Pharmaceutical Industry in India” project to determine the scope to

which social responsibility plays into pharmaceutical companies.

Key Positions Asia In recent years there has been an upswing in private sector participation in Asia.

The Philippines and Vietnam have both recognized the need for an increase in private

sector assistance, and both have outlined their ideas in various documents covering the

subjects of healthcare, education, and infrastructure. The Asian Development Bank has

prompted much of the attention shift toward the private sector by giving support to a

26 Ibid.


number of countries in the region. China and Malaysia were also among the top five

developing countries that contracted out for water sewage issues. 27

In some of the more developed-developing states, such as Thailand and Malaysia,

governments are encouraging the private sector to collaborate on social development

projects. In more developed countries such as China and Japan, there is less of an

internal struggle for help from the private sector. There is a movement for CSR on an

international level, however, as many developed Asian countries are at the top of the

digital divide, and cannot relate to other states when it comes to technology.28 The most

important thing to remember in terms of Asian social development is that the

discrepancies between developed and developing nations are very distinct.

Southwest Asia/Middle East The most significant connection between the private sector and the Southwest

Asia region is in Pakistan, where there are currently approximately 10 NGOs providing

aid to Pakistani causes.29 In the United Arab Emirates, the Minister of Defense

established the Emirate Nationals Development Program (ENDI), a program that

encourages the private sector to take in more nationals, in hopes to improve the economy.

This initiative is intended to give nationals skills to continue to work in the private sector,

while reducing unemployment and maintaining an abundant supply of ready labor.

There is a lot of political turmoil within this region, and it is important to

distinguish the role of the private sector during conflict from the role of the private sector

in a stable nation. Refugees, internally displaced persons, and destroyed environments

are only three social aspects that stem from armed conflict. Corporations must be wary

of when it is safe for them to step in and do something, and when remedying situations is

beyond their scope.

27 ESCAP “The Emerging Role of the Private Sector in Delivering Social Services in the ESCAP Region” 2001. 28 Ibid. 29 Ibid. 18


Africa The major issue in Africa, not only in correlation to the private sector, is the

prevalence of AIDS throughout the continent. In June of 2005, the Nigerian Business

Coalition Against AIDS asked the private sector in Nigeria to consider AIDS as an issue

of business. As such, they requested the implementation of a workplace policy on AIDS

that allows employers, employees, and the government to take action on all different

aspects of AIDS and HIV and how they affect the workplace.30 Aside from AIDS, Africa

requires assistance in a number of various additional areas pertaining to social

development. Africa hosts many of the most impoverished nations in the world; for

many people there is no healthcare or education opportunity, and human rights are

violated consistently. The governments are unstable in most African countries rendering

these states in dire need of help from the private sector to improve civil society in the

region. African states currently hold the position that private sector companies are

responsible for their use of natural resources in the same capacity that public businesses

are.31 The importance of being a good corporate citizen is theoretically stressed in

African business, though corruption and incidental meltdowns are common within both

the public and private sectors.

Eastern Europe This region shares a problem to that of Asia, in that the region is divided between

developed and developing nations, and the differences between the two types are

extremely distinguished. This issue presents the question of if or when it is appropriate

for the private sector to cross borders. In 2004 the European Commission, United Nations

Environmental Program (UNEP), and the UN Divisions on Social and Economic Affairs

(DESA) convened to set a European framework for CSR. The UNEP also met in

subcommittees to discuss specific socially needy areas such as Russia and the Baltic

30 “Intensify Fight Against HIV/AIDS” Accra Mail- This Day (Nigeria) (2005). 31 Andrew Gillingham “Companies Must be Accountable” Economy, Business, and Finance (South Africa) (2005).


States.32

A major problem that needs to be addressed in Eastern Europe is the trafficking of

women to other countries. This problem occurs mostly between countries such as

Albania, Russia, and the Ukraine. Local governments and NGOs have collaborated in

attempts to halt human trafficking. In most Eastern European states these coalitions are

moving much more quickly than the central governments of the states and achieving

greater progress.33 Still, the corporate sector has not taken substantial measures to halt

the trafficking of women in this area.

Latin States The difference between developed and developing nations is also very prominent

in South America. Although this disparity is still a problem, it presents less difficulty

than in other areas because poverty in this region is less widespread than in other parts of

the world. Brazil, in itself, changes drastically from urban to rural areas, both of which

are in need of many aspects of development. In Brazil, Instituto Ethos was formed to

advise companies on social responsibility. Ethos explains that it is important for business

to focus on sustainability before they focus on just profit. Sustainability includes making

sure that the environment is well protected and that labor laws are abided by.34 In

January of 2006, the Inter-American Development Bank (IDB) committed to forming a

new policy to increase private sector effectiveness in Latin America. The IDB is granting

more funds to the private sector in South America, with the hopes that they will be able to

strengthen private sector infrastructure and increase market growth.35 The private sector

is also being encouraged to take action in Mexico, where there is a notable amount of

organized crime and underdeveloped urban areas. The National Council on Public

Security is suggesting that companies help to finance the modernization and upkeep of

32 “Informal Meeting of Advisory Task Force on the 10 Year Framework of Programmes on Sustainable Consumption and Production” Paris. March 2004. 33 Women’s Anti-Discrimination Committee “Summary of Statements” January 2003. 34 O’Brian. 35“Private sector to benefit from new IDB lending policy” Caribbean News Agency January 2006. Country Watch www.countrywatch.com


local prisons.36 Mexico has great potential, and with the assistance of the private sector

could drastically improve in upcoming years.

Western Nations Western developed nations care first and foremost about maximizing their

shareholder value. It may seem that because these nations have fewer social problems to

address, it is easier to focus on making a profit first while placing the secondary focus on

CSR. This is not always the case however as many western powers have issues regarding

corporate responsibility. For instance, recently in the United States large corporations

such as Enron, WorldCom, and Parmalat have had huge meltdowns, which were

extremely detrimental to civil society. This is an example of why sustainability is one of

the most important factors within the private sector. Companies with resources to make

huge progress in social development implemented corrupt policies that were ultimately

counterproductive. Urban development is the biggest social issue that needs attention

from the private sector in western nations.

36 “Highlights: Mexico Economic Issues 31 Jan 06” Montery El Norte 2006 Country Watch www.countrywatch.com


Summary Corporate social responsibility involves the actions of non-government actors,

such as corporations and NGOs in order to help ameliorate pressing social dilemmas.

Social issues prevalent in today’s society include human rights violations, education,

poverty eradication, HIV/AIDS in Africa, environmental concerns, and healthcare. The

first United Nations request for assistance from the private sector came at the World

Summit for Social Development in Copenhagen in 1995. The outcome document from

the WSSD was the Copenhagen Declaration on Social Development, which outlined

feasible solutions for problems brought up by NGOs and governments alike and

established the Commission for Social Development to oversee the implementation of the

policy put in place by the Copenhagen Declaration. When the General Assembly met

five years later to discuss the effectiveness of the Copenhagen Declaration, they noticed a

trend of regression and altered a number of policies, considering the idea of suggesting

government incentives for companies and NGOs that contribute sufficiently to social

development.

Every region and every state has different problems that need attention, and every

corporation has different resources to provide. To adequately broach the question of

implementing policies of corporate social responsibility it must be assured that the

resources available correspond to the demands of the problem. The main overlying issue

is determining how in depth a corporation is obligated to participate in social

development and in what ways they should go about doing so.


Discussion Questions • Should government incentives be given for companies with a strong trend of CSR?

• How can CSR be promoted within states with social issues that require attention?

• What other UN bodies can the CSD collaborate with to solve this problem?

• What non-government actors aside from corporations can play a part in social development?

• How should the role of the private sector change when a country is involved in armed conflict?

• Should corporations in socially stable areas spread their resources to other regions or states?

• Which states or regions are most in need of social development?

• How can it be ensured that all nations are taken into account and not just those with the resources to execute CSR?

• What kind of training and education programs can be established by or for the private sector?


Works Cited Blank, Rebecca M. “When Can Public Policy Makers Rely on Private Markets? The

Effectiveness Provision of Social Services” The Economic Journal, 110, (2001). JSTOR. http://www.jstor.org/.

DESA. “58th Session 2nd Committee on Corporate Responsibility.” 10 October 2003. RES 2003/41/1 “National and International Cooperation for Social Development.” March 2003.

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