trends and future of sustainable development - TransEco

then represents the strongest tool for companies in this respect. Given the above, the overall attitude ofthe Global Compact to the governance of supply chains thus appears to be predominantly as assigning tocontracts an enforcing role. But soft, relational ways of enforcement are envisaged.The UN Norms on the Responsibilities of Transnational Corporations and Other BusinessEnterprises with regard to Human Rights (UN Norms) were developed with the intention to become abinding instrument. However, even though derived from customary international law and internationaltreaties, they remained only a soft-law instrument. Nevertheless, the contractual power of companies isfully explored here and expected to be used for enhancing socially responsible behavior throughoutsupply chains. Article 1 states that companies have within their “sphere of influence” (UN Human RightsCouncil 2008) “obligation” not only to “promote” but also to “secure” respect for and fulfillment ofhuman rights. The obligation is further detailed throughout the text and in article 15 the contractualpractices are tackled. According to this provision, companies should “incorporate the UN Norms into alltheir contracts” and do business only with entities following the UN Norms or other similar set ofprinciples. Contracts thus serve as a tool for enforcement of internationally accepted human rightsstandards and principles. The UN Norms on the other hand exclude business persons from regulatoryactivity within the CSR area. According to article 17 it is the responsibility of states to establish the legalframework.Next to international organizations, also business associations are active in regulating CSR. TheInternational Organization for Standardization, associating governments as well as business entities,adopted in 2010 a new Social Responsibility standard, the ISO 26000. It addresses the issue ofspreading CSR performance throughout business networks by various modes. From the softer,motivating ones, it uses words as “promote” (Clause 4.4.) or “encourage” (Clause 6.4.3.2.). But theoverall approach of ISO 26000 seems to be more than mere vague motivation for the CSR performance.The instrument acknowledges companies’ capability of political and regulatory involvement within theCSR area, which means that companies are expected to use their leverage to positively influence theregulatory environment of CSR and must refrain from decisions and activities that could have negativedirect effects on the same (Clause 6.6.6.). The ISO 26000 thus expects from companies to get activelyinvolved in motivating their business partners towards socially responsible behavior, requests them toenforce existing rules at least in the sense that they should avoid and influence their business partners toavoid any negative impacts, and assign them the right to engage in regulation development.Business Social Compliance Initiative, a non-profit organization, issued a Code of Conduct, which isopen to be joined by companies and other institutions. The Code of Conduct states that by signing itentities commit themselves to take appropriate measures to ensure “implementation and compliance”with the rules within their “sphere of influence”. Although the BSCI Code of Conduct does not provide adefinition of sphere of influence either, the request to use contracting as one of the appropriate measurescan be derived from its text and, especially, from the Declaration of Liability Regarding Compliance withthe BSCI Code of Conduct (Declaration) that must be signed by entities when becoming a BSCI member.In the Declaration, entities undertake to ensure that all of their subcontractors will observe the samestandards and to make compliance with social standards and the BSCI Code of Conduct a condition of alltheir contracts. Non-compliance of a subcontractor must be sanctioned by termination of therelationship, if the parties cannot find another suitable solution. The BSCI thus seems to go the furthestwith the request of incorporating SCCs into business contracts.379