JNKP I NG INTE RNAT I ONAL BU S I N E S S SCHOOL Jnkping University

Corporate Codes of Conduct A Comparison of the Governments, the Non-Governmental Organisa-

tions and the Business Societys Viewpoints

Bachelors thesis within Business Administration

Author: Hanna Berko

Eva Dahlbck

Tutor: Jean Charles Languilaire

Jnkping January 2006

INT E RNAT I ONE L LA HANDE L SHG SKOLAN HGSKOLAN I JNKPING

Corporate Codes of Conduct En jmfrande studie av regeringens, intresseorganisationens och nr-

ingslivets attityder gentemot uppfrandekoder

Filosofie kandidatuppsats inom Fretagsekonomi

Frfattare: Hanna Berko

Eva Dahlbck

Handledare: Jean Charles Languilaire

Jnkping januari 2006

BachelorsBachelorsBachelorsBachelors Thesis in Thesis in Thesis in Thesis in Business AdministrationBusiness AdministrationBusiness AdministrationBusiness Administration

Title:Title:Title:Title: Corporate Codes of ConductCorporate Codes of ConductCorporate Codes of ConductCorporate Codes of Conduct---- A comparison between A comparison between A comparison between A comparison between the the the the Gover Gover Gover Govern-n-n-n-menmenmenmentstststs the Nonthe Nonthe Nonthe Non----Governmental Organisations and Business SocGovernmental Organisations and Business SocGovernmental Organisations and Business SocGovernmental Organisations and Business Soci-i-i-i-etys etys etys etys Viewpoints.Viewpoints.Viewpoints.Viewpoints.

Author:Author:Author:Author: Hanna BerkoHanna BerkoHanna BerkoHanna Berko

Eva DahlbckEva DahlbckEva DahlbckEva Dahlbck

Tutor:Tutor:Tutor:Tutor: Jean Charles LanguilaireJean Charles LanguilaireJean Charles LanguilaireJean Charles Languilaire

DateDateDateDate: 2006200620062006----01010101----12121212

Subject terms:Subject terms:Subject terms:Subject terms: Corporate Codes of Conduct, CSR,Corporate Codes of Conduct, CSR,Corporate Codes of Conduct, CSR,Corporate Codes of Conduct, CSR, Corporate Social Responsibi Corporate Social Responsibi Corporate Social Responsibi Corporate Social Responsibillllityityityity

Abstract

A general awareness concerning Corporate Social Responsibility (CSR) has developed dur-ing the last few decades. The growing globalisation and the increased amount of multina-tional companies acting in countries with weak legislations are some reasons for this devel-opment. Companies have begun engaging in issues related to CSR, and corporate codes of conduct have been developed as a response to this increased awareness. However, there exist different opinions on the matter of corporate codes of conduct. A companys stake-holders all have different interests and motives which often implies different viewpoints on corporate codes of conducts and their implementation in, above all, multinational compa-nies.

The purpose of this thesis is to identify and compare the Governments, the Non-Governmental Organisations and the Business Societys viewpoints towards corporate codes of conduct and their implementation in Swedish multinational companies.

The study has mainly been conducted through assembling qualitative data through inter-views with organisations that all have experience of issues regarding CSR and corporate codes of conduct. The informants are; The Swedish Partnership for Social Responsibility a divi-sion under the government, Amnesty Business Group a non-governmental organisation and The Confederation of Swedish Enterprise, The International Council of Swedish Industry and H&M, all three representatives of the business society.

The viewpoints differ in some issues on corporate codes of conduct and agree on others. Objectives of the organisations influence their view of the subject matter. The informants all agree that multinational companies should have a responsibility in the society beyond producing goods and services. The governments viewpoint is that MNCs taking social re-sponsibility is an important element and corporate codes of conduct are one method to re-alise this responsibility. It further considers that voluntary initiatives will have an increased importance and therefore do not consider binding regulations to be necessary. The non-governmental organisations view is that all companies acting in areas where they risk vio-lating fundamental rights of people should have a code of conduct and furthermore that some sort of binding regulations of CSR-issues is desirable. The business society view ex-presses that it preferably should be a companys own choice whether to adopt a corporate code of conduct or not.

KandidatKandidatKandidatKandidatuppsats inom uppsats inom uppsats inom uppsats inom FretagsekonomiFretagsekonomiFretagsekonomiFretagsekonomi

Titel:Titel:Titel:Titel: Corporate Codes of ConductCorporate Codes of ConductCorporate Codes of ConductCorporate Codes of Conduct---- En Jmfrande Studie mellan RegeEn Jmfrande Studie mellan RegeEn Jmfrande Studie mellan RegeEn Jmfrande Studie mellan Reger-r-r-r-ingensingensingensingens---- Intresseorg Intresseorg Intresseorg Intresseorganisationens och Nringslivets Aanisationens och Nringslivets Aanisationens och Nringslivets Aanisationens och Nringslivets Attitydttitydttitydttityderererer gen gen gen gent-t-t-t-emot Uemot Uemot Uemot Uppfrandppfrandppfrandppfrandekoderekoderekoderekoder

Frfattare:Frfattare:Frfattare:Frfattare: Berko, Hanna Berko, Hanna Berko, Hanna Berko, Hanna

Dahlbck, EvaDahlbck, EvaDahlbck, EvaDahlbck, Eva

Handledare:Handledare:Handledare:Handledare: Jean Charles LanguilaireJean Charles LanguilaireJean Charles LanguilaireJean Charles Languilaire

DatumDatumDatumDatum: 2006200620062006----01010101----12121212

mnesordmnesordmnesordmnesord UUUUppfrandekoder, ppfrandekoder, ppfrandekoder, ppfrandekoder, CSR, Fretags sociala ansvarCSR, Fretags sociala ansvarCSR, Fretags sociala ansvarCSR, Fretags sociala ansvar

Sammanfattning

En allmn medvetenhet om Corporate Social Responsibility (CSR) har utvecklats under de senaste rtionden. Den vxande globaliseringen och ett kat antal multinationella fre-tag som agerar i lnder med svaga lagsystem r bidragande orsaker fr denna utveckling. Fretag har brjat engagera sig i frgor rrande CSR och vidare har uppfrandekoder ut-vecklats hos fretag som svar p den hr kande medvetenheten. Det existerar dock olika sikter om fretags uppfrandekoder som fenomen. Ett fretags intressenter har olika in-tressen och motiv som kan leda till deras olika syn p uppfrande koder och deras imple-mentering i, framfrallt, multinationella fretag.

Syftet med den hr uppsatsen r att identifiera och jmfra regeringens, intresseorganisa-tionens och nringslivets syn p fretags uppfrandekoder och deras implementering i svenska multinationella fretag.

Studien har till strsta del genomfrts genom att samla in kvalitativ data frn intervjuer med organisationer som alla har erfarenhet frn CSR och uppfrandekoder. Organisatio-nerna som vi genomfrt intervjuer med r Globalt Ansvar, en del av utrikesdepartementet p regeringen, Amnesty Business Group, en intresseorganisation fr mnskliga rttigheter samt Svenskt Nringsliv, Nringslivets Internationella Rd och H&M, alla tre representanter fr nr-ingslivet.

Regeringens, intresseorganisationens och nringslivets syn p uppfrandekoder skiljer sig t i vissa fall medan de i andra fall verensstmmer. Organisationerna har olika mlsttningar med deras verksamheter som ven pverkar deras syn i frgan.

De r alla verens om att fretag br ha ett strre ansvar utver att producera varor och tjnster. Regeringens syn r att det r viktigt att fretag tar ett socialt ansvar och att upp-frande koder kan vara ett stt att frverkliga detta ansvar. Fortsttningsvis, anses att frivil-liga initiativ kommer att vara av fortsatt vikt och anser drfr inte att bindande regler kom-mer att vara ndvndigt. Intresseorganisationens syn r att alla fretag som har verksamhet i omrden dr de riskerar att bryta mot mnniskors grundlggande rttigheter br ha en uppfrandekod och vidare r ngon typ av bindande reglering gllande CSR frgor r nskvrt. Nringslivets syn menar att det br frbli ett fretags val huruvida de vill arbeta med en uppfrande kod eller inte.

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Table of Content

1 Introduction............................................................................ 3 1.1 Background ................................................................................... 3 1.2 Problem Discussion....................................................................... 4 1.3 Purpose......................................................................................... 4 1.4 Research Questions...................................................................... 4 1.5 Definitions ..................................................................................... 4 1.6 Disposition of the Thesis ............................................................... 5

2 Frame of Reference ............................................................... 6 2.1 Corporate Social Responsibility .................................................... 6 2.2 Corporate Codes of Conduct......................................................... 8

2.2.1 Foundations for Corporate Codes of Conduct .................... 8 2.2.2 Features of Corporate Codes of Conduct ......................... 10 2.2.3 Motives for Corporate Codes of Conduct.......................... 11 2.2.4 Implementation of Corporate Codes of Conduct............... 12

2.3 Current Issues on Corporate Codes of Conduct ......................... 13

3 Methodology and Method ................................................... 15 3.1 Research Approach.............................