Increased competition on the market makes companies much more sensitive and vulnerable with respect to consumer opinion. Corporate codes of conduct can be seen as one response to concerns about social, economic and environmental sustainability. There has been a proliferation of codes of conduct in recent years. Codes of conduct are voluntary standards, to which companies aim to adhere. Many codes contain similar elements, and often reflect the International Labour Organisation 'core' conventions. The International Confederation Of Free Trade Unions has developed a Basic Code of Labour Practice.

Concerns about codes of conduct are varied. Some critics claim that codes are a privatisation of labour standards, which should be in the hands of governments and the International Labour Organisation. However, there is a recognition that codes are here to stay. Trade unions therefore feel obliged to see how they can work with them, although following the ins and outs of all the voluntary initiatives in the industry can take up a lot of the scarce resources a trade union may have, often with little to show for the effort. The challenge therefore is to ensure that codes of conduct lead to improvements in specific collective bargaining agreements (union contracts with employers) and working conditions in general.

Other critics are concerned about how codes can be turned from mere statements into action, claiming that companies must embark on a process of regular negotiations with trade unions, environmental NGOs, and other representatives of civil society.

It is also argued that there is an increasing need to develop genuine and competent independent monitoring. For some, this is the most serious issue and the main weakness of existing voluntary codes (as opposed to legally binding regulations). Within the banana sector, most companies are either using their own internal verification and monitoring procedures or the services of large international auditing companies. For some, self-monitoring is clearly not enough to offer any guarantee to consumers. It is argued that companies must accept the principle of independent monitoring, and state clearly how and by whom verification procedures are to be implemented. In other sectors, for example the garment industry, non-governmental organisations have become involved in monitoring and verification. The Maquila Solidarity Network website is a good place to start exploring these issues.

Monitoring of social and environmental criteria by private audit companies is another approach to independent monitoring and verification, but there is a lack of adequate training offered to the “experts” doing this work. Until now, most auditing companies only dealt with technical, veterinary and sanitary standards and have no proven competence with social and environmental monitoring. In addition, auditors – whether they be profit-making private companies or NGOs – need to learn how to work with trade unions, community, environmental and scientific organisations who have credibility in the locality or country concerned.

Further Reading

"Growing Pain?" A Case Study Of A Business-NGO Alliance To Improve The Social And Environmental Impacts Of Banana Production. By Jem Bendell, University of Bristol. Funded by the Non-Profit Sector Research Fund of the Aspen Institute. Jan 2001

The New Codes Of Conduct And The Social Partners  by Dwight W. Justice, ICFTU, Jan 2000.

Websites

Maquila Solidarity Network website has discussion documents, resources and Southern voices on Codes of Conduct

International Labour Organisation

ILO's Database On Business And Social Initiatives: includes comprehensive information on private sector initiatives which address labour and social conditions in the workplace and in the community where enterprises operate. The database features corporate policies and reports, codes of conduct, accreditation and certification criteria, and labelling and other programmes. Customised searches can be made to retrieve information on specific companies and organisations, countries, regions, business sectors and labour and employment issues.

International Confederation Of Free Trade Unions