1. About the ILO
2. Topics
3. Regions
4. Meetings and events
5. Publications
6. Research
7. Labour standards
8. Statistics and databases

FIRST ITEM ON THE AGENDA

Continuation of discussions concerning
the programme of work and mandate
of the Working Party

(c) Social labelling and the social responsibilities
of enterprises

1. Social labelling

1. During discussions in 1996 in the Governing Body and at the International Labour Conference, considerable attention was given to the possible role of voluntary labelling programmes in supporting efforts aimed at the elimination of child labour. This interest arose as a result of two related concerns. First, the growing awareness in both industrialized and developing countries of the serious nature of the child labour problem and the various forms in which it exists. Secondly, the attempt by a wide range of actors, including consumer and industry groups, to find new ways to deal with it. Hence the Office has commissioned a preliminary study, entitled Labelling child labour products.⁽¹⁾ 

2. The study discusses what social labelling is and explains why social labelling initiatives have arisen as one of many ways of attempting to eliminate or alleviate the very complex problem of child labour. Such labels are intended to provide assurances to consumers that the goods they purchase have not been produced by children, or that the producers have carried out activities to benefit child workers. The study describes six specific child labour labelling initiatives that are currently attempting to improve the lives of working children, their families and their future.⁽²⁾ 

3. Attitudes towards labelling initiatives aimed at child labour are polarized. The study attempts to present these viewpoints without making recommendations about voluntary social labelling that targets child labour. It also looks at conditions relevant to the effectiveness of labelling initiatives. The study points to the inherent problems of monitoring and inspection, the frequent lack of transparency for consumers and the unsure fate of the children working in industries targeted by labelling initiatives. The study recognizes, however, that some working children in some countries have, through some initiatives, been removed from work and/or experienced improvements in their working lives because of them. This has come about either through the initiatives themselves or as a result of the indirect influence on behaviour that their existence has had.

4.  The study emphasizes the need for more in-depth studies to identify the factors which can bring about success and accountability. It also points out that, whatever the results, labelling might only be applicable in export-oriented industries, which represents a sector where only a small fraction of children work.

5.  Recognizing that the problem of child labour is exceedingly difficult, the author considers that labelling may offer prospects for helping some working children, but must be used as part of a series of activities within a broader policy and strategy. These activities must include appropriate labour market legislation and oversight; the availability of educational and other alternatives for children; and awareness-raising among parents, employers' and workers' organizations and the public at large. The author concludes that, within this larger picture, social labelling may establish a long-term place for itself as one way of helping children.

 2. Social responsibilities of enterprises

Footwear, textiles and clothing industries

6. As part of the Sectoral activities programme, and as follow-up on the Tripartite Meeting on the Globalization of the Footwear, Textiles and Clothing Industries: Effects on Employment and Working Conditions (Geneva, 28 October-1 November 1996), the Office carried out research and published a working paper on the codes of ethics adopted by enterprises in those industries.

7. The working paper, entitled Business ethics in the textile, clothing and footwear (TCF) industries: Codes of conduct⁽³⁾  provides a comparative analysis of a representative sample of codes of conduct adopted and implemented both by manufacturers and major distribution chains. This comparative analysis highlights similarities between the various codes and numerous direct or indirect references to core ILO labour standards. It also demonstrates the growing awareness in TCF enterprises of the social dimension involved in their worldwide operations. The study also analyses the role played by non-governmental international organizations in the promotion of codes of conduct and presents some more ambitious initiatives aimed at elaborating codes that would apply on a wider scale.

8. This working paper generated widespread interest both inside and outside the ILO, and subsequently enjoyed wide distribution.

9. The Tripartite Meeting on the Globalization of the Footwear, Textiles and Clothing Industries mentioned above requested the ILO "to continue work already initiated concerning codes of conduct in the TCF industries, possibly including development of models that could be used with suitable adaptation in particular countries". To give effect to this request, in July 1997 the ILO organized tripartite pilot workshops in four Asian countries (Indonesia, the Philippines, Sri Lanka and Thailand) on codes of conduct in TCF industries.

10. The purposes of these workshops were:

(a) to present the work undertaken by the ILO on existing voluntary codes of conduct adopted by individual enterprises in the TCF sectors;

(b) to explore whether the parties concerned would be interested, and whether it would be feasible, to develop, on a tripartite basis, a national voluntary code of conduct applicable to the enterprises of TCF industries.

11. In the four countries in which the tripartite workshops were held, the participants expressed interest in follow-up activities that might lead to the formulation and adoption of national codes of conduct that could be adopted by interested enterprises on a voluntary basis.

12. The ILO was requested to provide technical assistance and advisory support to achieve this objective.

Research project

13. As part of the subprogramme on "Innovative workplace policies and programmes, business efficiency and workers' welfare", a research project on corporate social responsibility is in progress within the ILO's Conditions of Work and Welfare Facilities Branch. The project does not focus on international trade or on multinational enterprises as such, and may only indirectly relate to the concerns of the Working Party.

14. The purpose of the project is to learn from the experience of enterprises with socially responsible practices in order to encourage other enterprises to take similar initiatives. An initial report is in preparation, which will provide an introduction to the notion and practice of corporate social responsibility as it applies to working conditions.

15. On the basis of existing enterprise survey data and case-studies from several countries (Australia, Canada, Chile, France, Germany, Japan, the Philippines, South Africa, the United Kingdom and the United States), the report looks at voluntary enterprise programmes to improve health and safety, fight discrimination and protect the environment. The emphasis is on enterprise practices rather than on codes of conduct. Although some of the case-studies used involve transnational corporations or international trade partners, the study does not investigate the international trade aspects of the cases.

16. The report, which is still in preparation, is designed to introduce the debate on corporate social responsibility and examines the following issues.

• Existing survey data are used to assess the incidence of several kinds of socially responsible practices and, where data are available, the characteristics of the enterprises concerned, in order to examine how exceptional such cases are.
• On the basis of case-studies of individual enterprises, the study examines the process that has led certain enterprises to implement innovative programmes in the areas selected and the factors that have facilitated successful implementation and would be helpful to other enterprises.
• The study uses cases of socially responsible programmes organized by groups of enterprises in an industry or along a product chain to discuss the origins of the programmes and implementation issues specific to such collective schemes.
• Finally, the issues of the monitoring of socially responsible programmes (purpose, various options possible) and the role of consumer pressure are also discussed on the basis of available evidence.

Multinational enterprises

17. Under the Multinational enterprises and social policy programme, the Office has been providing assistance to a number of the ILO's tripartite constituents in the preparation and negotiation of codes of conduct.

18. One recent example of this is the Memorandum of Social Understanding concluded between the tripartite partners in the Philippines. Among the countries awaiting ILO assistance in concluding similar agreements are Indonesia and Viet Nam.

19. A recent Asian trade union symposium has called for the widespread use of texts such as that adopted in the Philippines -- and for ILO assistance in this regard.

20. The Programme and Budget for 1998-99 includes provision for the preparation of a compendium of "corporate codes and guidelines" and an accompanying handbook with analysis, comments and cross-references to the Tripartite Declaration of Principles on Multinational Enterprises and Social Policy. The Office has been assisting and advising unions regarding the drafting of sample codes of conduct. By way of continuation, work foreseen for the biennium includes an active response to the assistance sought with a view to concluding such instruments.

21. Useful relations have been established between the Office and a number of NGOs active in the area of codes of conduct and with many corporations that have them.

 Geneva, 17 October 1997.

1. Hilowitz. J: Labelling child labour products: A preliminary study, ILO, Geneva, 1997.

2. The Rugmark Carpet Labelling Initiative; the Kaleen Label for Carpets; the Care & Fair Label; the Step Label for Carpets; the Double Income Project; the Abrinq Labelling Initiative.

3. Also published in French as Ethique des affaires dans les industries THC (textile, habillement, chaussures): les codes de conduite).