Legal news and trends for Canadian in-house counsel and c-suite executives
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www.bakernet.com Movement. "Among other initiatives, we are challenging our vendors to reduce their packag- ing," says Wal-Mart associate general counsel Dean Dolan. "As an organization, we believe the resulting energy savings, including transporting lighter goods, is good for the environment, good for our workers—and good for us." Explains Dolan: "It's a win-win. If it costs us less to ship an item, we can then pass on the savings and better compete in the marketplace." Europeans are at the head of the CSR curve, according to Coon. But North America is catch- ing on, he adds, as trade unions and NGOs push their agenda. "As companies look further afield for more economical labour, these issues are unavoidable," says Coon. One of his Canadian clients recently feared that a CSR concern would jeopardize a major European contract. The client sells computer software and hardware, and the purchaser insisted that the supplier comply with International Labour Organization (ILO) standards as part of the sales agreement. The ILO charter, on its own, has no binding power on companies, but it can have serious legal implications if it becomes part of a com- mercial contract. In this case, the supplier conducted a thor- ough internal investigation to determine that it was, in fact, in compliance. But Coon, who participated as an employer representative to the ILO, warns that non-unionized compa- nies could have some difficulty with certain sections of the ILO charter. ILO Convention 87 and 98 provide workers with the right to organize and bargain collectively. One of the driving forces behind the push for compliance with International Labour Standards is the trade union movement. Trade unions in western countries have seen a steady decline in membership and are look- ing for new members. This strategy has led unions to adopt fierce and at times question- able corporate campaigns and tactics. Unions are attempting to use their representation rights in one country to leverage expanded rights in jurisdictions where they do not have such rights. They will use many approach- es. Coon has seen it firsthand. "The union movement is very sophisticated and will use the various international mechanisms like the International Labour Organization, the U.N. Global Compact or the North American Agreement on Labour Cooperation to file complaints alleging corporate misconduct, knowing full well that there is no merit to the complaint nor is it the proper forum. The tactic is a public relations effort in an effort to influence public opinion or policy makers." To be certain, companies must consider CSR ini- tiatives in its risk analysis. However, Coon offers considered guidance: "There is an important bal- ance that must be struck between the enthusiasm of some within the organization to adopt overly aspirational CSR policies and codes of conduct versus the realization that these policies and codes must be achievable by the company as they will be held accountable. The result may be to solve a problem today for a much bigger one in the future." For that reason, and others, Coon recommends that General Counsel and the internal legal department be inte- grated into and review CSR policies and procedures and integrate these policies, codes and initiatives into the compliance structure of the company. � Corporate Social Responsibility Striking the Right Balance The path to Corporate Social Responsibility is often confusing and always challenging Kevin B. Coon kevin.b.coon@bakernet.com Baker & McKenzie LLP Brookfield Place, 181 Bay Street, Suite 2100 Toronto, Ontario M5J 2T3 Tel.: +416 863 1221 Managing the different facets of a business while integrating Corporate Social Responsibility can be complex. Public opinion and ever-increasing regulation require not only socially responsible behaviour, but also greater disclosure of corporate performance. This heightened awareness of ethical, human rights, labour standards and environmental issues is driving the modern businessworld, demanding that corporations consider how their operations affect various stakeholders. The right guidance is key to protecting you and your company Baker & McKenzie is uniquely positioned. We provide advice on the latest national and international developments which comprise CSR, as a result of our presence in 38 countries and our experiences with diverse cultures and markets. Our cross disciplinary knowledge of international labour standards, corporate governance, environmental, employment and consumer issues allows us to navigate through complex compliance requirements and stakeholder interests. www.bakernet.com Baker & McKenzie LLP, an Ontario limited liability partnership, is a member of Baker & McKenzie International, a Swiss Verein. C ANADIAN Lawyer INHOUSE F E B R U A R Y 2 0 0 8 23