20 July 2001
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Labour standards and
social responsibility: EU Commission published a Communication and a Green Paper The European Commission calls for global application of core labour standards. The international labour standards should be strengthened and used more effectively. The International Labour Organisation ILO continues to play the central role in promoting the respect for core labour standards. The Commission proposes to create a high-level international dialogue, with the participation of international organisations -the ILO and the World Trade Organisation, as well as development organisations such as United Nations Conference on Trade and Development (UNCTAD), the World Bank and the United Nations Development Programme (UNDP). This international dialogue would help identify best practices and policies that will further the contribution of trade to social development world-wide. The EU strategy foresees the use of a wide range of policy instruments. Core labour standards will be integrated into the European Union's development policy. Assistance projects will play an important role in helping developing countries to apply these standards. Core labour
standards The Commission communication suggests that core labour standards should have their place in bilateral agreements between Europe and third countries. The Generalised System of Preferences (GSP) of the EU gives preferential market access to developing countries. Additional preferences are given to countries under the social incentive scheme, provided they apply core labour standards. The Commission suggests improving this social incentive scheme to make it more attractive to developing countries. The European Commissioners Pascal Lamy (Trade) and Anna Diamantopoulou (Employment) commented together on the new Communication: "Citizens feel there is a need for an equitable global economic system which promotes social development and fundamental rights and that our current governance model does not adequately address this. Global market governance has developed more quickly than global social governance. We should rebalance the system to help promote social development and ensure that globalisation benefits all people and all countries." In
Europe, In a Green Paper, which the European Commission published on the same day as the Communication, companies are urged to show social responsibility. The Commission makes reference to the "recent high-profile announcements of large-scale redundancies", clearly thinking about Marks & Spencer and Danone and wants to improve the information and consultation of workers. Commissioners Erkki Liikanen (Enterprise) and Anna Diamantopoulou stress that social responsibility and economic success can go hand in hand: "More and more firms are realising the link between profitability and best ethical and environmental practice. Conscientious firms not only attract and retain the best workers, they can also get ahead in the technology game, vital for that all-important competitive edge." The Green Paper calls for a commitment to lifelong learning, health and safety, a better balance between work, family and leisure, greater workforce diversity, gender-blind pay and career prospects, profit-sharing and share ownership schemes. These practices can have a direct impact on profits through increased productivity, lower staff turnover, greater amenability to change, more innovation, and better, more reliable output, the Commission paper says. Corporate social responsibility is a main issue for the European social dialogue for commerce. The social partners, EuroCommerce and Uni-Europa Commerce have agreed to work out a joint statement on the Green Paper. They are also preparing a Conference on corporate social responsibility, to be held next year. The EU Commission page on corporate social responsibility EU strategy to promote core labour standards and social governance globally
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