European perspectives on global health: a policy glossary

4. Europe must establish
a societal dialogue
for global health
Corporate responsibility for
health
Corporate responsibility is the obligation
of a business to be accountable to all of
its stakeholders, including shareholders,
employees, communities in which businesses
operate, suppliers and customers for the
sustainability of its operations and activities
not only in financial terms but also in relation
to its social, health and environmental impacts.
Some elements of corporate responsibilities are
underpinned by legislation and regulations, for
example : those concerning obligations to pay taxes,
account for financial performance, and protect the
health and safety of employees and consumers.
Other aspects of corporate responsibility, referred
to as corporate social responsibility, may be seen as
voluntary actions which exceed minimum standards
of behaviour and may be monitored against standards
of good practice. These depend upon the value
that company boards and employees, shareholders,
customers and other stakeholders ascribe to good
practice and the extent to which they are aware of
these actions and impacts of the business.
The importance of ensuring that Transnational
Corporations ( TNCs ) are socially and environmentally
responsible was recognised in the tripartite
declaration on multinational enterprises and
social policy adopted by the International Labour
Organization ( ILO ) in 1977. In 1999 Kofi Annan
called on TNCs to commit to a global compact for
responsible globality and similar themes were evident
in the United Nations Conference on Trade and
Development ( UNCTAD )’s World Investment Report
of 2003 and the UN Sub-Commission on Human
Global Health Policy Glossary
Rights of the same year. In 2005 the UN Secretary-
General named a special representative on human
rights and trans-national corporations to “identify
and clarify standards of corporate responsibility and
accountability for trans-national corporations.” The
United Nations has come to realise that the corporate
responsibility agenda is bound to fail if it is not
embedded in a framework of binding rules.
In 2001 the Commission of the <strong>European</strong> Union
Green Paper on this topic defined corporate social
responsibility as “a concept whereby companies
integrate social and environmental concerns in their
business operations and in their interaction with their
stakeholders on a voluntary basis”. The paper went
on to stress the principle of voluntarism in corporate
social responsibility, but argued that it was important
for long term shareholder value and sustainability.
Support for voluntary action to take responsibility
for health may be backed by labelling – it has been
proposed that the EU should establish a mark for
goods produced under acceptable conditions. It is also
important to gain public recognition for those TNCs
that meet guidelines for social responsibility, including
health impacts. The Nuffield Trust has proposed a
“Global Health Award” as an encouragement to those
demonstrating best practice in this field. It is equally
important to identify those TNCs which do not meet
acceptable standards in order to inform and organise
consumer action.
However, the responsibility of TNCs for health is wider
than simply compliance with voluntary codes such
as the Organisation for Economic Cooperation and
Development ( OECD ) guidelines for TNCs. Adherence
to international conventions and national regulations
on health and safety at work, environmental
standards and consumer protection must be backed
by international and local enforcement action to
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