Corporate Social Responsibility (CSR) involves taking responsibility for the impact your business has on the environment, society, and employees while still pursuing economic success.

By striking the right balance between People, Planet, and Profit, businesses can address social issues such as internationally recognized basic working conditions, supply chain responsibility, and corruption. Effective CSR can lead to benefits like increased innovation capacity, loyalty, and an enhanced reputation.

The OECD Guidelines for Multinational Enterprises serve as CSR standards for internationally active entrepreneurs. The Dutch government highly values these standards, which have been developed in collaboration with 45 other countries. The guidelines cover several key themes, including:

• Transparency and reporting
• Human rights
• Working conditions
• Environment

Working Conditions

As an employer, it’s essential to provide good working conditions for your employees. There are many reasons to do so: motivated employees, reduced sickness, fewer incapacitated employees, lower staff turnover, a better reputation, and more efficient production. But what do ‘good working conditions’ entail, and what aspects should you consider?

Good Working Conditions

To ensure good working conditions, consider the following aspects:

• An acceptable level of pay
• No violence at work
• Employee training
• Healthcare
• Freedom of association
• Collaboration with employee organizations
• Respect for the religion and culture of employees
• Contributions to or provision of food and accommodation
• Provision of education for employees’ children
• No discrimination
• No child labor, forced labor, or compulsory labor
• Attention to employee health and safety at work
• Hiring and training local staff, where possible
• Establishing open communication with employees, particularly during significant changes
• No threats or pressure on staff

Supply Chain Responsibility

CSR extends beyond your business. Suppliers, subcontractors, and vendors involved in the production chain should also adhere to CSR principles. In emerging markets, it can be challenging to determine how each link in your supply chain operates. For instance, many small family-run businesses are part of the informal sector, where transparency is often lacking. This makes it difficult to guarantee that all products are manufactured responsibly.

Several instruments can help ensure the responsibility of your supply chain. Due diligence involves identifying and reporting the impact of your business activities on:

• The environment
• Corruption
• Working conditions

While many large organizations have systems to monitor suppliers, smaller businesses often lack the time and resources for this purpose. Fortunately, several initiatives can help smaller businesses gain insight into their suppliers.

European Monitoring System

One such initiative is the European Business Social Compliance Initiative (BSCI). BSCI provides a system for monitoring working conditions, aiming to improve global labor conditions. The BSCI system encourages suppliers to comply with International Labour Organization standards, among other things.