Corporate Social Responsibility, Human Rights, and the World Trade Organization

Abstract

The notion of 'corporate social responsibility' (CSR) has become a recurrent theme for businesses, governments, and international organizations. Under the banner of CSR, most major corporations have endorsed principles to ensure that their operations, as well as those of suppliers and subcontractors along the supply chain, are respectful of human rights standards. Yet, CSR initiatives, while pursuing laudable objectives, may create restrictions on international trade. This occurs where producers in exporting countries are compelled to adjust their business operations to meet CSR substantive and reporting requirements as a precondition for securing contracts or maintaining existing commercial relations. This article explores whether the World Trade Organization (WTO) should participate in the elaboration of disciplines in relation to the trade-restrictive effects of CSR schemes adopted by private entities. It is submitted that under Articles 2 and 3 of the TBT Agreement there may be room to consider that WTO Members are responsible for the observance of Article 2 in respect of at least certain CSR codes of conduct. This analysis concludes that although the WTO is not best equipped to address CSR measures, it should actively engage with other international organizations in the development of CSR disciplines in order to ensure that the rights and obligations of WTO Members are not affected by the proliferation of CSR codes of conduct. The Author 2013. Published by Oxford University Press. All rights reserved., Oxford University Press.