Issue Paper: Codes of Conduct

Sufficient Sustainable Livelihood for All: Codes of Conduct
Issue Paper #9

Background
The ELCA social statement “Sufficient, Sustainable Livelihood for All” (1999) [1] is a benchmark for our role as Christians in economic life. Because of sin, we have fallen short of our responsibilities to each other in this world, but we live in light of God’s promised future that ultimately there will be no hunger and injustice. This promise makes us restless with a world that is less than what God intends. In economic matters, this draws attention to:

• The scope of God’s concern: “for all”;

• The means by which life is sustained: “livelihood”;

• What is needed: “sufficiency”; and

• Long-term perspective: “sustainability” (pg. 3).

“The vantage point of the kingdom of God motivates us to focus on more than short-term gains. Humans, called to be stewards of God’s creation, are to respect the integrity and limits of the earth and its resources” (pg. 14). We are challenged to pursue policies and practices supporting sustainability. The multitudes around God’s global table are recognized as neighbors rather than competitors or strangers (pg. 17).

Over the last few decades, many governments and organizations have been attempting to codify standards of corporate behavior in order to assure just and sustainable development. The United Nations Sub-Commission on the Promotion and Protection of Human Rights has developed “Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights.” [2] These norms recognize that governments have primary responsibility in this area, but also recognize that business enterprises are responsible for promoting and securing the human rights set forth in the Universal Declaration of Human Rights. [3]

The faith community measures a corporation not only by what it produces, but also by its impact on human lives, communities, and the environment. Corporations work within the global reality with which they are confronted today. There are political and economic influences as well as the impacts of militarism and technology. [4] A corporation’s view of how it conducts its business, promotes justice, and works to create a fair and sustainable world is significantly affected by these realities.

ELCA Social Policy
The ELCA social statement “Sufficient, Sustainable Livelihood for All” (1999) develops this church’s vision of sufficiency and sustainability focusing on the economic life of all people, with an emphasis on those who are poor and disenfranchised. In particular, it calls for companies to pay more fully the wider social and environmental costs of what they produce (pg. 15). ELCA social policy includes numerous Church Council actions supporting those who are poor and disenfranchised.

Corporate Response
In recent years the call for companies to implement fair policies, adopt vendor and supplier codes of conduct, and assure fair treatment of workers on a global basis has moved the corporate world to think beyond general human resource policies. Corporate ethics have moved from a focus on individual plants and workers to a global code covering world-wide operations and considering the company’s effect on communities, workers, and the environment.

It is both fiscally and ethically reasonable to ask companies to develop this broader policy approach. Verified public reporting grounded in transparent disclosure is a preferred basis for corporate responsibility.

Shareholder Work History
For over 30 years, the community of faith-based shareholders (mainly through the Interfaith Center on Corporate Responsibility) has been urging companies to develop both international and domestic policies concerning a company’s conduct. The ELCA Church Council has consistently endorsed and filed resolutions with respect to various aspects of corporate codes of conduct.

Resolution Guidelines for the ELCA

• We support the adoption of company codes of conduct.

• We support the preparation of standards and related codes of conduct for vendors and suppliers.

• We support reporting to shareholders about international operations.

• We support buying policies and purchase contracts reflecting the International Labor Organization’s standards. [5]

• We support implementation of independent monitoring processes for both the company and its vendors and suppliers.

• We support policies and reports that ensure a company does not use child labor.

• We support development of corporate responsibility committees at a board and staff level.

• We support development of policies to ensure environment and health and safety standards as well as basic workers’ rights standards.

• We support review by boards of ways to link executive compensation with a company’s ethical and social performance in addition to current performance measurements.

• We support policies ensuring that a company does not use forced labor, including prison, indentured, or bonded labor.

• We support regular assessment reports to the board of directors and shareholders on any of the above items.

[1] Evangelical Lutheran Church in America. Sufficient, Sustainable Livelihood for All. Minneapolis, MN: Augsburg Fortress Publishers, 1999. http://www.elca.org/dcs/economiclife.html

[2] United Nations Commission on Human Rights. Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights. Geneva, Switzerland: Office of the United Nations High Commissioner for Human Rights, 2003. http://www.unhchr.ch/Huridocda/Huridoca.nsf/TestFrame/
64155e7e8141b38cc1256d63002c55e8?Opendocument

[3] United Nations General Assembly. I. General Assembly, 1948. http://www.un.org/Overview/rights.html

[4] The Steering Group of the Global Principles Network. Principles for Global Corporate Responsibility: Bench Marks for Measuring Business Performance. New York, NY: Interfaith Center on Corporate Responsibility, 2003. http://www.bench-marks.org

[5] International Labour Organization. International Labour Organization Conventions. ILO’s Governing Body, 1930-1999.