Vive la France! French multinationals and human rights

Human Rights Quarterly

Volumn 27, Issue 4, 2005, Pages 1307-1345

  Colonomos, Ariel ^a,b   Santiso, Javier ^c,d  

^a UNIVERSITÉ PARIS DAUPHINE   (France)

^b UNIVERSITÉ PARIS OUEST NANTERRE LA DÉFENSE   (France)

^c SCIENCES PO   (France)

^d HEC PARIS   (France)

Author keywords

[No Author keywords available]

Indexed keywords

CORPORATE STRATEGY; HUMAN RIGHTS; MULTINATIONAL ENTERPRISE;

EURASIA; EUROPE; FRANCE; WESTERN EUROPE;

EID: 27844472118     PISSN: 02750392     EISSN: None     Source Type: Journal    
DOI: 10.1353/hrq.2005.0047     Document Type: Article

References (76)

1. While there are many general publications promoting the idea of corporate responsibility, sociological and economic interpretations based on empirical studies of the phenomenon are much rarer. See Kimberley Ann Elliott & Richard Freeman, White Hats or Don Quixotes? Human Rights Vigilantes in the Global Economy (Nat'l Bureau of Econ. Research, Working Paper No. 8102, Jan. 2001).
2. Deborah Spar, The Spotlight and the Bottom Line: How Multinationals Export Human Rights, 77 For. Aff. 7 (1998).
3. Martha Finnemore & Kathryn Sikkink, International Norm Dynamics and Political Change, 52 Intl'l Org. 897 (1998).
4. A common inspiration, more or less implicit, informs thinking on these questions: Howard Becker, Outsiders: Studies in the Sociology of Deviance (1963). For a study on the international impact of these activists,
5. see Kathryn Sikkink & Margareth Keck, Activists Beyond Borders: Advocacy Networks in International Politics (1998).
6. Many studies are devoted to the role of norms and international norm building. Audie Klotz, Norms in International Relations: The Struggle against Apartheid (1995);
7. Richard Price, A Genealogy of the Chemical Weapons Taboo, 49 Int'l Org. 73 (1995).
8. A more recent study seeks to understand the development and the imposition of certain normative ideas, notably regarding violence. Ward Thomas, Another Tool against Terror: Revisiting the Ban on Assassination, Boston Globe, 28 Oct. 2001, at D1.
9. Few works examine this aspect of the construction of international social reality. Robert O'Brien, Anne Marie Goetz, Jan Aart Scholte, & Marc Williams, Contesting Global Governance: Multilateral Economic Institutions and Global Social Movements (2000).
10. During the 1970s, Milton Friedman took an unequivocal position in this debate, rejecting the basic premises of corporate responsibility. Milton Friedman, The Social Responsibility of Business is to Increase its Profits, N.Y. Times Mag., 13 Sept. 1970, at 122-26.
11. In 1997, a civil suit - Doe v. Unocal - was brought in the US District Court for the Central District of California for damages and injunctive relief against UNOCAL, Total, and the State Law and Order Restoration Council (SLORC), the ruling military junta in Burma.
12. See Doe I v. Unocal Corp., 963 F. Supp. 880 (C.D. Cal. 1997);
13. Nat'l Coalition Gov't of the Union of Burma v. Unocal, Inc., 176 F.R.D. 329 (C.D. Cal. 1997).
14. Ariel Colonomos, L'exigence croissante de justice sans frontières le cas de la demande de restitution des biens juifs spoliés (Les Études du CERI, Working Paper, July 2001).
15. Interview with Georg Kell, Executive Director of the Global Compact Division, United Nations, in New York (Oct. 2001);
16. Interview with Michael Doyle, Adviser to the Secretary General, United Nations, in New York (Jan. 2002).
17. Glen Peters & Georges Enderle, A Strange Affair: The Emerging Relationship Between NGOS and Transnational Companies (1998).
18. Interview with Soeur Nicole Reille, President of the Ethique et Investissement Association, in Paris (July 2001).
19. Ariel Colonomos, Églises en Réseaux-Trajectoires politiques entre Europe et Amérique (2000).
20. See Meeschaert Gestion Privée, available at www.meeschaert.com/ laune/home.jsp.
21. Interview with Bernard Mazarschi, Managing Director, Comité Catholique Contre La Faim et Pour Le Développement (CCFD), in Paris (July 2001).
22. See generally CCFD, available at www.ccfd.asso.fr/.
23. On the development of ethical funds in France and Europe, see Javier Santiso, Les marchés de la vertu: la promesse des fonds éthiques et des micro-crédits, Ceri Research in Question, Feb. 2003, available at http://www.ceri-sciencespo.com/publica/question/ qdr8.pdf. At the end of 2001, France had about thirty ethical funds and was thus beginning to catch up to the European champions of ethical investment, the United Kingdom (fifty-four funds) and Sweden (forty-two); the United States had 175.
24. The Power of Human Rights: International Norms and Domestic Change (Thomas Risse, Stephen Ropp, & Kathryn Sikkink eds., 1999).
25. UN Conference on Trade and Development, World Iinvestment Report 2000, available at www.unctad.org/en/docs/wir00ove.en.pdf;
26. UN Conference on Trade and Developemnt, World Investment Report 2001, available at www.unctad.org/en/docs/wir01ove.en.pdf.
27. Michael Gestrin, Rory Knight, & Alan Rugman, The Templeton Global Performance Index, Economic and Social Research Council (Apr. 2000), available at www. templeton.ox.ac.uk/pubinfo.asp?PubID=309.
28. Rob Van Tulder, Douglas Van Den Berghe, & Allan Muller, Erasmus Scorecard of Core Companies: The World's Largest Firms and Internationalization 65 (2001).
29. Lucie Chaumeton & Kevin Coldiron, Global Companies - A New Asset Class? (Equity Research Group, Barclays Global Investors, Working Paper, 1999).
30. François Benaroya & Edouard Bourcieu, Mondialisation des Grands Groupes: de Nouveaux Indicateurs, Economie & Statisque, No. 363-364-365 (2003), at 145-65, available at www.insee.fr/fr/ffc/docs_ffc/ es363-364-365h.pdf.
31. See also, François Benaroya & Edouard Bourcieu, Les Grands Groupes Français face la Mondialisation, Bleues de Bercy No. 196-97 (Dec. 2000), at 1-12.
32. There is a considerable body of work that analyzes the work of experts in international relations and designates their function by the name "epistemic community." Peter Haas, Introduction: Epistemic Communities and International Policy Coordination, 46 Int'l Org. 1 (1992). Contrary to this approach, the authors' analysis shows the diversity of values within one profession, the formation of coalitions and the competition among different areas of expertise. Their examination of experts shows that these knowledge coalitions have a role to play in altering belief structures. Experts have a normative function, and their science is not neutral.
33. The Power of Human Rights, supra note 16.
34. Javier Santiso, Diffusion of Ideas and International Relations, in The New International Relations: Theory and Practice 126 (Marie Claude Smouts ed., 2001).
35. Interview with Sarj Nahal, Financial Analyst, Arèse, in Paris (July 2001). See generally Arèse, Corporate Social Responsibility Ratings, available at www.arese-sa.com.
36. Part of FTSE4GOOD's profits are donated to UNICEF. Interview with Marc Russell-Jones, Director, FTSE France, in Paris (May 2001).
37. See generally FTSE Group: The Index Company, available at www.ftse4good.com.
38. See Dow Jones Sustainability Index, available at www.sustainability-indexes.com. This index, launched in 1999 but reformulated in 2001, is essentially made up of firms from OECD member states. In October 2001, the breakdown of firms in the Dow Jones Sustainability Group Index was as follows: 52 percent European, 40 percent US, and 8 percent from the Asia-Pacific region. As of October 2001, thirty licenses to use this index had been subscribed to by European managers. French firms made up 12 percent of this global index.
39. See Dow Jones Sustainability Index, Monthly Update, October 2001, available at www.sustainability-indexes.com/djsi_pdf/news/MonthlyUpdates/ DJSI_Update_200110.pdf. This firm produces a great deal of research on ethical themes of relevance to the firms analyzed.
40. See, e.g., SAM (Sustainable Asset Management), Changing Climate in the Energy Sector - A New Wave of Sustainable Investment Opportunities Emerges (2002), available at www.sam-group.com/downloads/studies/ Energy_Studie_e.pdf.
41. The CDC has a subsidiary, CDC Ixis, present in twenty-one countries. Most of its personnel, 36 percent of a total of 5000 employees, are based in the US. See generally CDC-IXIS, available at www.cdcixis.com.
42. Interview with Priscilla Crubezy, Senior Manager, CDC, in Paris (July 2001). The fund is managed by the asset management subsidiary, CDC Ixis Asset Management, available at www.cdcixis-am.fr.English version available at portailixis-am.com/Portal/home.jsp.
43. Interview with Jean-Pierre Sicard, Novethic, in Paris (Nov. 2001). See generally Novethic.fr, available at www.novethic.fr.
44. United Nations Joint Staff Pension Fund, available at www.unjspf.org/eng/ org-secretariat.html.
45. Interview with Jacques-Noël Leclerc, Amnesty Enterprises, in Paris (July 2001).
46. See also Amnesty International Section Française, available at www.amnesty.asso.fr/. The British branch of Amnesty International has also undertaken a program concerning business and human rights, supported by major media campaigns and the development of a global map of British firms and their presence in controversial countries. See the detailed overview of human rights violations conducted globally on Amnesty International UK's website, available at www.amnesty.org.uk/ images/business/newmap.gif.
47. Interview with Morton Winston, Chair, Business and Economic Relations Group of Amnesty International USA, Princeton, N.J. (Oct. 2001).
48. See Morton Winston, NGO Strategies for Promoting Global Corporate Social Responsibility: The Case of Amnesty International, 16 Ethics & Int'l Aff. 71 (2002);
49. Ann Marie Clark, Diplomacy of Conscience: Amnesty International and Changing Human Rights Norms (2001).
50. Interview with Michel Le Net, Director, Cercle d'Éthique des Affaires, in Paris (July 2001).
51. Muriel Coeurdray, La Production de l'offere déontologique et ses enjeux: analyse sociologique (2000) (PricewaterhouseCoopers Report, contract collaboration with PWC-EHESS).
52. Interview with Sylvain Lambert, Manager, PricewaterhouseCoopers, in Paris (July 2001).
53. FTSE4GOOD, a "socially responsible" index, selects the firms to be included by "screening" them on several criteria. Firms operating in certain sectors, such as nuclear energy, the arms industry, or tobacco products, are automatically excluded. The firms that are retained are then graded according to three other criteria: the environment, human rights, and stakeholder relations. Most French firms are excluded on the basis of this last criterion (twenty-one firms), next on environmental grounds (nineteen firms), and finally for human rights reasons (ten firms). See The Power of Human Rights, supra note 16;
54. Santiso, Diffusion of Ideas and International Relations, supra note 23.
55. Arèse Sustainable Performance Eurozone Index (ASPI) (which since its creation in June 2001 has focused on social and environmental criteria, but which will be extended to look at human rights questions) contains, for its part, a large number of French firms (around 40 percent, or nearly 35 percent of the total). It only covers continental Europe, thus UK firms are not included. Interviews with Geneviève Ferone, Chairman of Arèse, ASPI;
56. Scott Stark, Managing Director of Dow Jones Stoxx Indices;
57. Didier Davydoff, Chairman IEM Actuaria, ASPI, in Paris (June 2001). See generally ASPI, available at www.arese-sa.com/site.php?rub=4&lang=fr.
58. There is only a partial overlap between the Dow Jones and FTSE ethical indexes. See FTSE: The Index Company, available at www.ftse4good.com;
59. see also Dow Jones Sustainability indexes, available at www.sustainability-indexes.com. The French firms in the Dow Jones ethical index include Michelin, Société Générale, Saint Gobain, Lafarge, Aventis, AGF, TF1, L'Oréal, ST Microelectronics, and Atos Origin, only four of which also figure in FTSE4GOOD.
60. Similarly, the number of French firms that are members of international bodies such as the World Business Council for Sustainable Development is limited to half a dozen (Aventis, Lafarge, L'Oreal, Michelin, ST Microelectronics, and Le Groupe Suez), available at www.wbcsd.ch.
61. Benaroya & Bourcieu, supra note 21.
62. See Transparency International, Transparency International Bribe Payers Index 2002, available at www.transparency.org/cpi/2002/bpi2OO2.en.html.
63. See id.
64. Le Risque Éthique Suivant, Le Nouvel Économiste, 29 June 2001, at 38-40.
65. Moses L. Pava & Joshua Krausz, Corporate Responsibility and Financial Performance: The Paradox of Social Cost (1995).
66. See Peters & Enderle, supra note 10, for discussion of the conversion of NGOs to cooperating with transnational corporations.
67. Interview with Antoine Bernard, Director, Federation International of Human Rights (FIDH) France, in Paris (Mar. 2001).
68. See generally FIDH, Exemple D'Une Coopération ONG/Entreprise: la FIDH et Carrefour (FIDH Internal Report, May 2001), available at www.fidh.org/ecosoc/rapport/2001/fr/carr1405f.PDF.
69. Interviews with Isabelle Chebat, Manager Development-Communication Department, FIDH, in Paris (May 2001);
70. Anne-Christine Habbard, General Secretary, FIDH, in Paris (June 2001);
71. Marie Guiraud, Globalization-Investigation Department, FIDH, in Paris (July 2001).
72. John Stuart Mill, Utilitarianism 23-24 (1910). [U]tilitarian moralists have gone beyond almost all others in affirming that the motive has nothing to do with the morality of the action, though much with the worth of the agent. He who saves a fellow creature from drowning does what is morally right, whether his motive be duty, or the hope of being paid for his trouble.
73. Ariel Colonomos, La modernité d'un archaïsme: l'embargo cubain au défi des critiques adressées à la loi Helms-Burton (Les Études du CERI, Working Paper No. 63, Mar. 2000).
74. Regarding the activism of investment funds and NGOs concerning firms investing in Burma (Myanmar), see the very complete report on the question prepared by the association Terra Nova Conseil, SRI In Progress No. 4, available at www.terra-nova.fr/SRI-in-progress-Archives.htm. The case of French oil firms was the subject of a French Parliamentary Report in 1999: Marie-Hélène Aubert, Pierre Brana, & Roland Blum, Rapport d'information sur le rôle des compagnies pétrolières dans la politique internationale et son impact social et environnemental, Paris, Assemblée Nationale, Rapport d'Information No. 1859 (Oct. 1999), available at www.assemblee-nationale.fr/rap-info/i1859-01.asp.
75. Béatrice Pouligny & Javier Santiso, Entre Éthiques et Économie: enjeux, normes et Acteurs, Report of the Int'l Conference (French Foreign Affairs Ministry & CERI-Sciences Po, Dec. 2001), available at www.ceri-sciences-po.org/archive/april02/ artbpjs.pdf. For the French Ministry of Finance and Economics, see in particular Secrétariat d'Etat au Commerce Extérieur, Echanges et éthique, Paris, DREE Dossiers Les enjeux économiques internationaux, (Secrétariat d'Etat au Commerce Extérieur, Feb. 2002), available at www.commerce-exterieur.gouv.fr/publications1/pdf/ethik.pdf.
76. By "self-subversion" the authors are referring to Hirschman's recommended self-subversion exercises, which consist of refuting one's own generalizations: "skepticism toward other people's claims to spectacular theoretical discoveries is, of course, not a particularly noteworthy trait. It is however more unusual to develop this sort of reaction to one's own generalizations or theoretical constructs." Albert Hirschman, A Propensity to Self-Subversion 85 (1995).